TDS Rate Chart for FY 2023-24 (AY 2024-25)
Dear reader, in this post we are going to discuss the TDS Rate Chart applicable for the Financial Year 2023-24 & A.Y 2024-25.
But, before we discuss the TDS Rate Chart, we should know – What is TDS?, Who is responsible for deducting TDS, What are the specified payments on which TDS to be deducted?
Tax Deducted at Source (TDS) rates can vary depending on the nature of the payment and the status of the payee. TDS is deducted by the person making the payment, and the rates are specified by the Income Tax Authority.
What is TDS?
TDS stands for Tax deducted at source. TDS is required to be deducted while making specified payments prescribed under Income tax law. Thus, Any person who is making payment to any person or company is required to deduct TDS.
TDS is deducted at a prescribed rate on specified payments within the threshold limit under the Income Tax Act, of 1961.
TDS involves two parties:
- Deductor / Payer (person making the payment after deducting TDS) and
- Deductee / Payee (person receiving the payment).
Who is Responsible for deducting the TDS?
It is the deductor’s responsibility to deduct the TDS after the payment of such amount in which he/she is involved.
TDS is applicable on:
- Resident
- Non-resident
- Domestic company
- Other than above
Here is the table showing the TDS rate list applicable to residents, and domestic companies, other than domestic companies.
TDS Rate Applicable for Resident Individual/HUF
|
Sections | Particulars | TDS Rate | |
| 192 | Payment of salary | Normal Slab Rate | |
| 193 | Interest on securities a. Debentures/securities for money issued by a govt. authority b. Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956 c. Any security of the Central/State Government. d. Interest on any other security. | 10% | |
| 194 | Dividend Income (except dividend income u/s 115-O) | 10% | |
| 194A | Interest income other than Interest on securities | 10% | |
| 194B | Income from winnings (lotteries, puzzles, card games etc.) | 30% | |
| 194BB | Income from winnings(Race of horses) | 30% | |
| 194C | Payment to Contractors/Sub-contractors | ||
| Individual/HUF | 2% | ||
| Others | 2% | ||
| 194D | Insurance commission (w.e.f. 01-6-2016) | 5% | |
| 194D | Insurance commission (w.e.f. 01-4-2015 to 31-5-2016) | 10% | |
| 194DA | Payment in respect of LIC (life insurance policy)(w.e.f. 01-6-2016) | 1% | |
| 194DA | Payment in respect of LIC (life insurance policy)(01-4-2015 to 31-5-2016) | 2% | |
| 194EE | Payment of Deposit under National saving scheme | Payment on transfer of immovable property (except for agricultural land) | |
| 194F | Payment on account of repurchase of a unit by UTI/ Mutual fund | 20% | |
| 194G | Percentage commission on the sale of lottery tickets | 5% | |
| 194H | Brokerage/Commission | 5% | |
| 194I | Rent on (a)Plant and machinery (b) Land or building or furniture or fitting (TDS is deducted if rent payment exceeds Rs 240000 p.a.) | a) 2% b) 10% | |
| 194-IA | Payment on transfer of immovable property (except for agriculture land) | 1% | |
| 194-IB | Other Rental Payments paid by HUF/individual not covered u/s 194I (w.e.f. 01-6-2016) If Rent exceeds Rs. 50000/- per month | 5% | |
| 194J | -TDS on Payment of Professional or Technical Fees -Remuneration or fee or commission to a director of a company (other than liable to TDS u/s 192) –Royalty | Professional Fees – 10% Technical Fees- 2% | |
| 194LA | Payment of compensation on acquisition of certain immovable property | 10% | |
| 194LBA | Certain income distributed by a Business Trust to its Unit holder | 10% | |
| Any other not specified above | 10% |
TDS Rate Applicable for Domestic Company
| Sections | Particulars | TDS Rate | |
| 192 | Payment of salary | Not Applicable | |
| 193 | Interest on securities a. Debentures/securities for money issued by a govt. authority b. Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956c. Any security of the Central/State Government.d. Interest on any other security. |
10% | |
| 194 | Dividend Income | 10% | |
| 194A | Interest income other than Interest on securities | 10% | |
| 194B | Income from winnings (lotteries, puzzles, card games etc.) | 30% | |
| 194BB | Income from winnings(Race of horses) | 30% | |
| 194C | Payment to Contractors/Sub-contractors | HUF/Individuals–1% | |
| 194C | Others | Others-2% | |
| 194D | Insurance commission | 10% | |
| 194DA |
Payment in respect of LIC (w.e.f. 01-6-2016) | 1% | |
| 194DA | Payment in respect of LIC (life insurance policy)(01-4-2015 to 31-5-2016) | 2% | |
| 194EE | Payment of Deposit under National saving scheme | 10% (from 01-6-2016)(20% from 01-4-2015 to 31-05-2016) | |
| 194F | Payment on account of repurchase of a unit by UTI/ Mutual fund | 20% | |
| 194G | Payment on transfer of immovable property (except for agricultural land) | 10% | |
| 194H | Brokerage/Commission (w.e.f. 01-6-2016) | 5% | |
| 194H | Brokerage/Commission (01-4-2015 to 31-5-2016) | 10% | |
| 194I | a. Rent on Plant and machinery b. Land or building or furniture or fitting (Threshold limit: if rent exceeds Rs 240000 p.a.) | a. 2% b. 10% | |
| 194-IA | Payment on transfer of immovable property (except for agriculture land) | 1% | |
| 194J | Fees for Professional Services or Technical Services, Royalty. Directors’ remuneration/fee/commission.For carrying any activity other than business activity. For not sharing of any copyright, know-how, patent etc. | 10% | |
| 194LA | Payment of compensation on acquisition of certain immovable property | 10% | |
| 194LBA | Certain income distributed by a Business Trust to its Unit holder | 10% | |
| 194LBA | Any other not specified above | 10% |
TDS Rate Applicable for Company other than Domestic Company
|
Sections |
Particulars |
TDS Rate |
|
194B |
Income from winnings (lotteries, puzzles, card games etc.) |
30% |
|
194BB |
Income from winnings(Race of horses) |
30% |
|
194E | Payment of any other sum a) Income derived by long-term capital gains [referred to in 112(1)(iii)] b) Income derived by short-term capital gains referred to in Section 111A c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] d) Income derived by interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) e) Income by royalty payable by Government or an Indian concern (for any right) f) Income by royalty payable by the Government or an Indian concern other than referred to above g) Income by fees for technical services payable by government or an Indian concern or in behalf of any agreement Any other income |
20% |
|
194G | Percentage commission on the sale of lottery tickets |
5% |
|
194LB | Payment of compensation on acquisition of certain immovable property | 5% |
|
194LBA |
Certain income distributed by a Business Trust to its Unit holder |
5% |
|
194LC |
Payment of interest by an Indian Company or business trust in respect of money borrowed (foreign currency) |
5% |
|
1994LD |
Payment of interest on rupee denominated bond (of an Indian company or Govt. securities) to a foreign institutional investor |
5% |
|
195 | Payment of any other sum a) Income derived by long-term capital gains [referred to in 112(1)(iii)] b) Income derived by short-term capital gains referred to in Section 111A c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] d) Income derived by interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) e) Income by royalty payable by the Government or an Indian concern (for any right) f) Income by royalty payable by the Government or an Indian concern other than referred to above g) Income by fees for technical services payable by thegovernment or an Indian concern or in behalf of any agreement Any other income |
a. 10% b. 15% c. 20% d. 20% e. 10% f. 10% g. 10% 40% (for any other income) |
|
196B |
Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
10% |
|
196C |
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10% |
|
196D |
Income of foreign Institutional Investors from securities (except dividend or capital gain arising from such securities) |
20% |
Consult a Tax Expert
BIZINDIGO provides expert guidance related to Tax and TDS. We can help you in guiding the applicability of TDS, Payment of TDS, and filing of TDS Returns or TDS Statements as per income Tax Laws. We can also help you with TAN Registration.
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