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

Tax Deducted at Source (TDS) is tax deducted at the income source. It is a method of collecting tax by the government where the payer of the income deducts tax when paying the payee. TDS applies to various types of income, such as salary, interest, rent, commission, etc. The rate at which TDS is deducted varies depending on the income type and payment amount. This blog will discuss the TDS rate chart for the financial year 2023-2024 and the assessment year 2024-2025.

 

TDS Rates for Salary Income

TDS on salary income is deducted based on the employee’s income tax slab rate. The TDS rate for salary income for the financial year 2023-2024 and assessment year 2024-2025 is as follows:

Income Tax Slab as per New Scheme for FY 2023-24

Taxable Income	Tax Rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,001 to Rs. 6,00,000	5%
Rs. 6,00,001 to Rs. 9,00,000	10%
Rs. 9,00,001 to Rs. 12,00,000	15%
Rs. 12,00,001 to Rs. 15,00,000	20%
Above Rs. 15,00,000	30%

Income Tax Slab for Individuals as per Old Scheme for FY 2023-24

Taxable Income	TAX Rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

 

Income Tax Slab for Senior Citizens as per Old Scheme for FY 2023-24

Taxable Income	TAX Rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

 

Income Tax Slab for Super Senior Citizens as per Old Scheme for FY 2023-24 

Taxable Income	TAX Rate
Up to Rs. 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

 

A Comparison chart for Deductions and Exemptions in Old and New Tax Regimes

Particulars	Old Regime	New Regim
Standard Deduction of Rs 50,000 for Salaried and Pensioners	Allowed	Not Allowed
Deduction for Professional Tax Paid	Allowed	Not Allowed
House Rent Allowance Exemption (HRA)	Allowed	Not Allowed
Leave Travel Concession (LTC)	Allowed	Not Allowed
Interest on Self-occupied house property up to Rs 2,00,000	Allowed	Not Allowed
Deduction for Family Pension up to Rs 15,000	Allowed	Not Allowed
Deduction under section 80C to 80U	Allowed	Not Allowed

 

• Health and Educational cess @ 4% is leviable in both tax regimes.

• Rebate under section 87A of Rs 12500 or 100% of Income Tax (Whichever is less) for resident individuals having Total Income up to Rs 5 Lakhs is available in both tax regimes.

TDS rates in India

In the tables below, you can see the TDS rates that apply to resident and non-resident payments and those that apply to Indian and foreign companies. Any person paying income is responsible for deducting tax at the source and depositing TDS within the stipulated due date.

 

TDS Rate Charts for the FY 2023–24

 

Section	Nature of Payment	Threshold Limit (Rs)	TDS Rate (%)
192	Payment of salary	Basic Exemption Limit	Normal Slab Rate
192A	Premature EPF withdrawal	50,000	10% without a PAN number is now 20%.
193	Interest on securities	10,000	10%
194	Payment of any dividend	5,000	10%
194A	Interest other than “Interest in Securities”	40,000–50,000 (for senior citizens)	10%
194A	Interest other than “Interest on Securities u/s 193	5,000	10%
194B	Income by way of winnings from lotteries, crossword puzzles, card games, and other games of any sort	10,000	30%
194BA	Income from online games	NA	30%
194BB	Income from horse races	10,000	30%
194C	Payment to contractor/sub-contractor (HUF/Individuals)	Single contractor payment 30,000 Aggregate contractor payment 1,00,000	1%
194C	Payment to contractor/sub-contractor (Others)	Single contractor payment 30,000 Aggregate contractor payment: 1,00,000	2%
194D	Insurance Commission (domestic companies)	15,000	10%
194D	Insurance Commission (other than companies)	15,000	5%
194DA	Payment in respect of life insurance policy	1,00,000	5%
194E	Payment to Non-resident sportsmen/sports associations	NA	20%
194EE	Payment in respect of depostite under the national saving scheme	2,500	10%
194F	Payment of account of repurchase of unity by a mutual fund or unit trust of India	NA	20%
194G	Commission, etc., on the sale of lottery tickets	15,000	5%
194H	Commission or brokerage	15,000	5%
194-I	Rent Plant & Machinery	2,40,000	2%
194-I	Rent land or a building; furniture or fittings	2,40,000	10%
194-IA	Payment for transfer of immovable property other than agricultural land	50,00,000	1%
194-IB	Rent paid by an individual or a HUF is not subject to a tax audit	50,000	5%
194-IC	Payments are made under the joint development agreement (JDA) to Individua/HUF	NA	10%
194J	Fees for professional or technical services	30,000	10%
194J	Amount paid towards fees for technical services	30,000	2%
194J	Amount paid as a royalty for sale	30,000	2%
194J	Amount paid by way of fee for professional service	30,000	10%
194K	Income in respect of units payable to a resident person, e.g., dividends	NA	10%
194LA	Payment of compensation on the acquisition of certain immovable property	2,50,000	10%
194LB	Payment of interest on infrastructure bonds to Non-resident Indians	NA	5%
194LC	Interest paid by an Indian company or business trust on money borrowed in foreign currency through a loan agreement or the sale of long-term bonds	NA	5% or 4%
194LD	Payment of interest on an Indian company or government bond denominated in rupees to a foreign institutional investor or a qualified foreign investor	NA	5%
194LBA(1)	A business trust distributes certain income to its unit holders	NA	10%
194LBB	Investment fund paying an income to a unit holder	NA	10% (foreign company 40%)
194LBC	Income in respect of investments made in a securitization trust	NA	Individuals or HUF: 25% Domestic company or NRI: 10% Foreign company: 40%
194M	Individual/HUF payments are exempt from TDS under Sections 194C, 194H, and 194J	50,00,000	5%
194N	Cash withdrawal exceeding a certain amount	Co-operative society  3crore other 1crore	2%
194N	Cash withdrawal for those persons who have not filed an ITR for three previous years immediately preceding the previous year	If it exceeds Rs. 20, If it exceeds Rs. 1 crore	2%-5%
194O	Payment by the e-commerce operator to the e-commerce participant	5,00,000	1% without pan 5%
194P	Deduction of tax by a specified bank in case of a senior citizen having an age of 75 or more	Basic exemption limit	Standard tax slab rates
194R	Perquisite or beneficial to a business or profession	20,000	10%
194S	Payment on transfer of a virtual digital asset	Specified person: 50,000; others: 10,000	1%
195	Income in respect of investment made by a non-resident Indian citizen	NA	20%
195	Income by way of long-term capital gains referred to in Section 115E in the case of a non-resident Indian citizen	NA	10%
195	Income by way of long-term capital gains is referred to in subclause (3) of clause (c) of subsection (1) of Section 112	NA	10%
195	Income by way of long-term capital gains, referred to in Section 112A	NA	10%
195	Income by way of long-term capital gains, referred to in Section 111A	NA	15%
195	Any other income by way of long-term capital gain	NA	20%
196B	Income from units in an offshore fund	NA	10%
196C	Income from foreign currency bonds or GDRs of an Indian company	NA	10%
196D	Income from foreign institutions investors from securities	NA	20%

 

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