CBDT TDS Rate Chart Revision: Latest Updates You Need To Know Tax Deducted at Source (TDS) is one of the most important compliance mechanisms under the Income Tax Act. Every year, the Central Board of Direct Taxes (CBDIT) releases updates or clarifications on applicable TDS rates, thresholds, and rules. For FY 2024–25 (AY 2025–26), the CBDT has issued updated guidelines to streamline tax collection and reduce non-compliance. This guide simplifies the latest CBDT TDS rate chart, major changes, payment thresholds, due dates, and compliance rules that every taxpayer, business, and professional must follow. What is TDS? TDS is a tax collected at the source of income. When a payment is made — like salary, rent, professional fees, commission, or interest — the payer deducts tax at a specified rate and deposits it with the government.
Purpose of TDS: Ensures the government of a constant inflow of taxes. Thwarts tax evasion Smoothes tax obligation over the year. Smooths the path for compliance with payers and recipients. CBDT Latest TDS Rate Chart (FY 2024-25) Below is the complete, updated TDS rate chart as applicable for the current financial year.
TDS Rate Table for FY 2024–2025 Section Nature of Payment Threshold Limit TDS Rate 192 Salary As per slab Slab rate 192A Withdrawal from EPF ₹50,000 10% 193 Interest on securities ₹5,000 10% 194 Dividend ₹5,000 10% 194A Interest (Banks/others) ₹40,000 (₹50k for seniors) 10% 194C Contractor Payments ₹30,000 per contract 1% (individual), 2% (others) 194H Commission/Brokerage ₹15,000 5% 194I Rent — Plant/Machinery ₹2,40,000 2% 194I Rent — Land/Building/Furniture ₹2,40,000 10% 194IA Property Purchase ₹50 lakh 1% 194IB Rent paid by Individuals (Non-audit) ₹50,000/month 5% 194J Professional Fees ₹30,000 10% 194Q Purchase of Goods ₹50 lakh 0.10% 194DA Insurance Payout ₹1 lakh 5% 194O Payments by e-commerce operators ₹5 lakh 1% 194N Cash Withdrawal ₹1 crore 2% 195 Payments to Non-Residents No limit Rates vary (DTAA applicable) 196D FII Income No limit 20%
Suggested Read: Difference Between TDS and TCS
New Amendments in the TDS Provisions Updated by CBDT 2024—2025 Improved compliance monitoring The working of the CBDT is now along the following lines:
Delayed TDS deposits PAN entry wrong Non-filing of TDS returns Form 26AS not matching with Return-TDS return. Non-compliances automatically trigger notices.
Higher TDS for Non-Filers (Section 206AB) If a payee has not filed an ITR for the previous year, then
The TDS = 2x specified rate or 5% (whichever is higher)
This applies to:
Professional remittances Contractor Payments Tenancy Commission Dividend Interest purchase of goods (194Q) For more information you can checkout: CBDT Official Portal
You can also checkout: TRACES TDS Portal
Aadhaar-PAN Linking Mandatory In case PAN is not linked with Aadhaar:
PAN is rendered inoperative TDS deducted at 20% excluding sections that have higher rates. TDS on Virtual Digital Assets (Crypto) continues No change in 1% TDS on crypto transfers.
TDS Return Filing Due Dates (FY 2024 – 2025) Quarter Period Due Date Q1 Apr–Jun 31 July Q2 Jul–Sep 31 Oct Q3 Oct–Dec 31 Jan Q4 Jan–Mar 31 May
TDS Certificate Due Dates (Form 16 & 16A) Form Description Due Date Form 16 Salary TDS certificate 15 June Form 16A Non-salary TDS certificate Quarterly
How to Deposit TDS Online You must deposit the TDS within 7 days of the next month (except March, where the due date is 30 April).
Directions:
Go to the website, TIN-NSDL. Select Challan ITNS 281 Enter TAN, Assessment year, Type of payment Pay by Net Banking/NEFT Please keep the CIN number for further correspondence. Importance of knowing the rates of CBDT TDS The knowledge of the exact rates of TDS helps in the following:
Avoid notices and penalties Reconciliation of Form 26AS should be smooth. Minimize errors in AIS/TIS Follow through with the requirements for audits. Avoid higher TDS under Section 206AB Example Cases Example 1 - Contractor Payment Quantity: ₹ 5,00,000 to individual contractor TDS 1% = 5,000 Example 2 — Professional Fees Pay: ₹80,000. TDS: 10% = ₹8,000 Example 3 — Office Rent Rent: ₹50,000/month Annual: ₹6,00,000 TDS: 10%= ₹ 60,000 For more information about TDS you can checkout: TDS Rate Chart for FY 2024-2025 (AY 2025-2026)
FAQs What is the latest TDS rate as per CBDT for FY 2024–2025? The latest TDS rates range from 1% to 30%, depending on the section. The complete chart is provided above.
Is TDS mandatory for everyone? Yes, if you make specified payments like salary, rent, contract payments, professional fees, etc., TDS must be deducted.
What happens if TDS is not deducted? You face:
Interest under Section 201 Penalties Disallowance of expenses (30%) Who is exempt from TDS? Individuals with Form 15G/15H for eligible interest income.
How can I check if TDS is reflecting? Check Form 26AS, AIS, and TIS on the Income Tax portal.
Conclusion The latest CBDT TDS rate chart for FY 2024–25 highlights the government’s continued focus on strengthening tax compliance, improving transparency, and ensuring timely collection of taxes. Whether you are a small business owner, salaried employee, freelancer, or a large corporation, understanding TDS rates is no longer optional—it is essential for avoiding notices, penalties, and unnecessary financial stress.
With the government making it clear that compliance cannot be ignored, especially with stricter enforcement under Sections like 206AB and mandatory PAN–Aadhaar linkage, the onus to stay updated remains paramount. In addition, quarterly return deadlines, issuance of TDS certificates, and reconciliation of Form 26AS and AIS are extremely crucial to ensure smooth tax filing. With most businesses fast moving towards digitization of their payments and financial workflows, knowledge of the correct TDS section and rate for every type of transaction facilitates accuracy and prevents financial discrepancies. The above-detailed CBDT TDS chart helps the taxpayer in staying compliant, avoiding litigation, and remaining confident about the rules.
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