TDS (Tax Deducted at Source) is a type of tax introduced by the Income Tax Department of India to minimise tax evasion. It is applicable on various payments ranging from contractor payments, salary, commission and more.
The TDS rates are predecided by the Government under the Income Tax Act.
In this blog, we share the Latest TDS rate chart for the Financial Year 2024-25 and Assessment Year 2025-26 to help you calculate and pay TDS error-free.
TDS Rate Chart for FY 2024-25
| Section | Nature of Payment | Threshold Limit (Rs.) | Individual / HUF TDS Rates (%) | Others TDS Rate (%) |
| 192 | Salaries | Rs. 2,50,000 | Slab Rates | Slab Rates |
| 192A | Premature EPF withdrawal* | Rs. 50,000 | 10% | 10% |
| 193 | – TDS on interest on securities*** | Rs. 10,000 | 10% | 10% |
| 194 | Payment of dividend | Rs. 5,000 | 10% | 10% |
| 194A | Interest issued by banks or post offices on deposits | Rs. 40,000 Rs. 50,000 (For senior citizens) |
10% | 10% |
| 194A | Interest by others apart from on securities | Rs. 5,000 | 10% | 10% |
| 194B | Amounts that someone has won through lotteries, puzzles, or games | Aggregate of Rs. 10,000** | 30% | 30% |
| 194BB | Amounts that someone has won from horse races | Rs. 10,000 | 30% | 30% |
| 194C | Payments to contractor or sub-contractor – Single Payments | Rs. 30,000 | 1% | 2% |
| 194C | Payments to contractor/sub-contractor – Aggregate Payments | Rs. 1,00,000 | 1% | 2% |
| 194D | Payment of insurance commission to domestic companies | Rs. 15,000 | NA | 10% |
| 194D | Payment of insurance commission to companies other than domestic ones | Rs. 15,000 | 5% | NA |
| 194DA | Maturity of Life Insurance Policy | Rs. 1,00,000 | 5% | 5% |
| 194EE | Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme) | Rs. 2500 | 10% | 10% |
| 194F | Payment of repurchase of unit by UTI (Unit Trust of India) or any mutual fund | No Limit | 20% | 20% |
| 194G | Payments or commission on sale of lottery tickets | Rs. 15,000 | 5% | 5% |
| 194H | Commission or brokerage | Rs. 15,000 | 5% | 5% |
| 194I | Rent of land, building, or furniture | Rs. 2,40,000 | 10% | 10% |
| 194I | Rent of plant and machinery | Rs. 2,40,000 | 2% | 2% |
| 194IA | Payment for transfer of immovable property other than agricultural land | Rs. 50,00,000 | 1% | 1% |
| 194IB | Rent payment that is made by an individual or HUF not covered under payment 194I | Rs. 50,000 (per month) | 5% | NA |
| 194IC | Payment that are made under Joint Development Agreement (JDA) to Individual/HUF | No Limit | 10% | 10% |
| 194J | Fees paid for professional services | Rs. 30,000 | 10% | 10% |
| 194J | Amount paid for technical services | Rs. 30,000 | 2% | 2% |
| 194J | Amounts paid as royalty for sale/distribution/exhibition of cinematographic films | Rs. 30,000 | 2% | 2% |
| 194K | Payment of income for units of a mutual fund, for example- dividends | Rs. 5,000 | 10% | 10% |
| 194LA | Payment made for compensation for acquiring certain immovable property | Rs. 2,50,000 | 10% | 10% |
| 194LB | Payment of interest on infrastructure bonds to Non-Resident Indians | NA | 5% | 5% |
| 194LBA(1) | Certain income distributed by a business trust among its unit holder | NA | 10% | 10% |
| 194LD | Payment of interest on rupee-denominated bonds, municipal debt security, and government securities | NA | 5% | 5% |
| 194M | Amounts paid for contract, brokerage, commission or professional fee (other than 194C, 194H, 194J) | Rs. 50,00,000 | 5% | 5% |
| 194N | In case cash withdrawal over a certain amount takes place from the bank, and ITR is filed | Rs. 1,00,00,000 | 2% | 2% |
| 194N | In case cash withdrawal takes place from a bank and one does not file ITR | Rs. 20,00,000 | 2% | 2% |
| 194O | Amount paid for the sale of products/services by e-commerce service providers via their digital platform | Rs. 5,00,000 | 1% | 1% |
| 194Q | Payments made for the purchase of goods | Rs. 50,00,000 | 0.10% | 0.10% |
| 194S | TDS on the payment of any crypto or other virtual asset | NA | 1% | 1% |
| 206AA | TDS for non-availability of PAN | NA | At a rate higher of
|
20% |
| 206AB | TDS on non-filers of Income tax return | NA | Rate higher of:
|
*Applicable TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous 30%
** Essentially means there is no limit
*** From FY 2023-24, interest on debentures issued by listed companies is also included
TDS Rates Applicable for Resident of India
(Not a Company) for FY 2024-25
| Particulars | TDS |
| Section 192: Salary payment
Section 192A: Premature withdrawal from EPF |
Normal Slab Rate
10%
|
| Section 193: Interest on securities.
a) any Central or State security b) any debentures or securities for money issued by any local authority or a corporation established by a Central, State or Provincial Act; c) any debentures (listed on a recognised stock exchange) issued by a company where such debentures are ; d) interest on any other security |
10%
10% 10% 10% |
| Section 194: Payment of any dividend | 10% |
| Section 194A: Income in the form of interest (other than interest on securities). | 10% |
| Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type | 30% |
| Section 194BB: Income by way of horse race winnings | 30% |
| Section 194C: Payment to contractor/sub-contractor.
a) Individuals/HUF b) Others |
1% 2% |
| Section 194D: Insurance commission | 5% |
| Section 194DA: Payment of any sum in respect of a life insurance policy.w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out. | 5%
|
| Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | 10% |
| Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund | 20% |
| Section 194G: Payments such as commission, etc., on the sale of lottery tickets | 5%
|
| Section 194H: Commission or brokerage | 5% |
| Section 194-I: Rent on a) Plant and Machinery
b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.
|
2% 10% |
| Section 194-IA: Payment in consideration of transfer of certain immovable property other than agricultural land.
Section 194-IB: Rent payment by an individual or HUF not covered u/s. 194I Section 194-IC: Payment under Joint Development Agreements (JDA) to Individual/HUF |
1%
5% 10% |
| Section 194J: Any sum paid by way of:
(a) Fee for professional services; (b) Remuneration/fee/commission to a director; (c) For not carrying out any activity in relation to any business; (d) For not sharing any know-how, patent, copyright etc. (e) Fee for technical services, and (f) Royalty towards the sale or distribution, or exhibition of cinematographic films. (g) Fees for technical services but payee is engaged in the business of operation of call centre |
10%
10% 10% 10% 2% 2% 2% |
| Section 194K: Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company | 10% |
| Section 194LA: Payment in respect of compensation on acquisition of certain immovable property. | 10% |
| Section 194LBA(1): Certain income distributed by a business trust to its unitholder | 10% |
| Section 194LBB: Certain income paid in respect of units of an investment fund to a unitholder. | 10% |
| Section 194LBC: Income from investment in securitisation fund
(a) Individual and HUF (b) Others |
25%
30% |
| Section 194M: Certain payments by Individual/HUF (Limit- Rs 50 Lakhs) | 5% |
| Section 194N: Cash withdrawal exceeding a certain amount (limit- Rs 1 crore).
In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs- For the amount more than Rs.20 lakh but up to Rs. 1 crore, and And for the amount exceeding Rs. 1 crore |
2%
2% 5% |
| Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | 1% |
| Section 194P: Tax deduction by specified banks while making payments (pension or interest) to specified senior citizens or age 75 years or more. | Tax on total income as per rates in force |
| Section 194Q: Payments to residents for the purchase of goods if the aggregate value of goods exceeds Rs 50 lakhs.(TDS is deductible on value exceeding Rs 50 lakhs) | 0.1% |
| Any Other Income | 10% |
TDS Rate Chart for Domestic Company for FY 2024-25
| Type of Income | TDS Rate | Section |
|---|---|---|
| Salary | Slab Rates (refer to income tax slabs) | 192 |
| Premature withdrawal from EPF | 10% | 192A |
| Interest on securities (Government, Local Authority, Listed Debentures) | 10% | 193(a), (b), (c) |
| Interest on other securities | 10% | 193(d) |
| Dividend | 10% | 194 |
| Interest (other than interest on securities) | 10% | 194A |
| Lottery winnings, card games, etc. | 30% | 194B |
| Horse race winnings | 30% | 194BB |
| Payment to contractor/sub-contractor (Individuals/HUF) | 1% | 194C(a) |
| Payment to contractor/sub-contractor (Others) | 2% | 194C(b) |
| Insurance commission | 10% | 194D |
| Maturity payment of life insurance policy | 5% | 194DA |
| Payment under National Savings Scheme (NSS) | 10% | 194EE |
| Repurchase of unit by UTI or Mutual Fund | 20% | 194F |
| Commission on sale of lottery tickets | 5% | 194G |
| Commission or brokerage | 5% | 194H |
| Rent on plant and machinery | 2% | 194-I(a) |
| Rent on land/building/furniture/fitting | 10% | 194-I(b) |
| Sale of immovable property (other than agricultural land) | 1% | 194-IA |
| Payment under Joint Development Agreements (JDA) to Individual/HUF | 10% | 194-IC |
| Professional fees, director fees, royalties, etc. | 10% | 194J(a), (b), (d), (e), (f) |
| Fees for technical services (except call center) | 10% | 194J(e) |
| Fees for technical services (call center) | 2% | 194J(g) |
| Income from mutual fund units | 10% | 194K |
| Compensation on acquisition of certain immovable property | 10% | 194LA |
| Income distributed by a business trust to unitholder | 10% | 194LBA(1) |
| Income paid by investment fund to unitholder | 10% | 194LBB |
| Income from investment in securitisation fund | 10% | 194LBC |
| Certain payments by Individual/HUF (up to Rs. 50 Lakhs) | 5% | 194M |
| Cash withdrawal exceeding Rs. 1 crore (if ITR not filed for 3 years) | Variable (2% for amount exceeding Rs. 20 Lakhs but less than Rs. 1 crore, 5% for amount exceeding Rs. 1 crore) | 194N |
| Sale of goods/services through e-commerce platform | 1% | 194O |
| Purchase of goods exceeding Rs. 50 Lakhs (on amount exceeding Rs. 50 Lakhs) | 0.1% | 194Q |
| Any other income | 10% | – |
TDS Rate Chart for Non Domestic Companies for FY 2024-25
| Type of Income | TDS Rate | Section |
|---|---|---|
| Long-Term Capital Gains under Section 112(1)(c)(iii) | 20% | 195 |
| Long-Term Capital Gains under Section 112A | 10% | 195 |
| Short-Term Capital Gains under Section 111A | 15% | 195 |
| Any other Long-Term Capital Gains | 20% | 195 |
| Interest on Foreign Currency Loans to Government or Indian Companies | 20% | 195 |
| Royalty for Copyright or Software (Agreements after March 1, 1976) | As per DTAA or 10% (whichever is lower) | 195 |
| Royalty for Industrial Policy (Agreements after March 31, 1961 but before April 1, 1976) | 31% | 195 |
| Technical Fees for Industrial Policy (Agreements after Feb 29, 1964 but before April 1, 1976) | 31% | 195 |
| Any Other Income | As per DTAA or 40% (whichever is lower) | 195 |
| Income by way of lottery winnings, card games, crossword puzzles, and other games of any type | 30% | 194B |
| Income by way of horse race winnings | 30% | 194BB |
| Payment to non-resident sportsman, entertainer (not a citizen of India), or sports association | 20% | 194E |
| Payments such as commission on the sale of lottery tickets | 5% | 194G |
| Payment in respect of compensation on acquisition of certain immovable property | 5% | 194LB |
| Interest income or dividend income distributed by a business trust to its unitholders | 5% | 194LBA(2) |
| Rental income paid by a business trust to unitholders | 40% | 194LBA(3) |
| Payment of certain income by an investment fund to a unitholder | 40% | 194LBB |
| Income from investment in securitisation fund | 40% | 194LBC |
| Interest for loan borrowed in foreign currency by an Indian company or business trust (except for long-term bonds listed in IFSC) | 4% | 194LC |
| Interest on rupee-denominated bond to Foreign Institutional Investors or Qualified Foreign Investor | 5% | 194LD |
| Income (including LTCG) from units of an offshore fund | 10% | 196B |
| Income (including LTCG) from foreign currency bonds or GDR of an Indian company | 10% | 196C |
| Income (excluding dividend and capital gain) from Foreign Institutional Investors | 20% | 196D |
Notes:
- Double Taxation Avoidance Agreement (DTAA): This is a treaty between India and another country that may specify lower TDS rates for certain types of income.
- The TDS rates mentioned in the table are the general rates. The actual rate applicable may vary depending on the specific DTAA provisions between India and the company’s country of residence.
- These tables are for informational purposes only and should not be considered as tax advice. It’s always recommended to consult a tax professional for specific situations.
TDS Rate Chart for Non Resident Indians for FY 2024-25
| Type of Income | TDS Rate (without DTAA) | Section |
|---|---|---|
| Long-Term Capital Gains under Section 112(1)(c)(iii) | 20% | 195 |
| Long-Term Capital Gains under Section 112A | 10% | 195 |
| Short-Term Capital Gains under Section 111A | 15% | 195 |
| Any other Long-Term Capital Gains | 20% | 195 |
| Interest on Foreign Currency Loans to Government or Indian Companies | 20% | 195 |
| Royalty for Copyright or Software (Agreements after March 1, 1976) | Lower of DTAA rate or 10% | 195 |
| Royalty for Industrial Policy (Agreements after March 31, 1961 but before April 1, 1976) | 31% | 195 |
| Technical Fees for Industrial Policy (Agreements after Feb 29, 1964 but before April 1, 1976) | 31% | 195 |
| Any Other Income | Lower of DTAA rate or 40% | 195 |
| Income by way of lottery winnings, card games, crossword puzzles, and other games of any type | 30% | 194B |
| Income by way of horse race winnings | 30% | 194BB |
| Payment to non-resident sportsman, entertainer (not a citizen of India), or sports association | 20% | 194E |
| Payments such as commission on the sale of lottery tickets | 5% | 194G |
| Payment in respect of compensation on acquisition of certain immovable property | 5% | 194LB |
| Interest income or dividend income distributed by a business trust to its unitholders | 5% | 194LBA(2) |
| Rental income paid by a business trust to unitholders | 40% | 194LBA(3) |
| Payment of certain income by an investment fund to a unitholder | 40% | 194LBB |
| Income from investment in securitisation fund | 40% | 194LBC |
| Interest for loan borrowed in foreign currency by an Indian company or business trust (except for long-term bonds listed in IFSC) | 4% | 194LC |
| Interest on rupee-denominated bond to Foreign Institutional Investors or Qualified Foreign Investor | 5% | 194LD |
| Income (including LTCG) from units of an offshore fund | 10% | 196B |
| Income (including LTCG) from foreign currency bonds or GDR of an Indian company | 10% | 196C |
| Income (excluding dividend and capital gain) from Foreign Institutional Investors | 20% | 196D |
Notes:
- Double Taxation Avoidance Agreement (DTAA): This is a treaty between India and another country that may specify lower TDS rates for certain types of income. The applicable TDS rate will be the lower of the rate mentioned in the table or the rate specified in the DTAA.
- This table is for informational purposes only and should not be considered as tax advice. It’s always recommended to consult a tax professional for specific situations, especially regarding DTAAs and their implications.
Union Budget 2024 New TDS Provisions
TDS on Online Gaming – Section 194BA
From April 1, 2023, 30% TDS is to be deducted when income earned from online games is withdrawn. In this case, “online games” includes games of skill like online poker, rummy or fantasy sports; it also includes games of chance like online lotteries or roulette.
Previously, TDS was only applicable if winnings from online games exceeded Rs 10,000 in a financial year.
TDS on NRI Income from Mutual Funds – Section 196A
From April 1, 2023, NRIs can choose to pay a lower tax rate on income earned from investments in mutual funds by providing a tax residency certificate. Previously, NRIs had to pay TDS of 20% on income earned from Mutual Funds.
TDS on PF Withdrawal Without PAN – Section 192A
From April 1, 2023, employees withdrawing from their provident fund without a PAN will receive their balance after a 20% tax deduction. Previously, tax was deducted at the MMR (maximum marginal rate) which could go up to 42.74%.
TDS on Interest Earned from Securities – Section 193
From April 1, 2023, tax is to be deducted from interest earned on listed securities in materialized form like debentures. Previously, since TDS was not deducted on income from interest on securities, tax reporting was not erratic and had discrepancies.
TDS on Co-operative Society Cash Withdrawal – 194N
From April 1, 2023, cash withdrawn above Rs 3 crore by a cooperative society will be taxed at 2%. Previously, the limit was Rs 1 crore.
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FAQs
Is TDS mandatory for companies?
Yes, the deduction of tax at source (TDS) on salary is compulsory under section 192 of the Income Tax act. An employer who pays wages to his/her employee must deduct TDS from the salary if the total income exceeds a certain threshold.
What is the TDS rates for contractors?
TDS Rate for Contractors is 1% in case the payment is made to an individual or HUF and 2% for others.
What is the TDS rate on salary?
TDS rate on salary means that tax has been deducted by the employer at the time of depositing the salary into the employee's account. There are different TDS deducted based on the income slab that the employee falls into.
What to do if there is any mistake in TDS deductions?
You can inform the deductor - the employer or bank and provide them with relevant documents to support your claim. You can also correct the TDS when filing income tax returns.
What are the new TDS rules in 2024?
The 2024 budget was an interim budget. Interim budgets typically do not introduce major tax reforms or rules.
What is the 194C TDS rate in FY 2023-24?
The 194C TDS rate for FY 2023-24 depends on the type of payee: 1% for Individuals/Hindu Undivided Family (HUF)
2% for Others (companies, trusts, etc.)
What is the rate of TDS on commission?
The TDS rate on commission for FY 2023-24 is 5% under Section 194H of the Income Tax Act.
