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| TDS Rate Charts for FY 2024–25 (AY 2025–26): A Comprehensive Guide |
Tax Deducted at Source (TDS) is a cornerstone of India’s tax collection system. It requires the deductor (the person making a payment) to collect tax at the source before disbursing funds to the payee. In this article, we provide an in‐depth look at the TDS rate charts for the Financial Year 2024–25 (Assessment Year 2025–26), explain how the rates are applied across various transactions, and discuss the important revisions introduced in Budget 2024.
What Is TDS and Why Is It Important?
TDS stands for Tax Deducted at Source. Under this mechanism, tax is collected from the very source of income rather than waiting until the end of the fiscal year. This approach not only ensures a steady inflow of revenue to the government but also helps reduce tax evasion. TDS is applicable on a wide range of payments such as:
- Salary (Section 192)
- Interest on deposits and securities (Sections 193 and 194A)
- Dividends (Section 194)
- Winnings from lotteries, card games, and horse races (Sections 194B, 194BA, and 194BB)
- Contractor payments (Section 194C)
- Rent payments (Sections 194I/194IB)
- Professional fees and commissions (Section 194J and 194H)
(For a general overview of TDS, see CLEARTAX.IN .)
Overview of the TDS Rate Chart for FY 2024–25
The TDS rate chart consolidates all the provisions under the Income Tax Act, setting out:
- Threshold Limits: Minimum payment amounts beyond which TDS must be deducted.
- Applicable Rates: The percentage at which tax is to be deducted.
- Special Conditions: For example, different rates may apply based on whether the recipient is an individual, a company, or a non-resident.
For instance, while salary payments (Section 192) are deducted as per the employee’s applicable income tax slab, other payments like lottery winnings (Section 194B) attract a fixed rate of 30% if the winnings exceed Rs. 10,000.
Revised TDS Rates Under Budget 2024
A key highlight of Budget 2024 is the rationalization of several TDS rates to simplify compliance and reduce the tax burden. For example:
| Section | Nature of Payment | Old Rate | Revised Rate | Effective Date |
|---|---|---|---|---|
| 194D | Insurance commission | 5% | 2% | 1 April 2025 |
| 194DA | Life insurance policy payouts | 5% | 2% | 1 October 2024 |
| 194G | Commission on sale of lottery tickets | 5% | 2% | 1 October 2024 |
| 194H | Brokerage/commission payments | 5% | 2% | 1 October 2024 |
| 194IB | Rent paid by certain individuals/HUF (non-audit cases) | 5% | 2% | 1 October 2024 |
| 194M | Payment of certain sums by individuals/HUF | 5% | 2% | 1 October 2024 |
| 194O | Payments by e-commerce operators to participants | 1% | 0.1% | 1 October 2024 |
| 194F | Repurchase of units by MF/UTI (Mutual Funds/UTI) | 20% | Omitted | 1 October 2024 |
These changes help ease compliance for deductors and reduce the cash flow burden for many taxpayers.
(For further details on these changes, see M.ECONOMICTIMES.COM and TAXGYANY.COM .)
Complete TDS Rate Chart
Below is a comprehensive chart covering the key sections applicable for TDS on various payments for FY 2024–25 (AY 2025–26). (Note: Rates for certain sections vary by the status of the recipient or are subject to additional surcharge and cess. The figures below reflect the basic rate; always refer to the latest notifications and consult a tax professional for detailed cases.)
A. For Resident Individuals and HUF
| Section | Nature of Payment | Threshold Limit | TDS Rate | Notes / Revised Rate |
|---|---|---|---|---|
| 192 | Salary Income | – | As per applicable income tax slab | |
| 192A | Premature withdrawal from EPF | Rs. 50,000 | 10% if PAN provided; 20% if PAN not provided | |
| 193 | Interest on securities (e.g., debentures, bonds) | Rs. 5,000–10,000 (varies by instrument) | 10% | |
| 194 | Dividend | Rs. 5,000 | 10% | |
| 194A | Interest (bank deposits/post office/co-operative) | For banks & post offices: Rs. 40,000 (Rs. 50,000 for senior citizens) | 10% | For other sources: Threshold Rs. 5,000; Rate 10% |
| 194B | Lottery winnings, card games, crosswords, etc. | Rs. 10,000 | 30% | |
| 194BA | Winnings from online games | Nil (no threshold) | 30% | |
| 194BB | Winnings from horse races | Rs. 10,000 | 30% | |
| 194C | Payments to contractors/sub-contractors | Single transaction: Rs. 30,000; Aggregate: Rs. 1,00,000 | 1% (Individuals/HUF); 2% (Others) | |
| 194D | Insurance commission | Rs. 15,000 | 5% (old); Revised to 2% effective 1 April 2025 | |
| 194DA | Payments relating to life insurance policies | Rs. 1,00,000 | 5% (old); Revised to 2% effective 1 October 2024 | |
| 194E | Payment to non-resident sportsman/sports associations | No threshold | 20% (+ surcharge & 4% cess) | |
| 194EE | Payment under National Savings Scheme (NSS) | Rs. 2,500 | 10% | |
| 194F | Payment for repurchase of units by MF/UTI | No threshold | 20% (Omitted from 1 Oct 2024) | |
| 194G | Commission on sale of lottery tickets | Rs. 15,000 | 5% (old); Revised to 2% effective 1 October 2024 | |
| 194H | Brokerage/Commission | Rs. 15,000 | 5% (old); Revised to 2% effective 1 October 2024 | |
| 194I(a) | Rent for plant/machinery | Rs. 2,40,000 (per annum) | 2% | |
| 194I(b) | Rent for land/building/furniture/fittings | Rs. 2,40,000 (per annum) | 10% | |
| 194-IA | Payment on transfer of immovable property (non-agricultural) | Rs. 50,00,000 | 1% | |
| 194-IB | Rent paid by individual/HUF (not liable to audit) | Rs. 50,000 per month | 5% (old); Revised to 2% effective 1 October 2024 | |
| 194-IC | Payment under Joint Development Agreements (JDA) | Nil | 10% | |
| 194J | Fees for professional or technical services | Rs. 30,000 | 10% for general professional services; 2% for technical services | |
| 194K | Income from units of a mutual fund | Nil | 10% | |
| 194LA | Compensation on acquisition of immovable property | Rs. 2,50,000 | 10% | |
| 194LB | Interest on infrastructure debt fund (to non-residents) | Nil | 5% (+ surcharge & 4% cess) | |
| 194LBA(1) | Income distributed by a business trust to unitholders | Nil | 10% | |
| 194LBA(2) | Interest income of a business trust from SPV distribution | Nil | 5% (or 10% in certain cases) | |
| 194LBA(3) | Rental income payment by business trust to unitholders | Nil | Typically 30–40% (varies with payee status) | |
| 194LBB | Income paid to a unitholder by an investment fund | Nil | 10% for resident payees (may be higher for non-residents) | |
| 194LBC | Income from investment in a securitisation trust | Nil | 25% if the payee is an individual/HUF; 30–40% for others | |
| 194LD | Interest on certain bonds and government securities | Nil | 5% | |
| 194M | Certain payments by individuals/HUF (other than under 194C, 194H, 194J) | Rs. 50,00,000 | 5% (old); Revised to 2% effective 1 October 2024 | |
| 194N | Cash withdrawals (across one or more accounts) | – For non-filers: Thresholds vary (e.g., 20 lakhs to 1 crore) | 2% on amounts between threshold limits; 5% on amounts exceeding 1 crore | Example: 2% for withdrawals between Rs. 20 lakh and 1 crore, 5% above 1 crore |
| 194O | Payment by e-commerce operator to e-commerce participants | Rs. 5,00,000 | 1% (old); Revised to 0.1% effective 1 October 2024; if PAN not furnished, 5% | |
| 194P | Pension or interest payments to specified senior citizens | As per the basic exemption limit | As per the normal income tax slab rates | |
| 194Q | Payment for purchase of goods | Rs. 50,00,000 | 0.10% | |
| 194R | Benefit or perquisite in respect of a business or profession | Rs. 20,000 | 10% | |
| 194S | Payment for transfer of virtual digital assets | For specified persons: Rs. 50,000; Others: Rs. 10,000 | 1% | |
| 195 | Various payments to Non-Resident Indians (NRIs) – see detailed notes below | – | Varies: e.g., LTCG under section 115E: 10%; STCG: 15%; Other income: 30% | Detailed structure; consult specific provisions |
| 196B | Income from units of an offshore fund | Nil | 10% | |
| 196C | Income from foreign currency bonds or GDRs | Nil | 10% | |
| 196D | Income (excluding dividend and capital gains) from FIIs | Nil | 20% | |
| 206AA | TDS in case PAN is not furnished | Nil | Higher of prescribed rate or 20% | |
| 206AB | TDS for non-filers (e.g., those not filing ITR) | Nil | 2× the prescribed rate or 5%, whichever is higher |
(Sources for this comprehensive chart include TAXGYANY.COM and TAX2WIN.IN , among other reputable tax portals.)
B. For Non-Resident Indians (NRIs) (Other Than a Company)
| Section | Nature of Payment | TDS Rate | Notes |
|---|---|---|---|
| 192 | Salary | As per applicable slab | |
| 192A | EPF withdrawals | 10% | |
| 194B | Lottery winnings, card games, etc. | 30% | |
| 194BB | Horse race winnings | 30% | |
| 194E | Payment to non-resident sportsmen/associations | 20% (+ surcharge & cess) | |
| 194EE | Payment under NSS | 10% | |
| 194F | Repurchase of units by MF/UTI | 20% | |
| 194G | Commission on lottery ticket sales | 5% | |
| 194LB | Interest on infrastructure debt fund | 5% | |
| 194LBA(2) | Income from SPV distribution to business trust/unitholders | 5% or 10% | Rate may vary depending on nature of income |
| 194LBA(3) | Rental income from business trust | Typically 30–40% | Varies based on payee status |
| 194LBB | Income from investment fund to unitholder | Typically 30–40% | For NR, rates are generally higher than for residents |
| 194LBC | Income from securitisation trust | Typically 30–40% | |
| 194LC | Interest on foreign currency loan | 5% (or 4% if on bonds listed on recognized IFSC) | |
| 194LD | Interest on rupee-denominated bonds | 5% | |
| 195 | Other payments (e.g., LTCG, royalty, technical fees) | Varies (10%, 15%, 20%, or 30%) | Detailed provisions apply |
| 196B–196D | Income from offshore funds, foreign bonds, and FIIs | 10–20% | As detailed in individual sections |
C. For Domestic Companies
| Section | Nature of Payment | TDS Rate | Notes |
|---|---|---|---|
| 192 | Salary | As per applicable income tax slab | |
| 192A | EPF withdrawals | 10% | |
| 193 | Interest on securities | 10% | |
| 194 | Dividend | 10% | |
| 194A | Interest (non-securities) | 10% | |
| 194B | Lottery winnings, etc. | 30% | |
| 194BB | Horse race winnings | 30% | |
| 194C | Contractor/sub-contractor payments | 1% (Individuals/HUF); 2% (Others) | |
| 194D | Insurance commission | 10% | For companies (revised rates apply for individuals as noted above) |
| 194DA | Life insurance policy payouts | 5% | |
| 194EE | Payment under NSS | 10% | |
| 194F | Repurchase of units by MF/UTI | 20% | |
| 194G | Commission on lottery ticket sales | 5% | |
| 194H | Brokerage/Commission | 5% | |
| 194I | Rent (plant/machinery: 2%; land/building/furniture: 10%) | 2% / 10% | |
| 194-IA | Transfer of immovable property (non-agricultural) | 1% | |
| 194-IC | Payment under JDA | 10% | |
| 194J | Professional/technical fees | 10% (general) or 2% (for technical services) | |
| 194K | Income from mutual funds | 10% | |
| 194LA | Compensation on property acquisition | 10% | |
| 194LBA(1) | Income distributed by a business trust to unitholders | 10% | |
| 194LBB | Payment by investment fund to unitholder | 10% | |
| 194LBC | Income from securitisation trust | 10% | |
| 194M | Certain payments by individuals/HUF (not under 194C, 194H, 194J) | 5% (old); Revised to 2% effective 1 Oct 2024 | |
| 194N | Cash withdrawals | 2% or 5% (depending on aggregate amounts) | |
| 194O | E-commerce operator payments | 1% (old); Revised to 0.1% effective 1 Oct 2024 | If PAN not furnished, higher rate applies |
| 194Q | Purchase of goods | 0.10% | |
| 194R | Benefit/perquisite in business/profession | 10% | |
| 194S | Virtual digital assets payments | 1% | |
| 206AA/206AB | Higher TDS rates if PAN not furnished or for non-filers | As prescribed | See individual provisions |
How to Use the Complete Rate Chart
- For Compliance: Always check the threshold and rate for each specific transaction type. For instance, when deducting TDS on an EPF withdrawal, confirm if PAN is available to apply the correct rate.
- For Cash Flow Management: Knowing these rates and thresholds helps you plan payments and avoid potential penalties for under-deduction.
- Staying Updated: With periodic revisions (like those in Budget 2024), it’s critical to refer to the latest chart from trusted sources or consult a tax professional.
Conclusion
This comprehensive TDS rate chart for FY 2024–25 (AY 2025–26) is a valuable reference for any individual, business, or professional involved in deducting or remitting tax at source. Whether you handle salary payments, interest income, professional fees, or rents, understanding these rates and thresholds is essential to remain compliant and optimize your tax planning. The revisions in Budget 2024—especially the reduction in rates for several categories—demonstrate the government’s commitment to simplifying tax compliance and easing the burden on taxpayers.
Stay updated by consulting trusted tax portals and consider professional advice to ensure error-free TDS compliance.