Download TDS Rate Chart For Financial Year 2023-24 Assessment Year 2024-25
What is TDS?
TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.
Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payments.
What is the due date for depositing the TDS to the government?
The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. For instance, TDS deducted in the month of June must be paid to the government by 7th July. However, the TDS deducted in the month of March can be deposited till 30th April.
What is the due date of filing TDS returns?
Filing TDS returns is mandatory for all the persons who have deducted TDS. TDS return is to be submitted quarterly. Different forms are prescribed for filing returns depending upon the purpose of the deduction of TDS. Various types of return forms are as follows:
1. Form 26Q – TDS on all payments except salaries
Q1 – 31st July
Q2 – 31st October
Q3 – 31st January
Q4 – 31st May
2. Form 24Q – TDS on Salary
Q1 – 31st July
Q2 – 31st October
Q3 – 31st January
Q4 – 31st May
3. Form 27Q – TDS on all payments made to non-residents except salaries
Q1 – 31st July
Q2 – 31st October
Q3 – 31st January
Q4 – 31st May
Rates of TDS applicable for Financial Year 2023-24 or Assessment Year 2024-25:
| Nature of Payment | Basic Cut off (Rs) | Individual /Company and others New Rate %) | If No Pan or Invalid PAN (Rate %) |
| 192 – Salaries | Slab Rate | Slab Rates | 30% |
| 192A- Premature withdrawal from Employee Provident Fund (Note 1) | 50,000 | Individual: 10% Company: NA | 20% |
| 193 – Interest on securities (Note 2 & 3) | 2,500 | Individual: 10% Company: 10% | 20% |
| 194 – Dividend other than the dividend as referred to in Section 115-O | 5,000 | Individual: 10% Company: 10% | 20% |
| 194A – Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks (Note 3) | 40,000 (for individual) 50000 (for Senior Citizens) | Individual: 10% | 20% |
| 194B – Winning from Lotteries | 10,000 | Individual: 30% Company: 30% | 30% |
| 194BA – Winnings from Online Gaming (Note 16) | Amount of net winnings comprised in withdrawal | Individual: 30% Company: 30% | 30% |
| 194BB – Winnings from Horse Race | 10,000 | Individual: 30% Company: 30% | 30% |
| 194C- Payment to Contractor – Single Transaction (Note 4) | 30,000 | Individual: 1% Company: 2% | 20% |
| 194C-Payment to Contractor – Aggregate During the Financial year (Note 4) | 1,00,000 | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter not covered under 44AE (Note 4) | 30,000 / 75,000 | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN | – | – | 20% |
| 194D – Insurance Commission | 15,000 | Individual: 5% Company: 5% | 20% |
| 194DA Payment in respect of life insurance policy (Note 5) | 1,00,000 | Individual: 5% Company: 5% | 20% |
| 194E – Payment to Non-Resident Sportsmen or Sports Association | – | Individual: 20% Company: 20% | 20% |
| 194EE – Payments out of deposits under National Savings Scheme | 2,500 | Individual: 10% Company: 10% | 20% |
| 194F – Repurchase Units by MFs | – | Individual: 20% Company: 20% | 20% |
| 194G – Commission – Lottery | 15,000 | Individual: 5% Company: 5% | 20% |
| 194H – Commission / Brokerage | 15,000 | Individual: 5% Company: 5% | 20% |
| 194I – Rent – Land and Building – furniture – fittings | 2,40,000 | Individual: 10% Company: 10% | 20% |
| 194I – Rent – Plant / Machinery / equipment | 2,40,000 | Individual: 2% Company: 2% | 20% |
| 194IA -Transfer of certain immovable property other than agriculture land | 50,00,000 | Individual: 1% Company: 1% | 20% |
| 194IB – Rent – Land or building or both | 50,000 per month | Individual: 5% | 20% |
| 194IC – Payment of Monetary consideration under Joint development agreement | – | Individual: 10% Company: 10% | 20% |
| 194J – Professional Fees for technical services (w.e.f. from 1.4.2020) (Note 6) | 30,000 | Individual: 2% Company: 2% | 20% |
| 194J – Professional Fees in all other cases | 30,000 | Individual: 10% Company: 10% | 20% |
| 194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company (Note 7) | – | Individual: 10% Company: 10% | 20% |
| 194LA – TDS on compensation for compulsory acquisition of immovable Property (Note 8) | 2,50,000 | Individual: 10% Company: 10% | 20% |
| 194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. (Note 9) | Individual: 10% Company: 10% | 20% | |
| 194LB – Income by way of interest from infrastructure debt fund (non-resident) | – | Individual: 5% Company: 5% | 20% |
| 194LBB – Income in respect of investment in Securitisation trust. | – | Individual: 10% Company: 30% | 30% |
| 194LBC- Income in respect of investment made in a securitisation trust | – | Individual: 25% Company: 30% | 30% |
| 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (Note 10) | – | Individual: 5% Company: 5% | 20% |
| 194LD – Interest on certain bonds and govt. Securities (Note 11) | – | Individual: 5% Company: 5% | 20% |
| 194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | 50,00,000 | Individual: 5% Company: 5% | 20% |
| 194N – Cash withdrawal in excess of Rs. 20 Lakh during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. | 20,00,000 | Individual: 2% Company: 2% | 20% |
| 194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. (Note 12) | 100,00,000 | Individual: 2% Company: 2% | 20% |
| 194N – Cash withdrawal in excess of Rs. 3 crore during the previous year from one or more account maintained by a Co operative society with a banking company, co-operative society engaged in business of banking or a post office. (Note 15) | 300,00,000 | Co-operative Society : 5% | 20% |
| 194O – Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | – | Individual: 1% Company: 1% | 20% |
| 194P- TDS by specified bank to specified senior citizen | – | Rates applicable to particular slab of income including applicable Surcharge and Health & Education Cess | |
| 194Q- Purchase of goods | 50,00,000 | 0.1% | |
| 194R- Deduction of tax on benefit of perquisite in respect of business or profession | Resident Indiviual: 20,000 | 10% | |
| 194S- Transfer of a virtual digital asset | Resident Individual & HUF: 50,000 Others: 10,000 | 1% | |
| 195- Payment of any sum to Non resident | – | – | Higher of Rate in force or Double Taxation Avoidance Act rate |
| 196B – Income from units | – | Individual: 10% Company: 10% | 20% |
| 196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) | – | Individual: 10% Company: 10% | 20% |
| 196D – Income of FIIs from securities | – | Individual: 20% Company: 20% | 20% |
Note:
- TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in Recognized Providend Fund is to be included in the total income. The second proviso to section 192A of the Act provides that any person entitled to receive any amount on which tax is deductible shall furnish his Permanent Account Number (PAN) to the person responsible for deducting such tax, failing which tax shall be deducted at the maximum marginal rate. It was observed that many low-paid employees do not have PAN and thereby TDS is being deducted at the maximum marginal rate in their cases under section 192A. Hence, it is proposed to omit the second proviso to section 192A of the Act, so that in case of failure to furnishing of PAN by the person relating to payment of accumulated balance due to him, tax will be deducted at the rate of 20% as in other non-PAN cases in accordance with section 206AA of the Act, instead of at the maximum marginal rate.
- Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.
- Section 193 of the Act provides for TDS on payment of any income to a resident by way of interest on securities. The proviso to section 193 of the Act provides exemption from TDS in respect of payment of interest on certain securities. Clause (ix) of the proviso to the aforesaid section provides that no tax is to be deducted in the case of any interest payable on any security issued by a company, where such security is in dematerialized form and is listed on a recognized stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (32 of 1956) and the rules made thereunder. It is seen that there is under reporting of interest income by the recipient due to above TDS exemption. Hence, it is proposed to omit clause (ix) of the proviso to section 193 of
the Act. This amendment will take effect from 1st April, 2023.
4. TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI. TDS is not applicable on payment to Contractor engaged in plying, hiring or leasing of goods carriages, where such contractor owns 10 or less goods carriages during the Financial Year and furnishes amend definition of “work” to include purchase of raw material from associate of the customer. The word Associate shall have the same relations as stated u/s 40A(2)(b).
5. Section 194DA is not applicable in case of amount is exempt u/s 10(10D) i.e. the Sum is received at the time of maturity of policy or Death benefit received. Form 15G/15H can be given wherever applicable.
6. Rate of TDS is 2% instead of 10% if the payee is engaged in the business of operation of call centre. TDS on Remuneration paid to Director other than Salary shall be deducted @ 10%.
7. Units of Mutual Fund have been specified under section 10(23D) of Income Tax Act, 1961. “Administrator”, “specified company” and “specified undertaking” are specified u/s 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
8. No tax will be deducted if payment is made in respect of any award or agreement which has been exempted from levy of income-tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
9. Interest payment from a SPV and Distribution of dividend by a Business Trust, to Resident unit holders shall be liable for TDS @ 10%. Whereas, in case of Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @ 5%.
10. The period of concessional rate of TDS of 5% has been extended till 1st July 2023 from existing 1st July 2020. The rate of TDS has been reduced to 4 % in case of interest payable to a Non-Resident on borrowings in foreign currency from a source outside India, by way of issue of any long term bond or Rupee Denominated Bonds on or after 1st April, 2020 but before 1st July, 2023 and which is listed only on a recognised stock exchange located in any IFSC.
11. In case of FPI and QFI, the lower TDS rate of 5% has been extended to 1st July, 2023. The said concessional TDS rate shall also be applied to FII and QFI in respect of investment made in Municipal Bonds.
12. The threshold limit of INR 1 Crore is for aggregate cash withdrawn from an account during the Financial Year.
13. In case payee does not furnish PAN then TDS shall be deducted at higher of the following rates:
Rates specified in relevant provisions of the Act; or Rates in force; or 20%.
In case of payment by E-Commerce Operator to E- Commerce Participant, 5% TDS shall apply instead of 20%.
14. In case of non-filers having aggregate TDS / TCS of INR 50,000 or more and who have not filed their ITR in both of the 2 years immediately preceding the financial year (and time limit for filing the original return has expired), then the rate of TDS shall be higher of the following
Twice the rates specified; or Rates in force; or 5%
In case the payee does not furnish PAN and TDS rate for not furnishing PAN are higher than the above mentioned rates, then such higher rate shall be applicable. These provisions will not be applicable for the following payments:
- Salary
- Accumulated Balance due to employee
- Winnings from lottery, crossword puzzle or horserace
- Income paid in respect of investment in securitization trust
- TDS by banks on cash withdrawals
15. Amendment in Section 194N- TDS on Cash Withdrawal of the Income Tax Act:
- Section 194N of the Act provides that a banking company or a co-operative society
engaged in carrying on the business of banking or a post office, which is responsible for
paying any sum to any person (referred to as the recipient) shall, at the time of payment of
such sum in cash, deduct an amount equal to two per cent of such sum, as income-tax. The
requirement to deduct tax applies only when the payment of amount or aggregate of
amount in cash during the year exceeds one crore rupees.
- However, in case of a recipient who is a non-filer tax is to be deducted at the rate of 2%
on any sum exceeding Rs. 20 lakh but not exceeding Rs. 1 crore in aggregate during the
financial year and, at the rate of 5% on sum exceeding Rs. 1 crore in aggregate during the
financial year. - Non-filer means a recipient who has not filed any income-tax return for all of the three
assessment years relevant to the three previous years immediately preceding the previous
year in which such payment is received. - It is proposed to amend section 194N of the Act by inserting a new proviso to
provide that where the recipient is a co-operative society, the provisions of this section
shall have effect, as if for the words “one crore rupees”, the words “three crore rupees” had
been substituted. - This amendment will take effect from 1st April, 2023.
16. Insertion of New Section 194BA: TDS on Winning from Online Gaming
Insert a new section 194BA in the Act, with effect from 1st July 2023, to provide for deduction of tax at source on net winnings in the user account at the end of the financial year. In case there is withdrawal from user account during the financial year, the income-tax shall be deducted at the time of such withdrawal on net winnings comprised in such withdrawal. In addition, income-tax shall also be deducted on the remaining amount of net winnings in the user account at the end of the financial year. Net winnings shall be computed in the prescribed manner.
To provide in the proposed section 194BA that in a case where the net winnings are wholly in kind or partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the net winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the net winnings;
To provide that if any difficulty arises in giving effect to the provisions of new section 194BA, the Board may, with the prior approval of the Central Government, issue guidelines for the purpose of removing the difficulty. Every such guideline issued by the Board shall be laid before each House of Parliament, and shall be binding on the incometax authorities and on the person responsible for deduction of income-tax on any income by way of winnings from online game;
To provide the definition of “computer resource”, “internet”, “online game”, “online gaming intermediary”, “user”, “user account” in the proposed section 194BA;
To amend section 115BB of the Act to exclude income from winnings from online games from the purview of the said section from the assessment year 2024-25, since it is proposed to introduce section 115BBJ to tax winnings from online games from that assessment year;
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