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Published on:
April 10, 2023
By
Harshini

TDS Rate Chart for FY 2023-24 (AY 2024-25)

Under the new tax regime, the normal slab rates for individuals and HUFs for FY 2023-24 have changed. In addition to the TDS rates deducted for NRI deductees, any applicable surcharge and health and education cess will be deducted. This article summarizes the income Tax Rates, surcharge, health and education cess, special rates, and rebate/relief applicable to various categories of taxpayers for the financial year 2023-24 (assessment year 2024-25) as proposed in the Finance Bill, 2023. The budget was announced on 01.02.2023 and introduced several amendments related to tax rates/computation.

What is TDS ?

TDS, or tax deducted at source, is a tax collection mechanism used in India. Under this mechanism, the payer deducts a certain percentage of the payment made to the payee and deposits it with the government on behalf of the payee. The TDS rates are prescribed by the Income Tax Department, and they vary depending on the nature of the payment and the payee's category.

2023 Budget Updates

Section 192A - TDS rate reduced to 20% from maximum marginal rate on PF withdrawal for employees without PAN

Section 193: Interest from listed debentures is not exempt from TDS. Therefore, interest on such specified securities must be taxed

Section 194 BA - Imposition of TDS on online gaming earnings

Section 194N: The TDS threshold for cash withdrawals has been raised by cooperative societies. Beginning on April 1st, 2023, tax will be deducted on cash withdrawals by cooperative societies if the amount exceeds Rs 3 crore, as opposed to the previous limit of Rs 1 crore.

Section 196A - As of April 1, 2023, non-residents who receive income from mutual funds in India may submit a Tax Residency Certificate to receive the benefit of TDS at the rate specified in the tax treaty, as opposed to 20%.

What is the TDS rate Chart in India?

TDS Rate Chart, Union Budget 2023

The TDS rate chart in India specifies the percentage of tax to be deducted at source by the payer. The rate varies depending on the type of payment, the payee's category, and the amount of payment. The TDS rate chart is updated every year, and it is important to refer to the latest TDS rate chart before making any payment.

TDS Rate Charts for the FY 2023-24

The tables below show the various TDS rates that apply to resident and non-resident payments, as well as TDS rates on domestic and international corporations in India. 

TDS RATE CHART FY: 2023-24 (AY: 2024-25)

SectionNature of Payment Threshold (Rs.)Indv / HUF TDS Rate (%)Others TDS Rate (%)
192Salaries Avg
192APremature withdrawal from EPF5000010
193Interest on Securities100001010
194Dividends50001010
194AInterest (Banks)400001010
194AInterest (Others)50001010
194ASenior Citizen5000010
194BWinning from Lotteries100003030
194BAWinnings from online games3030
194BBWinnings from Horse Race100003030
194BPLotteries/crossword puzzles-made in kind/cash not suffice to meet the tax liability and paid before100003030
194CContractor – Single Transaction3000012
194CContractor – During the F.Y.1 Lakh12
194CTransporter (44AE) declaration with PAN
194DInsurance Commission (15G-15H allowed)15000510
194DALife insurance Policy1 Lakh11
194EENSS25001010
194FRepurchase Units by MFs2020
194GCommission – Lottery1500055
194HCommission / Brokerage1500055
194I(a)Rent of Plant / Machinery / Equipment2.40 Lakh22
194I(b)Rent of Land Building & Furniture2.40 Lakh1010
194IATransfer of certain immovable property other than agriculture land50 Lakh11
194ICPayment under Specified agreement applicable for F.Y: 2017-18 onwards1010
194J (a)Fees-tech srvcs, call centre, royalty for sale etc.3000022
194J (b)Fee for professional service or royalty etc.300001010
194KPayment of dividend by mutual Funds50001010
194LACompensation on transfer of certain immovable property other than agriculture land2.50Lakh1010
194LAImmovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017)
194LAImmovable Property2.50Lakh1010
194LBIncome by way of interest from infrastructure debt fund(non-resident)55
194LBACertain income from units of a business trust (applicable from 01.10.2014)1010
194LBACertain income from units of a business trust to non-resident (applicable from 01.10.2014)55
194LBBIncome in respect of investment of investment fund10% for residents, 30% for non-residents10% for residents, 40% for non-residents
194LBCIncome in respect of investment in securitization trust30% for residents, 40% for non-residents, 25% for individual & HUF30% for residents, 40% for non-residents, 25% for individual & HUF
194LCIncome by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan/long term infrastructure bond ‘from outside India (applicable from July 1, 2012)55
194LDInterest on certain bonds and Govt. Securities (from 01.06.2013)55
194MPayment to commission, brokerage etc. by individual & HUF50 Lakh55
194NCash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (wef 01.09.2019)1 Cr22
194NFPayment of certain amounts in cash to non-filers200000022
194NFPayment of certain amounts in cash to non-filers1000000055
194OTDS on e-commerce participants5 Lakh1%(01.10.2020)1% (01.10.2020)
194P TDS in case of Specified Senior Citizen Not ApplicableRates in Force
194QTDS on Purchase of Goods exceeding Rs. 50 Lakhs (Applicable From 01-July-2021)In Excess of Rs. 50 Lakhs0.10.1
194RBenefits or perquisites of business or profession200001010
194RPBenefits or perquisites of business or profession where such benefit is provided in kind or where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released200001010
194SPayment of consideration for transfer of virtual digital asset by persons other than specified persons1000011
194SPPayment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released1000011

TDS RATE CHART (FOREIGN) FY: 2023-24 (AY: 2024-25)

SectionNature of PaymentThreshold (RS.)Indv / HUF Existing TDS Rates (%)Others Existing TDS Rates (%)
195Payment to Non-residents00
194ENon-resident Sportsman or Sports Assn2020
196AForeign Company being unit holder in Mutual Fund2020
196BUnits held by Off-shore Fund105
196CIncome from Foreign Currency Bonds55
196DIncome of FII on Securities2020
196DAIncome of specified fund from securities1010
194LBInterest from infrastr. debt fund payable to non-resident55
194LCInterest from specified company payable to non-resident55
194LDInterest on certain bonds and govt securities55
194LBACertain income from units of a business trust55
194LBBIncome on units of Investment Fund3040
194LBCIncome in respect of investment in securitization trust3040
194NPayment of certain amounts in cash22
194LBA(a)Income referred to in section 10(23FC)(a) from units of a business trust1010
194LBA(b)Income referred to in section 10(23FC)(b) from units of a business trust55
194NFPayment of certain amounts in cash to non-filers11
194LBA(c)Income referred to in section 10(23FCA) from units of a business trust3030
192APayment against EPF Scheme300001010

TCS RATE CHART FY: TDS / TCS Rate Chart FY: 2023-24 (AY: 2024-25)

SectionNature of PaymentTCS Rate %
206CEScarp1
206CITendu Leaves5
206CBTimber obtained under a forest lease or other mode2.5
206CDAny other forest produce not being a timber or tendu leaves2.5
206CAAlcoholic Liquor for human consumption & Tendu leaves1
206CFParking Lot2
206CGToll Plaza2
206CHMining & Quarrying2
206CJMinerals1
206CLSale of Motor Vehicle1
206CKBullion & Jewellery1
206CMSale in cash of any goods(other than bullion)1
206CNProviding of any service (other than Ch-XVII-B)1
206CQLRS-other purposes – Liberalized Remittance Scheme5% (10% for non-PAN or Aadhar)
206COTour Program Package5% (10% for non-PAN or Aadhar)
206CRSale of Goods0.1% (1% for non-PAN or Aadhar)
206CCTimber obtained under any other mode other than forest lease2.5
206CPLRS – Educational Loan – Financial Institution0.5

The TDS charts above include all TDS amendments implemented in Budget 2023.

Conclusion:

The TDS rate chart in India is an important tool for both the payer and the payee. It ensures that the tax liability is distributed between the payer and the payee in a fair and transparent manner. The TDS rate chart is updated every year, and it is important to refer to the latest TDS rate chart before making any payment. Failure to deduct TDS or depositing it with the government can result in penalties and legal consequences. Therefore, it is important to comply with the TDS provisions and file the necessary returns on time.

In conclusion, the TDS rate chart plays a vital role in the tax system in India. It helps to ensure that the government receives its due tax revenue, and it also ensures that taxpayers do not face any undue burden. As a taxpayer, it is important to stay informed about the latest TDS rates and comply with the TDS provisions to avoid any legal consequences.

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Updated on:
March 16, 2024