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

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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