Updated : March 02, 2024TDS Rate Chart for FY 2024-25 (AY 2025-26)
Overview : TDS is a convenient and cost-effective way to collect and pay income tax. Instead of holding the tax person responsible for the submission of tax, TDS allows the income provider to deduct the tax amount before the income is actually paid. This deducted amount is later submitted to the tax authorities by the deductor ensuring compliance on the tax person’s behalf.
TDS is deducted at a certain rate defined by the Government. This rate is not always fixed. The government revises it quite often to suit the needs of Indian taxpayers. In times of crisis, TDS rates can even be raised to increase tax collection of the Government. So, it's necessary to keep checking the latest TDS rates as per the TDS rate chart before making the tax payment.
What is TDS ?
TDS is a way to collect income tax, where the taxpayer pays the tax amount at the source of income itself. The deductor collects the tax amount and deposits it to the tax authorities on behalf of the taxpayer, saving his time, effort, and expenses, otherwise spent in meeting tax compliance under several tax laws.
Who is Required to Pay TDS ?
Taxpersons who receive their income as salary, rent, interest, dividend, sale of assets, prizes, contract payment, and so on have to pay TDS. Their TDS is deducted from the source of income itself. The rates of deduction depend on the type of taxpayer and the nature of income. Here’s a comprehensive TDS rate chard for AY 2025-26 with updated TDS rates applicable in Financial Year 2024-25.
TDS Rate Chart for FY 2024-25 (AY 2025-26)
| S.No. | Type of Income | Income Limit | TDS Rate (with PAN) | TDS Rate (without PAN) |
|---|---|---|---|---|
| 1. | Payments to Contractors and Subcontractors, Advertising | Single payment > Rs. 30,000 or Aggregate > Rs. 1,00,000 | 1% (Individual/HUF) 2% (Others) | 5% (Individual/HUF) 20% (Others) |
| 2. | Rent on Land, Building, Furniture & Fittings | Rs. 2,40,000 per annum | 10% | 20% |
| 3. | Rent on Plant & Machinery | Rs. 2,40,000 per annum | 2% | 20% |
| 4. | Professional/Technical Fees | Rs. 30,000 | 10% | 20% |
| 5. | Commission/Brokerage (other than lottery) | Rs. 15,000 | 5% | 20% |
| 6. | Payments for the purchase of goods | Rs. 50,00,000 | 0.1% | 5% |
| 7. | Salary | As per income tax slabs | Slab Rates | Slab Rates |
| 8. | Premature PF withdrawal | Rs. 50,000 | 10% | 20% |
| 9. | Interest on Securities | Bonds - 10,000 Other Securities - No Limit | 10% | 20% |
| 10. | Dividends | Rs. 5000 | 10% | 20% |
| 11. | Interest (other than on securities) | Rs. 40,000, Rs. 50,000 for senior citizens, Rs. 5,000 from friends/relatives | 10% | 20% |
| 12. | Winnings from lottery, games, etc. | Rs. 10,000 | 30% | 30% |
| 13. | Income from online games | Nil | 30% | 30% |
| 14. | Winnings from horse races | Rs. 10,000 | 30% | 30% |
| 15. | Insurance Commission | Rs. 20,000 | Individuals - 5%, Companies - 10%% | 20% |
| 16. | Payment to non-resident sportsmen/sports association | No threshold | 20% | 20% |
| 17. | Payments in respect of deposits under NSS | Rs. 2500 | 10% | 20% |
| 18. | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | No threshold | 20% | 20% |
| 19. | Commission/brokerage on lotteries | Rs. 15,000 | 5% | 20% |
| 20. | Sale of Immovable Property | Rs. 50,00,000 | 1% | 20% |
| 21. | Rent payment that is made by an individual or HUF not covered under payment 194I (No Business/No Audit Cases) | 50,000 per month | 5% | 20% |
| 22. | Payment under Joint Development Agreements (JDA) to Individual/HUF | No threshold | 10% | 20% |
| 23. | Payment of dividends by mutual Funds | Rs. 5000 | 10% | 20% |
| 24. | Compensation on acquisition of certain immovable property | Rs. 2,50,000 | 10% | 20% |
| 25. | Certain payments by Individuals/HUF where they are not liable to deduct TDS under Sections 194C, 194H, and 194J | Rs. 50,00,000 | 5% | 20% |
| 26. | In case cash withdrawal over a certain amount takes place from the bank | ITR Filers - Rs. 1 Crore ITR Non-Filers - Rs. 20,00,000 | 2% | 20% |
| 27. | Amount paid for the sale of products/services by e-commerce service providers via their digital platform | Rs. 5,00,000 | 1% | 5% |
| 28. | Benefits/perquisites from business or profession | Rs. 20,000 | 10% | 20% |
| 29. | Payment for transfer of Virtual Digital Assets | Rs. 10,000 (specified person) Rs. 50,000 (others) | 1% | 1% |
Conclusion
Timely TDS payment is important for Income Tax Compliance in India. The rates of TDS depend on the type of income and the category of taxpayer. They range between 1% to 30% as mentioned in the TDS rate chart FY 24-25 above. Essential documents required for TDS payment include the PAN of the taxpayer. Or any assistance consult our tax professionals. We’ll guide you through the entire payment and compliance process.
