New TDS rate under income tax along with threshold limit as per Finance Act (No.2) 2024
(Also see note below before deciding TDS rates and different effective dates of amendment)
| Section | Nature of payment | Applicability | ||
| The threshold limit in ₹ | Rate of TDS | |||
|
192 |
Salary. | Maximum amount not chargeable to tax | As per the rate in the Finance Act/ as per section 115BAC if an employee opts for a new tax regime. Employee may report other income and loss under house property and TDS/TCS, accordingly, an employer shall deduct TDS. | |
| 192A | TDS on Payment from the accumulated balance due to an employee w.e.f 01-06-2015 | ₹ 50000/- | *10%/maximum marginal rate if PAN is not provided | |
| 193 | Interest on securities. | Different threshold limits in different types of interest.
No tax is required to be deducted on certain notified securities. In section 193 of the Income-tax Act, in the proviso, in clause (iv), for the proviso, the following proviso shall be substituted with effect from 1-10-2024, namely:— “Provided that nothing in this clause shall apply to the interest exceeding ten thousand rupees payable during the financial year on 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 or Floating Rate Savings Bonds, 2020 (Taxable) or any other security of the Central Government or State Government as the Central Government may, by notification in the Official Gazette, specify in this behalf;”. |
As per the rate in the Finance Act | |
| 194 | Dividend. | ₹ 5000/- | 10% | |
| 194A | TDS on interest other than interest on securities. | 1. Payer is a bank /post office /cooperative society-. ₹ 40000/-(₹ 50000/- for senior citizen payee)
2. other payer ₹5000 |
As per the rate in the Finance Act | |
| S-194B | TDS on winning from the lottery, crossword puzzle. (Online gaming within the meaning of section 115BBJ excluded from AY 2023-24 ) | ₹10000/- aggregate for a FY | As per rate in Finance Act. TDS at the time of payment | |
| S-194BB | TDS on winning the horse race. | ₹10000/- aggregate for a FY | As per rate in Finance Act. TDS at the time of payment | |
| S-194C | TDS on payment to contractors. | ₹ 30000/- for a work/ ₹ 1 lakh for FY/ Transporter no deduction on declaration of 10 or less goods carriage and PAN.
Following Clarification by FA(No.2) Act 2024 w. e.f 01-10-2024 (1) Transaction covered u/s 194J(1) excluded from section 194C.) (2) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer or associate of such customer; excluded from the definition of work u/s 194C |
1%( payee is individual/HUF)
2% other cases |
|
| S-194D | TDS on insurance commission to agents by the insurance company. | ₹15000/- | As per rate in Finance Act ( TDS @ 2.from 01-04-2025 TDS @ 2% changes by FA(No.2) Act 2024 | |
| S-194DA | Deduction from payment in respect of Life Insurance Policy w.e.f 01-10-2014. | ₹1 Lakh for FY | 5% (TDS @ 2% from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194E | TDS on payment to non-resident sports man or sports associations. | NIL | 20% | |
| S-194EE | TDS on payment in respect of deposit under the national saving scheme. | ₹2500/- | 10% | |
| S-194F | TDS on payment on account of repurchase of units by mutual funds or UTI. | NIL | *20%
Section 194 F Omitted from 01-10-2024 (changes by FA(No.2) Act 2024) |
|
| S-194G | TDS on commission on sale of lottery tickets. | ₹15000/- | 5% (TDS @ 2% from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194H | TDS on commission or brokerage. | ₹15000/- | 5%(TDS @ 2% from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194I | TDS on rent. | ₹ 240,000/- | Plant & machinery-2%
Land building -10% |
|
| S-194IA | TDS on payment in respect of transfer of immovable property other than agricultural land. | ₹50 lakh (aggregate of all the payers/ all the payees. Clarification from 01-10-2024) | 1% | |
| S-194IB | TDS in respect of Payment of rent by individuals or Hindu undivided family not subject to tax audit. w.e.f 1st June, 2017 | ₹50,000/- per month/part of month | 5% (TDS @ 2% from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194-IC | TDS on payment of monetary consideration under joint development agreement (JDA) w.e.f 1st of April 2017 | NIL | 10% | |
| S-194J | TDS on the fee for professional, technical service, remuneration to the non-salary director, royalty and non-compete fee referred, under section 28(VA). | ₹30000/- for a FY | 10% in general/ 2% fees for technical services (not being a professional service) or royalty where such royalty is in the nature of consideration for the sale, distribution or exhibition of cinematographic films | |
| S-194LA | TDS on payment as compensation on acquisition of immovable property. | ₹ 2.50 lakh | 10% | |
| S-194LB | TDS on income by way of interest from infrastructure debt fund referred to under section 10(47). | NIL | 5% | |
| S-194LBA | Deduction from certain income from units of a business trust w.e.f 01-06-2015. | NIL | 10%/rate in force as per Finance Act. | |
| S-194LBB | TDS on Income in respect of Units of Investment Fund | NIL | 10%/rate in force as per Finance Act. | |
| 194LBC | TDS on Income in respect of investment in securitization trust with effect from 01-06-2016 new section inserted by Finance Act 2016. | NIL | 20%/30% | |
| S-194LC | TDS on the interest income from an Indian company to a non-resident in respect of borrowings in foreign currency under a loan agreement or infrastructure bond between 1-7-2012 to 1-7-2017 where borrowings rate of interest approved by the central government. | NIL | 5%/4% | |
| S-194LD | TDS on the interest of Rupee denominated bond of Indian company or government securities payable FII or QFI between 1-6-2013 to 1-7-2017 @ 5%. | NIL | 5% | |
| S-194M | Payment exceeding ₹ 50 lakh for any work/ commission /fee for professional or technical service by certain individuals or Hindu undivided family not otherwise not covered in tax audit u/s 44AB. | ₹ 50 lakh during FY | 5% (TDS @ 2% from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194N | Cash withdrawal from bank/post office/co-operative bank exceeding a certain limit. | I) ₹1crore in aggregate
II) ₹20lakh for non-filers of ITR during the last 3 AYs. III) For cooperative society threshold limit is ₹3 crore in aggregate. by Finance Act, 2023, w.e.f. 1-4-2023. |
i) 2%
ii) 2%( ₹ 20 lakh to ₹1 crore) beyond ₹ 1 crore- 5% iii) 2% |
|
| S-194O | Payment by e-commerce operator or customer to e-commerce participant for supply through a digital platform of e-commerce operator. | NIL/₹ 5 lakh if the payee being an individual/HUF furnishing PAN/Aadhaar. | 1% (TDS @ 0.1 % from 01-10-2024 TDS @ (changes by FA(No.2) Act 2024 | |
| S-194 P | Deduction of tax in case of specified senior citizen age above 75 years and having pension income and interest income from the same bank – Full tax due to be deducted and no need to file ITR.
|
Basic exemption as per Finance Act | rate in force as per Finance Act on total income after rebate u/s 87A | |
| S-194Q | Deduction of tax at source on payment of sum exceeding ₹ 50 lakhs for purchase of goods from a person if purchaser turnover/gross receipts/sale of preceding FY is ₹ 10 crore. | ₹ 50 lakh in FY. | 0.1%
Note: if tax is deducted by the payee no need to collect tax (TCS) by the seller of goods u/s 206C(1H) |
|
| S-194R | Deduction of tax on benefit or perquisite in respect of business or profession | ₹ 20, 000 lakh in a FY. | 10% w.e.f by Finance Act, 2022, w.e.f. 1-7-2022. | |
| S-194T | Payments to partners by firms deduct tax on salary, remuneration, commission, bonus or interest to a partner of the firm | ₹ 20,000 in a FY. | 10% applicable w. e. f 01-04-2025 i.e. AY 2026-27. | |
| S-195 | TDS on payment to a non-resident or a foreign company. | NIL | The rate in force as per the Finance Act | |
| S-196B | TDS on income from units referred under section 115AB(offshore funds) where units purchased in foreign currency, TDS @ 10% on income including long-term capital gain. | NIL | 10% | |
| S-196C | TDS on income by way of interest, dividend and long-term capital gain in respect of share/ GDR/ bonds of an Indian company to non-resident referred under section 115AD @ 10%. | NIL | 10% | |
| S-196D | TDS on income of FII from securities referred under section 115AD(1)(a) @ 20%. | NIL | 20% or DTAA rate whichever is lower. | |
| S-206AA | Not furnishing PAN | If PAN is not furnished, higher of the following:
(I) @ specified in the relevant provision of this Act; or (ii) @ or rates in force; or (iii) *@ of 20% ·Note: under section 194-O read 5% for 20% above. ·Note: under section 194-Q read 5% for 20% above. |
||
| S-206AB | Special provision for deduction of tax at source for non-filers of ITR (income-tax return) for last 2 AY before due date | As applicable based on the nature of the transaction in any of the section | If the ITR of the last 3 years is not furnished, higher of the following:
(i) at twice the rate specified in the relevant provision of the Act; or (ii) at twice the rate or rates in force; or (iii) at the rate of 5% If PAN is not furnished higher of the rate as section 206AB or 206AA. |
|
Note: higher TDS rate in the following cases:
- If PAN is not furnished the TDS rate shall be higher of the following rates, namely:—
(i) at twice the rate specified in the relevant provision of this Act; or
(ii) @5%
