TDS RATE

CHART FOR
AY 2024-25
(FY 2023-24)
Rates of TDS applicable for Financial Year 2023‐24 or Assessment Year 2024‐25:

Nature of Payment Basic Cut off (Rs) Individual If No Pan or

/Company and Invalid
others New PAN (Rate %)
Rate %)
192 – Salaries Slab Rate Slab Rates 30%
192A‐ Premature withdrawal from 50,000 Individual: 10% 20%
Employee Provident Fund (Note 1) Company: NA
193 – Interest on securities (Note 2 & 3) 2,500 Individual: 10% 20%
Company: 10%
194 – Dividend other than the dividend as 5,000 Individual: 10% 20%
referred to in Section 115‐O Company: 10%
194A – Interest other than interest on 40,000 (for Individual: 10% 20%
securities – Banks Time deposits, individual) 50000

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Recurring deposit and Deposit in Co‐op (for Senior
Banks (Note 3) Citizens)
194B – Winning from Lotteries 10,000 Individual: 30% 30%
Company: 30%
194BA – Winnings from Online Gaming Amount of net Individual: 30% 30%
(Note 16) winnings Company: 30%

194BB – Winnings from Horse Race

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in withdrawal
10,000 Individual: 30%
Company: 30%
30%
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194C‐ Payment to Contractor – Single 30,000 Individual: 1% 20%
Transaction (Note 4) Company: 2%
194C‐Payment to Contractor – Aggregate 1,00,000 Individual: 1% 20%
During the Financial year (Note 4) Company: 2%
194C‐ Contract – Transporter not covered 30,000 / 75,000 Individual: 1% 20%
under 44AE (Note 4) Company: 2%
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194C‐ Contract – Transporter covered – – 20%

under 44AE & submit declaration on
prescribed form with PAN
194D – Insurance Commission 15,000 Individual: 5% 20%
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Company: 5%
194DA Payment in respect of life 1,00,000 Individual: 5% 20%
insurance policy (Note 5) Company: 5%
194E – Payment to Non‐Resident – Individual: 20% 20%
Sportsmen or Sports Association Company: 20%
194EE – Payments out of deposits under 2,500 Individual: 10% 20%
National Savings Scheme Company: 10%
194F – Repurchase Units by MFs – Individual: 20% 20%
Company: 20%
194G – Commission – Lottery 15,000 Individual: 5% 20%
Company: 5%
194H – Commission / Brokerage 15,000 Individual: 5% 20%
Company: 5%
194I – Rent – Land and Building – 2,40,000 Individual: 10% 20%
furniture – fittings Company: 10%
194I – Rent – Plant / Machinery / 2,40,000 Individual: 2% 20%
equipment Company: 2%
194IA ‐Transfer of certain immovable 50,00,000 Individual: 1% 20%
property other than agriculture land Company: 1%
194IB – Rent – Land or building or both 50,000 per month Individual: 5% 20%
194IC – Payment of Monetary – Individual: 10% 20%
consideration under Joint development Company: 10%
agreement
194J – Professional Fees for technical 30,000 Individual: 2% 20%
services (w.e.f. from 1.4.2020) (Note 6) Company: 2%
194J – Professional Fees in all other cases 30,000 Individual: 10% 20%
Company: 10%
194K‐ Payment of any income in respect – Individual: 10% 20%
of Units of Mutual fund as per section Company: 10%
10(23D) or Units of administrator or from

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a specified company (Note 7)
194LA – TDS on compensation for 2,50,000 Individual: 10% 20%
compulsory acquisition of immovable Company: 10%
Property (Note 8)
194 LBA (1)‐ Business trust shall deduct Individual: 10% 20%
tax while distributing, any interest Company: 10%

any income received from renting or

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received or receivable by it from a SPV or

leasing or letting out any real estate asset

owned directly by it, to its unit holders.
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(Note 9)
194LB – Income by way of interest from – Individual: 5% 20%
infrastructure debt fund (non‐resident) Company: 5%
194LBB – Income in respect of investment – Individual: 10% 30%
in Securitisation trust. Company: 30%
194LBC‐ Income in respect of investment – Individual: 25% 30%
st

made in a securitisation trust Company: 30%

194 LC – Income by way of interest by an – Individual: 5% 20%
Indian specified company to a non‐ Company: 5%
resident / foreign company on foreign
In

currency approved loan / long‐term

infrastructure bonds from outside India
(Note 10)
194LD – Interest on certain bonds and – Individual: 5% 20%
govt. Securities (Note 11) Company: 5%
194M – Payment of Commission, 50,00,000 Individual: 5% 20%
brokerage, contractual fee, professional Company: 5%
fee to a resident person by an Individual
or a HUF who are not liable to deduct TDS
under section 194C, 194H, or 194J.
194N – Cash withdrawal in excess of Rs. 20,00,000 Individual: 2% 20%
20 Lakh during the previous year from Company: 2%
one or more account maintained by a
person with a banking company, co‐
operative society engaged in business of
banking or a post office.
 194N – Cash withdrawal in excess of Rs. 1 100,00,000 Individual: 2% 20%
crore during the previous year from one Company: 2%
or more account maintained by a person
with a banking company, co‐operative
society engaged in business of banking or
a post office. (Note 12)
194N – Cash withdrawal in excess of Rs. 300,00,000 Co‐operative 20%
3 crore during the previous year from Society : 5%
one or more account maintained by a Co
operative society with a banking
company, co‐operative society engaged
in business of banking or a post office.
(Note 15)
194O – Applicable for E‐Commerce – Individual: 1% 20%
operator for sale of goods or provision of Company: 1%
service facilitated by it through its digital

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or electronic facility or platform.
194P‐ TDS by specified bank to specified – Rates applicable
senior citizen to particular
slab of income
including

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Surcharge and
Health &
Education Cess
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194Q‐ Purchase of goods 50,00,000 0.1%
194R‐ Deduction of tax on benefit of Resident 10%
perquisite in respect of business or Indiviual: 20,000
profession
194S‐ Transfer of a virtual digital asset Resident 1%
Individual & HUF:
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50,000

Others: 10,000
195‐ Payment of any sum to Non resident – – Higher of
In

Rate in force
or Double
Taxation
Avoidance
Act rate
196B – Income from units – Individual: 10% 20%
Company: 10%
196C‐Income from foreign currency – Individual: 10% 20%
bonds or GDR (including long‐term capital Company: 10%
gains on transfer of such bonds) (not
being dividend)
196D – Income of FIIs from securities – Individual: 20% 20%
Company: 20%

Note:
 1. TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in
Recognized Providend Fund is to be included in the total income. The second proviso to
section 192A of the Act provides that any person entitled to receive any amount on which
tax is deductible shall furnish his Permanent Account Number (PAN) to the person
responsible for deducting such tax, failing which tax shall be deducted at the maximum
marginal rate. It was observed that many low‐paid employees do not have PAN and thereby
TDS is being deducted at the maximum marginal rate in their cases under section 192A.
Hence, it is proposed to omit the second proviso to section 192A of the Act, so that in case
of failure to furnishing of PAN by the person relating to payment of accumulated balance
due to him, tax will be deducted at the rate of 20% as in other non‐PAN cases in accordance
with section 206AA of the Act, instead of at the maximum marginal rate.
2. Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on
7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.
3. Section 193 of the Act provides for TDS on payment of any income to a resident by way of
interest on securities. The proviso to section 193 of the Act provides exemption from TDS in
respect of payment of interest on certain securities. Clause (ix) of the proviso to the

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aforesaid section provides that no tax is to be deducted in the case of any interest payable
on any security issued by a company, where such security is in dematerialized form and is
listed on a recognized stock exchange in India in accordance with the Securities Contracts
(Regulation) Act, 1956 (32 of 1956) and the rules made thereunder. It is seen that there is
under reporting of interest income by the recipient due to above TDS exemption. Hence, it is

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proposed to omit clause (ix) of the proviso to section 193 of
the Act. This amendment will take effect from 1st April, 2023.

4. TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI. TDS is not applicable on
payment to Contractor engaged in plying, hiring or leasing of goods carriages, where such contractor
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owns 10 or less goods carriages during the Financial Year and furnishes amend definition of “work”
to include purchase of raw material from associate of the customer. The word Associate shall have
the same relations as stated u/s 40A(2)(b).

5. Section 194DA is not applicable in case of amount is exempt u/s 10(10D) i.e. the Sum is received at
st

the time of maturity of policy or Death benefit received. Form 15G/15H can be given wherever
applicable.

6. Rate of TDS is 2% instead of 10% if the payee is engaged in the business of operation of call
centre. TDS on Remuneration paid to Director other than Salary shall be deducted @ 10%.
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7. Units of Mutual Fund have been specified under section 10(23D) of Income Tax Act, 1961.
“Administrator”, “specified company” and “specified undertaking” are specified u/s 2 of the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002.

8. No tax will be deducted if payment is made in respect of any award or agreement which has been
exempted from levy of income‐tax u/s 96 of the Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013.

9. Interest payment from a SPV and Distribution of dividend by a Business Trust, to Resident unit
holders shall be liable for TDS @ 10%. Whereas, in case of Non‐Resident payee, TDS on dividend
shall be @ 10% & that on interest payment shall be @ 5%.

10. The period of concessional rate of TDS of 5% has been extended till 1st July 2023 from existing
1st July 2020. The rate of TDS has been reduced to 4 % in case of interest payable to a Non‐Resident
on borrowings in foreign currency from a source outside India, by way of issue of any long term bond
or Rupee Denominated Bonds on or after 1st April, 2020 but before 1st July, 2023 and which is listed
only on a recognised stock exchange located in any IFSC.

11. In case of FPI and QFI, the lower TDS rate of 5% has been extended to 1st July, 2023. The said
concessional TDS rate shall also be applied to FII and QFI in respect of investment made in Municipal
Bonds.

12. The threshold limit of INR 1 Crore is for aggregate cash withdrawn from an account during the
Financial Year.

13. In case payee does not furnish PAN then TDS shall be deducted at higher of the following rates:

Rates specified in relevant provisions of the Act; or Rates in force; or 20%.

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In case of payment by E‐Commerce Operator to E‐ Commerce Participant, 5% TDS shall apply instead
of 20%.

14. In case of non‐filers having aggregate TDS / TCS of INR 50,000 or more and who have not filed
their ITR in both of the 2 years immediately preceding the financial year (and time limit for filing the
original return has expired), then the rate of TDS shall be higher of the following
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Twice the rates specified; or Rates in force; or 5%

In case the payee does not furnish PAN and TDS rate for not furnishing PAN are higher than the
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above mentioned rates, then such higher rate shall be applicable. These provisions will not be
applicable for the following payments:

 Salary
 Accumulated Balance due to employee
 Winnings from lottery, crossword puzzle or horserace
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 Income paid in respect of investment in securitization trust

 TDS by banks on cash withdrawals

15. Amendment in Section 194N‐ TDS on Cash Withdrawal of the Income Tax Act:
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1. Section 194N of the Act provides that a banking company or a co‐operative society
engaged in carrying on the business of banking or a post office, which is responsible for
paying any sum to any person (referred to as the recipient) shall, at the time of payment of
such sum in cash, deduct an amount equal to two per cent of such sum, as income‐tax. The
requirement to deduct tax applies only when the payment of amount or aggregate of
amount in cash during the year exceeds one crore rupees.

2. However, in case of a recipient who is a non‐filer tax is to be deducted at the rate of 2%

on any sum exceeding Rs. 20 lakh but not exceeding Rs. 1 crore in aggregate during the
financial year and, at the rate of 5% on sum exceeding Rs. 1 crore in aggregate during the
financial year.
3. Non‐filer means a recipient who has not filed any income‐tax return for all of the three
assessment years relevant to the three previous years immediately preceding the previous
year in which such payment is received.
 4. It is proposed to amend section 194N of the Act by inserting a new proviso to
provide that where the recipient is a co‐operative society, the provisions of this section
shall have effect, as if for the words “one crore rupees”, the words “three crore rupees” had
been substituted.
5. This amendment will take effect from 1st April, 2023.

16. Insertion of New Section 194BA: TDS on Winning from Online Gaming

Insert a new section 194BA in the Act, with effect from 1st July 2023, to provide for deduction of tax
at source on net winnings in the user account at the end of the financial year. In case there is
withdrawal from user account during the financial year, the income‐tax shall be deducted at the
time of such withdrawal on net winnings comprised in such withdrawal. In addition, income‐tax shall
also be deducted on the remaining amount of net winnings in the user account at the end of the
financial year. Net winnings shall be computed in the prescribed manner.

To provide in the proposed section 194BA that in a case where the net winnings are wholly in kind or

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partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction
of tax in respect of whole of the net winnings, the person responsible for paying shall, before
releasing the winnings, ensure that tax has been paid in respect of the net winnings;

To provide that if any difficulty arises in giving effect to the provisions of new section 194BA, the

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Board may, with the prior approval of the Central Government, issue guidelines for the purpose of
removing the difficulty. Every such guideline issued by the Board shall be laid before each House of
Parliament, and shall be binding on the incometax authorities and on the person responsible for
deduction of income‐tax on any income by way of winnings from online game;
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To provide the definition of “computer resource”, “internet”, “online game”, “online gaming
intermediary”, “user”, “user account” in the proposed section 194BA;

To amend section 115BB of the Act to exclude income from winnings from online games from the
purview of the said section from the assessment year 2024‐25, since it is proposed to introduce
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section 115BBJ to tax winnings from online games from that assessment year;
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