TDS Rate Chart for Financial Year (FY) 2023-2024 /Assessment Year (AY) 2024-2025
Tax dedication at the source (TDS) is one of the essential compliance for the income taxpayer. There are different types of sections in income tax laws, which specify different TDS rates, threshold limits for TDS, and the nature of the payment.
An editor at Myitronline
Section Of IT act Nature of Payment Existing Rate of TDS Reduced Rate:
1. TDS Reduced Rate
Form 14/05/20 to 31/03/21 1193 Interest on Securities10% 7.50% 2194 Dividend 10% 7.50% 3194 AInterest other than interest on securities 10% 7.50% 4194 CPayment of Contract or and sub contractors 1% (individual / HUF) 2% (others)0.75% (individual/HUF) 1.5% (others) 5194 DInsurance Commission 5% 3.75% 6194 DAPayment in respect of life insurance policy 5% 3.75% 7194 EEPayments in respect of deposits under National Savings Scheme10% 7.50% 8194 FPayments on account of re-purchase of Units by Mutual Funds or UTI 20% 15% 9194 GCommission , prize etc.
on sale of lottery tickets 5% 3.75% 10194 HCommission or brokerage 5% 3.75% 11194 I(a)Rent for plant and machinery 2% 1.5% 12194 I(b)Rent for immovable property 10% 7.5% 13194 IAPayment for acquisition of immovable property 1% 0.75% 14194 IBPayment of rent by individual or HUF 5% 3.75%15194 ICPayment for Joint Development Agreements 10% 7.5% 16194 JFee for Professional or Technical Services (FTS), Royalty, etc.
2% (FTS, certain royalties, call centre) 10% (others) 1.5% (FTS, certain royalties, call centre) 7.5% (others) 17194 KPayment of dividend by Mutual Funds10% 7.5% 18194 LAPayment of Compensation on acquisition of immovable property 10% 7.5% 19194 LBA (1) Payment of income by Business trust 10% 7.5% 20194 LBB (i) Payment of income by Investment fund 10% 7.5% 21194 LBC (1) Income by securitisation trust 25% (Individual / HUF) 30% (Others) 18.75% (Individual/HUF) 22.5% (Others) 22194 MPayment to commission , brokerage etc. by Individual and HUF 05% 3.75% 23194 OTDS on e-commerce participants 1% (w.e.f. 1.10.2020 ) 0.75%.
2. TDS on amount Credited
Therefore, Tax Deduction at Source (TDS) on the amount paid or credited during the period from14th May,2020 to 31st March,2021 shall be deducted at the reduced rates specified in the table.
3. TDS or TCS rate deduction
It is further stated that there shall be no reduction in rates of Tax Deduction at Source (TDS) or Tax Collection at Source (TCS), where the tax is required to be deducted or collected at higher rate due to non furnishing of PAN / Aadhaar. Eample, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN / Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.
Legislative amendments in this regard shall be proposed in due course.
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