TDS stands for Tax deduction at source. TDS is required to deduct when a person makes specified payments mentioned under provisions of Income tax Act, 1961. Below is the TDS rate chart with limits for F.Y 2023-24.
| TDS RATE CHART F.Y 2023-24 (A.Y 2024-25) | ||||
| Section | Nature of Payment | Limit (Rs) | Indiv/Huf | Other |
| 192 | Salaries | 2,50,000 | Slab Rate | N/A |
| 192A | Premature withdrawal from EPF | 50,000 | 10 | N/A |
| 193 | Interest on securities |
5000 (Debenture) |
10 | 10 |
| 10000 (Bonds) | ||||
| 194 | Dividends | 5,000 | 10 | 10 |
| 194A | Interest other than securities | |||
| Interest payment made by banks/cooperative banks | 40000 | 10 | 10 | |
| 50000 (S. Citizen) | ||||
| Interest payment made by others | 5,000 | 10 | 10 | |
| 194B | Winning from lotteries and gambling | 10,000 | 30 | 30 |
| 194BA | Winning from online games | 10,000 | 30 | 30 |
| 194BB | Winning from horse races | 10,000 | 30 | 30 |
| 194C | Payment to contractor/Sub-contractor | 30000 (Single) | 1 | 2 |
| 100,000 (Aggregate) | ||||
| 194D | Insurance commission | 15,000 | 5 | 10 |
| 194DA | Payment in respect of life insurance policy | 100,000 | 5 | 5 |
| 194EE | Payment in respect of deposit in NSS | 2500 | 10 | 10 |
| 194F | Payment for repurchase of unit by MF/UTI | No Limit | 20 | 20 |
| 194G | Payment of Commission on lotteries etc. | 15,000 | 5 | 5 |
| 194H | Payment of commission or brokerage | 15,000 | 5 | 5 |
| 194I | Rent of | |||
| a) Plant & machinery | 2,40,000 | 2 | 2 | |
| b) Land or building or furniture or fitting | 2,40,000 | 10 | 10 | |
| 194IA | Transfer of immovable property other than agriculture land | 50,00,000 | 1 | 1 |
| 194IB | Payment of rent by Individual or HUF not liable for tax audit | 50,000 (P.M) | 5 | N/A |
| 194IC | Monetary consideration under Joint Development Agreements | No Limit | 10 | 10 |
| 194J | Fees for professional or technical services | |||
| i) Payment for technical services | 30,000 | 2 | 2 | |
| ii) Payment of royalty ( sale, cinematographic films) | 30,000 | 2 | 2 | |
| iii) Payment of any other sum | 30,000 | 10 | 10 | |
| 194K | Income in respect of units payable to resident person | 5000 | 10 | 10 |
| 194N | Cash withdrawal during the P.Y from one or more account | |||
| i) In excess of 1 crore | 1 crore | 2 | 2 | |
| ii) In excess of 20 lakhs but up-to 1 crore (3 year ITR not filed) | 20 lakhs to 1 crore | 2 | 2 | |
| iii) In excess of 1 crore (3 year ITR not filed) | 1 crore | 5 | 5 | |
| 194O | Payment by e-commerce operator to e-commerce participant | 500,000 | 1 | 1 |
| 194Q | Payment for purchase of goods exceeding 50 lakhs | 50,00,000 | 0.1 | 0.1 |
Frequently Asked Questions:
Q- How to calculate TDS on salary income?
Ans.- TDS on salary is calculated as per income tax slab rate. The slab rate for F.Y 2023-24 are as follow:
| Old Tax Regime | New Tax Regime | ||
| Upto Rs 250,000 | Nil | Upto Rs 250,000 | Nil |
| Rs 250,001 to 500,000 | 5% | Rs 250,001 to 500,000 | 5% |
| Rs 500,001 to 10,00,000 | 10% | Rs 500,001 to 750,000 | 10% |
| Rs 750,001 to 10,00,000 | 15% | ||
| Above Rs 10,00,000 | 30% | Rs 10,00,001 to 12,50,000 | 20% |
| Rs 12,50,001 to 15,00,000 | 25% | ||
| Above Rs 1500,000 | 30% | ||
Note:- 1. There is no change in existing and new tax regime in respect of
2. We cannot claim certain exemption and deduction like LIC Premium, PF, Medical Insurance Premium etc in new tax regime. |
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Q- When does TDS u/s 194C deducts?
Ans. When we make a payment of more than Rs 30,000 in a single transaction and Rs 100,000 in Aggregate in the whole financial year, then we have to deduct TDS at the applicable rate.
Q- What is the limit for TDS on premature withdrawal of EPF?
Ans. TDS is required to deduct at a rate of 10% while PF organization is making payments of more than Rs 50,000 to the employee.