Follow Us :

Introduction: Understanding Tax Deducted at Source (TDS) rates is crucial for taxpayers to ensure compliance with tax regulations. The TDS rates for the financial year 2024-25 (assessment year 2025-26) have been released, covering a wide range of payment types. This article provides a comprehensive overview of the updated TDS rates applicable to different categories of payments.

Section Nature of Payment Threshold (Rs.) Individual / HUF TDS Rates (%) Others
TDS Rate (%)
192 Salaries Rs. 2,50,000 Slab Rates Slab Rates
192A Premature EPF withdrawal* Rs. 50,000 10% 10%
193 – TDS on interest on securities*** Rs. 10,000 10% 10%
194 Payment of dividend Rs. 5,000 10% 10%
194A Interest issued by banks or post offices on deposits Rs. 40,000 10% 10%
Rs. 50,000 (For senior citizens)
194A Interest by others apart from on securities Rs. 5,000 10% 10%
194B Amounts that someone has won through lotteries, puzzles, or games Aggregate of Rs. 10,000** 30% 30%
194BB Amounts that someone has won from horse races Rs. 10,000 30% 30%
194C Payments to contractor or sub-contractor – Single Payments Rs. 30,000 1% 2%
194C Payments to contractor/sub-contractor – Aggregate Payments Rs. 1,00,000 1% 2%
194D Payment of insurance commission to domestic companies Rs. 15,000 NA 10%
194D Payment of insurance commission to companies other than domestic ones Rs. 15,000 5% NA
194DA Maturity of Life Insurance Policy Rs. 1,00,000 5% 5%
194EE Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme) Rs. 2500 10% 10%
194F Payment of repurchase of unit by UTI (Unit Trust of India) or any mutual fund No Limit 20% 20%
194G Payments or commission on sale of lottery tickets Rs. 15,000 5% 5%
194H Commission or brokerage Rs. 15,000 5% 5%
194I Rent of land, building, or furniture Rs. 2,40,000 10% 10%
194I Rent of plant and machinery Rs. 2,40,000 2% 2%
194IA Payment for transfer of immovable property other than agricultural land Rs. 50,00,000 1% 1%
194IB Rent payment that is made by an individual or HUF not covered under payment 194I Rs. 50,000 (per month) 5% NA
194IC Payment that are made under Joint Development Agreement (JDA) to Individual/HUF No Limit 10% 10%
194J Fees paid for professional services Rs. 30,000 10% 10%
194J Amount paid for technical services Rs. 30,000 2% 2%
194J Amounts paid as royalty for sale/distribution/exhibition of cinematographic films Rs. 30,000 2% 2%
194K Payment of income for units of a mutual fund, for example- dividends Rs. 5,000 10% 10%
194LA Payment made for compensation for acquiring certain immovable property Rs. 2,50,000 10% 10%
194LB Payment of interest on infrastructure  bonds to Non-Resident Indians NA 5% 5%
194LBA(1) Certain income distributed by a business trust among its unit holder NA 10% 10%
194LD Payment of interest on rupee-denominated bonds, municipal debt security, and government securities NA 5% 5%
194M Amounts paid for contract, brokerage, commission or professional fee (other than 194C, 194H, 194J) Rs. 50,00,000 5% 5%
194N In case cash withdrawal over a certain amount takes place from the bank, and ITR is filed Rs. 1,00,00,000 2% 2%
194N In case cash withdrawal takes place from a bank and one does not file ITR Rs. 20,00,000 2% 2%
194O Amount paid for the sale of products/services by e-commerce service providers via their digital platform Rs. 5,00,000 1% 1%
194Q Payments made for the purchase of goods Rs. 50,00,000 0.10% 0.10%
194S TDS on the payment of any crypto or other virtual asset NA 1% 1%
206AA TDS for non-availability of PAN NA At a rate higher of 20%
1.     Specified rate as per the act
2.     20%
3.     Rate in force
206AB TDS on non-filers of Income tax return NA Rate higher of:
1.     5%
2.     Twice the mentioned rate in provision
3.     Rate in force

Conclusion: Staying informed about the updated TDS rates for FY 2024-25 (AY 2025-26) is crucial for taxpayers to fulfill their tax obligations accurately. This article serves as a comprehensive guide to understanding the TDS rates applicable to various payment types, helping taxpayers navigate the complexities of tax deduction at source effectively. By adhering to the prescribed TDS rates and compliance requirements, taxpayers can ensure smooth tax filing processes and avoid potential penalties or legal issues.

Tags:

Author Bio


My Published Posts

Income Tax Treatment in case of Political Parties under Section 13A ITR and ITR U Filing for AY 2022-23 Section 24 Deduction – Income From House Property Computation of House Property Income Computation of Income on Basis of Estimation View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930