TDS Rate Chart For FY 2023-2024 (AY 2024-2025)

The term "Tax Deducted at Source" (TDS) refers to the practice of collecting tax on income received in the form of wages, rent, sales of assets, dividends, etc., by requiring the payer to withhold the income tax owed while crediting or paying the payee and deposit that money with the government on the payee's behalf. The Income Tax Act, of 1961 having provisions related to TDS Payments are summarized in the TDS rate chart, which is provided below.

Recent Amendments in TDS Due to Budget 2023

• Introduction of TDS under Section 194BA for income from online gaming.
• Section 196A - As of April 1, 2023, non-residents who receive income from mutual funds in India will be able to claim TDS at the rate specified in the tax treaty, rather than 20%. To do so, they must present a Tax Residency Certificate.
• Section 192A - TDS rate on PF withdrawals for employees without PAN reduced from maximum marginal rate to 20%.
• No interest from listed debentures is exempt from TDS under Section 193. As a result, interest in these specific securities must be taxed.
• The TDS threshold for cash withdrawals under Section 194N has been raised by cooperative societies. From April 1st 2023, instead of the current cap of Rs. 1 crore, tax will be deducted from cash withdrawals by cooperative societies if the amount exceeds Rs. 3 crore.
• Non-filers excluding: 
  • Individuals who are exempt from filing ITRs.
  • NRs in India who do not have a PE in India.

Recent Amendments in TDS Due to Budget 2022

• A person is responsible for Tax Deduction at Source (TDS) at 1% at the time of payment for the transfer of virtual digital assets, according to New Section 194S.
• It is proposed to change the amount on which TDS should be deducted from the sale of immovable property under Section 194-IA. The buyer of the property is required to deduct tax at a rate of 1% on the amount paid or credited, or the stamp duty value of the property, whichever is higher.
• Any individual who offers perks or benefits to a resident in exchange for them engaging in any business or profession must deduct TDS at a rate of 10% under the new Section 194R.

TDS Rate Chart for FY 2023-24

Additional Points For All TDS Sections

Additional Points for Section 192

• Employers are required to deduct TDS only at the time of Payment.
• If the employee intends to opt for section 115BAC and submitted a declaration to the employer then the employer shall deduct TDS considering provisions of sec 115BAC.
• The employer shall consider details of other income and deductions of an employee if furnished by Employee. The employee has to submit evidence of such deductions, exemptions & losses.
• The employer shall not consider losses of employees except loss under the head house property.
• Where the employee has worked with more than 1 employer during the year or the employee changed the job during the year, he may furnish the details of his salary & TDS deducted by one employer to another/ current employer.
• Where the firm pays salary to partner, section 192 is not attracted as it is taxable in the hands of the partner under the head Business/ Profession.

Additional Points for Section 192A

• TDS is required to be deducted only at the time of Payment.
• No need to deduct TDS if the aggregate amount of payment is less than Rs. 50,000 in a year.
• If the Employee does not furnish his PAN, TDS should be deducted at the Maximum Marginal rate.

Additional Points for Section 193

No TDS is required to deduct on the following interests:

• Interest on Debenture issued by a public company to Individual/ HUF, if interest does not exceed Rs. 5,000 during the Previous Year and the same, is paid by a/c payee cheque.
• Interest in LIC, GIC or other insurers.
• Interest on listed D-MAT Securities.
• Interest on National Development Bonds.
• Interest on 7-Year National Savings Certificate- NSC (IV-Issue).
• Interest on Government Securities (exception- interest on 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018, if interest is more than 310,000 during the Previous Year then TDS will be applicable.

Additional Points for Section 194

• TDS are required to be deducted only at the time of Payment.
• No TDS, if payment is made to an Individual by any mode other than cash and payment, is up to Rs. 5 000 in a Previous Year.
• No TDS if dividend to LIC, GIC or any other insurer provided the shares are owned by them, or they have a full beneficial interest in such shares.
• No TDS if the dividend is paid or credited by a Special Purpose Vehicle to a Business Trust.

Additional Points for Section 194A

No TDS will be required to deduct in the following cases:

• Interest by Bank /Co. op. Bank/Post office on-time deposit / Recurring deposit up to
• Rs. 40,000 (Rs. 50,000 in case of Resident senior citizen).
• Interest by any other person up to Rs. 5,000.
• Interest on saving Bank Account.
• Interest by Firm to Partners.
• Interest on Income Tax Refund.
• Interest on Zero Coupon Bonds.
• Interest by a Co-operative Society (other than Co. op. Bank) to another Co-operative Society or to any of its Members.
• Interest by a Co-operative Society being a bank to another co-operative society.
• Interest Credited on the compensation amount awarded by the Motor Accidents Claims Tribunal (MACT).
• Interest on the compensation amount awarded by the MACT paid during the FY does not exceed Rs. 50,000.

Additional Points for Section 194B

• TDS is required to be deducted only at the time of Payment.
• No TDS if winning is up to Rs. 10,000.
• If the winning is wholly in kind or it is partly, in-kind & partly in cash and the cash balance is not sufficient t enough to meet the TDS liabilities, then the Payer shall release the prize only after ensuring that tax on such winning is paid to the Government.

Additional Points for Section 194BA

• No TDS if net winnings in a month do not exceed Rs 100, according to clarification from the CBDT.
• If a player receives an online gaming winning in kind, or partially in cash and partially in kind, the payer of the winnings must ensure that there is enough money on hand to cover the TDS amount and that the tax on the winnings has been paid to the government before distributing the winnings to the winner.

Additional Points for Section 194C

• No TDS, if the Single contract is up to Rs. 30,000 or the aggregate of payment under the contract in the Previous Year, is up to Rs. 1,00,000.
• No TDS if the contract is for the personal purpose of Individual/ HUF.
• No TDS if payment is made to the transporter owning not more than 10 vehicles at any time in the previous year and who furnishes a declaration to this effect along with his PAN.
• No TDS on Payments by broadcasters or Telecasters (TV channels) to production houses for the production of content for broadcasting/telecasting.
• In the case of Job Work, TDS shall be applied on the invoice value excluding the value of material purchased from the customer/ associate, provided bifurcation is given in the invoice. If no bifurcation is given, then TDS shall be applied to the entire amount.
• Payments by the client to the Advertising agency are treated as work and TDS applicable u/s 194C.

The definition of “Works” includes

• Advertising, Broadcasting, Telecasting (including production of programs),
• Carriage of goods or passengers by any mode other than by railways,
• Catering,
• Manufacturing or supplying a product as per the specification of the customer using material supply or sale by such customer or its associates covered under section 40A(2).

Additional Points for Section 194DA

• TDS are required to be deducted only at the time of Payment.
• No TDS if the maturity amount is less than Rs. 1,00,000.
• No TDS if the maturity amount is exempted u/s 10(10D).
• In case of LIP maturity amount taxable in case of Keyman Insurance Policy or ULIP taken on or after 01.02.2021 & premium paid > Rs. 2,50,000 in a year or Premium more than limit of 10%, 15%, 20% of policy value prescribed u/s 80C.
• In this section, TDS is applicable on the income component i.e. maturity amount minus the premium paid.

Additional Points for Section 194E

Income received by NR Sportsmen (who is not a citizen of India) by way of:-

• On Participation in any game or sport in India.
• Advertisement.
• Contribution to articles in newspapers, magazines, and journals relating to games or sports in India.
• Guarantee Income received by NR sports association or institution in relation to any game or sports played in India.
• Income received for performing in India by NR entertainer (who is not a citizen of India).

Additional Points for Section 194H

• No TDS if the commission is up to Rs. 15,000 in FY.
• No TDS on Payments by BSNL or MTNL to their public call office franchisees.
• No TDS if commission or brokerage related to security like commission to the underwriter, Brokerage on a public issue, etc.

Additional Points for Section 194I

• No TDS if rent is up to Rs. 2,40,000 to a person in F.Y.
• No TDS on ‘Refundable Deposits’. However, ‘Non-Refundable Deposits’ shall attract TDS under this section.
• Even Advance Rent shall also be subject to TDS in the year of payment.
• Warehousing charges shall also be subjected to TDS under this section.
• It is not necessary that the Payee must be the owner of any of the above-mentioned assets.

Additional Points for Section 194IA

• TDS is applicable only if Consideration or SDV is Rs. 50,00,000 or more.
• Consideration for the transfer of immovable property includes club membership fees, car parking fees, electricity or water facility fees, maintenance fees, advance fees or any other similar charges incidental to the transfer of immovable property.

Additional Points for Section 194IB

• No TDS if rent is up to Rs. 50,000 per month or part of the month.
• In this section, TDS is required to be deducted only at the time of credit or actual payment of the last month's rent, whichever is earlier.
• Where the payee fails to furnish his PAN, TDS shall be deducted at the rate of 20%. Such deduction cannot exceed the rent of the last month.

Additional Points for Section 194IC

• In this case, TDS is applicable only for cash/money consideration u/s JDA as specified u/s 45(5A).
• Additional Points for Section 194J
• No TDS if the amount is up to Rs. 30,000 p.a. This limit of Rs. 30,000 p.a. is applicable separately for each nature of payment (i.e. Rs. 30.000 each for FPS, FTS, Royalty, Non-compete).
• No limit for director fees (TDS to be deducted mandatorily).
• No TDS on FPS by Individual/HUF if made exclusively for personal purposes.
• In the following cases, the TDS rate is 2% instead of 10%:-
• Fees for Technical service (not being professional service).
• Royalty paid for the sale distribution or exhibition of cinematographic film.

Additional Points for Section 194LA

• TDS is required to deduct only at the time of payment.
• No TDS if payment is up to Rs. 2,50,000 in an FY.
• No TDS u/s 194LA, if the Immovable Property is an ‘Urban/ Rural Agricultural Land’ in India.

Additional Points for Section 194M

• In Section 194M, No TDS if the amount is up to Rs. 50,00,000 in an FY.
• TDS u/s 194C & 194H in case of Individual /HUF payer applicable only if last year's Turnover or Gross Receipts are more than prescribed Limit and u/s 194C & 194J TDS not applicable in case of personal nature contract or FPS so in those cases TDS required to be deducted u/s 194M if amount more than Rs. 50 lakhs.

Additional Points for Section 194N

• TDS is required to be deducted only at the time of payment.
• No TDS if cash withdrawal is up to Rs. 1 Crore in an FY. If cash withdrawal is more than 1 crore then TDS is applicable only on excess amount over Rs. 1 crore.
• If the payee has not filed a return for all 3 preceding PY's for which the due date u/s 139(1) already expired before starting of the current PY then TDS shall be deducted as follows:-
  • 2% on cash withdrawn in excess of Rs. 20 lakhs up to 1 crore and
  • 5% on cash withdrawals in excess of Rs. 1 crore.

Additional Points for Section 194O

• Any payment made by a purchaser of goods or services directly to an e-com. participant but sales facilitated by e-com. operator shall be deemed to be the amount paid/ credited by e-com. operator to e-com. participant and shall be included in the gross amount for the purpose of TDS.

No TDS if ALL the following conditions are satisfied:

• The e-commerce participant is an Individual or HUF.
• The gross amount of such sales or services or both during the FY is up to Rs. 5 lahks.
• The e-com. participant has furnished his PAN or Aadhaar to the e-com. operator.

Additional Points for Section 194P

• This section is applicable only if the individual has an income of the nature of a pension and no other income except the income of the nature of interest received or receivable from any account maintained by such individual in the same specified bank.
• “Specified bank" means a scheduled bank that has been appointed as an agent of RBI.

Additional Points for Section 194Q

• In the Section 194Q, TDS is required to deduct only on excess amounts over Rs. 50 lakhs.
• TDS is not required to be deducted under this section if TDS is deductible under any other section.
• TCS is collectable u/s 206C other than section 206C(1H), then no TDS in this section.
• In case of a transaction to which both section 206C(1H) and 194Q applies, TDS is to be deducted u/s 194Q.
• In case of a transaction to which both sections 194-O and 194Q apply. TDS to be deducted u/s 194-O.
• If the PAN of the payee is not available, the tax will be deducted under sections 194-O & 194Q at the rate of 5%.

Additional Points for Section 194R

• No TDS if the amount of benefit or perquisite provided to a person is up to Rs. 20,000 in FY.
• If benefits are partly or fully in kind and the cash balance is not sufficient enough to meet the TDS liabilities, then the Payer shall release the benefit or perquisite only after ensuring that tax is paid on such benefit or perquisite.
• The payer is not required to check whether the benefit or perquisite is taxable in the hands of the recipient or not.

Additional Points for Section 194S

No TDS in the following cases:

• Whenever a payment is expected from a specified person and the total amount owed during the fiscal year is less than Rs. 50,000.
• When the payment is due from someone other than the person who has been specifically named and the total amount due during the financial year is less than or equal to Rs. 10,000.

Additional Points for Section 195

Liability to deduct tax u/s 195 applies to all persons, whether Resident or Non-resident, irrespective of whether the NR has a Residence or a Place of Business or Business Connection in India or not.