TDS Rate Charts for FY 2024–25 (AY 2025–26): A Comprehensive Guide

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.

Sandeep Ojha

Hi, I’m an accountant, tax consultant, and ERP expert passionate about making finance easy. At Commerce Tutors, I share clear, concise guides on accountancy, income tax, GST, and company laws to empower students and professionals alike facebook instagram reddit quora linkedin

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