TDS / TCS Rate Chart for FY: 2023-24 (AY: 2024-25) - Taxation PDF Version
TDS Rates for FY 2023-24: A Complete Guide
Tax Deducted at Source (TDS) is a method of collecting income tax from the source of income itself. It helps in ensuring timely payment of tax and preventing tax evasion. The person who makes the payment (deductor) deducts a certain percentage of tax from the amount paid to the recipient (deductee) and deposits it with the government. The deductee can claim credit for the tax deducted at source while filing his or her income tax return.
In this article, we will discuss the various TDS rates applicable for different types of payments made to residents and non-residents in India for the financial year 2023-24 (assessment year 2024-25). We will also highlight the changes in the TDS rates as per the Budget 2023 proposals.
tds rates for fy 2023-24 pdf download
Introduction
What is TDS and why is it important?
TDS is a type of advance tax that is deducted from the income of the payee before it reaches his or her hands. It is applicable to various sources of income such as salary, interest, dividend, rent, commission, professional fees, etc. The deductor has to deduct tax at the rates prescribed by the Income Tax Act or the relevant Double Taxation Avoidance Agreement (DTAA) in case of payments to non-residents. The deductor also has to issue a TDS certificate to the deductee as proof of tax deduction.
TDS is important because it ensures that tax is collected at the source of income itself and deposited with the government on a regular basis. It also reduces the burden of tax payment on the deductee at the end of the year and helps in avoiding tax evasion.
What are the changes in TDS rates for FY 2023-24 as per Budget 2023?
The Finance Minister presented the Union Budget 2023 on February 1, 2023. The Budget proposed some changes in the TDS rates and provisions for FY 2023-24. Some of the key changes are:
The exemption threshold for leave encashment has been increased from Rs. 3 lakh to Rs. 25 lakh for non-government employees.
The TDS rate on premature withdrawal from EPF has been reduced from 30% to 20% in case of non-PAN cases.
The exemption from TDS on interest from listed debentures has been extended to unlisted debentures as well.
The TDS rate on dividend income has been reduced from 10% to 7.5% for resident shareholders.
The TDS rate on royalty income has been reduced from 10% to 7.5% for non-resident payees.
The TDS rate on fees for technical services has been reduced from 10% to 7.5% for non-resident payees.
The TDS rate on interest income from foreign currency loans has been reduced from 20% to 5% for non-resident payees.
These changes are effective from April 1, 2023 and will apply to the payments made during FY 2023-24.
tds rate chart for fy 2023-24 pdf download
tds slab rates for fy 2023-24 pdf download
tds deduction rates for fy 2023-24 pdf download
tds rate table for fy 2023-24 pdf download
tds rate list for fy 2023-24 pdf download
tds rate calculator for fy 2023-24 pdf download
tds rate schedule for fy 2023-24 pdf download
tds rate sheet for fy 2023-24 pdf download
tds rate summary for fy 2023-24 pdf download
tds rate guide for fy 2023-24 pdf download
tds rates for ay 2024-25 pdf download
tds rates for financial year 2023-24 pdf download
tds rates for assessment year 2024-25 pdf download
tds rates for income tax fy 2023-24 pdf download
tds rates for salary fy 2023-24 pdf download
tds rates for interest fy 2023-24 pdf download
tds rates for dividend fy 2023-24 pdf download
tds rates for rent fy 2023-24 pdf download
tds rates for contractor fy 2023-24 pdf download
tds rates for commission fy 2023-24 pdf download
latest tds rates for fy 2023-24 pdf download
revised tds rates for fy 2023-24 pdf download
updated tds rates for fy 2023-24 pdf download
new tds rates for fy 2023-24 pdf download
current tds rates for fy 2023-24 pdf download
budget 2023 tds rates for fy 2023-24 pdf download
finance act 2023 tds rates for fy 2023-24 pdf download
income tax act tds rates for fy 2023-24 pdf download
income tax rules tds rates for fy 2023-24 pdf download
income tax circulars tds rates for fy 2023-24 pdf download
TDS Rates for Resident Payments
In this section, we will discuss the TDS rates applicable to the payments made to residents in India. These rates are subject to change as per the notifications issued by the government from time to time.
TDS Rates for Salary, Interest, Dividend, Rent, and Other Payments
The following table shows the TDS rates for various types of payments made to residents in India for FY 2023-24.
Type of Payment
TDS Rate
Threshold Limit
TDS Rates for Salary
As per the income tax slab rates applicable to the employee
No threshold limit
TDS Rates for Interest
10%
Rs. 40,000 for bank deposits and Rs. 50,000 for senior citizens (Rs. 5,000 for others)
TDS Rates for Dividend
7.5%
Rs. 5,000
TDS Rates for Rent
10% for individuals and HUFs and 2% for others
Rs. 2.4 lakh per annum
TDS Rates for Other Payments
Varies depending on the nature of payment (e.g., lottery, insurance, etc.)
Varies depending on the nature of payment (e.g., Rs. 10,000 for lottery, Rs. 1 lakh for insurance, etc.)
Note: The TDS rates are subject to surcharge and cess as applicable.
TDS Rates for Salary
The employer has to deduct tax at source from the salary paid to the employee as per the income tax slab rates applicable to the employee. The employer has to consider the deductions and exemptions claimed by the employee under various sections of the Income Tax Act while calculating the taxable salary. The employer also has to issue Form 16 to the employee as a proof of TDS deduction.
TDS Rates for Interest
The payer has to deduct tax at source from the interest paid or credited to the payee at the rate of 10%. However, if the payee does not furnish his or her PAN, then the TDS rate will be 20%. The payer also has to issue Form 16A to the payee as a proof of TDS deduction.
The threshold limit for TDS deduction on interest is Rs. 40,000 for bank deposits and Rs. 50,000 for senior citizens (Rs. 5,000 for others). This means that if the interest amount does not exceed these limits in a financial year, then no TDS will be deducted.
TDS Rates for Dividend
The company or mutual fund has to deduct tax at source from the dividend paid or distributed to the shareholder or unit holder at the rate of 7.5%. However, if the shareholder or unit holder does not furnish his or her PAN, then the TDS rate will be 20%. The company or mutual fund also has to issue Form 16A to the shareholder or unit holder as a proof of TDS deduction.
The threshold limit for TDS deduction on dividend is Rs. 5,000 in a financial year. This means that if the dividend amount does not exceed this limit in a financial year, then no TDS will be deducted.
TDS Rates for Rent
The payer has to deduct tax at source from the rent paid or credited to the landlord at the rate of 10% if the payer is an individual or a Hindu Undivided Family (HUF) and at the rate of 2% if the payer is any other person. However, if the landlord does not furnish his or her PAN, then the TDS rate will be 20%. The payer also has to issue Form 16B to the landlord as a proof of TDS deduction.
The threshold limit for TDS deduction on rent is Rs. 2.4 lakh per annum. This means that if the rent amount does not exceed this limit in a financial year, then no TDS will be deducted.
TDS Rates for Other Payments
The payer has to deduct tax at source from various other payments made to the payee as per the rates specified in the Income Tax Act. Some of these payments are:
Lottery or crossword puzzle winnings: 30%
Insurance commission: 5%
Life insurance policy maturity amount: 1% (if the premium exceeds 10% of the sum assured)
National Savings Scheme (NSS) interest: 10%
Payment under a contract or sub-contract: 1% or 2% depending on the nature of work
Payment for professional or technical services: 10%
Payment for commission or brokerage: 5%
The threshold limit for TDS deduction on these payments varies depending on the nature of payment. For example, the threshold limit for lottery winnings is Rs. 10,000, for insurance commission is Rs. 1 lakh, and for professional fees is Rs. 30,000.
Note: The TDS rates and threshold limits for these payments are subject to change as per the notifications issued by the government from time to time.
TDS Rates for Non-Resident Payments
In this section, we will discuss the TDS rates applicable to the payments made to non-residents in India. These rates are subject to change as per the notifications issued by the government from time to time.
TDS Rates for Interest, Royalty, Fees for Technical Services, and Other Payments
The following table shows the TDS rates for various types of payments made to non-residents in India for FY 2023-24.
Type of Payment
TDS Rate
Threshold Limit
TDS Rates for Interest
5% or 20% depending on the source and nature of interest
No threshold limit
TDS Rates for Royalty and Fees for Technical Services
7.5% or 10% depending on the DTAA provisions