Stay compliant with TDS regulations as in case of non-deduction or wrong deduction and even deduction under wrong TDS section could attract huge penalties. It’s important that businesses know the applicable rate, TDS section and exempt limit for each nature of payment. This comprehensive TDS rate chart with effect from 01.10.2024 provides detailed information on thresholds, rates, and applicable sections for different types of payments. Also Read: Everything about TDS Return Filing at https://taxguru.in/income-tax/tds-return-filing.html
TDS Rate Chart with effect from 1st October 2024
| TDS Section List | Nature of Payment | Threshold | Individual or HUF | Others |
| 192 | Payment in form of salary | ₹ 2,50,000 | Slab Rates | Slab Rates |
| 192A
(Note 1) |
Employee Provident Fund withdrawal prematurely/early | ₹ 50,000 | 10% | 10% |
| 193 | Interest earned on securities including listed debentures | ₹ 10,000 | 10% | 10% |
| 194 | Payment of dividends by domestic Co. | ₹ 5,000 | 10% | 10% |
| 194A | Interest on deposits from banks or post offices | ₹ 40,000 ₹ 50,000(senior citizens) |
10% | 10% |
| Interest income other than securities | ₹ 5,000 | 10% | 10% | |
| 194B | Winnings of lotteries, puzzles, or games (Casual income) | Aggregate of ₹ 10,000 | 30% | 30% |
| 194BA | Winnings from online Games | – | 30% | 30% |
| 194BB | Winnings from Horse races | ₹ 10,000 | 30% | 30% |
| 194C | Payments made to contractors or sub-contractors (one time) | ₹ 30,000 | 1% | 2% |
| Payments made to contractors or sub-contractors on an aggregate basis | ₹ 1,00,000 | 1% | 2% | |
| 194D | Commission paid on insurance sales to domestic companies | ₹ 15,000 | Not Applicable | 10% |
| Commission paid on insurance sales to non-domestic companies | ₹ 15,000 | 5% | Not Applicable | |
| 194DA | Maturity of life insurance policy | ₹ 1,00,000 | 5% 2% | 5% 2% |
| 194EE | Payment received from the National Savings Scheme by individuals | ₹ 2,500 | 10% | 10% |
| 194F | Repurchase of units by Unit Trust of India or any mutual fund | No Limit | 20% Omitted | 20% Omitted |
| 194G | Payments or commission made from the sale of lottery tickets | ₹ 15,000 | 5% 2% | 5% 2% |
| 194H | Commission or brokerage fees | ₹ 15,000 | 5% 2% | 5% 2% |
| 194I | Rent paid for land, building, or furniture | ₹ 2,40,000 | 10% | 10% |
| Rent paid for plant and machinery | 2% | 2% | ||
| 194IA | Payment for the transfer of immovable property excluding agricultural land | ₹ 50,00,000 | 1% | 1% |
| 194IB | Rent payment made by an individual or HUF not covered under section 194I | ₹ 50,000 (per month) | 5% 2% | Not Applicable |
| 194IC | Payments made under a Joint Development Agreement to I / HUF | No Limit | 10% | 10% |
| 194J | Fees paid for professional and technical services (doctor/CA etc) | ₹ 30,000 | 10% | 10% |
| Royalty paid for the sale, distribution, or exhibition of cinematographic films | ₹ 30,000 | 2% | 2% | |
| 194K | Income received from units of a mutual fund, such as dividends | ₹ 5,000 | 10% | 10% |
| 194LA | Compensation for acquiring certain immovable property | ₹ 2,50,000 | 10% | 10% |
| 194LB | Interest on infrastructure bonds to Non-Resident Indians | Not Applicable | 5% | 5% |
| 194LBA(1) | Distribution of certain income by a business trust to its unit holders | Not Applicable | 10% | 10% |
| 194LD | Interest payment on rupee-denominated bonds, municipal debt security, and government securities | Not Applicable | 5% | 5% |
| 194M
(Note 2) |
Payments made for contracts, brokerage, commission, or professional fees excluding sections 194C, 194H, 194J- Individual/HUF | ₹ 50,00,000 | 5% 2% | 5% 2% |
| 194N
(Note 3) |
Cash withdrawal exceeding a specified amount from the bank, with filed ITR | ₹ 1,00,00,000 | 2% | 2% |
| When ITR is not filed | ₹ 20,00,000 | 2% then 5% after 1cr on slab basis | 2% then 5% after 1cr on slab basis | |
| 194O | Amount received for the sale of products/services by e-commerce service providers through digital platforms | ₹ 5,00,000 | 1% 0.1% | 1% 0.1% |
| 194P | Senior citizen above 75 yr of age having salary and interest Income, ITR not required | Not Applicable | Slab rates | Not Applicable |
| 194Q | Payments made for the purchase of goods | ₹ 50,00,000 | 0.10% | 0.10% |
| 194R | Perquisite provided | ₹ 20,000 | 10% | 10% |
| 194S | TDS on the payment of cryptocurrencies or other virtual assets | ₹ 50,000
(specified person) ₹ 10,000 (others) |
1% | 1% |
| 194T
(Note 5) |
TDS on payments made by firms to their partners | ₹ 20,000 | Not applicable | 10% |
| 206AA | TDS applicable in case of non-availability of PAN | Not Applicable | At a higher rate than: -2X the rate specified by the act -20% -The currently applicable rate |
At a higher rate than: -2X the rate specified by the act -20% -The currently applicable rate |
| 206AB | TDS on non-filers of Income Tax Return | Not Applicable | The higher of:
-5% -2X the rate mentioned in the provision -The currently applicable rate |
The higher of:
-5% -2X the rate mentioned in the provision -The currently applicable rate |
Notes:
1. As per Section 192A TDS rate on PF withdrawal for employees without PAN reduced to 20% from the maximum marginal rate.
2. Some sections apply only if gross receipts from profession exceeds ₹ 50 lac and from business
exceeds ₹ 1 crore i.e. specified persons
3. As per Section 194N Increased TDS threshold for cash withdrawal by co-operative societies. From April 1st, 2023, TDS will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore.
4. Section 196A:Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate starting April 1st, 2023, to avail the TDS benefit as per the rate specified in the tax treaty, instead of the standard 20% rate.
5. Section 194T on partnership firms I have discussed in detail at taxguru itself, Link: https://taxguru.in/income-tax/tds-section-194t.html
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Author can be contacted at aman.rajput@mail.ca.in
Author Bio
194H rate changed ?
TDS rate for 194H 2%
TDS u/s 194H is 2% now