Staying compliant with TDS regulations is crucial for businesses as non-deduction, wrong deduction and even deduction under wrong TDS section could attract huge penalties. It’s important that businesses know the applicable rate, TDS section and exempt limit for each nature of payment.
Note: Here is the latest income tax slab for AY 2023-24 (FY 2022-23) & AY 2024-25 (FY 2023-24).
What is TDS Rate Chart for FY 2023-24?
The Tax Deducted at Source Rate Chart for the financial year 2023-24 provides a comprehensive overview of the applicable rates for various types 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 ₹ 50,000 (For senior citizens) | 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: The rate specified by the act 20% The currently applicable rate | At a higher rate than: The rate specified by the act 20% The currently applicable rate |
| 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 the Income Tax website and restructured for better understanding. The information in 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.
This Article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update etc. if any.
Published on: September 18, 2023