INCOME TAX TDS RATES

Accumulated Balance of EPF payment (Sec 192A)

Taxable component of the lumpsum payment

10%

N.A.

N.A.

If payment is less than 50,000/-

0%

N.A.

N.A.

If PAN not provided

20%

N.A.

N.A.

Interest on Securities (Sec 193) #

Any Income (Except Certain Specified Payments)*** to any resident- Rs. 10,000/-

10%

10%

10%

Payment of Dividend (Sec 194)

Dividends on shares (Including  preference shares) within India, in respect of any dividend or before making any distribution or payment to a shareholder, who is resident in India (above 10,000/-) including dividend under sub-clause (f) of clause (22) of Section 2.

10%

10%

10%

Interest other than interest on securities (Sec 194A)

At the time of credit or payment, whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs. 10,000/ for payment of interest by other persons. However, for interest payment by banks, co-operative society engaged in banking business (co-operative bank) and post office, limit is Rs.50,000/- and in case of Senior citizen, limit is Rs. 1,00,000/-

10%

10%

10%

At the time of credit or payment, whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs. 40,000 /- by Co-operative Bank.

10%

10%

10%

At the time of payment, when the aggregate of such interest payments on the compensation amount awarded by the Motor Accident Claim Tribunal during the financial year exceeds Rs. 50,000/-

10%

10%

10%

Winnings from lottery or crossword puzzles include winnings from gambling or betting of any form. (Sec 194B)

Where winnings to be paid exceeds Rs. 10,000

30%

30%

30%

Winnings from online games (Sec 194BA)

Where net winnings to be paid exceeds Rs. 10,000/-

30%

30%

30%

Winnings from horse race          (Sec 194BB)

Where winnings to be paid exceeds Rs. 10,000/-

30%

30%

30%

Payments made to Contractors for Specified Work (Sec 194C)

At the time of credit or payment whichever is earlier when the per contract value exceeds Rs.30,000/- or aggregate of amount credited or paid exceeds Rs.1,00,000/- during the financial year.

1%

2%

2%

If Contractor & Subcontractor in business of plying, hiring or leasing goods carriages, who is eligible to compute income as per Sec. 44AE (i.e a person who is not owning more than 10 goods carriage during previous year), furnishing declaration along with  PAN

Nil

Nil

Nil

If Contractor & Subcontractor in business of plying, hiring or leasing goods carriages, quotes his PAN other than above

1%

2%

2%

Insurance Commission (Sec 194D)

Where amount of Insurance commission exceeds Rs. 20,000 to Resident

5%

5%

5%

Payment in respect of life insurance policies (Sec 194DA) (refer other point iv) *

Income comprised therein

5%

5%

5%

w.e.f. 01st October, 2024

2%

2%

2%

Payment of Deposit Under NSS to Any Person (Sec 194EE)

Where amount is equal to or exceeds Rs. 2,500

10%

10%

10%

If the payment of the said amount to the heirs of the assessee

Nil

Nil

Nil

Payments on account of repurchase of units by Mutual Fund or Unit Trust of India (Sec 194F)

(to be omitted w.e.f. 01st October, 2024)

Any Amount to any Person

20%

20%

20%

Payment of Commission / Remunration on sale of lottery tickets to any person (Sec 194G)

Where Amount exceeds Rs.20,000

5%

5%

5%

w.e.f. 01st October, 2024

2%

2%

2%

Commission & Brokerage               (Sec 194H) to any resident

At the time of credit or payment whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs.20,000 /-

5%

5%

5%

w.e.f. 01st October, 2024

2%

2%

2%

Rent Payment (Sec. 194I) to any resident

At the time of credit or payment whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs. 50,000/- per month or part of a month

Land, Building, Furniture & Fittings

10%

10%

10%

Machinery, Plant & Equipments

2%

2%

2%

Consideration to resident on purchase of certain immovable property other than specified agricultural land (Sec.194IA)
w.e.f. 1.4.2022 TDS will be applicable on Consideration for Immovable Property or Stamp Duty Value whichever is Higher

Where Consideration exceeds Rs. 50,00,000/-

w.e.f. 01st October, 2024 limit of Rs.50,00,000/- will apply if aggregate payment by all transferree or all transferors exceed this amount.

1%

1%

1%

Rent Payment by certain Individuals or HUFs having Turnover less than limits U/S 44AB (Sec.194IB)

Where Consideration exceeds Rs. 50,000/- per month for Land or Building or both

5%

5%

5%

w.e.f. 01st October, 2024

2%

2%

2%

Payment under Specified agreements for Development of Land etc ( Sec. 194IC)

Any sum by way of consideration not being in kind under the agreement U/s 45(5A)
(received in Cash or Cheque or Draft or by any other Mode)

for Individuals / HUFs

 NA

 NA

10%

Fees for Professional,Royalty & other sums u/s 28 (va)  (Sec.194J)** paid to resident

At the time of credit or payment whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs 50,000/-

10%

10%

10%

Technical Service (Sec.194 J)

2%

2%

2%

Income in respect of Units         (Sec 194K)

Income in respect of Units (exceeding Rs. 10,000/-) of Mutual Funds, Adminstrator or Specified Company

10%

10%

10%

Compensation to resident on acquisition of certain immovable property other than specified agricultural land (Sec.194LA)

Where amount exceeds Rs. 5,00,000/-

10%

10%

10%

Certain income from units of a business trust (Sec 194LBA)

Any amount

10%

10%

10%

Payment to  contractor or professional for personal use (194M)*

At the time of credit or payment whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs 50,00,000/-

5%

5%

5%

w.e.f. 01st October, 2024

2%

2%

2%

Income is payable an investment fund ( Sec 194 LBB )

Any Amount ( Resident )

10%

10%

10%

TDS on Income in respect of Investment in Securitisation Trust (Section 194LBC)

Any Amount ( Resident )

10%

10%

10%

TDS Deduction by an Indian Specified Company or Business Trust from Interest to a Non-Resident / Foreign Company (Section 194LC)

Any Amount ( Non Resident )

5%

5%

5%

Interest Income on certain Bonds / Government Securities (Sec 194LD)

Any Amount ( Resident )

5%

5%

5%

Cash Withdrawal (194N)*

Cash Withdrawal  on excess of Rs. 1 Crore.

2%

2%

2%

Cash Withdrawal (194N)  In the case of Co-operative societies (Non-filers) w.e.f. 1-4-23

Cash Withdrawal  on excess of Rs. 20 lakh but not exceeding Rs. 3 Crores

2%

2%

2%

Cash Withdrawal in excess of Rs. 3 Crores

5%

5%

5%

Cash Withdrawal (194N) In the case of Co-operative societies (filers) w.e.f. 1-4-23

Cash Withdrawal in excess of Rs. 3 Crores

2%

2%

2%

E-commerce operators (194-O)


w.e.f. 01st October,2024

Payment of certain sums by e-commerce operator to e-commerce participants.(for individual and HUF sale or services upto 10lakh no TDS)

1%

1%

1%

0.10%

0.10%

0.10%

(Higher rate of 5% as per Sec 206AA if PAN not availabe)

Specified Senior Citizen(Sec 194P) :
* who is of the age of seventy-five years or more
* having Pension Income and interest from Specified Bank Account in which he is receiving pension
* furnishes declaration to Specified Bank

Specified Bank shall compute Total Income after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A

Specified Bank shall deduct income tax on such total income on the basis of the rates in force

Payment by Buyer of certain sum for Purchase of Goods (Sec 194Q) 

*Buyer whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore during preceeding year .

Value Exceeding 50 lakh
Shall not apply to transaction on which :

- TDS is deductible under any Section
- TCS is collectible under Section 206C (other than 206C(1H)
As per Memorandum, in order to reduce compliance burden on the taxpayers, it is proposed that provisions of sub-section (1H) of section 206C of the Act will not be applicable from the 1st day of April, 2025.

0.1%

If PAN is not available then TDS rate will be 5% [206AA(1)]

Any person responsible for providing such benefit or perquisite arising from Business or Profession. (Sec 194R)                                

This section shall not apply - if value of such benefit or perquisite does not exceed Rs. 20,000 during the financial year- to individual or HUF whose turnover does not exceed 1 crore in case of business or 50 lakh in case of professional

10%

Transfer of a virtual digital asset (Sec 194S)

Aggregate value of such consideration exceeds Rs. 50,000/- (if payable by specified person) or exceeds 10,000/- (if payable by other persons)

1%

Payment in nature of salary, remuneration, commission, bonus or interest to a partner of the firm (Sec 194T)
w.e.f. 01st April, 2025

Aggregate value of such payments exceeds Rs. 20,000/- in a financial year

10%