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.

Budget 2023

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

(or)

New Tax Regime Slab Rate as opted by employee

Budget 2023

Refer article for tax slab-

Income Tax Rates for FY 2023-24 (AY 2024-25)

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

194 Dividend 5,000 10%  –
194A Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit

(Interest other than “Interest on securities” )

 –
a) Senior Citizen 50,000 10%  –
b) Others 40,000 10%  –
194A Interest other than “Interest on securities”

(Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit)

5,000 10%  –
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
a) HUF/Individuals 1%  –
b) Others 2%  –
194D Insurance commission
a) Individuals  15,000 5%  –
b) Companies 15,000 10%  –
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 Rent:
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)
a) HUF/Individuals 25%  –
b) Others 30%  –
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 –

  • twice the rate specified in the relevant provision of the Act; or
  • twice the rate or rates in force; or
  • the rate of 5%
Budget 2023

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

1%

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| casagargambhir@gmail.com

Author can be reached at casagargambhir@gmail.com for any queries, issues & recommendations relating to article.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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3 Comments

  1. SIRI says:

    Hello sir, I am Siri from Hyderabad, I am planning to pursue my masters in Germany, Recently I got admit from a good reputed university, for Germany we should show the blocked account amount of 11,208 euros almost 10 Lakhs in Indian currency for Visa, Is TDS is there on this amount also, if so how much will be the percentage.. Kindly revert me back, awaiting for your reply.. Thank you.

    1. AK says:

      I’m not a tax expert, but I can provide you with some general information. It’s important to consult with a tax professional or do further research to get accurate and up-to-date information regarding the specific tax laws and regulations in your country.

      Typically, when it comes to blocked account funds required for a student visa in Germany, such as the amount you mentioned, it is not subject to tax deduction at source (TDS) because it is a personal savings requirement for visa purposes. The funds in a blocked account serve as proof that you have sufficient financial resources to cover your living expenses while studying in Germany.

      TDS is usually applied to income earned through various sources such as employment, interest, dividends, or rent. Since the blocked account funds are not considered as income, they may not be subject to TDS. However, it’s crucial to confirm this with a tax professional or consult the tax regulations in your country to be certain.

      Additionally, keep in mind that tax regulations can vary between countries, and it’s essential to understand the specific tax laws in your home country and Germany, especially if you have any other income or financial transactions that may be subject to tax.

    2. RAMAKRISNA says:

      The question of TDS does not arise in respect of your funds deposited in Bank.
      But the IT department has the power to question how you gathered the money to deposit into the Bank account.
      If the money is taken from various relatives and friends who have agricultural back ground, no problem.
      Better to consult CA before depositing such huge value of money in Bank accounts for any purpose including for VISA processing.

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