Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

Tax deducted at source is known as TDS. According to the Income Tax Act, if a business or individual makes a payment that is covered by one of the sections below, they must dedcut TDS if the payment exceeds the specified amount. TDS must be deducted at the below rates prescribed by tax department.

The different TDS rates that apply for the Financial Year 2023-2024 (Assessment Year 2024-2025) which runs from April 1, 2023, to March 31, 2024—are presented in this article. It also describes the changes to TDS that have been proposed in Budget 2023. Let’s understand the TDS Rate Chart for FY 2023-24 with limit.

Table of Contents

What is TDS?

TDS, or Tax Deducted at Source, is a taxation method in which taxes are deducted at the source of income at the time of payment. The Indian government introduced it to curb tax evasion. The TDS deducted is subsequently reported to the government. TDS is levied on revenues such as rent, interest, salaries, and commissions.

Latest TDS Updates in Union Budget 2023-2024

The TDS Rate Chart for FY 2023–2024 (AY 2024–2025) have a number of updates and changes. Below is a summary of these changes:

Section 192A: The TDS rate on PF withdrawal has been reduced from the maximum marginal rate to 20% in case employee does not have PAN.

Section 193: Interest on listed debentures will not be exempt from TDS. Consequently, tax must be deducted from interest on these particular securities.

Section 194BA: TDS on online gaming income will be implemented on April 1st, 2024.

Section 194N: For cash withdrawals by cooperative societies, the TDS threshold has been increased. Tax will be deducted on cash withdrawals over Rs.3 crore as of April 1, 2023, as opposed to the previous limit of Rs.1 crore.

Section 196A: Starting on April 1st, 2023, non-residents who receive income from mutual funds in India may present a Tax Residency Certificate in order to receive the benefit of TDS at the rate specified in the tax treaty, rather than the flat rate of 20%.

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

SectionNature of TransactionTDS Rate (%)Threshold Limit (INR)
192SalaryNormal slab rates as per Old or New Tax Regime as opted by employeeBasic exemption limit
192APremature Withdrawal of EPF

10% if PAN is provided.

20% If withdrawal is made without PAN

193Interest on securities10%2500
194AInterest on deposit in a bank or post office (Bank Deposit/Post Office Deposit/Banking Co-Society Deposit)10% for both

Senior Citizens- 50,000

Others- 40,000

194AInterest from other sources (other than interest on securities and interest on bank deposits)10%5,000
194BIncome from lottery winnings, puzzles, crosswords, card games and other games30%10,000
194BAEarnings from online games30%No threshold limit
194BBIncome earned from winning in horse race30%10,000
194CPayment made to subcontractor or contractor

HUF/Individuals: 1%

Others: 2%

Single transaction- 30,000

Aggregate transactions- 1,00,000


Insurance commission to:

  • Individuals
  • Companies

5% for Individuals

10% for companies


194DAPayment made for life insurance policy5%1,00,000
194EPayment to non-resident sports sportsmen or association20% (additional surcharge and a 4% cess)No threshold limit
194EEPayment made for National Savings Scheme10%2,500
194FPayment for re-purchase of the units by Mutual Fund or UTI20%No threshold limit
194GCommission on selling lottery tickets5%15,000
194HCommission or brokerage5%15,000
194-I(a)Rent for plant and machinery2%2,40,000
194-I(b)Rent for land, building, furniture or fitting (immovable property)10%2,40,000
194-IAPayment for acquisition of immovable property other than agricultural land1%50,000 per month
194-IBRent paid by HUF/Individual (who is not required to conduct tax audit u/s 44AB)5%50,000 per month
194-ICPayment under JDA (Joint Development Agreements)10%No threshold limit
194JFees paid for professional services or technical service10%30,000
194JFees paid for royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films2%30,000
194KPayment of dividend by Mutual Funds10%No threshold limit
194LAPayment of Compensation on acquisition of immovable property10%2,50,000
194LBInterest paid to Non-resident on Infrastructure Debt Fund5% (additional surcharge and a 4% cess)No threshold limit
194LBA (1)Payment of income received by Business trust from an SPV10%No threshold limit
194LBBPayment of income received by a unit holder from an investment fund10%No threshold limit

Income from investment in securitization trust:

  • Individuals/HUF
  • Others
  • 25% for Individuals/HUF
  • 30% for Others

No threshold limit

194MPayment of commission, brokerage by individual/HUF (except income tax commission under Section 194C, 194H, and 194J)5%50 lakhs
194NCash withdrawal exceeding a specific amount2%1 crore
194NCash withdrawal from multiple bank accounts during the previous financial year  
 Amount exceeding 1 crore (exceeding 20 lakhs for people not filing ITR for previous 3 years)2%1 crore
 Aggregate cash withdrawal exceeding 20 lakhs2%20 lakhs
 Aggregate cash withdrawal exceeding 1 crore5%1 crore
194OPayment to e-commerce participant by e-commerce operator


5% If PAN is not available

194PTDS for senior citizens aged over 75 yearsNormal tax slab ratesBasic exemption limit
194QPurchase of goods after 1st  July 20210.1%50,00,000
194RTDS on benefit or Perquisite of a business or profession10%20,000
194SPayment  on transfer of virtual digital assets1%

Specified Persons- 50,000

Others- 10,000

195Income on investments of NRI citizens20%No threshold limit
195LTCG under section 115E in the case of NRI10%No threshold limit
195LTCG u/s 112(1)(c)(iii)10%No threshold limit
195LTCG u/s112A10%No threshold limit
195STCG u/s 111A15%No threshold limit
195Other LTCG other than LTCG mentioned u/s 112A, 10(33), 10(36)20%No threshold limit
195Interest paid on borrowings from Indian company or government in Indian rupees20%No threshold limit
195Income from royalty, paid by Indian company or Indian government under section 115A10%No threshold limit
195Income from royalty by government or Indian company as per an agreement according to the industrial policy.10%No threshold limit

Income from royalty payable from Indian companies or the government.

(The Agreement should be made between 31st Mar 1961 to 1st  Apr 1976)

50%No threshold limit
195Income from royalty to be paid by government or Indian company in pursuance of an agreement on matters included in the industrial policy10%No threshold limit
195Income from technical fees to be paid by Indian government or company in pursuance of an agreement for industrial policy10%No threshold limit

Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy

(The agreement for such payment is entered in between 29th February 1964 and 1st April 1976)

50%No threshold limit

Income from technical fees to be paid by government or Indian company in accordance with an agreement on industrial policy matters.

(The agreement for the payment is entered between 29th Feb 1964 and 1st Apr 1976)

10%No threshold limit
195Any other income30%No threshold limit
195Any other income40%No threshold limit
196BLTCG and other income from units of an offshore fund10%No threshold limit
196CLTCG and other income from foreign currency bonds or Indian GDRs10%No threshold limit
196DIncome (except dividend and capital gain) from FIIs20%No threshold limit
206ABPayment made to people not filing their ITR

-2 times the rate given in the Income Tax Act

– 5%, whichever is higher

No threshold limit
206AATDS rate if PAN not available

Rates specified or 20%,

whichever is higher

No threshold limit

Read also: TDS on Rent – Section 194I, IB, IC & 195 of Income Tax Act.

TDS Rate Chart for FY 2023-24 pdf

Discover the TDS Rate Chart for FY 2023-24 in a convenient PDF format, simplifying your tax journey. Download Latest TDS Rate Chart for FY 2023-24 (AY 2024-25) now for easy access to essential tax deduction information.


Understanding the TDS Rate Chart for FY 2023-24 is crucial for smooth financial transactions. Navigating through tax deductions can be complex, but with the right knowledge of the TDS rates, one can ensure compliance and avoid unnecessary hassles. Stay informed, plan wisely, and make your financial journey a smoother ride in the upcoming fiscal year.

Frequently Asked Questions (FAQ)

TDS stands for Tax Deducted at Source. Under this method, if a person (deductor) is required to pay another person (deductee), the deductor will deduct tax at the source and transmit the balance to the deductee.

Tax is one of the primary causes, among others. Employers deduct tax from your wage before depositing it in your account and submitting it to the government on behalf of the employee. The principle of subtracting taxes before making a payment is known as TDS (Tax Deduction at Source).

The TDS is calculated by dividing the employee’s projected tax burden for the fiscal year by the number of months of employment with the specific company. However, if the employee does not have a PAN, TDS will be deducted at 20% plus 4% cess.

If you are in the 5% tax rate, you can now seek a TDS refund for the additional amount deducted. Similarly, you can also claim a TDS refund of excess TDS deducted on salary due to the non-submission of 80C investment proofs or rent receipts to the employer for house rent allowance.

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