TDS or Tax Deducted at Source is deducted from the money paid at the time of making particular payments like as salary, professional fees; interest etc. Usually, the person receiving income is liable to pay income tax. But the department is doing help of Tax Deducted at Source provisions make sure that income tax is deducted in advance from the payments being made. The recipient of income receives the net amount (after reducing TDS). The recipient will add the gross amount to his income and the amount of TDS is adjusted against his final tax liability. The recipient takes credit for the amount already deducted and paid on his behalf by payer. This will help the government to collect the taxes in advance and to track the specified transactions in a optimized manner. In this article, we try to explore the TDS rate and provision in summary mode.
TDS Chart FY 2024-25
|
SECTION |
NATURE OF TRANSACTIONS |
AMOUNT LIMIT |
RATE |
ADDITIONAL |
|
|
192 |
Income From Salary |
Income Tax Slab |
Slab Rate |
|
|
|
192A |
EPF- Premature Withdrawal |
50000 |
10% (20% if no PAN) |
|
|
|
193 |
Interest on Securities |
10000 |
10% |
|
|
|
193 |
Interest on Debenture |
5000 |
10% |
Threshold limit for interest paid on debentures is Rs. 5,000. |
|
|
194 |
Dividend (other than listed companies) |
5000 |
10% |
|
|
|
194A |
Interest (other than Securities) by bank/ post office |
40000/50000 |
10% |
|
|
|
194A |
Interest (other than Securities) by other |
5000 |
10% |
Any Other Case — Rs. 5000/- |
|
|
194B |
Winning from Lotteries, Puzzle, Game |
10000 |
30% |
No TDS from Lottery / Cross Word Puzzles If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
|
194BA |
Winnings from online games |
NIL |
30% |
TDS deducted from Rs.1 |
|
|
194BB |
Winning from Horse Race |
10000 |
30% |
No TDS from winnings from horse races If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
|
194C |
Payment to Contractor/Sub-Contractor Individuals/HUF Other |
30000/100000 |
1% 2% |
1% (individual/HUF) 2% (others) a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 100,000 during the financial year |
|
|
194D |
Payment of Insurance Commission |
15000 |
5%/10% |
5% (individual/HUF) 10% (others) No TDS from insurance commission paid or payable during the financial year If amount paid or payable during the financial year does not exceed Rs. 15,000 |
|
|
194DA |
Payment in Respect of LIC |
100000 |
5% |
No TDS on the amount of income comprised in sum payable under a life insurance a police (including bonus) to a resident (w.e.f. 01-10-2014) person If amount paid or payable during the financial year does not exceed Rs. 1 lakh |
|
|
194E |
Payment to NR Sportsmen/Sport association |
NA |
20% |
Add HEC@4% sportsman (including an athlete) or an entertainer (who is not an Indian citizen) |
|
|
194EE |
Payment of NSS Deposits |
2500 |
10% |
No TDS from payments made out of deposits under NSS, If amount paid or payable during the financial year does not exceed Rs. 2,500 |
|
|
194F |
Payment of repurchase of unit by UTI or any mutual fund |
NIL |
20% |
TDS deducted from Rs.1 |
|
|
194G |
Commission on Sale of Lottery Tickets |
15000 |
5% |
No TDS from commission paid on lottery tickets If amount paid or payable during the financial year does not exceed Rs. 15,000 |
|
|
194H |
Commission or Brokerage |
15000 |
5% |
No TDS from payment of commission or brokerage If amount paid or payable during the financial year does not exceed Rs. 15,000. Further no tax to be deducted from commission payable by BSNL/MTNL to their PCO Franchisees |
|
|
194I |
Rent of L&B or Furniture |
240000 |
10% |
No TDS from payment of rent in respect of land &building, furniture or fittings, If amount paid or payable during the financial year does not exceed Rs. 2,40,000 |
|
|
194I |
Rent of Plant & Machinery |
240000 |
2% |
No TDS from payment of rent in respect of plant and machinery, If amount paid or payable during the financial year does not exceed Rs.2,40,000 |
|
|
194IA |
Payment for acquisition of immovable property |
50 Lakhs |
1% |
No TDS from payment of consideration for purchase of an immovable property (other than agriculture land) If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs |
|
|
194IB |
Payment of rent by individual or HUF |
50000 Per Month |
5% |
No TDS from payment of rent in respect of any land or building. If amount paid or payable does not exceed Rs. 50,000 per month.(Other than the rent covered by |
|
|
194IC |
Payment of monetary consideration under Joint Development Agreements |
No Limt |
10% |
||
|
194J |
Fee for Professional or Technical Services(FTS), Royalty, etc |
30000 |
2% &10% |
2% TDS, certain royalties, call centre) 10% (others) No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration, If amount paid or payable during the financial year does not exceed Rs. 30,000 |
|
|
194K |
Payment of dividend by Mutual Funds |
5000 |
10% |
||
|
194LA |
Payment of Compensation on acquisition of immovable property |
250000 |
10% |
No TDS from payment of compensation on compulsory |
|
|
194LB |
Tax deduction from interest payable to non-resident by an infrastructure debt fund |
No Limit |
5% |
||
|
194LBA |
Payment of income by Business trust |
No Limit |
10% |
||
|
194LBB |
Payment of income by Investment fund |
No Limit |
10% |
||
|
194LBC |
Income by securitization trust |
No Limit |
25% & 30% |
25%(Individual/HUF) 30% (Others) |
|
|
194LC |
Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or byway of issue of long-term bonds (including long-term infrastructure bond) |
No Limit |
5% & 4% |
In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognized stock exchange located in IFSC |
|
|
194LD |
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor o ra Qualified Foreign Investor |
5% |
|||
|
194M |
Payment to commission ,brokerage etc. by Individual and HUF |
50Lakhs |
5% |
No obligation to deduct tax by an Individual or HUF (other than those who are required to deduct income-tax as per the provisions of section194C, section 194H or section 194J) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section194D) or brokerage or by way of fees for professional services. If aggregate of sum paid or credited during a financial year does not exceed Rs. 50 lakh. |
|
|
194N |
Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office |
No obligation to deduct tax by a banking company, co-operative bank or a post office on cash withdrawal made by a person if aggregate of amount of cash withdrawal during the financial year from one or more account does not exceed Rs. 1 crore/20 lakhs (as the case may be). |
2% or 5% |
2%: In general if cash with drawn exceeds Rs. 1crore If assessee has not furnished return for last 3 assessment years and cash with drawn exceeds Rs. 20lakhs but upto Rs.1 crore. 5%: If assessee has not furnished return for last 3assessmentyears and cash withdrawn exceeds Rs. 1crore Note: the threshold limit of Rs. 1crore is increased to Rs. 3 crores for the deduction of tax under Section194N from the withdrawal of cash made by co-operative society |
|
|
194O |
TDS on e-Commerce participants |
5Lakhs |
1% |
No TDS from payment to participants of e-commerce, If amount paid or payable to resident Individual or HUF during the financial year does not exceed Rs. 5Lakhs |
|
|
194P |
Deduction of tax by specified bank in case of senior citizen having age of 75 or more |
Slab amount |
Slab Rate |
Relaxation for senior citizen from filing ITR (Subject to Tax Deduction under Section 194P) |
|
|
194Q |
Payment to resident for purchase of goods (w.e.f. 01.07.2021) |
50 Lakhs |
0.1% |
The Threshold Limit is Rs.50,00,000 applicable when total sales or gross receipts or turnover from the business carried one exceeds Rs. 10 Crores during the financial year immediately preceding the financial year in which the purchase of goods is carried out |
|
|
194R |
Deduction of tax on benefit or perquisite in respect of business or profession |
20000 |
10% |
Deduction of tax in case any benefit or perquisite is provided and aggregate value of such Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. |
|
|
194S |
Payment on transfer of virtual digital asset |
Payment on transfer of Virtual Digital Asset Note: No tax shall be deducted under this provision in the following circumstances:
|
1% |
Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1crore in case of business or Rs. 50lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; |
Conclusion
End of this article we can say about Tax Deducted at Source (TDS) serves as a crucial mechanism for the government to collect taxes in advance and ensure compliance with tax regulations. The TDS chart for the financial year 2024-25 provides a effective summary of various sections, each outlining the nature of transactions, applicable amount limits, and corresponding rates of deduction. This article writes only for informational and education purpose; however it is advisable to consult with tax professional for specific issue and challenge.
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