TDS Rate Chart: For Financial Year 2023-24 (Assessment Year 2024-25) with Comprehensive Guide to Relevant Sections for Perfect Compliance

TDS Rate Chart

Compliance with TDS regulations is vital for businesses to avoid significant penalties. Accurate deduction under the correct TDS section, along with knowledge of applicable rates and exempt limits for each payment nature, is essential. Explore our comprehensive TDS Rate Chart for a quick reference to ensure precise compliance with tax obligations.

What are important TDS Updates in Budget 2023?

  • Section 194BA – Introduction of TDS on income from online gaming.
  • Starting April 1, 2023, non-residents earning from Indian mutual funds under Section 196A can submit a Tax Residency Certificate. This allows them to benefit from TDS at the rate specified in the tax treaty, rather than the standard 20% rate.
  • Section 192A now lowers the TDS rate on PF withdrawal for employees without PAN to 20%, down from the maximum marginal rate.
  • Section 193 mandates TDS on interest from listed debentures; there’s no exemption. TDS must be deducted on interest earned from these specified securities.
  • Section 194N raises the TDS threshold for co-operative societies’ cash withdrawals. Starting April 1, 2023, TDS applies to withdrawals exceeding Rs 3 crore, up from the previous Rs 1 crore limit.

What is TDS Rate Chart for FY 2023-2024?

TDS Section ListNature of PaymentThreshold (₹) LimitFor Individual / HUFFor OthersRemarks
192Payment of salary
(Paid to Resident as well as Non-Resident)
-Slab RatesSlab Rates
192APayment of accumulated balance of provident fund which is taxable in the hands of an employeeLess than ₹ 50,00010%10%
193Interest on securities₹ 10,00010%10%
194Payment of dividend-10%10%TDS required to be deducted at the time of paymnet only.

1. No TDS if payment made to individual by any mode other than cash and payment is upto Rs 5000 in a P.Y.

2. No TDS if Divident is to LIC, GIC or any other insure provided the shares are owned by them, or they have full beneficial interest in such shares.

3. No TDS if Dividend Paid / Credited by SPV to Business Trust.
194APayment of interest other than "Interest on securities" By a Banking Company / Post Office₹ 40,000
₹ 50,000 (For senior citizens)
10%10%No TDS on interest on Saving Bank Account
194AInterest from sources other than securities₹ 500010%10%
194BWinnings of lotteries, puzzles, or gamesAggregate of ₹ 10,00030%30%TDS required to be deducted at the time of paymnet only.
194BAWinnings from online Games-30%30%TDS required to be deducted at the time of withdrawal during the P.Y. from user account as well as at the end of Financial Year
194BBWinnings of horse races₹ 10,00030%30%
194CPayments made to contractors or sub-contractors one time₹ 30,0001%2%
194CPayments made to contractors or sub-contractors on an aggregate basis₹ 1,00,0001%2%
194DCommission paid on insurance sales to domestic companies₹ 15,000Not Applicable10%
194DCommission paid on insurance sales to non-domestic companies₹ 15,0005%Not Applicable
194DAMaturity of life insurance policyLess than ₹ 1,00,0005%5%TDS required to be deducted at the time of paymnet only.
194EEPayment received from the National Savings Scheme (NSS) by individuals₹ 250010%10%
194FRepurchase of units by UTI (Unit Trust of India) or any mutual fundNo Limit20%20%
194GPayments or commission made on the sale of lottery tickets₹ 15,0005%5%
194HCommission or brokerage fees₹ 15,0005%5%
194IRent paid for land, building, or furniture₹ 2,40,00010%10%
194IRent paid for plant and machinery₹ 2,40,0002%2%
194IAPayment for the transfer of immovable property excluding agricultural land₹ 50,00,0001%1%
194IBRent payment made by an individual or HUF not covered under section 194I₹ 50,000 (per month)5%Not Applicable
194ICPayments made under a Joint Development Agreement (JDA) to individuals or HUFNo Limit10%10%
194JFees paid for professional and technical services₹ 30,00010%10%
194JRoyalty paid for the sale, distribution, or exhibition of cinematographic films₹ 30,0002%2%
194KIncome received from units of a mutual fund, such as dividends₹ 5,00010%10%
194LACompensation payment for acquiring certain immovable property₹ 2,50,00010%10%
194LBInterest payment on infrastructure bonds to Non-Resident IndiansNot Applicable5%5%
194LBA(1)Distribution of certain income by a business trust to its unit holdersNot Applicable10%10%
194LDInterest payment on rupee-denominated bonds, municipal debt security, and government securitiesNot Applicable5%5%
194MPayments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J)₹ 50,00,0005%5%
194NCash withdrawal exceeding a specified amount from the bank, with filed ITR₹ 1,00,00,0002%2%
194NCash withdrawal from a bank without filing ITR₹ 20,00,0002%2%
194OAmount received for the sale of products/services by e-commerce service providers through digital platforms₹ 5,00,0001%1%
194QPayments made for the purchase of goods₹ 50,00,0000.10%0.10%
194STDS on the payment of cryptocurrencies or other virtual assetsNot Applicable1%1%

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What are the TDS Payment Due Dates?

TDS deducted / TCS Collected MonthLast Date of Payment of TDSLast Date of Payment of TCS
During April to February months7th of Next Month7th of Next Month
March Month30th April of next FY7th April of next FY
Note: If TDS is deducted under sections 194-IA, 194-IB, or 194M or 194S shall be paid to the government within 30 days from the end of the month in which the deduction is made and shall be accompanied by challan-cum statement in FOrm 26QB, 26QC, 26QD or 26QE respectively.

What are the due dates for TDS and TCS Return Filing?

QuarterPeriodQuarter EndingLast Date of Filing of TDS ReturnLast Date of Filing TCS Return
1st Quarter1st April to 30th June30th June31st July of the financial year15th July of the financial year
2nd Quarter1st July to 30th September30th Septemeber31st October of the financial year15th October of the financial year
3rd Quarter1st October to 31st December31st December31st January of the financial year15th January of the financial year
4th Quarter1st January to 31st March31st March31st May of the financial year immediately following the financial year in which deduction is made15th May of the financial year immediately following the financial year in which deduction is made
TDS deducted u/s 194-IA, 194-IB, 194M or 194S a challan-cum statement in FOrm No 26QB, 26QC, 26QD or 26QE respectively is required to be furnished within a period of 30 days from the end of the month in which deduction is made.

What is the time limit for issue of TDS Certificate (Form 16 / Form 16A)?

TDS Certificate should be furnished by following due date:

ParticularTDS on Salary (Section 193 or 194P)TDS On Non-Salary
FormForm 16Form 16A
Due Date Upto which TDS Certificate should be issued15th June of the following relevant Financial Year15 Days from the due date of furnishing of TDS Return i.e.

15th Aug for Qtr-1
15th Nov for Qtr-2
15th Feb for Qtr-3
15th Jun for Qtr-4
For TDS under section 194-IA, 194-IB, 194M, 194S Form No 16B, 16C, 16D, 16E have to be issued respectively within 15 days from the due date of furnishing the challan-cum statement

What is the interest rate for late payment of TDS?

The interest rates for delayed TDS payments are as outlined below:

  • In case when the TDS is not deducted on time:An interest of 1% will be imposed for every month or part of the month on the amount of such tax from  the date on which such tax was deductible to the date on which such tax is deducted; and
  • In case when the TDS deducted is not deposited on time: An interest of 1.5%will be imposed for every month or part of the month on the amount of such tax from the date it should have been deposited to the date it is actually being credited in the government account.

What is the Penalty for Late Filing of TDS Returns?

Section 234E: Late Filing Fee for TDS Returns

  • Late Filing Fee:
    • Section 234E imposes a late filing fee for the delay in filing TDS (Tax Deducted at Source) returns.
  • Applicability:
    • It applies when a person fails to file the TDS return within the prescribed due date.
  • Amount of Fee:
    • The late filing fee is Rs. 200 per day for each day of delay.
  • Maximum Fee:
    • The total late filing fee cannot exceed the total amount of TDS deducted for the relevant quarter.
  • Mode of Payment:
    • The late filing fee is required to be paid along with the filing of the belated TDS return.
  • Automatic Calculation:
    • The late filing fee is usually calculated automatically by the TDS processing system when the return is filed after the due date.
  • Adjustment during Processing:
    • While processing the TDS return, any late filing fee under Section 234E is adjusted before issuing the intimation under Section 200A.

Section 271H: Penalty for Late Filing of TDS Statements

  • Penalty Provision:
    • Section 271H deals with the penalty for late filing of TDS statements.
  • Applicability:
    • The penalty under this section is applicable when a person fails to file TDS statements within the prescribed due date.
  • Penalty Amount:
    • The penalty can range from Rs. 10,000 to Rs. 1,00,000, depending on the duration of the delay.
  • Mode of Payment:
    • The penalty is separate from the late filing fee under Section 234E and is levied in addition to any late filing fee.
  • Discretionary Waiver:
    • The assessing officer has the discretion to waive or reduce the penalty based on reasonable cause for the delay.


What is TDS?

TDS stands for Tax Deducted at Source, and it is a system of collecting income tax in India. Under TDS, a person or entity making specific types of payments is required to deduct a certain percentage of tax before making the payment. The deducted tax is then remitted to the government on behalf of the payee.

A TDS Rate Chart is a document or reference guide that outlines the applicable TDS rates on various types of income as per the provisions of the Income Tax Act in a particular country. The chart provides a structured overview of the rates at which tax should be deducted at the source before making specified payments.

  • TAN Requirement:
    • Deductors must have a Tax Deduction and Collection Account Number (TAN) for deducting and depositing TDS.
  • TDS Applicability:
    • Verify whether TDS is applicable based on the nature of the transaction and specified thresholds.
  • Correct TDS Section:
    • Deduct TDS under the correct section as per the Income Tax Act (e.g., 194IA for property transactions, 194C for contractor payments).
  • TDS Rate :
    • Know the applicable TDS rates for different types of payments. Rates may vary based on the nature of the transaction.
  • Threshold Limits:
    • Be aware of threshold limits beyond which TDS is applicable. Some transactions may not require TDS if the payment is below a specified limit.
  • PAN of Deductee:
    • Ensure correct and valid PAN (Permanent Account Number) of the deductee is used for TDS deduction.
  • Filing TDS Returns:
    • File TDS returns on time using the relevant forms (e.g., Form 26Q, 26QB, 26QC) to report details of TDS deducted.
  • TDS Certificates:
    • Issue TDS certificates (Form 16 for salary, Form 16A for non-salary) to the deductees within the specified time frame.
  • Quarterly TDS Payment:
    • Deduct and deposit TDS quarterly as per the due dates to avoid interest and penalties.
  • Challan 281:
    • Use Challan 281 for TDS payment and fill in accurate details such as TAN, assessment year, and type of payment.
  • Correct Deductee Details:
    • Provide correct details of the deductee, including name and PAN, to avoid discrepancies.
  • TDS Exemptions:
    • Be aware of TDS exemptions and lower deduction certificates (Form 13) that may be applicable in certain cases.
  • Interest on Late Payment:
    • Pay interest if TDS is not deposited within the due dates. Interest rates vary based on the delay period.
  • Digital Signature for E-filing:
    • If applicable, use a digital signature for electronic filing of TDS returns.
  • Correct TDS Section Code:
    • Use the correct section code while filling the TDS return forms to specify the type of payment.

TDS liability in India is influenced by various factors. The TDS rate is a crucial element, varying according to the nature of the payment. TDS rates are specified in the Income Tax Act, and understanding the applicable TDS rate is essential for accurate deduction. Additionally, exemptions and lower TDS rates may be available under certain circumstances. To ensure compliance, it’s vital to stay updated on the latest TDS rates, as they play a pivotal role in determining the correct deduction amount. So, what is the key to precise TDS compliance? The answer lies in a thorough understanding of the TDS rates applicable to each payment category.

Understanding the TDS rate is pivotal for businesses navigating the complex landscape of tax compliance. The TDS rate is not universal; it differs based on the nature of payments, ensuring that various streams of income are appropriately taxed. Whether it’s salary, interest, rent, or other payments, each category has its designated TDS rate defined by the Income Tax Act. Staying abreast of the latest TDS rates is imperative for accurate deduction and timely deposit to avoid penalties. It’s not just about meeting regulatory requirements; it’s about financial prudence. Knowing the applicable TDS rate safeguards businesses from errors, ensuring they fulfill their obligations while optimizing financial efficiency. What’s the key takeaway? Stay informed about the TDS rate applicable to your transactions to navigate tax compliance seamlessly.

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