Staying compliant with TDS regulations is crucial forbusinesses as non-deduction, wrong deduction and even deduction under wrong TDSsection could attract huge penalties. It’s important that businesses know theapplicable rate, TDS section and exempt limit for each nature of payment.
Note: Here is the latest .
In this page we have embedded the latest TDS rate chart forFY 2023-24 which is published by the Income Tax department containing TDSsection list, threshold limit and rate for all type of payments. We also have mentionedthe recent changes in Tax Deducted at Source laws in Union Budget 2023 likeprovisions related to online gaming income and PF withdrawal without PAN.
Before we get into the TDS section chart let’s have a quick look at the most frequent paymentsalong with their rate of TDS rate and sections
What is TDS Rate Chart for FY 2023-24?
The Tax Deducted at Source Rate Chart for the financial year2023-24 provides a comprehensive overview of the applicable rates for varioustypes of transactions.
| TDS Section List | Nature of Payment | Threshold (₹) | For Individual / HUF | For Others |
| 192 | Payment made as salaries | ₹ 2,50,000 | Slab Rates | Slab Rates |
| 192A | Early withdrawal of EPF (Employee Provident Fund) | ₹ 50,000 | 10% | 10% |
| 193 | Tax deduction at source on interest earned on securities | ₹ 10,000 | 10% | 10% |
| 194 | Distribution of dividends | ₹ 5,000 | 10% | 10% |
| 194A | Interest from banks or post offices on deposits | ₹ 40,000 | 10% | 10% |
| 194A | Interest from sources other than securities | ₹ 5,000 | 10% | 10% |
| 194B | Winnings of lotteries, puzzles, or games | Aggregate of ₹ 10,000 | 30% | 30% |
| 194BA | Winnings from online Games | - | 30% | 30%x` |
| 194BB | Winnings of horse races | ₹ 10,000 | 30% | 30% |
| 194C | Payments made to contractors or sub-contractors one time | ₹ 30,000 | 1% | 2% |
| 194C | Payments made to contractors or sub-contractors on an aggregate basis | ₹ 1,00,000 | 1% | 2% |
| 194D | Commission paid on insurance sales to domestic companies | ₹ 15,000 | Not Applicable | 10% |
| 194D | Commission paid on insurance sales to non-domestic companies | ₹ 15,000 | 5% | Not Applicable |
| 194DA | Maturity of life insurance policy | ₹ 1,00,000 | 5% | 5% |
| 194EE | Payment received from the National Savings Scheme (NSS) by individuals | ₹ 2500 | 10% | 10% |
| 194F | Repurchase of units by UTI (Unit Trust of India) or any mutual fund | No Limit | 20% | 20% |
| 194G | Payments or commission made on the sale of lottery tickets | ₹ 15,000 | 5% | 5% |
| 194H | Commission or brokerage fees | ₹ 15,000 | 5% | 5% |
| 194I | Rent paid for land, building, or furniture | ₹ 2,40,000 | 10% | 10% |
| 194I | Rent paid for plant and machinery | ₹ 2,40,000 | 2% | 2% |
| 194IA | Payment for the transfer of immovable property excluding agricultural land | ₹ 50,00,000 | 1% | 1% |
| 194IB | Rent payment made by an individual or HUF not covered under section 194I | ₹ 50,000 (per month) | 5% | Not Applicable |
| 194IC | Payments made under a Joint Development Agreement (JDA) to individuals or HUF | No Limit | 10% | 10% |
| 194J | Fees paid for professional and technical services | ₹ 30,000 | 10% | 10% |
| 194J | Royalty paid for the sale, distribution, or exhibition of cinematographic films | ₹ 30,000 | 2% | 2% |
| 194K | Income received from units of a mutual fund, such as dividends | ₹ 5,000 | 10% | 10% |
| 194LA | Compensation payment for acquiring certain immovable property | ₹ 2,50,000 | 10% | 10% |
| 194LB | Interest payment on infrastructure bonds to Non-Resident Indians | Not Applicable | 5% | 5% |
| 194LBA(1) | Distribution of certain income by a business trust to its unit holders | Not Applicable | 10% | 10% |
| 194LD | Interest payment on rupee-denominated bonds, municipal debt security, and government securities | Not Applicable | 5% | 5% |
| 194M | Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J) | ₹ 50,00,000 | 5% | 5% |
| 194N | Cash withdrawal exceeding a specified amount from the bank, with filed ITR | ₹ 1,00,00,000 | 2% | 2% |
| 194N | Cash withdrawal from a bank without filing ITR | ₹ 20,00,000 | 2% | 2% |
| 194O | Amount received for the sale of products/services by e-commerce service providers through digital platforms | ₹ 5,00,000 | 1% | 1% |
| 194Q | Payments made for the purchase of goods | ₹ 50,00,000 | 0.10% | 0.10% |
| 194S | TDS on the payment of cryptocurrencies or other virtual assets | Not Applicable | 1% | 1% |
| 206AA | TDS applicable in case of non-availability of PAN | Not Applicable | At a higher rate than: | At a higher rate than: |
| 206AB | TDS on non-filers of Income Tax Return | Not Applicable | The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate | The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate |
The above TDS Chart for FY 2023-24 is extracted from theIncome Tax website and restructured for better understanding. The informationin the chart is subject to change, therefore do not consider this legal advice.
Important TDS Updates in Budget 2023
- Section 194BA - Introduction of TDS on income from online gaming.
- Section 196A - Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate starting April 1st, 2023, to avail the TDS benefit as per the rate specified in the tax treaty, instead of the standard 20% rate.
- Section 192A - TDS rate on PF withdrawal for employees without PAN reduced to 20% from the maximum marginal rate.
- Section 193 - No exemption from TDS on interest from listed debentures. TDS must be deducted on interest earned from such specified securities.
- Section 194N - Increased TDS threshold for cash withdrawal by co-operative societies. From April 1st, 2023, TDS will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore.
What is TDS Chart?
A TDS (Tax Deducted at Source) Chart, also known as a TDS SectionChart, is a reference tool that provides a comprehensive overview of theapplicable TDS rates for different types of payments under the Indian incometax system. It presents a structured table or chart format that includesrelevant sections of the Income Tax Act, along with corresponding nature ofpayments, threshold limits, and the applicable TDS rates for various categoriesof taxpayers.
The TDS Chart serves as a quick reference guide fortaxpayers, employers, and deductors to determine the correct TDS rates to beapplied while making payments to different parties. TDS rate chart is publishedby Income Tax Department every year with changes.
Important Points for TDS Deduction
- Deduction: TDS is deducted by the payer (deductor) at the time of making certain specified payments to the payee (deductee). The deductor is responsible for deducting the applicable TDS amount from the payment and remitting it to the government.
- Applicable Payments: TDS is deducted from various types of payments such as salaries, interest, dividends, rent, professional fees, commission, contractual payments, lottery winnings, and more.
- TDS Rates: The TDS rates are specified by the government and vary depending on the nature of the payment and the status of the deductee.
- TDS Rates are higher for companies than for Individuals
- TDS Rates are higher for foreign companies than domestic companies
- TDS is charged at a higher rate when PAN is not submitted.
- Example, the threshold for TDS on professional fees is 30,000. If a payment of Rs 40,000 is made by hospital to a doctor in two installments of Rs 20000 each, then no TDS is to be deducted in first installment, while TDS on whole 40,000 should be deducted on second installment.
Summary: Important TDS Section List FY 2023-24
Here is the list of important TDS sections which will serveas a handy reference, providing you with the necessary information to fulfillyour TDS obligations.
| TDS Section | TDS Rate | Nature of Payment | Limit |
| 194C | 1% to Individual / HUF 2% to other entities | Payment made to Contractors | Rs 30,000/ Year |
| 194J | 10% | Professional fees | Rs 30,000/ Year |
| 194Q | 0.1% | Purchase of goods | 50 lakhs |
| 194H | 5% | Commission and Brokerage | Rs 15,000 |
| 194I | 10% on Land/ Building 2% on plant and machinery | Rent | Rs 2,40,000 |
