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

  1. Specified rate as per the act
  2. 20%
  3. Rate in force
20%
206AB TDS on non-filers of Income tax return NA Rate higher of:

  1. 5%
  2. Twice the mentioned rate in provision
  3. Rate in force

*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.

Automate TDS Payments for your business

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With RazorpayX, Indian businesses can pay TDS in less than a minute and focus more on their business growth.

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Read more:

Vendor Payments

What is Procure to Pay

Accounts Payable

What is Procurement

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.

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    Raghavi Kasa
    Author Raghavi Kasa

    Raghavi likes to think that because she writes for a living, she'd be good at writing a short bio for herself. But she isn't. She is good at binging K-drama, though.

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