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April 9, 2025

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TDS Rate Chart for FY 2024-2025 (AY 2025-2026)

Every taxpayer must learn TDS ( Tax Deducted at Source ) in detail, especially in India. It is necessary to know about the new rates, limits, and rules regarding TDS as the period for 2024-25 begins. This article will cover TDS for employees, business people, and freelancers, while giving everyone easy access to the TDS rate chart for the FY 2024-25 (AY 2025-26).

What is TDS?

Tax Deducted at Source (TDS) is a system established by the Government of India for a tax collection at source level of income. According to the Income Tax Act, any organization or person remitting a payment needs to deduct tax where applicable and the payment is in excess of particular limits. The Government receives that withdrawn amount.

TDS guarantees some sort of payment revenue collection at all times and also serves as a proof of payment for money spent by taxpayers. Sometimes special allowances can be claimed and TDS rates may be lower according to the type of payment and also based on the resident status of the payee (non-resident or resident).

Applicable Period

Financial Year (FY): 2024-2025‍

Assessment Year (AY): 2025-2026

TDS Rate Chart for FY 2024-25 (AY 2025-26) for Residents

Section	Nature of Payment	Threshold Limit	TDS Rate
192	Salary	As per slab rates	As per income tax slab
193	Interest on securities	₹5,000 (₹10,000 for listed co.)	10%
194	Dividend	₹5,000	10%
194A	Interest (Bank/Co-op/Post Office)	₹5,000 (₹50,000 for senior citizens)	10%
194B	Lottery/Winnings	₹10,000	30%
194BB	Horse Race Winnings	₹10,000	30%
194C	Payment to Contractors	₹30,000 (single) / ₹1,00,000 (aggregate)	1% (Individual/HUF), 2% (Others)
194D	Insurance Commission	₹15,000	5%
194DA	Maturity of Life Insurance	₹1,00,000	5% on income portion
194EE	NSS Scheme	₹2,500	10%
194F	Repurchase of units by UTI	No limit	20%
194G	Commission on lottery tickets	₹15,000	5%
194H	Brokerage/Commission	₹15,000	5%
194I(a)	Rent on Plant & Machinery	₹2,40,000	2%

TDS Rate Chart for Non-Residents (FY 2024-25)

Section	Payment Type	Threshold	TDS Rate
192	Salary	As per slab	As per slab rate
195	Interest (non-Govt.)	NA	20% (subject to DTAA)
195	Royalty	NA	10% / 15%
195	Technical Services	NA	10%
195	Any other payment	NA	30%
196D	Income of FIIs (no PAN)	NA	20%
194E	Payment to foreign sportsmen	NA	20%
194LB	Interest from infrastructure debt fund	NA	5%
194LC	Interest by Indian Co. to non-residents	NA	5%
194LD	Interest on rupee-denominated bonds	NA	5%

Note: All the above rates are subject to surcharge & cess wherever applicable.

Important Points to Remember

1. PAN is Mandatory

If PAN is not available, TDS will be deducted at higher of the following:

Prescribed rate

20%

Rates in force

2. No TDS Deduction

No TDS if the deductee submits:

Form 15G/15H

Exemption certificate under section 197

3. TDS Return Filing Due Dates (FY 2024-25)

Quarter	Period	TDS Return Due Date
Q1	Apr-Jun	31 July 2024
Q2	Jul-Sep	31 Oct 2024
Q3	Oct-Dec	31 Jan 2025
Q4	Jan-Mar	31 May 2025

‍Latest Updates in TDS FY 2024-25

Here are some important TDS updates introduced in Budget 2024:

Higher TDS for Non-ITR Filers:

Under Section 206AB, TDS will be deducted at double the applicable rate or 5% (whichever is higher) if the payee:

Has not filed ITR for the last 2 years
Aggregate TDS/TCS is ₹50,000 or more

TDS on Cryptocurrency Transactions:

1% TDS continues under Section 194S for transfer of virtual digital assets (VDAs) like Bitcoin, Ethereum, etc.

PAN, KYC and transaction-level details are required.‍

0.1% TDS on Purchase of Goods:

Under Section 194Q, TDS applies if:

Buyer turnover > ₹10 crore

Purchase > ₹50 lakh

TDS on Salary (Section 192) for FY 2024-25

Employees can choose between the Old Regime and the New Regime:

Old Tax Regime Slabs (with Deductions)

Income Range	Tax Rate
₹0 – ₹2.5 lakh	Nil
₹2.5 – ₹5 lakh	5%
₹5 – ₹10 lakh	20%
Above ₹10 lakh	30%

New Regime (Default from FY 2023-24)

Income Range	Tax Rate
₹0 – ₹3 lakh	Nil
₹3 – ₹6 lakh	5%
₹6 – ₹9 lakh	10%
₹9 – ₹12 lakh	15%
₹12 – ₹15 lakh	20%
Above ₹15 lakh	30%

Employees must inform employers about their chosen regime at the start of the year.

TDS vs TCS – What’s the Difference?

Criteria	TDS	TCS
Full Form	Tax Deducted at Source	Tax Collected at Source
Responsibility	Deducted by payer	Collected by seller
Applicability	On payments	On receipts (sales)
Examples	Salary, Rent, Interest	Sale of goods, Tendu leaves

How to Check Your TDS?

Visit TRACES Website

Go to Form 26AS to view deducted TDS

Or check on Income Tax Portal for AIS/TIS

How to Claim TDS Refund?

If more TDS is deducted than your final tax liability:

File ITR before the due date

Provide the correct bank details

The refund will be auto-credited after processing

TDS Calculator & Compliance Tools

Many portals like ClearTax, TaxBuddy, and the official income tax websites offer free:

TDS calculators

Return preparation tools

Due date reminders

Make sure you stay compliant and avoid penalties.

Conclusion

TDS is a vital part of the Indian revenue system. Knowing the applicable TDS rates, whether you're a freelancer, contractor, salaried employee, or business owner, helps you budget appropriately and guarantee compliance for the financial year of 2024-25.