Below is a detailed TDS Rate Chart based on the current provisions of the Indian Income Tax laws for FY 2024-25, along with the applicability, thresholds, conditions, and descriptions for each relevant section.
| Section | Nature of Payment | Threshold (₹) | TDS Rate | Applicability | Conditions/Details |
| 192 | Salary | Basic exemption limit as per individual slab rate | Based on income slab rates | All employers deduct TDS on salary paid to employees | TDS on salary is based on the applicable slab rates under the Income Tax Act, accounting for deductions and exemptions. |
| 192A | Payment of accumulated PF balance exceeding ₹50,000 | ₹ 50,000 | 10% | Employees withdrawing PF without PAN or before 5 years of service | TDS is deducted if the employee does not provide PAN or has not completed 5 years of service. No TDS if Form 15G/15H is submitted. |
| 193 | Interest on securities | ₹10,000 (Interest on debentures) | 10% | Companies and other institutions | TDS is applicable on interest from securities like debentures, government securities, etc., if exceeding ₹10,000. |
| 194 | Dividend | ₹ 5,000 | 10% | Companies paying dividends to resident shareholders | No TDS is applicable if the dividend does not exceed ₹5,000 in a financial year. |
| 194A | Interest other than interest on securities | ₹5,000 (bank), ₹40,000 (others) | 10% | Banks, cooperative societies, individuals, and HUFs | TDS on interest is exempt for senior citizens up to ₹50,000 from banks and post office accounts. |
| 194B | Winnings from lotteries, crossword puzzles, etc. | ₹ 10,000 | 30% | Individuals earning from winnings | TDS is applicable on all forms of winnings (lotteries, games, horse races). No threshold benefit is available once it exceeds ₹10,000. |
| 194C | Payments to contractors/sub-contractors | ₹30,000 (single payment), ₹1,00,000 (aggregate in a year) | 1% for individuals/HUF, 2% for others | Businesses, individuals, contractors | TDS is required if the payments exceed ₹30,000 in a single transaction or ₹1,00,000 annually. Different rates for individuals and other entities. |
| 194D | Insurance commission | ₹ 15,000 | 5% | Insurance companies paying commission | TDS is applicable if commission payments to insurance agents exceed ₹15,000. |
| 194H | Commission or brokerage | ₹ 15,000 | 2% | Companies, partnerships, individuals | Reduced rate of 2% (effective from October 1, 2024). This includes payments for all kinds of commission or brokerage. |
| 194I | Rent | ₹ 2,40,000 | 2% for plant/machinery, 10% for land/buildings | Individuals, businesses paying rent | TDS is applied on rental payments exceeding the threshold. Lower rates for rent of machinery/equipment. |
| 194IA | Payment on transfer of immovable property | ₹ 50,00,000 | 1% | Individuals, companies purchasing immovable property | TDS is applicable on property transactions exceeding ₹50 lakh (except agricultural land). |
| 194IB | Rent payments by individual/HUF (not in business) | ₹50,000 per month | 5% | Individuals/HUFs paying rent | TDS applies only when monthly rent exceeds ₹50,000. Individuals not subject to tax audit are liable. |
| 194IC | Payment under joint development agreement | No threshold | 10% | Real estate developers, property owners | TDS is deducted on payments made under a joint development agreement to the property owner. |
| 194J | Fees for professional/technical services | ₹ 30,000 | 10% (2% for technical services) | Companies, partnerships, individuals | Applicable for fees paid for professional services, consultancy, and technical services. |
| 194LA | Compensation for acquisition of immovable property | ₹ 2,50,000 | 10% | Government agencies, businesses acquiring land | TDS is deducted on compensation payments under land acquisition acts. |
| 194N | Cash withdrawals exceeding ₹1 crore from banks | ₹1 crore | 2% | Individuals, HUFs, companies withdrawing cash | TDS applies on cash withdrawals exceeding ₹1 crore in a financial year from a bank account. |
| 194O | TDS on e-commerce transactions | ₹ 5,00,000 | 1% | E-commerce operators | TDS applies when payments made by e-commerce operators to sellers exceed ₹5,00,000 in a financial year. |
1. Section 192 – TDS on Salary
- Applicability: This section governs the deduction of tax from salary payments. Employers must deduct TDS at the time of payment based on the employee’s income slab rates under the Income Tax Act, accounting for exemptions and deductions.
- Threshold: TDS is deducted if the salary exceeds the basic exemption limit, which varies based on age (normal citizens, senior citizens, and super-senior citizens).
- Conditions: Employers consider exemptions under Section 10 (like HRA, LTA), deductions under Section 80C, 80D, etc., and rebates under Section 87A, before deducting TDS.
2. Section 192A – TDS on Payment of Provident Fund
- Applicability: This section applies to withdrawal of provident fund (PF) balance before the completion of 5 years of continuous service.
- Threshold: TDS is applicable on PF withdrawals exceeding ₹50,000 if the employee hasn’t provided Form 15G/15H (for no deduction due to low income).
- Rate: 10% if PAN is provided. In the absence of PAN, TDS can be as high as 30%.
3. Section 193 – TDS on Interest on Securities
- Applicability: This section governs the deduction of TDS on interest payments made on securities like government bonds and debentures.
- Threshold: TDS is deducted only when the interest paid exceeds ₹10,000 on debentures or securities.
- Rate: TDS is deducted at 10% on interest payments. However, no TDS applies to government securities exempt under specific conditions.
4. Section 194 – TDS on Dividend
- Applicability: This section deals with the deduction of tax on dividend income paid by domestic companies to resident shareholders.
- Threshold: TDS is applicable only if the total dividend payment exceeds ₹5,000 in a financial year.
- Rate: TDS is deducted at 10% on the dividend amount.
5. Section 194A – TDS on Interest (Other than Securities)
- Applicability: This section applies to interest paid on deposits, such as fixed deposits, recurring deposits, and other interest-bearing instruments.
- Threshold: TDS is applicable if the interest paid exceeds ₹40,000 for non-senior citizens (₹50,000 for senior citizens).
- Rate: TDS is deducted at 10% if the interest income exceeds the threshold.
6. Section 194B – TDS on Winnings from Lottery, Crossword Puzzle, etc.
- Applicability: TDS is deducted on any winnings from lotteries, crossword puzzles, or similar games.
- Threshold: TDS applies if the winnings exceed ₹10,000 in a financial year.
- Rate: A flat 30% TDS is deducted, without any threshold benefit beyond ₹10,000.
7. Section 194C – TDS on Payment to Contractors
- Applicability: This section governs payments made to contractors and sub-contractors for carrying out any work, including supply of labor.
- Threshold: TDS is deducted if a single contract payment exceeds ₹30,000 or aggregate payments exceed ₹1,00,000 in a financial year.
- Rate: 1% for individuals and HUFs, and 2% for others (companies and firms).
8. Section 194D – TDS on Insurance Commission
- Applicability: TDS is deducted from any commission paid by insurance companies to agents.
- Threshold: TDS is applicable if the total commission exceeds ₹15,000 in a financial year.
- Rate: The rate of TDS is 5%.
9. Section 194H – TDS on Commission or Brokerage
- Applicability: TDS is deducted on commission or brokerage payments made to agents or intermediaries, including sales agents and brokers.
- Threshold: TDS is applicable if the total commission or brokerage exceeds ₹15,000.
- Rate: The rate is 2% effective from October 1, 2024 (earlier 5%).
10. Section 194I – TDS on Rent
- Applicability: TDS applies to rent payments made for land, buildings, plant, machinery, and furniture.
- Threshold: TDS is deducted if the rent exceeds ₹2,40,000 in a financial year.
- Rate: 2% for rent on plant/machinery, and 10% for rent on land/buildings.
11. Section 194IA – TDS on Payment on Transfer of Immovable Property
- Applicability: TDS is deducted when there is a sale or transfer of immovable property (excluding agricultural land) for a value exceeding ₹50 lakh.
- Rate: TDS is deducted at 1% of the sale consideration.
12. Section 194IB – TDS on Rent Payments by Individual/HUF
- Applicability: This section applies when individuals or HUFs not liable for a tax audit pay rent.
- Threshold: TDS is applicable on rent payments exceeding ₹50,000 per month.
- Rate: The rate of TDS is 5%.
13. Section 194IC – TDS on Payment under Joint Development Agreement
- Applicability: TDS is deducted on any payment made under a joint development agreement for real estate projects.
- Threshold: No specific threshold for this section.
- Rate: The rate of TDS is 10% on the amount paid to the property owner.
14. Section 194J – TDS on Professional/Technical Fees
- Applicability: TDS applies to payments made for professional and technical services, including consultancy, legal fees, and royalties.
- Threshold: TDS is deducted if the total payment exceeds ₹30,000 in a financial year.
- Rate: 10% for professional services and 2% for technical services.
15. Section 194LA – TDS on Compensation for Acquisition of Immovable Property
- Applicability: TDS is deducted on compensation payments for the compulsory acquisition of immovable property (land, buildings, etc.).
- Threshold: TDS is applicable if the compensation exceeds ₹2,50,000.
- Rate: The rate of TDS is 10%.
16. Section 194N – TDS on Cash Withdrawals
- Applicability: TDS is deducted on cash withdrawals exceeding ₹1 crore from a bank account in a financial year.
- Rate: TDS is deducted at 2% on the amount exceeding ₹1 crore.
17. Section 194O – TDS on E-Commerce Transactions
- Applicability: This section applies to e-commerce operators who deduct TDS on payments made to sellers on their platforms.
- Threshold: TDS is applicable if payments exceed ₹5,00,000 for sellers who are individuals or HUFs.
- Rate: The rate of TDS is 1% on the gross amount of sales or services.
