/ TDS

TDS Rates Chart for the FY 2024-25

TDS/TCS Related changes applicable from 1st April 2025

TDS Rates Chart for the financial year 2024-25

TDS/TCS rationalization for easing difficulties

This is the TDS (Tax Deducted at Source) Rates Chart for the financial year 2024-25. Here’s a quick breakdown of the rates and thresholds for various sections:

  • Section 192: Payment of Salary – Based on slab rates; Threshold is the basic exemption limit.
  • Section 193: Interest on securities – TDS at 10%, with a threshold of ₹10,000.
  • Section 194: Payment of Dividends – TDS at 10%, threshold ₹5,000.
  • Section 194A: Interest (non-securities) – TDS at 10%, threshold ₹40,000 for banks/co-operative societies.
  • Section 194B: Lottery winnings – TDS at 30%, threshold ₹10,000.
  • Section 194BA: Income from Online Gaming – TDS at 30%, no threshold.
  • Section 194BB: Horse Race Winnings – TDS at 30%, threshold ₹10,000.
  • Section 194C: Contractor/Subcontractor payments:
    • Individual/HUF: TDS at 1%, threshold ₹30,000 (single transaction) or ₹1,00,000 (annual).
    • Others: TDS at 2%.
  • Section 194D: Insurance Commission:
    • Domestic Companies: TDS at 10%, threshold ₹15,000.
    • Others: TDS at 5%.
  • Section 194G: Commission on sale of lottery tickets – TDS at 2%, threshold ₹15,000.
  • Section 194H: Commission/Brokerage – TDS at 2%, threshold ₹15,000.
  • Section 194I: Rent:
    • Plant or Machinery: TDS at 2%, threshold ₹2,40,000.
    • Land, building, furniture: TDS at 10%, threshold ₹2,40,000.
  • Section 194J: Professional Services, Director Remuneration, Technical Services:
    • TDS at 10%, threshold ₹30,000.
    • For technical services, royalty, call centers: TDS at 2%, threshold ₹30,000.
  • Section 194K: Income from mutual fund units – TDS at 10%, no threshold.

Rationalization of TDS/TCS Provisions: New Updated TDS Rates Chart 

ationalization of TDS/TCS provisions with increased threshold limits

Summarizing the rationalization of TDS/TCS provisions with increased threshold limits for various provisions under the Income Tax Act. It may Impact of changes, like Reduces compliance burden by increasing TDS/TCS thresholds. Beneficial for taxpayers, particularly those earning interest, commission, and professional fees. Supports education abroad by removing TCS on certain education-related transactions. Key Changes in TDS/TCS Thresholds

  • Section 194A (Interest other than Interest on Securities)

    • Increased from INR 50,000 to INR 1,00,000 for senior citizens.
    • Increased from INR 40,000 to INR 50,000 for banks, cooperative societies, and post offices.
    • Increased from INR 5,000 to INR 10,000 for others.

  • Section 194-I (Rent): Changed from INR 2,40,000 per year to INR 50,000 per month or part thereof.

  • Section 193 (Interest on Securities): Threshold introduced at INR 10,000 (earlier Nil).

  • Section 194 (Dividend for Individual Shareholder): Increased from INR 5,000 to INR 10,000.

  • Section 194K (Income from Mutual Funds/Specified Companies): Increased from INR 5,000 to INR 10,000.

  • Section 194D (Insurance Commission): Increased from INR 15,000 to INR 20,000.

  • Section 194G (Lottery Commission and Prizes): Increased from INR 15,000 to INR 20,000.

  • Section 194H (Brokerage/Commission): increased from ₹15,000 to ₹20,000.

  • Section 194J (Professional or Technical Fees): Increased from INR 30,000 to INR 50,000.

  • Section 194LA (Enhanced Compensation for Land Acquisition): Increased from INR 2,50,000 to INR 5,00,000.

  • Section 206C(1G) (LRS Remittance & Tour Packages): Increased from INR 7,00,000 to INR 10,00,000.
  • Additional Relief for Education Remittances like No TCS on education-related remittances where the amount is taken as a loan from a specified financial institution.

TDS Rates Chart for the financial year 2024-25

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