What is the TDS rate for salary, dividend, interest, house rent, cash withdrawal and other transactions for FY 2024-25 What is important to note here is that a correct amount of TDS should be deducted and TDS return (if applicable) is filed in time. Read here to know some TDS rates for FY 2024-25
Tax deducted at source (TDS) is levied on various types of incomes like salary, interest earned on bank deposits, commission, house rent, and dividends received above a certain threshold, etc. However, the rate of TDS deduction varies according to the prescribed rules.For example, if an individual is paying house rent of Rs 50,000 and above then TDS at 5% rate must be deducted before making payment to the landlord.
It is important to follow the prescribed rules regarding the deduction of TDS and filing TDS return as failure to do so would result in a levy of penalties and some severe cases even imprisonment is possible.
"TDS rates vary depending on the nature and amount of income, as well as the status of the recipient (whether they are a resident, a non-resident, etc.). In some severe cases, the deductor may face prosecution and imprisonment for up to seven years if they wilfully fail to deduct or deposit the TDS, as stipulated under section 276B of the Income-tax Act 1961. This legal action has serious consequences and may have long-lasting implications for the deductor," says Abhishek Soni, co-founder, Tax2Win, a tax filing assistance platform.
Also read: How is TDS rate for salary income calculated.
How TDS works and what is the rate of TDS?
The person who is making a payment must deduct a specified percentage of the amount paid as TDS if the payment is subject to TDS. The recipient is bound to get a TDS certificate from the deductor within a prescribed time and this certificate states the amount deducted as TDS.For example, in house rent cases where the rent is Rs 50,000 or more per month, the tenant is responsible for giving his/her landlord Form 16C (TDS certificate) within 15 days from the due date of filing TDS return in Form 26QC. After receiving the TDS certificate, the deductee can claim the TDS amount as tax paid for the respective financial year in which the TDS was deducted. Further, the amount deposited as TDS would show up in the deductee's Form 26AS and Annual Information Statement (AIS).
Also read: Income Tax dept is calculating your advance tax liability by tracking these financial transactions.
TDS rates for salary, house rent, shares and others for FY 2024-25
Here is a table showing the TDS rates applicable for salary, house rent, shares and other prescribed transactions:
SectionNature of TransactionThreshold Limit (Rs)TDS Rate192SalaryBasic exemptionAs per calculated TDS rate192APremature Withdrawal of Employee Provident Fund (EPF)50,00010% if PAN is provided. 20% without PAN193Interest on securities5,00010%194Dividend5,00010%194AInterest on deposit in a bank or post officeSenior Citizens- 50,000 Others- 40,00010% for both194BIncome from lottery winnings, puzzles, card games, etc.10,00030%194BAEarnings from online gamesNo minimum threshold30%194BBIncome from horse race winnings10,00030%194DInsurance commission to individuals/companies15,000Individuals: 5% Companies: 10%194DAPayment made towards life insurance policy1,00,0005%194EEPayment to National Savings Scheme2,50010%194FPayment for the repurchase of units by Mutual Fund or UTINo specified limit20%194HCommission/brokerage15,0005%194-IRent: Plant and machinery2,40,0002% Land/building/furniture/fitting2,40,00010%194-IAPayment on transfer of immovable property except agricultural land50,00,0001%194-IBRent paid by HUF/Individual not required to conduct tax audit50,000 per month5%194KEarnings from units payable to a residentNo specified limit10%194LACompensation for acquiring an immovable property2,50,00010%194NCash withdrawal exceeding specific amountCooperative society: 3 crore2%Others: 1 crore Cash withdrawal from multiple bank accounts during previous year1 crore2% Aggregate cash withdrawal exceeding 20 lakhs20 lakhs2% Aggregate cash withdrawal exceeding 1 crore1 crore5%194PTDS for senior citizens aged over 75 yearsBasic exemption limitNormal tax slab rates194SPayment of virtual digital assetsSpecified Persons- 50,000 Others- 10,0001%195Income on investments of NRI citizensNo specified limit20%195LTCG under section 115E in the case of NRI citizenNo specified limit10%195LTCG under section 112(1)(c)(iii)No specified limit10%195LTCG under section 112ANo specified limit10%195STCG under section 111ANo specified limit15%195Other LTCG other than LTCG mentioned u/s 112A, 10(33), 10(36)No specified limit20%196BLTCG and other income from units of an offshore fundNo specified limit10%206ABPayment made to people not filing their ITRNo specified limit2 times the rate mentioned in the Income Tax Act or 5%, whichever is higher206AATDS rate if PAN not availableNo specified limitRates specified or 20%, whichever is higherSource: Abhishek Soni, co-founder, Tax2Win, a tax filing assistance company
This story originally appeared on: India Times - Author:Faqs of Insurances
