TDS Rate Chart for Financial Year (FY) 2023-2024 / Assessment Year (AY) 2024-2025 including Budget 2023 Amendments
Tax Deduction at Source (TDS) is one of the important compliances for Income Tax Assessee. There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS. In Budget 2023, major changes have been proposed with respect to TDS viz. a higher limit of 3 crore for TDS on cash withdrawal is being provided to co-operative societies, removing the minimum threshold of 10,000/- for TDS relating to online gaming, reducing the TDS rate from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases. In this article, various TDS rates applicable for FY 2023-2024 (AY 2024-2025) i.e. for the period from 01.04.2023 to 31.03.2024 have been presented in Tabular Form along with explanation of Budget 2023 changes in respect of TDS.
TDS Rate Chart for FY 2023-2024 (AY 2024-2025) including Budget 2023 Amendments
|Section||Nature of Payment||Threshold||TDS Rate||Remarks|
|192||Salary||Taxable Income liable to Tax||Normal Slab Rate
New Tax Regime Slab Rate as opted by employee
Refer article for tax slab-
|192A||Payment of accumulated balance of provident fund which is taxable in the hands of an employee.||50,000||10%||Budget 2023
It is proposed to omit the 2nd provision to Section 192A of the act so that in case of failure to furnishing PAN by the person relating to payment of accumulated balance due to him, tax will be deducted at 20% and not at MMR rate with effect from AY 2023-24
|193||Interest on securities||2,500||10%||Budget 2023
It is proposed to omit clause ix of the proviso to Section 193 of the Act, thereby removing the exemption from TDS on payment of any income to a resident by way of interest on listed debentures with effect from 01-04-2023
|194A||Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit
(Interest other than “Interest on securities” )
|a) Senior Citizen||50,000||10%||–|
|194A||Interest other than “Interest on securities”
(Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit)
|194B||Winnings from lotteries, crossword puzzles, card games and other games of any sort||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||Nil||30%||Budget 2023
Any person responsible for paying to any person any income by way of winnings from any online game during the financial year shall deduct income-tax on the net winnings in his user account, computed in the manner as
may be prescribed, at the end of the financial year.
Provided that in a case where there is a withdrawal from user account during the financial year, the income-tax shall be deducted at the time of such withdrawal on the net winnings comprised in such withdrawal, as well as on the remaining amount of net winnings in the user account, computed in the manner as may be prescribed, at the end of the financial year
|194BB||Winnings from horse races||10,000||30%|| Budget 2023
Threshold limit 10,000 for TDS shall continue but shall apply to aggregate winnings during a financial year
|194C||Payment to contractor/sub-contractor:||Single Transaction: 30,000 & Aggregate of Transactions: 1,00,000|
|194DA||Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out||1,00,000||5%||–|
|194E||Payment to non-resident sportsmen/sports association||–||20%||The rate of TDS shall be increased by applicable surcharge and Health & Education cess.|
|194EE||Payment in respect of deposit under National Savings scheme||2,500||10%||–|
|194F||Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India||–||20%||–|
|194G||Commission on sale of lottery tickets||15,000||5%||–|
|194H||Commission or brokerage||15,000||5%||–|
|194-I(a) Plant & Machinery||2,40,000||2%||–|
|194-I(b) Land or building or furniture or fitting||2,40,000||10%||–|
|194-IA||Payment on transfer of certain immovable property other than agricultural land||50 Lakh||1%||TDS is to be deducted at the rate of one per cent of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher. In case the consideration paid for the transfer of immovable property and the stamp duty value of such property are both less than fifty lakh rupees, then no tax is to be deducted.|
|194-IB||Payment of rent by individual or HUF not liable to tax audit||50,000 per month||5%||–|
|194-IC||Payment of monetary consideration under Joint Development Agreements||–||10%||–|
|194J||Fees for professional or technical services:|
|i) sum paid or payable towards fees for technical services||30,000||2%||–|
|ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;||30,000||2%||–|
|iii) Any other sum||30,000||10%||–|
|194K||Income in respect of units payable to resident person||–||10%||–|
|194LA||Payment of compensation on acquisition of certain immovable property||2,50,000||10%||–|
|194LB||Payment of interest on infrastructure debt fund to Non Resident||–||5%||The rate of TDS shall be increased by applicable surcharge and Health &Education cess.|
|194LBA(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.||–||10%||–|
|194LBB||Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]||–||10%||–|
|194LBC||Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)|
|194M||Payment of commission (not being insurance 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 Lakh||5%||–|
|194N||Cash withdrawal 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:|
|i) in excess of Rs. 1 crore||1 Crore||2%||–|
|ii) in excess of Rs. 20 lakhs (for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired.) The deduction of tax under this situation shall be at the rate of:|
|a) On amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year;||20 Lakh||2%||–|
|b) On amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year;||1 Crore||5%||Budget 2023
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.” w.e.f 01.04.23
|194-O||Payment or credit of amount by the e-commerce operator to e-commerce participant||5 Lakh||1%||In case of non-availability of PAN, TDS Rate shall be 5%|
|194Q||Purchase of goods (applicable w.e.f 01.07.2021)||50 Lakh||0.10%||–|
|195||Payment of any other sum to a Non-resident||The rate of TDS shall be increased by applicable surcharge and Health & Education cess.|
|a) Income in respect of investment made by a Non-resident Indian Citizen||–||20%||–|
|b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen||–||10%||–|
|c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112||–||10%||–|
|d) Income by way of long-term capital gains as referred to in Section 112A||–||10%||–|
|e) Income by way of short-term capital gains referred to in Section 111A||–||15%||–|
|f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A||–||20%||–|
|g) Income by way of interest payable by Government or an Indian concern on moneys 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)||–||20%||–|
|h) Any other Income||–||30%||–|
|194P||TDS on Senior Citizen above 75 Years||Taxable Income liable to Tax||Tax Rates in Force||–|
|206AB||TDS on non-filers of ITR at higher rates||–||
Higher of the followings rates –
Provided that the specified person shall not include––
(i) a non-resident who does not have a permanent
establishment in India; or
(ii) a person who is not required to furnish the return of income for the assessment year relevant to the said previous year and is notified by the Central Government in the Official Gazette in this behalf.
|206AA||TDS rate in case of Non availability of PAN||As per respective section||Tax shall be deducted at the higher of the following rates, namely:—
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of 20%
|194R||TDS on benefit or perquisite of a business or profession||20,000||10%||Budget 2023
Explanation 2 introduced- For the removal of doubts, it is clarified that the provisions of sub-section (1) shall apply to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind
|194S||TDS on payment for Virtual Digital Assets||“Specified Person” Payer– 50,000
Other Payers – 10,000
Other Major amendments related to TDS in Budget 2023
1. Extending the scope for deduction of tax at source to lower or nil rate
Section 194 LBA of the Act provides that business trust shall deduct and deposit tax at the rate of 5% on interest income of on resident unit holders. It is proposed to amend 197(1) of the Act to provide that the sums on which tax is required to be deducted u/s 194LBA of the Act shall be eligible for certificate for deduction at lower rate with effect from 01.04.2023.
2. Tax treaty relief at the time of TDS u/s 196A of the Act
It is proposed to insert a proviso to Section 196A(1) of the Act to provide that the TDS would be at the rate which is lower of the rate of 20% and the rate provided in the agreement referred to in Section 90(1) or 90A(1) of the Act, in case of a payee to whom such agreement applies and such payee has furnished Tax Residency Certificate. This amendment will take effect from 01.04.2023.
3. TDS credit for income already disclosed in the return of the past years
These amendments will take effect from 1st October, 2023
Representations have been received that in many instances, tax is deducted by the deductor in the year in which the income is actually paid to the assessee. However, following accrual method, the assessee may have already disclosed this income in earlier years in their return of income. This result in TDS mismatch, since the corresponding income has already been offered to tax by the assessee in earlier years, however, TDS is only being deducted much later when actual payment is being made. The assessee cannot claim the credit of TDS in the year in which tax is deducted since income is not offered to tax in that year. It may also not be possible to revise the return of past year in which the corresponding income was included since time to revise the return of income for that year may have lapsed. This results in difficulty to the assessee in claiming credit of TDS.
In order to remove this difficulty, it is proposed to insert a new sub-section (20) in section 155 of the Act. This new sub-section applies where any income has been included in the return of income furnished by an assessee under section 139 of the Act for any assessment year (hereinafter referred to as the “relevant assessment year”) and tax has been deducted at source on such income and paid to the credit of the Central Government in accordance with the provisions of Chapter XVII-B in a subsequent financial year. In such a case the assessee can make application in the prescribed form to the Assessing Officer within two years from the end of the financial year in which such tax was deducted at source. Then Assessing Officer shall amend the order of assessment or any intimation allowing credit of such tax deducted at source in the relevant assessment year. It has been further provided that the provisions of section 154 of the Act shall, so far as may be, apply thereto, and the period of four years specified in sub-section (7) of that section shall be reckoned from the end of the financial year in which such tax has been deducted. Further, credit of such tax deducted at source shall not be allowed in any other assessment year.
Amendment has also been proposed in section 244A of the Act to provide that the interest on refund arising out of above rectification shall be for the period from the date of the application to the date on which the refund is granted.
TDS Rates compiled by: CA. Sagar Gambhir | FCA, DISA (ICAI), DIRM (ICAI), B.COM| email@example.com
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