TDS Rate Chart for FY 2023-24 [AY 2024-25]: Updated 2023

TDS Rate Chart for FY 2023-24 [AY 2024-25]

TDS Rate Chart for FY 2023-24: New TDS rate chart is published every year by Income Tax Department under Income Tax Act 1961. Before getting used to TDS rate chart, let’s explain some basic concepts of TDS.

What is TDS (Tax Deducted at Source)?

The concept of TDS (Tax Deducted at Source) is a mechanism introduced by the ‘Income Tax Department’ with an aim to collect TDS from the very source of income. It is a direct tax. ‘As per this mechanism, a person (Deductor) is responsible to make specified payments such as Salary, Commission, Professional fees, Interest on fixed deposit, Rent, etc to any other person (Deductee) and if the payable amount comes under any TDS sections, then Deductor will be liable to deduct TDS on the taxable amount and deposit the same into the account of the Central Government. 

Who is Deductor & Deductee?

Deductor: Is a person who deducts the tds.

Deductee: Is a person whose tax is deducted.

What is a TDS Certificate?

After deducting TDS, the deductor issued a TDS certificate to the deductee.

Types of TDS Certificate?

• Form-16 – TDS on Salary payment 
• Form-16A – TDS on non-salary payments 
• Form-16B – TDS on sale of property
• Form-16C – TDS on rent

What is Form 26AS?

It is a consolidated tax statement also called an annual statement. When a deductor deposits the tax collected by a deductee to the Income Tax Department, it reflects in Form 26AS. You can simply download this from the Income Tax Department’s e-filing website.

TDS Rate Chart for FY 2023-24 [AY 2024-25]

TDS RATE CHART FOR FY 2023-24
Sections	Nature of Payment	Threshold (₹)	For Individual / HUF	For Others
192	Payment made as salaries	₹ 2,50,000	Slab Rates	Slab Rates
192A	Early withdrawal of EPF (Employee Provident Fund)	₹ 50,000	10%	Budget 2023: TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous maximum marginal rate
193	Tax deduction at source on interest earned on securities	Debentures-5,000   8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018-10,000   Other securities- No limit	10%	Budget2023: Exemption of TDS on interest from listed debentures has been removed. Therefore, tax has to be deducted on interest on such specified securities.
194	Distribution of dividends	₹ 5,000	10%	10%
194A	Interest from banks or post offices on deposits	₹40,000 ₹ 50,000 (For senior citizens)	10%	10%
194A	Interest from sources other than securities	₹ 5,000	10%	10%
194B	Winnings of lotteries, puzzles, or games	Aggregate of ₹ 10,000	30%	Budget 2023 For lottery, crossword puzzles games, etc threshold limit 10,000 for TDS shall continue but shall apply to aggregate winnings during a financial year. w.e.f. 01-07-23, It is proposed to amend Section 194B to exclude online games from the purview of the section and introduced new section 194BA.
194BA	Winnings from online Games	-	30%	30%x`
194BB	Winnings of horse races	₹ 10,000	30%	30%
194C	Payments made to contractors or sub-contractors one time	₹ 30,000	1%	2%
194C	Payments made to contractors or sub-contractors on an aggregate basis	₹ 1,00,000	1%	2%
194D	Commission paid on insurance sales to domestic companies	₹ 15,000	NA	10%
194D	Commission paid on insurance sales to non-domestic companies	₹ 15,000	5%	Not Applicable
194DA	Maturity of life insurance policy	₹ 1,00,000	5%	5%
194EE	Payment received from the National Savings Scheme (NSS) by individuals	₹ 2500	10%	10%
194F	Repurchase of units by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or commission made on the sale of lottery tickets	₹ 15,000	5%	5%
194H	Commission or brokerage fees	₹ 15,000	5%	5%
194I	Rent paid for land, building, or furniture	₹ 2,40,000	10%	10%
194I	Rent paid for plant and machinery	₹ 2,40,000	2%	2%
194IA	Payment for the transfer of immovable property excluding agricultural land	₹ 50,00,000	1%	1%
194IB	Rent payment made by an individual or HUF not covered under section 194I	₹ 50,000 (per month)	5%	Not Applicable
194IC	Payments made under a Joint Development Agreement (JDA) to individuals or HUF	No Limit	10%	10%
194J	Fees paid for professional and technical services	₹ 30,000	10%	10%
194J	Royalty paid for the sale, distribution, or exhibition of cinematographic films	₹ 30,000	2%	2%
194K	Income received from units of a mutual fund, such as dividends	₹ 5,000	10%	10%
194LA	Compensation payment for acquiring certain immovable property	₹ 2,50,000	10%	10%
194LB	Interest payment on infrastructure bonds to Non-Resident Indians	Not Applicable	5%	5%
194LBA(1)	Distribution of certain income by a business trust to its unit holders	Not Applicable	10%	10%
194LD	Interest payment on rupee-denominated bonds, municipal debt security, and government securities	Not Applicable	5%	5%
194M	Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J)	₹ 50,00,000	5%	5%
194N	Cash withdrawal exceeding a specified amount from the bank, with filed ITR	₹ 1,00,00,000	2%	2%
194N	Cash withdrawal from a bank without filing ITR	₹ 20,00,000	2%	2%
194O	Amount received for the sale of products/services by e-commerce service providers through digital platforms	₹ 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	₹ 50,00,000	0.10%	0.10%
194S	TDS on the payment of crypto currencies or other virtual assets	N.A	1%	1%
206AA	TDS applicable in case of non-availability of PAN	N.A	At a higher rate than: The rate specified by the act 20% The currently applicable rate	At a higher rate than: The rate specified by the act 20% The currently applicable rate
206AB	TDS on non-filers of Income Tax Return	N.A	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate

TDS Rate Chart for FY 2023-24 PDF Download

 

Disclaimer:

The above TDS Rate Chart for FY 2023–24 is taken from the Income Tax Department website and organized just for better understanding. Do not use the information in the chart as legal advice because it is liable to change.