TDS Rates Chart FY 2024-25

You may be aware of TDS or Tax Deducted at Source, which is essentially a spot tax deducted from your actual source of income. Overall, TDS is levied on any income or overheads including:

• Salary
• Incentives (over and above your salary)
• Interests on bank FDs (fixed deposits)
• Lotteries
• Dividends and Bonds
• Commission Payments
• Rent payment of any immovable property

While deducting TDS under any of these heads, a fixed TDS deduction rate is applied, and the tax liability is deducted before making the payment. Here, the source or individual who deducts TDS is called a ‘Deductor’, while the individual to whom the payment is being made is known as ‘Deductee’.

Thus, a ‘Deductor’ is your employer/organisation that pays a salary or incentive to you, while you would be a ‘Deductee.’ Moreover, if the Deductor takes more than the required amount as tax, you will be eligible to claim a TDS Refund if you file your TDS Return.

The employer or Deductor is responsible for providing TDS certificate (Form 16 /16A) to their employee that depicts the computation of the TDS amount deducted. The TDS deducted tax amount is calculated as per applicable TDS Rates. Various TDS Rates And TDS sections relevant to the common types of income/payments are illustrated in the following TDS rate chart:

Few cases are there, wherein the TDS exemption is offered. TDS deduction is not levied on payments made in favour of RBI (Reserve bank of India), or any recompense made towards the central government.

Moreover, TDS exemptions are provided against the payment of interest from:

• a) The Applicable TDS Rates in case of interest earned on FDs (fixed deposits) are applied beyond a threshold limit of Rs. 40,000 (from FY 2019 – 20 onwards)
• b) Earlier the applicable limit was Rs. 10,000 in a financial year
• c) In case, you earn more than the threshold limit as interest on fixed deposit (either single or consolidated interest for multiple FDs held with the same PAN number), the applicable TDS rate will be 10% of the maturity proceeds or interest payout, whichever happens, earlier.
• d) TDS Rates are only applicable when you (as the payee) receive the accumulated interest Rs. 10,000 in a financial year
• e) If you have furnished a PAN (Permanent Account Number), the applicable TDS rate will be 10% on the interest earned
• f) Without furnishing the PAN details, the TDS Rates are 20%
• g) Senior Citizens (ageing 60 years or more) are TDS exempted, up to a limit of Rs50,000 (earlier the limit was Rs. 10,000)

Read more: TDS on Fixed Deposit

• a) As per Section 194-IA of the Income Tax Act, the TDS Rates applicable on the sale of any immovable property will be at 1%
• b) In case, you (as a buyer) are unable to furnish your PAN details; the TDS deduction rate may increase up to a maximum limit of 20%
• c) An immovable property may include any residential or commercial plots (excluding the notified land for agricultural purposes), and buildings
• d) The transaction must be made via cheque, cash, or draft by the Seller of the property (or transferee)

• a) As a resident individual (other than a HUF member) if you are paying rent for immovable property to the resident landlord, you are accountable for withholding TDS
• b) The TDS deduction rate of 10% would be applicable in cases where the annual rent amount paid exceeds Rs.2.4 lakh, in the given financial year

• a) On purchasing any property, you are liable to pay TDS deduction rate of 1%
• b) Land notified to agriculture will not be considered under this TDS provision
• c) You must make the transaction via cash, draft, cheque, or any other agreed mode of payment

• a) NRIs (Non-Resident Indians) buyers are liable to pay TDS against an immovable property, according to Section 195 of Income Tax Act
• b) In case, you (buyer) are making a payment to an NRI; you are accountable for deducting the tax as per the applicable TDS deduction rate
• c) Post-sale of any immovable property by an NRI, the capital gains duly received are subjected to income tax
• d) The transaction on an immovable property can be made through a cheque, draft, or cash by the transferee

In case, you (employee) make withdrawals worth Rs. 50,000 and above from your EPF account, within five years of continuous service, you are liable to following TDS Rates:

a) 10% - After submitting PAN details but not Form-15G/15H

a) Under Section 192, employers are eligible to deduct TDS from the estimated income of each employee as per applicable Rate of TDS on salary for AY 2023-24

b) No income tax will be deducted if an employee’s estimated income is below the minimum tax slab threshold for a given the financial year

c) No TDS deduction rate is applicable for employees whose total annual income is less than Rs.2,50,000

• The TDS exemption limit on Insurance commission is Rs. 15,000 (with effect from June 2016)
• Section 194D of the Income Tax Act deals with the provisions and responsibilities of TDS Rates in insurance commission

According to Section 194J of the Income Tax Act, an individual is liable to deduct on the following payments made to a resident person (except HUF or individual):

• Fee for professional services
• Fee for technical services it will be deducted @ 2%
• Royalty
• Fee paid / Remuneration to a director

If a payee provides PAN details, he or she will be liable to a TDS deduction rate of 10% (excluding any cess and surcharges)

In cases where the PAN details are unavailable, the payee is responsible for paying higher of the following TDS Rates:

• TDS Rates prescribed under the Finance Act
• TDS deduction rate of 20%
• TDS Rates specified under the relevant provisions of the Income Tax Act

1. Under Section 194C, any payment made to a contractor or subcontractor for any work including:

• Advertising contract
• Production, Telecast, and Broadcast of such programs
• Carriage of goods and passengers through various modes of transport (excluding the Railways)
• Catering services
• Supply or manufacture of products as per customer’s requirements or specifications
• Supply of labour for contractual work

2. For Residential Individuals and HUF, the TDS deduction rate of 1% is applicable on contracts under section 194C

3. For others, the TDS deduction rate of 2% is applicable

4. Any Payee who is unable to provide PAN details will be liable to pay a TDS deduction rate of 20%.