Latest TDS Rate Chart as per the Income Tax Act for FY 24-25

Tax Deducted at Source or TDS is a tax deducted on various income sources such as salary, payment, interest earned, commission, etc. Hence, it is important to keep a tab on the updated rates to streamline payment.

Keep scrolling to find detailed information on the TDS chart for the financial year 2024-25.

Team Digit

New TDS Rate Chart for FY 2024-25
Existing TDS Rate Chart
TDS Slab Rates for Indian Residents & NRI
TDS Slab Rates for Domestic & Foreign Companies
Frequently Asked Questions

New TDS Rate Chart for FY 2024-25

Budget 2024 made changes in the TDS rates on specified payments and reduced TDS tax rates to boost business and improve taxpayer compliance. So, here is the table with the changes in TDS rates for FY 2024-25.

TDS Sections and Nature of Payment	Existing TDS Rate	New TDS Rate	Effective from
Section 194D - Payment of insurance commission in case of other than company	10% for domestic companies 5% for other companies	Same for domestic companies 2% for other companies	1st April 2025
Section 194DA - Payment for life insurance policy	5%	2%	1st October 2024
Section 194G - Commission from the sale of lottery ticket	5%	2%	1st October 2024
Section 194H - Commission or brokerage earned	5%	2%	1st October 2024
Section 194-IB - Rent of building, land, and furniture by individuals & HUF	5%	2%	1st October 2024
Section 194M - Payment of certain sums by certain individuals or HUFs	5%	2%	1st October 2024
Section 194-O - TDS on e-commerce	1%	0.1%	1st October 2024
Section 194F - Payment for repurchase of units by mutual funds or UTI	Proposed to be Omitted		1st October 2024

Existing TDS Rate Chart for FY 2024-25

Here is the TDS deduction chart with various TDS rates applicable to resident and non-resident Indians, and domestic and foreign companies in India. These are the existing TDS tax rates applicable for FY 2024-25.

TDS Sections and Nature of Payment	Threshold	Individual/ HUF TDS Rate Chart PDF
Section 192A, Premature withdrawal of EPF	₹50,000	10% (20% if no PAN card)
Section 192, Salary	As per the employee’s IT declaration	As per applicable income tax slab
Section 193, Interest amount on securities	₹2,500	10%
Section 194, Dividends	₹5000	10%
Section 194A, Interest on assets and securities from banks	₹40,000	10%
Section 194A, Senior citizens	₹50,000	10%
Section 194B, Applicable on money earned through any competition or lottery	₹10,000	30%
Section 194BB, Prize amount on winning horse race	₹10,000 (aggregate in a fiscal year)	30%
Section 194C, Contractor payment	₹30,000 for single transaction ₹1,00,000 for single transaction	1% for individuals and HUF 2% for other taxpayers
Section 194E, Payment to a non-residential sportsperson	No limit	20%
Section 194EE, Deposit under NSS	₹2,500	10%
Section 194-I(a), TDS on rent	₹2,40,000	2% (from machines or equipment) 10% (from land, buildings and furniture)
Section 194IA, Transfer of immovable property besides agricultural land	₹50,00,000	1%
Section 194IC, Payment on agreement	No limit	10%
Section 194J, Fee paid for technical services, royalty	₹30,000	2%
Section 194J, Fee paid for professional services	₹30,000	10%
Section 194K, Payment for mutual funds	₹5000	10%
Section 194LA, Compensation on the transfer of immovable property other than agricultural land	₹2,50,000	10%
Section 194LB, Income from infrastructure debt fund interest (TDS rate for NRI)	No limit	5%
Section 194LBA, Income from units of a business trust	No limit	10% for resident individuals 5% for NRI
Section 194LBB, Income from units of investment funds	No limit	10% for resident individuals 30% for NRIs 40% for foreign companies
Section 194LBC, Income earned from investments of securitization trusts	No limit	25% for resident individuals 30% for NRIs 40% for foreign companies
Section 194LD, Income earned from certain Government security and bond’s interest	No limit	5%
Section 194N, Cash withdrawal in previous year from one or more accounts with a lending institution	₹1 crore	2%
Section 194Q, Payment to purchase goods	₹50,00,000	0.10%
Section 194S, Transfer of crypto or other virtual digital assets	₹50,000 for individual or a HUF not having income from business or profession ₹10,000 for others	1%
Section 196B, Income from the offshore funds	No limit	10%
Section 196C, Income from foreign current bonds	No limit	10%
Section 196D, Income from foreign institutional investors	No limit	20%
Section 206AA, Non-availability of PAN	No limit	Twice the TDS rate given in the Income Tax Act or 20% (whichever is higher)
Section 206AA, Non-filing of Income tax return	No limit	Twice the TDS rate given in the Income Tax Act or 5% (whichever is higher)

Technically, the concept of TDS was introduced to collect tax from the very source of income. This obligates a deductor, liable to make payment to a deductee, make tax deduction at source and forward the same into the central government’s account.

Hence, apart from the mentioned TDS rates in the table, the government has set specific rates for Indian entities other than a company.

TDS Rates for Residents of India (Other than a Company)

Here is a table showing the current TDS rate chart for Indian residents.

Nature of Payment	Section	TDS Rate
Payment of salary	192	Normal tax slab rate
Premature withdrawal from EPF	192A	With PAN: 10% Without PAN: 20%
Interest on securities	193	10%
Payment of any dividend	194	10%
Income in the form of interest from bank	194A	10%
Income from a lottery and other games	194B	30%
Income from online games	194BA	30%
Income from horse race winnings	194BB	30%
Payment to the contractor - HUF/Individual	194C	1%
Payment to the contractor - Others	194C	2%
Insurance commission	194D	2% (effective from 1st April 2025)
Payment of any sum towards a life insurance policy	194DA	2% (effective from 1st October 2024)
Payment under National Savings Scheme	194EE	5%
Payment due to repurchase of a unit by UTI or a mutual fund	194F	Proposed to be omitted (effective from 1st October 2024)
Commission payments from the sale of lottery ticket	194G	2% (effective from 1st October 2024)
Commission or brokerage	194H	2% (effective from 1st October 2024)
Rent on plant/machinery Rent on land, furniture, building or fitting	194-I(a)	2% 10%
Payment made on transfer of certain immovable property other than agricultural land	194-IA	1%
Rent payment by an HUF or individual	194-IB	2% (effective from 1st October 2024)
Payment under a joint development agreement	194-IC	10%
Fee for professional services, commission to a director and not carrying out any activity regarding the business Not sharing any patent for technical services and sale or distribution	194J	10% 2%
Payment of any income on units of a mutual fund	194K	10%
Payment on certain immovable property	194LA	10%
Income distributed by a business trust to its unit holder	194LBA(1)	10%
Income from units of investment fund	194LBB	10%
Income from investment in securitisation fund for individuals/HUF	194LBC	25%
Payments by individual/HUF with a limit of ₹50 lakhs	194M	2% (effective from 1st October 2024)
Withdrawal exceeding amount limit ₹1 crore	194N	2%
Sale of goods by e-commerce platforms	194O	0.1% (effective from 1st October 2024)
Tax deduction by lending institutions while making payments	194P	Tax on total income
Payments on purchase of goods with the aggregate value of goods exceeding ₹50 lakhs	194Q	0.1%
Any other income	Not applicable	10%

TDS Rate Chart for Non-Resident Indians (Other Than a Company)

Here is a table showing the TDS rates for NRI’s under different sections.

Nature of Payment	Section	TDS Rate
Payment of salary	192	Normal tax slab rate
Premature withdrawal from EPF	192A	10%
Income from lottery winnings	194B	30%
Income from horse race winnings	194BB	30%
Payment to non-resident sportsperson/ sports association/ entertainer	194E	20%
Payment to a person under National Savings Scheme (NSS)	194EE	10%
Payment from repurchasing a unit by UTI	194F	Proposed to be omitted (effective from 1st October 2024)
Commission payments from the sale of lottery ticket	194G	2% (effective from 1st October 2024)
Payment on compensation on immovable property	194LB	5%
Interest receivable to a business	194LBA(2)	5%
Dividend received from SPV by a business trust	194LBA(2)	10%
Rental income, or income from real estate assets owned by business trust	194LBA(3)	30%
Income from an investment fund to a unit holder	194LBB	30%
Income from investment in securitisation fund	194LBC	30%
Interest for the loan borrowed in foreign currency by an Indian company	194LC	5%
Interest payable against long term bonds listed in IFSC	194LC	4%
Payment of interest on the bond to foreign investor	194LD	5%
Any income through LTCG	195	15%
Payment of any other sum to NRI by way of - LTCG under section 112A, STCG under section 111A, LTCG under section 112(1)(c)(iii), royalty payable to the Indian government for agreement on industrial policy, technical fees to the Indian government related to industrial policy	195	10%
Payment of any other sum to NRI by way of - Investment made by NRI, LTCG referred to in section 115E, Interest payable on sum borrowed by the Indian government in foreign currency, royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy income from royalty payable to or by the Indian government for the copyright referred in Section 115A	195	20%
Any other income related to NRI	195	30%
Income from units of an offshore fund	196B	10%
Income from foreign currency bonds or GDR of an Indian company	196C	10%

Apart from Indian and non-Indian residents, the companies are obligated to pay a certain amount of TDS. Therefore, we have segregated the TDS rate for firms according to domestic and non-domestic categories.

TDS Rate Chart for Domestic Companies

Here is a table of the TDS slab rates for domestic companies.

Nature of Payment	Section	TDS Rate for Company (Domestic)
Premature withdrawal from EPF	192	10%
Premature withdrawal from EPF	192A	With PAN: 10%
Interest on securities	193	10%
Payment of any dividend	194	10%
Income in the form of interest from bank	194A	10%
Income by way of lottery winnings	194B	30%
Income from horse race winnings	194BB	30%
Payment to contractor or sub-contractor- individuals/HUF	194C	1%
Payment to contractor or sub-contractor- others	194C	2%
Insurance commission	194D	2% (effective from 1st April 2025)
Payment in respect of a life insurance policy	194DA	2% (effective from 1st October 2024)
Payment to a person under National Savings Scheme (NSS)	194EE	10%
Payment from repurchase of a unit by UTI or a mutual fund	194F	Proposed to be omitted (effective from 1st October 2024)
Commission payments from the sale of lottery ticket	194G	2% (effective from 1st October 2024)
Commission or brokerage	194H	2% (effective from 1st October 2024)
Rent on plant/machinery Rent on land, furniture, building or fitting	194-I(a)	2% 10%
Payment on transferring immovable property other than agricultural land	194-IA	1%
Monetary consideration under Joint Development Agreements to HUF or individual	194-IC	10%
Fee for professional services, commission to a director and not carrying out any activity regarding the business Not sharing any patent for technical services and sale or distribution	194J	10% 2%
Payment of income against mutual funds as per Section 10(23D)	194K	10%
Payment on the attainment of certain immovable property	194LA	10%
Income paid against investment fund to a unit holder	194LBB	10%
Income distributed by a business trust to its unit holder	194LBA(1)	10%
Income from investment in securitisation fund	194LBC	10%
Payments by individual/HUF with a limit of ₹50 lakhs	194M	2% (effective from 1st October 2024)
Cash withdrawal exceeding amount limit ₹1 crore	194N	2%
Sale of goods by e-commerce platforms	194O	0.1% (effective from 1st October 2024)
Payments to residents for purchasing goods when the aggregate value of goods exceeds ₹50 lakhs	194Q	0.1%

TDS Rates for Non-Domestic Companies

Here is a table explaining the TDS deduction chart for non-domestic companies which are held as private limited.

Nature of Payment	Section	TDS Rate
Income from lottery winnings and other games	194B	30%
Income from horse race winnings	194BB	30%
Payment to non-resident sportsperson/ sports association/ entertainer	194E	20%
Commission payments from the sale of lottery ticket	194G	2% (effective from 1st October 2024)
Payment in on the purchase of an immovable property	194LB	5%
Interest receivable to a business Dividend received from SPV by a business trust	194LBA(2)	5% 10%
Rental income, or income from real estate assets owned by business trust	194LBA(3)	40%
Income from an investment fund to a unit holder	194LBB	40%
Income from investment in securitisation fund	194LBC	40%
Interest on a loan borrowed by an Indian company in foreign currency	194LC	5%
Interest payable against long term bonds listed in IFSC	194LC	4%
Payment of interest on the bond to foreign investors	194LD	5%
Income (including LTCG) from units of an offshore fund	196B	10%
Income (inclusive of LTCG) from foreign currency bonds	196C	10%
Income (excluding dividend and capital gain) from foreign institutional investors	196D	20%

Refer to the following table for TDS rates on Pvt. Ltd. companies under Section 195.

Nature of Payment	Section	TDS Rate
Income by way of STCG under section 111A	195	15%
Earnings from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy	195	10%
Income arising out of long-term capital gains as per the recommendations of Section 112A	195	10%
Payment of any other amount to a Non-resident company from income arising from any other source	195	40%
Payment from- Any other sum such as-Income by way of LTCG under section 112(1)(c)(iii), Income earned in terms of fees which is payable by the government or an Indian organisation for technical services, Income arising out of royalty which is payable by the government or an Indian organisation subject to certain conditions.	195	10%

The following tables will help you understand the differences in TDS rates for specific individuals and companies.

Since the calculation is quite complicated, we suggest using online TDS calculators to streamline the entire process.

FAQs about TDS Rate Chart

All

What are the TDS rates applicable on interest on securities?

The TDS rate applicable on interest on securities is 10%.

What are the new changes in TDS rates for FY 2024-25?

Budget 2024 has amended the TDS rates for specific payments and reduced them to promote businesses in India and improve compliance among taxpayers. These changes will take effect from either October 1, 2024, or April 1, 2025.

Are new TDS rates applicable on non-salary payments from 2023?

Yes, new TDS rates will be applicable on non-salary payments from FY 2023-24.

Is TDS compulsory for companies?

Yes, TDS on salary is compulsory for companies under Section 192 of the Income Tax act. An employer who pays wages to his/her employee must deduct TDS from the salary if the total income exceeds a certain limit.

Where can I check the amount of TDS credit available?

You can check the TDS credit amount under Form 26AS.

What is the TDS limit for contractors FY 2024-25?

The TDS threshold limit on contractor payment is ₹30,000 per year. On exceeding this limit, TDS needs to be deducted.

What is the TDS rate chart on commission?

The current TDS rate on commission for FY 2024-25 is 2% under Section 194H of the Income Tax Act, which will be effective from 1st October 2024.

What if I make any mistakes in the TDS deduction chart?

In case the TDS is shortly deducted, then the balance tax should immediately be deposited using a new challan.

What is the TDS rate on salary?

TDS rate on salary is different for everybody as the TDS deducted is based on the income slab applicable to that employee.