TDS Rate Chart for FY 2023-24 (AY 2024-25) with TDS Section List

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).

In this page we have embedded the latest TDS rate chart for FY 2023-24 which is published by the Income Tax department containing TDS section list, threshold limit and rate for all type of payments. We also have mentioned the recent changes in Tax Deducted at Source laws in Union Budget 2023 like provisions related to online gaming income and PF withdrawal without PAN.

Before we get into the TDS section chart let’s have a quick look at the most frequent payments along with their rate of TDS rate and sections

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.

What is TDS Chart?

A TDS (Tax Deducted at Source) Chart, also known as a TDS Section Chart, is a reference tool that provides a comprehensive overview of the applicable TDS rates for different types of payments under the Indian income tax system. It presents a structured table or chart format that includes relevant sections of the Income Tax Act, along with corresponding nature of payments, threshold limits, and the applicable TDS rates for various categories of taxpayers.

The TDS Chart serves as a quick reference guide for taxpayers, employers, and deductors to determine the correct TDS rates to be applied while making payments to different parties. TDS rate chart is published by Income Tax Department every year with changes.

Important Points for TDS Deduction

Deduction: TDS is deducted by the payer (deductor) at the time of making certain specified payments to the payee (deductee). The deductor is responsible for deducting the applicable TDS amount from the payment and remitting it to the government.
Applicable Payments: TDS is deducted from various types of payments such as salaries, interest, dividends, rent, professional fees, commission, contractual payments, lottery winnings, and more.
TDS Rates: The TDS rates are specified by the government and vary depending on the nature of the payment and the status of the deductee.

TDS Rates are higher for companies than for Individuals
TDS Rates are higher for foreign companies than domestic companies
TDS is charged at a higher rate when PAN is not submitted.

Threshold Limits: TDS is applicable when the payment exceeds a specified threshold limit. The threshold is based on the aggregate of yearly payments to be made.

Example, the threshold for TDS on professional fees is 30,000. If a payment of Rs 40,000 is made by hospital to a doctor in two installments of Rs 20000 each, then no TDS is to be deducted in first installment, while TDS on whole 40,000 should be deducted on second installment.

TDS Calculation: TDS is calculated on the value of goods and services. No TDS is to be deducted on GST component
TDS Certificate: After deducting TDS, the deductor needs to issue a TDS certificate to the deductee as proof of tax deduction. This certificate contains details such as the deductor's PAN, deductee's PAN, TDS amount, and other relevant information.
TDS Deposit: The deductor is required to deposit the TDS amount with the government before 7^th of the subsequent month.
TDS Return: The deductor is also obligated to furnish periodic TDS returns with the tax authorities.

Summary: Important TDS Section List FY 2023-24

Here is the list of important TDS sections which will serve as a handy reference, providing you with the necessary information to fulfill your TDS obligations.

TDS Section	TDS Rate	Nature of Payment	Limit
194C	1% to Individual / HUF 2% to other entities	Payment made to Contractors	Rs 30,000/ Year
194J	10%	Professional fees	Rs 30,000/ Year
194Q	0.1%	Purchase of goods	50 lakhs
194H	5%	Commission and Brokerage	Rs 15,000
194I	10% on Land/ Building 2% on plant and machinery	Rent	Rs 2,40,000

FAQ

1What is the TDS rate for 2023-24?

The TDS rate for 2023-24 depends on the nature of payment, deductee, and PAN submission. Please refer to the TDS rate chart or consult the relevant provisions of the Income Tax Act for specific rates.

2What is the TDS limit for commission in FY 2023-24?

The TDS limit for commission in FY 2023-24 is Rs. 15,000 annually. If the commission amount exceeds this limit, TDS needs to be deducted.

3What are the new TDS rules for 2023?

The new TDS rules for 2023 include the introduction of TDS at 30% on income from online gaming winnings and a reduced TDS rate of 20% on EPF withdrawal for individuals without PAN.

4What is the current TDS on property?

The current TDS on property involves deducting tax at a rate of 1% or 0.75% from the sale consideration, depending on the Date of Payment/Credit to the Seller. The specific provisions of the Income Tax Act should be referred to for more details.

5What is the 194C TDS rate in FY 2023-24?

The TDS rate for Section 194C in FY 2023-24 is 1% for individuals and HUF (Hindu Undivided Family) and 2% for others.

6What is TDS on professional fees?

TDS on professional fees is deducted at a rate of 10% under Section 194J of the TDS provisions.

7What is the rate of TDS on commission?

The rate of TDS on commission is 5% as per Section 194H of the TDS provisions.

8What are the components of the TDS rate chart?

The TDS rate chart typically includes the TDS section list, nature of payment, applicable rate, and threshold limit for each type of payment.

9What is the TDS threshold limit on contractor payment?

The TDS threshold limit on contractor payment is Rs. 30,000 per year. If the payment to the contractor exceeds this limit, TDS needs to be deducted.

10What is the TDS on contractor limit for Payment?

The threshold for TDS deduction on payment made to contractor is Rs 30,000 on one transaction and Rs 1,00,000 on aggregate payment during the year. This means If the payment being made is more than 30,000 in one single transaction or the total payment made during the year exceeds 1,00,000 TDS needs to be deducted on the amount.