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% |
Disclaimer: This article is provided for informational purposes only. It does not constitute legal advice or opinions on behalf of the company. Based on the pertinent laws and facts at the time, it is made accurately and reliably. Before acting based on the preceding write-up, readers are urged to review and consult any pertinent statutory provisions, recent judicial declarations, circulars, and clarifications, among other sources. There may be opposing viewpoints on the subject. By using the information above, you acknowledge and agree that Alonika is not accountable or liable in any way for the legitimacy, correctness, completeness, mistakes, or any other types of omissions in this material or for any actions taken as a result of it. It is not a professional request for work or an advertisement.