Tax deducted at source or TDS is a tax deducted on various income sources such as salary, payment, interest earned, commission, etc. Hence, it is important to keep a tab on the updated rates to streamline payment.
Keep scrolling to find detailed information on the TDS rates for the financial year 2023-24.
The Economic Times reported a hike in the TDS and TCS rates on non-salary payments, effective from 1st April 2021.
For instance, if interest paid on a fixed deposit exceeds ₹40,000 between 1st April 2021 and 31st March 2022, then the lender will now deduct tax on the interest repaid at 10%. Previously this rate was 7.5% in FY 2020-21.
Here is a table showing the TDS rate 2023-24.
|
Nature of Payment and Section |
Threshold |
Individual/ HUF TDS Rate |
|
Premature withdrawal from EPF, 192A |
₹50000 |
10% (20% if no PAN card) |
|
Salaries,192 |
As per the employee’s IT declaration |
Average rate |
|
Dividends,194 |
₹5000 |
10% |
|
Interest on securities,193 |
₹2,500 |
10% |
|
Interest from banks,194A |
₹40000 |
10% |
|
Senior citizen,194A |
₹50000 |
10% |
|
Single contractor payment,194C |
₹30000 |
1% |
|
Aggregate contractor payment, 194C |
₹1 lakh |
15% |
|
Insurance commission (15G and 15H allowed), 194D |
₹15000 |
5% |
|
Life insurance policy, 194DA |
₹1 lakh |
1% |
|
NSS,194EE |
₹2500 |
10% |
|
Repurchase units by MFs, 194F |
- |
20% |
|
Commission from lottery,194G |
₹15000 |
5% |
|
Brokerage,194H |
₹15000 |
5% |
|
Rent of plant, machinery or equipment, 194I(a) |
₹2.40 lakh |
2% |
|
Rent of building, land and furniture, 194I(b) |
₹2.40 lakh |
10% |
|
Transfer of immovable property besides agricultural land, 194IA |
₹50 Lakh |
1% |
|
Rent by Individual / HUF (w.e.f. 1st June 2017), 194IB |
₹50000 per month |
5% |
|
Payment under agreement applicable from FY 2017-18, 194IC |
- |
10% |
|
Fees-tech services, call centre, etc., 194J (a) |
₹30000 |
2% |
|
Fee for royalty or professional service, 194J (b) |
₹30000 |
10% |
|
Compensation on the transfer of immovable property other than agricultural land, 194LA |
₹2.50Lakh |
10% |
|
Payment of dividends by mutual funds, 194K |
₹5000 |
10% |
|
Infrastructure debt fund income (TDS rate for NRI), 194LB |
- |
5% |
|
Interest on specific bonds and Government Securities, 194LD |
- |
5% |
|
Cash withdrawal in previous year from one or more accounts with a lending institution, 194N |
₹1 crore |
2% |
|
An individual or HUF payment to commission or brokerage, 194M |
₹50 Lakh |
5% |
|
Purchase of goods, 194Q |
₹50 Lakh |
0.10% |
|
TDS on e-commerce, 1940 |
₹5 Lakh |
1% |
Technically, the concept of TDS was introduced to collect tax from the very source of income. This obligates a deductor, liable to make payment to a deductee, make tax deduction at source and forward the same into the central government’s account.
Hence, apart from the mentioned TDS rates in the table, the government has set specific rates for Indian entities other than a company.
Here is a table showing the TDS rate chart for Indian residents.
|
Nature of Payment |
Section |
TDS Rate |
|
Payment of salary |
192 |
Average Rate |
|
Interest on securities |
193 |
10% |
|
Income in the form of interest |
194A |
10% |
|
Payment of any dividend |
194 |
10% |
|
Income from a lottery and other games |
194B |
30% |
|
Payment to the contractor - HUF/Individual |
194C |
1% |
|
Payment to the contractor - Others |
194C |
2% |
|
Income from horse race winnings |
194BB |
30% |
|
Payment of any sum towards a life insurance policy |
194DA |
5% |
|
Insurance commission |
194D |
5% |
|
Payment due to repurchase of a unit by Unit Trust of India (UTI) or a mutual fund |
194F |
20% |
|
Payment under National Savings Scheme |
194EE |
5% |
|
Commission payments |
194G |
5% |
|
Rent on Plant/machinery |
194-I |
2% |
|
Rent on land, furniture, building or fitting |
194-I |
10% |
|
Brokerage |
194H |
5% |
|
Payment under a joint development agreement |
194-IC |
10% |
|
Payment made on transfer of certain immovable property other than agricultural land |
194-IA |
1% |
|
Rent payment by an HUF or individual |
194-IB |
5% |
|
Fee for professional services, commission to a director and not carrying out any activity regarding the business |
194J |
10% |
|
Not sharing any patent for technical services and sale or distribution. |
194J |
2% |
|
Income distributed by a business trust to its unitholder |
194LBA(1) |
10% |
|
Payment on certain immovable property |
194LA |
10% |
|
Payment of any income on units of a mutual fund |
194K |
10% |
|
Income from investment in securitisation fund for individuals/HUF |
194LBC |
25% |
|
Payments by Individual/HUF with a limit of ₹50 lakhs |
194M |
5% |
|
Withdrawal exceeding amount limit ₹1 crore |
194N |
2% |
|
Payments on purchase of goods with the aggregate value of goods exceeding ₹50 lakhs |
194Q |
0.1% |
|
Tax deduction by lending institutions while making payments |
194P |
Tax on total income |
|
Sale of goods by e-commerce platforms |
194O |
1% |
|
Other Income |
- |
10% |
Here is a table showing the TDS rates for NRI’s under different sections.
|
Nature of Payment |
Section |
TDS Rate |
|
Payment of salary |
192 |
Average Rate |
|
Commission |
194G |
5% |
|
Premature withdrawal from EPF |
192A |
10% |
|
Income from lottery winnings |
194B |
30% |
|
Income from horse racing |
194BB |
30% |
|
Payment from repurchasing a unit by Unit Trust of India |
194F |
20% |
|
Payment to non-resident sportsman |
194E |
20% |
|
Payment on compensation on immovable property |
194LB |
5% |
|
Payment to a person under National Savings Scheme (NSS) |
194EE |
10% |
|
Interest receivable to a business |
194LBA(2) |
5% |
|
Dividend received from SPV by a business trust |
194LBA(2 |
10% |
|
Income from an investment fund to a unit holder |
194LB |
30% |
|
Rental income, or income from real estate assets owned by business trust |
194LBA(3) |
30% |
|
Interest for the loan borrowed in foreign currency by an Indian company |
194LC |
5% |
|
Interest payable against long term bonds listed in IFSC) |
194LC |
4% |
|
Income from investment in securitisation fund |
194LBC |
30% |
|
Payment of interest on the bond to foreign Investor |
194LD |
5% |
|
Income from units of an offshore fund |
196B |
10% |
|
Income from foreign currency bonds or GDR of an Indian company |
196C |
10% |
|
Any income through LTCG |
195 |
15% |
|
Payment of any other sum to NRI by way of - LTCG under section 112A, STCG under section 111A, LTCG under section 112(1)(c)(iii), Royalty payable to the Indian government for agreement on industrial policy, Technical fees to the Indian government related to industrial policy. |
195 |
10% |
|
Payment of any other sum to NRI by way of - Investment made by NRI, LTCG referred to in section 115E, Interest payable on sum borrowed by the Indian government in foreign currency, Royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy Income from royalty payable to or by the Indian government for the copyright referred in section 115A. |
195 |
20% |
|
Any other income related to NRI |
195 |
30% |
|
Nature of Payment |
Section |
TDS Rate for Company (Domestic) |
|
Premature withdrawal from EPF |
192 |
10% |
|
Interest on securities |
193 |
10% |
|
Income in the form of interest |
194A |
10% |
|
Payment of any dividend |
194 |
10% |
|
Payment to contractor or sub-contractor- Individuals/HUF |
194C |
1% |
|
Payment to contractor or sub-contractor- Others |
194C |
2% |
|
Income by way of lottery winningsn |
194B |
30% |
|
Income from horse race winnings |
194BB |
30% |
|
Payment in respect of a life insurance policy |
194DA |
5% |
|
Insurance commission |
194D |
5% |
|
Payment from repurchase of a unit by UTI or a mutual fund |
194F |
20% |
|
Brokerage |
194H |
5% |
|
Payment to a person under National Savings Scheme (NSS) |
194EE |
10% |
|
Payments like commission on the lottery ticket sale |
194G |
5% |
|
Rent on plant and machinery |
194-I |
2% |
|
Rent on land, building, furniture or fitting |
194-I |
10% |
|
Fee from commission to a director, professional services and lack of business activity |
194J |
10% |
|
Monetary consideration under Joint Development Agreements to HUF or individual |
194-IC |
10% |
|
Payment on transferring immovable property other than agricultural land |
194-IA |
1% |
|
Payments to residents for purchasing goods when the aggregate value of goods exceeds ₹50 lakhs |
194Q |
0.1% |
|
Payment of income against mutual funds as per section 10(23D) |
194K |
10% |
|
Income paid against investment fund to a unit holder |
194LBB |
10% |
|
Payment on the attainment of certain immovable property |
194LA |
10% |
|
Cash withdrawal |
194N |
2% |
|
Income distributed by a business trust to its unit holder |
194LBA(1) |
10% |
|
Income from investment in securitisation fund |
194LBC |
10% |
|
Payments by Individual/HUF where the limit is ₹50 Lakhs |
194M |
5% |
|
Nature of Payment |
Section |
TDS Rate |
|
Income by way of lottery winnings |
194B |
30% |
|
Income from horse race winnings |
194BB |
30% |
|
Payment to non-resident sportsman |
194E |
20% |
|
Payments such as commission |
194G |
5% |
|
Payment in on the purchase of an immovable property |
194LB |
5% |
|
Interest receivable to a business |
194LBA(2) |
5% |
|
Dividend received from SPV by a business trust |
194LBA(2) |
10% |
|
Rental income, or income from real estate assets owned by business trust |
194LBA(3) |
30% |
|
Income from an investment fund to a unit holder |
194LBB |
30% |
|
Income from investment in securitisation fund |
194LBC |
30% |
|
Interest on a loan borrowed by an Indian company in foreign currency |
194LC |
5% |
|
Interest payable against long term bonds listed in IFSC |
194LC |
4% |
|
Payment of interest on the bond to foreign investors |
194LD |
5% |
|
Income (inclusive of LTCG) from foreign currency bonds |
196C |
10% |
|
Income (including LTCG) from units of an offshore fund. |
196B |
10% |
|
Nature of Payment |
Section |
TDS Rate |
|
Income by way of STCG under section 111A |
195 |
15% |
|
Earnings from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy |
195 |
10% |
|
Income arising out of long-term capital gains as per the recommendations of Section 112A |
195 |
10% |
|
Payment of any other amount to a Non-resident company from income arising from any other source |
195 |
40% |
|
Payment from- Any other sum such as-Income by way of LTCG under section 112(1)(c)(iii), Income earned in terms of fees which is payable by the government or an Indian organisation for technical services, Income arising out of royalty which is payable by the government or an Indian organisation subject to certain conditions. |
195 |
10% |
Following these tables will help you understand the differences in TDS rates for specific individuals and companies.
Since the calculation is quite complicated, we suggest using online TDS calculators to streamline the entire process.
Please try one more time!
Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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