Tax Deducted at Source (TDS) is a system of tax collection by the Indian government where a person or entity responsible for making specific payments deducts tax at the source and remits it to the government. It ensures that tax is collected in advance on various types of income, preventing tax evasion and ensuring a steady source of revenue for the government.
Here is the list of Tax Deduction at Source (TDS) rates for the assessment year 2024-25 in a more structured format:
TDS Rates for Individuals and Entities Residing in India:
- Payment of Salary (Section 192):
- Rate: Normal Slab Rate
- Payment of Accumulated Provident Fund Balance Taxable in Employee’s Hands (Section 192A):
- Rate: 10%
- Interest on Securities (Section 193):
- a) Debentures or securities issued by local authorities or corporations: 10%
- b) Debentures listed on a recognized stock exchange: 10%
- c) Central or State Government securities (e.g., Savings Bonds): 10%
- d) Interest on other securities: 10%
- Income by Way of Dividend (Section 194):
- Rate: 10%
- Income by Way of Interest Other Than “Interest on Securities” (Section 194A):
- Rate: 10%
- Winnings from Lotteries, Crossword Puzzles, Card Games, Gambling, or Betting (Section 194B):
- Rate: 30%
- Winnings from Online Games (Section 194BA):
- Rate: 30%
- Winnings from Horse Races (Section 194BB):
- Rate: 30%
- Payment to Contractor/ Sub-contractor (Section 194C):
- a) HUF/Individuals: 1%
- b) Others: 2%
- Insurance Commission (Section 194D):
- Rate: 5%
- Payment in Respect of Life Insurance Policy (Section 194DA):
- Rate: 5%
- Payment in Respect of National Savings Scheme Deposits (Section 194EE):
- Rate: 10%
- Repurchase of Units by Mutual Funds or Unit Trust of India (Section 194F):
- Rate: 20%
- Commission on Sale of Lottery Tickets (Section 194G):
- Rate: 5%
- Commission or Brokerage (Section 194H):
- Rate: 5%
- Rent (Section 194-I):
- a) Plant & Machinery: 2%
- b) Land, Building, Furniture, or Fittings: 10%
- Payment on Transfer of Certain Immovable Property (Section 194-IA):
- Rate: 1%
- Payment of Rent by Individuals or HUF Not Liable for Tax Audit (Section 194-IB):
- Rate: 5%
- Payment of Monetary Consideration under Joint Development Agreements (Section 194-IC):
- Rate: 10%
- Fees for Professional or Technical Services (Section 194J):
- i) Fees for Technical Services: 2%
- ii) Royalty for Cinematographic Films: 2%
- iii) Any Other Sum: 10% (2% if payee is engaged in a call center business)
- Income in Respect of Units Payable to Resident Persons (Section 194K):
- Rate: 10%
- Payment of Compensation on Acquisition of Certain Immovable Property (Section 194LA):
- Rate: 10%
- Business Trust Distributing Interest or Rental Income to Unit Holders (Section 194LBA(1)):
- Rate: 10%
- Investment Fund Paying Income to Unit Holders (Section 194LBB):
- Rate: 10%
- Income from Investment in a Securitization Trust (Section 194LBC):
- For Individuals or HUFs: 25%
- For Others: 30%
- Payment of Commission, Brokerage, or Professional Fees to Residents by Individuals or HUFs (Section 194M):
- Rate: 5%
- Cash Withdrawal from Banks, Co-operative Societies, or Post Offices:
- i) Exceeding Rs. 1 crore: 2%
- ii) Exceeding Rs. 20 lakhs (for non-filers): 2% to 5%
- Payment or Credit by E-commerce Operators to E-commerce Participants (Section 194-O):
- Rate: 1%
- Deduction of Tax for Benefits or Perquisites Exceeding Rs. 20,000 (Section 194R):
- Rate: 10%
- Payment for Purchase of Goods Exceeding Rs. 50 lakhs (Section 194Q):
- Rate: 0.1%
- Deduction of Tax by Specified Banks for Senior Citizens Aged 75 or More (Section 194P):
- Rate: Tax as per applicable slab rate
- Payment on Transfer of Virtual Digital Assets (Section 194S):
- No TDS if the aggregate value does not exceed Rs. 10,000 (for non-specified persons).
- No TDS if the aggregate value does not exceed Rs. 50,000 (for specified persons as defined).
- Any Other Income:
- Rate: 10%
TDS Rates for Individuals and Entities Not Residing in India:
- Payment of Salary (Section 192):
- Rate: Normal Slab Rate
- Payment of Accumulated Provident Fund Balance Taxable in Employee’s Hands (Section 192A):
- Rate: 10%
- Winnings from Lotteries, Crossword Puzzles, Card Games, Gambling, or Betting (Section 194B):
- Rate: 30%
- Winnings from Online Games (Section 194BA):
- Rate: 30%
- Winnings from Horse Races (Section 194BB):
- Rate: 30%
- Payment to Non-resident Sportsmen/Sports Association (Section 194E):
- Rate: 20%
- Payment in Respect of National Savings Scheme Deposits (Section 194EE):
- Rate: 10%
- Repurchase of Units by Mutual Funds or Unit Trust of India (Section 194F):
- Rate: 20%
- Commission on Sale of Lottery Tickets (Section 194G):
- Rate: 5%
- Payment of Interest on Infrastructure Debt Fund (Section 194LB):
- Rate: 5%
- Payment of Certain Income (Section 194LBA(2)):
- Rate: 5% or 10%
- Income from Renting or Leasing Real Estate Assets to Unit Holders (Section 194LBA(3)):
- Rate: 40%
- Income from Investment Fund (Section 194LBB):
- Rate: 40%
- Income in Respect of Investment in a Securitization Trust (Section 194LBC):
- Rate: 40%
- Payment of Interest by Indian Company in Foreign Currency (Section 194LC):
- Rate: 5% or 4% or 9% (depending on specific conditions)
- Payment of Interest on Rupee Denominated Bond or Government Securities to Foreign Institutional Investors (Section 194LD):
- Rate: 5%
- Payment of Any Other Sum:
- Various rates based on the nature of income.
Please note that the rates mentioned above are subject to applicable surcharges and Health & Education cess as per the Finance Act, 2023.
