TDS Rate Chart for Financial Year 2023-24 (Assessment Year 2024-25)

Tax Deducted at Source (TDS) is a mechanism to collect tax at the source of income. Different types of income have different TDS rates under the Income Tax Act, 1961. The rates may vary based on the nature of the income, the status of the taxpayer (resident or non-resident), and whether any exemptions or lower tax rates are applicable.

Here’s a detailed TDS Rate Chart for FY 2023-24 (AY 2024-25) for various types of income:

TDS Rate Chart for Salaries:

Section	Nature of Income	TDS Rate
Section 192	Salary Income	As per applicable income tax slabs

TDS on Income from Other Sources:

Section	Nature of Income	TDS Rate
Section 193	Interest on Government securities	10%
Section 194	Interest other than interest on securities	10%
Section 194A	Interest on fixed deposits, recurring deposits, etc.	10%
Section 194B	Winnings from lottery, crossword puzzle, etc.	30%
Section 194C	Payments to contractors and sub-contractors	1% (for individuals/HUF) 2% (for others)
Section 194H	Commission or brokerage	5%
Section 194-I	Rent (for land, building, etc.)	10% for both residential and non-residential
Section 194J	Professional or technical services	10% for professional services 2% for technical services
Section 194L	Payments to non-resident on transfer of certain property	20% for long-term capital gains

TDS on Payments to Non-Residents:

Section	Nature of Income	TDS Rate
Section 195	Payments to non-residents (e.g., salary, interest, royalty, etc.)	Varies based on type of income, generally 20%
Section 194LBB	Income from investment in a specified company or venture	10% for long-term capital gains
Section 194LC	Income from bonds issued by Indian companies (approved bonds)	5%
Section 195B	Payment to non-residents for royalty or technical service	10% (depends on the nature of the agreement)

TDS on Transfer of Immovable Property:

Section	Nature of Income	TDS Rate
Section 194-IA	Sale of immovable property (other than agricultural land)	1% of the sale consideration (if the amount exceeds ₹50 lakh)

TDS on Income from Mutual Funds and Securities:

Section	Nature of Income	TDS Rate
Section 194K	Income from mutual funds (dividends and capital gains)	10% on dividend income (if above ₹5,000)
Section 196A	Income from bonds, debentures, securities	20%

TDS on Miscellaneous Income:

Section	Nature of Income	TDS Rate
Section 194L	Payments on transfer of certain immovable property	10% or 20%
Section 194LA	Payments of compensation for land acquisition	10%

TDS on Payments for Sale of Property

Section	Nature of Income	TDS Rate
Section 194-IA	Sale of property (if consideration exceeds ₹50 lakh)	1% of the sale amount

TDS for Income from Rent

Section	Nature of Income	TDS Rate
Section 194I	Rent (for property other than land/building)	10% for individuals and HUF; 20% for others
Section 194J	Rent for technical services (e.g., machinery)	2%

Important Notes:

1. PAN Requirement:TDS will be deducted at a higher rate of 20% if the payee does not furnish their PAN.

2. Threshold Limit:Many sections have a threshold limit for TDS deduction, meaning TDS is deducted only if the income exceeds a specified amount. For example, Section 194A (interest other than interest on securities) only applies if the interest exceeds ₹40,000 (₹50,000 for senior citizens).

3. No TDS on Certain Payments:TDS is not deducted in certain situations like interest income on post-office savings, tax-exempt government bonds, etc.

4. TDS for Non-Residents:Non-residents, including NRIs (Non-Resident Indians), may be eligible for tax treaty benefits to reduce the TDS rate under the Double Taxation Avoidance Agreement (DTAA). It’s essential to apply for a lower TDS rate certificate from the Income Tax Department.

Conclusion

Understanding the TDS rate chart is crucial for both individuals and businesses to ensure proper tax compliance. Whether you are a salaried person, a contractor, a professional, or a non-resident, knowing your TDS obligations can help you avoid penalties and optimize your tax planning. If you’re unsure about the correct rate or filing procedure, it's advisable to consult a tax consultant or chartered accountant to ensure you’re deducting and depositing TDS correctly.