TDS, or Tax Deducted at Source, is a system where tax is deducted from earnings like salary, rent, asset sales, and dividends, by making the payer responsible for deducting tax and depositing it to the government on behalf of the payee. Here's a detailed TDS rate chart as per the Income Tax Act.

Budget 2024 Updates

The Budget 2024 has lowered TDS rates on specific transactions to simplify business activities and enhance tax compliance. Key changes include:

• Section 194D: TDS on insurance commission payments for non-company entities reduced from 5% to 2%, effective April 1, 2025.
• Section 194DA: TDS on life insurance policy payouts cut from 5% to 2%, starting October 1, 2024.
• Section 194G: TDS on lottery ticket sale commissions decreased from 5% to 2%, effective October 1, 2024.
• Section 194H: TDS on commissions or brokerage reduced from 5% to 2%, beginning October 1, 2024.
• Section 194-IB: TDS on rent by certain individuals or HUFs decreased from 5% to 2%, starting October 1, 2024.
• Section 194M: TDS on specific payments by individuals or HUFs lowered from 5% to 2%, effective October 1, 2024.
• Section 194-O: TDS on payments by e-commerce operators to participants reduced from 1% to 0.1%, effective October 1, 2024.
• Section 194F: This section, concerning payment on repurchase of units by mutual funds or UTI, is proposed for omission from October 1, 2024.

TDS Rates in India

Below is a detailed list of TDS rates for resident and non-resident payments as well as for domestic and foreign companies in India for FY 2023-24 and 2024-25.

• Section 192: Salary payments - TDS is deducted at normal slab rates based on the employee’s basic exemption limit.
• Section 192A: Premature EPF withdrawals above Rs. 50,000 are liable for a TDS rate of 10%.
• Section 193: TDS on interest on securities varies; for debentures up to Rs. 5,000 and certain savings bonds up to Rs. 10,000, it's 10%.
• Section 194: Dividend payments above Rs. 5,000 attract a TDS rate of 10%.
• Section 194A: Interest from non-securities sources has a TDS rate of 10%, with senior citizens having a limit of Rs. 50,000 and others Rs. 40,000.
• Section 194B: Lottery winnings and similar income over Rs. 10,000 carry a TDS rate of 30%.
• Section 194BA: Online game earnings have a TDS rate of 30%.
• Section 194BB: Horse race winnings above Rs. 10,000 are subject to 30% TDS.
• Section 194C: Contracts/sub-contracts attract a TDS rate of 1% for individuals/HUFs and 2% for others, with Rs. 30,000 per transaction or Rs. 1,00,000 in total.
• Section 194D: Insurance commission payments have a 10% TDS for domestic firms and 5% for others, with a Rs. 15,000 threshold.
• Section 194DA: Insurance payouts over Rs. 1,00,000 have a TDS of 5%.
• Section 194E: Payments to non-resident sportsmen/sports associations attract a 20% TDS.
• Section 194EE: National Savings Scheme payouts above Rs. 2,500 are subject to a 10% TDS.
• Section 194F: Repurchase of units by UTI or mutual funds is subject to 20% TDS.
• Section 194G: Lottery ticket sales exceeding Rs. 15,000 have a 5% TDS.
• Section 194H: Commission payments over Rs. 15,000 incur a 5% TDS.
• Section 194-I: Rent for equipment over Rs. 2,40,000 has a 2% TDS; other properties like land/building attract 10% TDS.
• Section 194-IA: Transfer of non-agricultural land property over Rs. 50,00,000 incurs a 1% TDS.
• Section 194-IB: Rent exceeding Rs. 50,000 per month paid by individuals or HUFs attracts a 5% TDS.
• Section 194-IC: Joint Development Agreement payments to individuals or HUFs have a 10% TDS.
• Section 194J: Professional or technical service payments over Rs. 30,000 attract a 10% (professional services), or 2% (technical, royalty for films/call centers) TDS.
• Section 194K: Mutual fund income payments incur a 10% TDS.
• Section 194LA: Compensation for acquiring immovable property over Rs. 2,50,000 has a 10% TDS.
• Section 194LB: Interest on infrastructure debt funds to non-residents features a 5% TDS.
• Section 194LC: Interest on foreign currency loans from Indian entities incurs a TDS of 5% or 4%.