1. TDS Rates for Resident Individuals and Entities
| Section | Nature of Payment | Threshold Limit | TDS Rate (%) |
|---|---|---|---|
| 192 | Salaries | As per income slab | As per slab rates |
| 192A | Premature withdrawal from EPF | ₹50,000 | 10% |
| 193 | Interest on securities | ₹10,000 | 10% |
| 194 | Dividends | ₹5,000 | 10% |
| 194A | Interest (Banks/Post Office) | ₹50,000 (Senior Citizens) | 10% |
| Interest (Others) | ₹40,000 | 10% | |
| 194B | Winnings from lotteries | ₹10,000 | 30% |
| 194BA | Winnings from online games | No threshold | 30% |
| 194BB | Winnings from horse races | ₹10,000 | 30% |
| 194C | Payment to contractors/sub-contractors (Single Transaction) | ₹30,000 | 1% (Individual/HUF), 2% (Others) |
| Payment to contractors/sub-contractors (Aggregate during the FY) | ₹1,00,000 | 1% (Individual/HUF), 2% (Others) | |
| 194D | Insurance commission | ₹15,000 | 5% |
| 194DA | Payment in respect of life insurance policy | ₹1,00,000 | 5% |
| 194EE | Payment from National Savings Scheme (NSS) | ₹2,500 | 10% |
| 194G | Commission on sale of lottery tickets | ₹15,000 | 5% |
| 194H | Commission or brokerage | ₹15,000 | 5% |
| 194I(a) | Rent for plant & machinery | ₹2,40,000 | 2% |
| 194I(b) | Rent for land, building, furniture, fittings | ₹2,40,000 | 10% |
| 194IA | Transfer of certain immovable property other than agricultural land | ₹50,00,000 | 1% |
| 194IB | Rent paid by individuals/HUF not covered under tax audit | ₹50,000 per month | 5% |
| 194IC | Payment under specified Joint Development Agreement | No threshold | 10% |
| 194J(a) | Fees for technical services | ₹50,000 | 2% |
| 194J(b) | Fees for professional services | ₹50,000 | 10% |
| 194K | Payment of dividend by mutual funds | ₹5,000 | 10% |
| 194LA | Compensation on transfer of certain immovable property other than agricultural land | ₹2,50,000 | 10% |
| 194M | Payment made for contracts, brokerage or professional fees by individuals/HUF not covered under sections 194C, 194H, and 194J | ₹50,00,000 | 2% |
| 194N | Cash withdrawal in excess of ₹1 crore during the previous year from one or more accounts with a bank or co-operative society | ₹1,00,00,000 | 2% |
| Cash withdrawal if no ITR filed for previous 3 years | ₹20,00,000 – ₹1,00,00,000 | 2% | |
| Cash withdrawal if no ITR filed for previous 3 years | Above ₹1,00,00,000 | 5% | |
| 194O | TDS on e-commerce participants | ₹5,00,000 | 1% |
| 194P | TDS in case of specified senior citizen (above 75 years) having salary & interest (ITR not required) | As per slab rate | NA |
| 194Q | TDS on purchase of goods exceeding ₹50 lakh | In excess of ₹50,00,000 | 0.1% |
| 194R | Benefits or perquisites of business or profession | ₹20,000 | 10% |
| 194S | Payment of consideration for transfer of virtual digital asset by persons other than specified person | ₹10,000 | 1% |
| Payment of consideration for transfer of virtual digital asset by specified person | ₹50,000 | 1% | |
| 194T | Payments by partnership firms to partners | ₹20,000 | 10% |
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)
2. Key Changes Effective from April 1, 2025
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Introduction of Section 194T:
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TDS on Payments by Partnership Firms to Partners: A new section 194T has been introduced, mandating a 10% TDS on payments exceeding ₹20,000 made by partnership firms to their partners.
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Revised Threshold Limits:
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Section 193 (Interest on Securities): Threshold limit increased to ₹10,000.
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Section 194A (Interest other than Interest on Securities): For senior citizens, the threshold limit is ₹50,000; for others, it is ₹40,000.
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Section 194D (Insurance Commission): Threshold limit increased to ₹15,000.
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Section 194G (Commission on Sale of Lottery Tickets): Threshold limit increased to ₹15,000.
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Section 194H (Commission or Brokerage): Threshold limit increased to ₹15,000.
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3. Frequently Asked Questions (FAQs)
Q1: What is TDS and why is it deducted?
A: Tax Deducted at Source (TDS) is a means of collecting income tax in India, under which a certain percentage is deducted at the time of making specified payments like salary, commission, rent, interest, etc. The deducted amount is then remitted to the government on behalf of the payee.
Q2: What happens if I don’t provide my PAN to the deductor?
A: If you fail to provide your PAN,
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