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TDS Rate Chart for FY 2024-25 (AY 2025-26)

By Mohammed S Chokhawala

Updated on: Oct 4th, 2024

26 min read

TDS stands for Tax Deducted at Source. Tax deduction at source (TDS) means collecting tax on specified income by the payer to while crediting/paying to the payee and deposit the same to the government on payee’s behalf. This mechanism was introduced to reduce tax evasion by the payee. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

TDS Rates in India

The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and deposit TDS within the stipulated due date.

TDS Rate Charts for the FY 2023-24 and FY 2024-25

Section	Deductee*	Nature of transaction	Threshold Limit (Rs)	TDS Rate
192	R, NR	Payment of salary	Basic exemption limit of employee	Normal Slab Rates
192A	R, NR	Premature withdrawal from EPF	50,000	10%
193	R	Interest on securities	Debentures- 5,000	10%
			8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000
			Other securities- No limit
194	R	Payment of any dividend	5,000	10%
194A	R	Interest from other than interest from securities (from deposits with banks/post office/co-operative society)	Senior Citizens- 50,000 Others- 40,000	10%
194A	R	Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives	5,000	10%
194B	R, NR, FC	Income from lottery winnings, card games, crossword puzzles, and other games of any type	Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gaming - Refer 194BA	30%
194BA	R, NR, FC	Income from online games	Nil	30%
194BB	R, NR, FC	Income from horse race winnings	10,000 (Aggregate winnings during a financial year not single transaction)	30%
194C	R	Payment to contractor/sub-contractor:-	Single transaction- 30,000 Aggregate transactions- 1,00,000
		a) Individuals/HUF		1%
		b) Other than Individuals/HUF		2%
194D	R	Insurance commission to:	15,000	10%
		a) Domestic Companies		10%
		b) Other than companies		5%
194DA	R	Income from the insurance pay-out, while payment of any sum in respect of a life insurance policy.	1,00,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194E	NR, FC	Payment to non-resident sportsmen/sports association	No limit	20%
194EE	R, NR	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194F	R, NR	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	No limit	20% This section is omitted with effect from 1st October 2024
194G	R, NR, FC	Payments, commission, etc., on the sale of lottery tickets	15,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194H	R	Commission or brokerage	15,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194-I	R	Rent:	2,40,000	2%
		194-I(a) Rent on palnt & machinery		2%
		194-I(b) Rent on land/building/furniture/fitting		10%
194-IA	R	Payment in consideration of transfer of certain immovable property other than agricultural land.	50,00,000	1%
194-IB	R	Rent payment by an individual or HUF not covered u/s. 194-I	50,000 per month	5% (before 1st October 2024) 2% (from 1st October 2024)
194-IC	R	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10
194J	R	Any sum paid by way of fee for professional services	30,000	10%
194J	R	Any sum paid by way of remuneration/fee/commission to a director	30,000	10%
194J	R	Any sum paid for not carrying out any activity concerning any business;	30,000	10%
194J	R	Any sum paid for not sharing any know-how, patent, copyright, etc.	30,000	10%
194J	R	Any sum paid as a fee for technical services	30,000	2%
194J	R	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	30,000	2%
194J	R	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	30,000	2%
194K	R	Payment of any income for units of a mutual fund, for example, dividend	No limit	10%
194LA	R	Payment in respect of compensation on acquiring certain immovable property	2,50,000	10%
194LB	NR, FC	Payment of interest on infrastructure debt fund to Non-Resident	No limit	5%
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	No limit	5%
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	No limit	4%
194LD	NR, FC	Payment of interest on bond (rupee-denominated) to FII or a QFI	No limit	5%
194LBA(1)	R	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBA(2)	NR, FC	Interest income of a business trust from SPV distribution to its unitholders	No limit	5%
194LBA(2)	NR, FC	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	No limit	10%
194LBA(3)	NR	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	30%
194LBA(3)	FC	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	40%
194LBB	R	Certain income paid to a unitholder in respect of units of an investment fund	No limit	10%
194LBB	NR	Certain income paid to a unitholder in respect of units of an investment fund	No limit	30%
194LBB	FC	Certain income paid to a unitholder in respect of units of an investment fund	No limit	40%
194LBC	R	Income from investment in securitisation fund received to an individual and HUF	No limit	25%
194LBC	NR	Income from investment in securitisation fund received to a domestic company	No limit	30%
194LBC	FC	Income from investment in securitisation fund received to a foreign company	No limit	40%
194M	R	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	50,00,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194N	R, NR	Cash withdrawal exceeding a certain amount	Co-operative society: 3 Crore	2%
194N	R, NR	Cash withdrawal exceeding a certain amount	Others: 1 crore	2%
194N	R, NR	Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired	- 20 lakh to 1 crore	2%
194N	R, NR		-1 crore	5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore
194O	R	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	5,00,000	1% (before 1st October 2024) 0.1% (from 1st October 2024)
194P	R	Payment of pension or interest to specified senior citizens of age 75 years or more	Basic exemption limit of senior citizens or super senior citizens	Normal tax slab rates
194Q	R	Payments for the purchase of goods	50,00,000	0.10%
194R	R	Perquisite or benefit to a business or profession	20,000	10%
194S	R	TDS on the transfer of virtual digital assets	Specified Persons- 50,000	1%
194S	R	Specified persons: Individual or a HUF not having income from business or profession OR	Others- 10,000	1%
195	NR	Income on investments made by NRI citizen	No limit	20%
195	NR	Income by way of LTCG referred to in section 115E in the case of NRI	No limit	10%
195	NR, FC	Income by way of LTCG under section 112(1)(c)(iii)	No limit	10%
195	NR, FC	Income by way of LTCG under section 112A	No limit	10%
195	NR, FC	Income by way of STCG under section 111A	No limit	15%
195	NR, FC	Any other income by way of LTCG	No limit	20%
195	NR, FC	Interest payable on money borrowed by the government or Indian concern in foreign currency	No limit	20%
195	NR, FC	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	No limit	20%
195	NR	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	20%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	50%
195	FC	If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	No limit	50%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	20%
195	FC	If the agreement for such royalty payment is entered after 31st March 1976	No limit	20%
195	NR	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	20%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	50%
195	FC	If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	No limit	50%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	20%
195	FC	If the agreement for such payment is entered after 31st March 1976	No limit	20%
195	NR	Any other income	No limit	30%
195	FC	Any other income	No limit	40%
196B	NR, FC	Income (including LTCG) from units of an offshore fund	No limit	10%
196C	NR, FC	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	No limit	10%
196D	NR, FC	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	No limit	20%
206AB	R	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Non-filers do not include: - People who are not required to file their ITRs - NRs who do not have a PE in India	No limit	- 2 times the rate given in the Income Tax Act or Finance Act or
206AA	R, NR, FC	TDS rate in case of Non availability of PAN	No limit	Rates specified above or 20%, whichever is higher

*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.

Note:

The Normal slab rates from FY 2023-24 for individuals and HUF have changed under the new tax regime.
Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI and FC deductees.
In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.

Union Budget 2024 New TDS Provisions

Section 194T – Payments to partners of firms

Starting from April 1, 2025, TDS will be applicable on payments made by a firm to its partners. Under Section 194T, if you receive salary, commission, bonus, or interest exceeding Rs. 20,000 in a financial year, the firm must deduct TDS at a rate of 10%. This deduction will occur either when the payment is credited to your account or when the payment is made, whichever comes first. It’s essential for partners to plan their withdrawals carefully, as this new provision will impact cash flow and tax liabilities.

Overview of TDS Rate Chart for the FY 2023-24 and FY 2024-25

Section	Nature of transaction	TDS Rate
192	Payment of salary	Normal Slab Rates
192A	Premature withdrawal from EPF	With PAN: 10% Without PAN: 20%
193	Interest on securities	10%
194	Payment of any dividend	10%
194A	Interest other than interest from securities (from deposits with banks/post office/co-operative society) Interest from banks/post office/co-operative society	10%
194B	Income from lottery winnings, card games, crossword puzzles etc.	30%
194BA	Income from online games	30%
194BB	Income from horse race winnings	30%
194C	Payment to contractor/sub-contractor:-
	a) Individuals/HUF	1%
	b) Other than Individuals/HU	2%
194D	Insurance commission to:
	a) Domestic Companies	10%
	b) Other than companies	5%
194DA	Insurance pay-out in respect of a life insurance policy	5% (before 1st October 2024) 2% (from 1st October 2024)
194E	Payment to non-resident sportsmen/sports association	20% + surcharge + 4% cess
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
194F	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	20%
194G	Payments, commission, etc., on the sale of lottery tickets	5% (before 1st October 2024) 2% (from 1st October 2024)
194H	Commission or brokerage	5% (before 1st October 2024) 2% (from 1st October 2024)
194-I	Rent:
	194-I(a) Rent on plant and machinery	2%
	194-I(b) Rent on land/building/furniture/fitting	10%
194-IA	Payment in consideration of transfer of certain immovable property other than agricultural land.	1%
194-IB	Rent payment by an individual or HUF not covered u/s. 194-I	5% (before 1st October 2024) 2% (from 1st October 2024)
194-IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	10
194J	Any sum paid by way of fee for professional services	10%
194J	Any sum paid by way of remuneration/fee/commission to a director	10%
194J	Any sum paid for not carrying out any activity concerning any business;	10%
194J	Any sum paid for not sharing any know-how, patent, copyright, etc.	10%
194J	Any sum paid as a fee for technical services	2%
194J	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	2%
194J	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	2%
194K	Payment of any income for units of a mutual fund, for example, dividend	10%
194LA	Payment in respect of compensation on acquiring certain immovable property	10%
194LB	Payment of interest on infrastructure debt fund to Non-Resident	5% + surcharge + 4% cess
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	5%
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	4%
194LD	Payment of interest on bond (rupee-denominated) to FII or a QFI	5%
194LBA(1)	Certain income distributed by a business trust to its unitholder	10%
194LBA(2)	Interest income of a business trust from SPV distribution to its unitholders	5%
194LBA(2)	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	10%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	30%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	40%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	10%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	40%
194LBC	Income from investment in securitisation fund received to an individual and HUF	25%
194LBC	Income from investment in securitisation fund received to a domestic company	10%
194LBC	Income from investment in securitisation fund received to a foreign company	40%
194LBC	Income from investment in securitisation fund received to NRI	10%
194M	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	5% (before 1st October 2024) 2% (from 1st October 2024)
194N	Cash withdrawal from a banking company, co-operative society engaged in the business of banking or a post office:	2%
	Filed ITR during the last three years and cash withdrawal exceeds Rs 3 crore	2%
	In case person has not filed ITR for the last three years - total cash withdrawn is more than ₹20 lacs and up to ₹3 Crore in a FY - total cash withdrawn is more than ₹3 Crore is a financial year	- 2% - 5%
194O	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	1% (before 1st October 2024) 0.1% (from 1st October 2024)
194P	Payment of pension or interest to specified senior citizens of age 75 years or more	Normal tax slab rates
194Q	Payments for the purchase of goods	0.10%
194R	Perquisite or benefit to a business or profession	10%
194S	TDS on the transfer of virtual digital assets	1%
195	Income on investments made by NRI citizen	20%
195	Income by way of LTCG referred to in section 115E in the case of NRI	10%
195	Income by way of LTCG under section 112(1)(c)(iii)	10%
195	Income by way of LTCG under section 112A	10%
195	Income by way of STCG under section 111A	15%
195	Any other income by way of LTCG	20%
195	Interest payable on money borrowed by the government or Indian concern in foreign currency	20%
195	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	50%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	50%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976	10%
195	Any other income	30%
195	Any other income	40%
196B	Income (including LTCG) from units of an offshore fund	10%
196C	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%
206AB	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: - People who are not required to file their ITRs - NRs who do not have a PE in India	- 2 times the rate given in the Income Tax Act or Finance Act or - 5%, whichever is higher
206AA	TDS rate in case of Non availability of PAN	Rates specified above or 20%, whichever is higher

TDS Rates Applicable on Non Resident Indian (Other than a Company)

Particulars	TDS Rate
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF	Normal Slab Rate 10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
Section 194BB: Income by way of horse race winnings	30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.	5%
Section 194LBA(2): Payment like- -interest income received or receivable to a business trust from SPV and distribution to its unitholders. -dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.	5% 10%
Section 194LBA(3)- payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	30%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.	30%
Section 194LBC: Income from investment in securitisation fund	30%
Section 194LC: Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds. If interest is payable against long term bonds listed in recognised stock exchange in IFSC	5% 4%
Section 194LD: Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.	5%
Section 195: Payment of any other sum to NRI:Income on investments made by NRI citizen; Income by way of LTCG referred to in section 115E in the case of NRI; Income by way of LTCG under section 112(1)(c)(iii); Income by way of LTCG under section 112A; Income by way of STCG under section 111A; Any other income by way of LTCG; Interest payable on money borrowed by the government or Indian concern in foreign currency; Income from royalty payable to the Indian concern, by government or Indian concern, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy; Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy; Any other income.	20% 10% 10% 10% 15% 20% 20% 10% 10% 10% 30%
Section 196B: Income (including LTCG) from units of an offshore fund.	10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

TDS Rate Charts Where the Company is a Domestic Company

Particulars	TDS Rate
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF	Normal Slab Rate 10%
Section 193: Interest on securities. a) any security of the Central or State Government; b) any debentures or securities for money issued by any local authority or a corporation established by a Central, State or Provincial Act; c) any debentures (listed on a recognised stock exchange) issued by a company where such debentures are ; d) interest on any other security	10% 10% 10% 10%
Section 194: Payment of any dividend	10%
Section 194A: Income in the form of interest (other than interest on securities).	10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
Section 194BB: Income by way of horse race winnings	30%
Section 194C: Payment to contractor/sub-contractor. a) Individuals/HUF b) Others	1% 2%
Section 194D: Insurance commission	10%
Section 194DA: Payment of any sum in respect of a life insurance policy.w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out.	5%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194H: Commission or brokerage	5%
Section 194-I: Rent on a) Plant and Machinery b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.	2% 10%
Section 194-IA: Payment in consideration of transfer of certain immovable property other than agricultural land. Section 194-IC: Payment under Joint Development Agreements (JDA) to Individual/HUF	1% 10%
Section 194J: Any sum paid by way of: (a) Fee for professional services; (b) Remuneration/fee/commission to a director; (c) For not carrying out any activity in relation to any business; (d) For not sharing any know-how, patent, copyright etc. (e) Fee for technical services, and (f) Royalty towards the sale or distribution, or exhibition of cinematographic films. (g) Fees for technical services but payee is engaged in the business of operation of call centre	10% 10% 10% 10% 2% 2% 2%
Section 194K: Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company	10%
Section 194LA: Payment in respect of compensation on acquisition of certain immovable property.	10%
Section 194LBA(1): Certain income distributed by a business trust to its unitholder	10%
Section 194LBB: Certain income paid in respect of units of an investment fund to a unitholder.	10%
Section 194LBC: Income from investment in securitisation fund	10%
Section 194M: Certain payments by Individual/HUF (Limit- Rs 50 Lakhs)	5%
Section 194N: Cash withdrawal exceeding a certain amount (limit- Rs 1 crore). In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs- For the amount more than Rs.20 lakh but up to Rs. 1 crore, and And for the amount exceeding Rs. 1 crore	2% 2% 5%
Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	1%
Section 194Q: Payments to residents for the purchase of goods if the aggregate value of goods exceeds Rs 50 lakhs.(TDS is deductible on value exceeding Rs 50 lakhs)	0.1%
Any Other Income	10%

TDS Rates Where the Company is Not a Domestic Company

Particulars	TDS Rate
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
Section 194BB: Income by way of horse race winnings	30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.	5%
Section 194LBA(2): Payment such as- -interest income received or receivable to a business trust from SPV and distribution to its unitholders. -dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.	5% 10%
Section 194LBA(3)- payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	40%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.	40%
Section 194LBC: Income from investment in securitisation fund	40%
Section 194LC: Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds. If interest is payable against long term bonds listed in recognised stock exchange in IFSC	5% 4%
Section 194LD: Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.	5%
Section 195: Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii); Income by way of LTCG under section 112A; Income by way of STCG under section 111A; Any other income by way of LTCG; Interest payable on money borrowed by the government or Indian concern in foreign currency; Income from royalty payable to the Indian concern, by government or Indian concern, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A (an agreement made after 1st March 1976); Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where the agreement is made after- 31st March 1961 but before 1st April 1976-31st March 1976 Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where agreement is made after- 29th February 1964 but before 1st April 197631st March 1976 Any other income.	10% 10% 15% 20% 20% 10% 50% 10% 50% 10% 40%
Section 196B: Income (including LTCG) from units of an offshore fund.	10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

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Frequently Asked Questions

What are the responsibilities of the person deducting tax at source (TDS)?

Following are the basic responsibilities of the person who is liable to deduct TDS.

Obtain Tax Deduction Account Number (TAN) and mention the same in all the documents of TDS.
Deduct TDS at the applicable rate.
Deposit the tax deducted to the Government account (within the specified due dates).
Periodically file TDS statements, i.e., TDS return (within the specified due date).
Issue the TDS certificate (Form 16 or Form 16A) to the payee in respect of TDS deducted by him (within the specified due dates).

What to do if there is any mistake in deduction of Tax at Source (TDS)?

Sometimes due to ignorance or otherwise, the person may deduct TDS at the rates lower than the rates prescribed in the Act. Hence, it is important that before filing the TDS return, the rate at which TDS is deducted should be verified for every transaction. If any case is found where the TDS is shortly deducted, If such a case is found then the balance tax should immediately be deposited vide a new challan.

Whether TDS should be deducted on payment made to the Government?

No, tax should be deducted by any person from any sum payable to-

1. the Government, or

2. the Reserve Bank of India (RBI), or

3. a corporation established under a Central Act whose income is exempt from income-tax, or

4. a Mutual Fund specified under clause (23D) of section 10, where the amount is payable to it as interest or dividend in respect of any shares/securities owned by it or in which the specified mutual funds has full beneficial interest, or any other income accruing or arising to it.

Where can we check the amount of TDS credit available?

The amount of TDS credit can be checked under Form 26AS.

About the Author

Mohammed S Chokhawala

Content Writer

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

Quick Summary

Tax Deducted at Source (TDS) is a mechanism where tax is collected by the payer at the time of crediting/paying specified income to the payee and deposited to the government, helping reduce tax evasion. Detailed TDS rate charts for various transactions, including salary, interest, lottery winnings, are provided, with different rates for residents, non-residents, domestic companies in India. New TDS provisions introduced in Budget 2023 and 2024 are highlighted.