Rates of TDS
Tax Deducted at Source (TDS) rates in India as per the Income Tax Act, effective for the financial year 2023-24 (Assessment Year 2024-25):
| Income Type | TDS Rate |
|---|---|
| Salaries | Applicable slab rates |
| Interest on Securities | 10% |
| Interest on Bank Deposits | 10% |
| Interest on Other Deposits | 10% |
| Dividends | 10% |
| Professional Fees | 10% |
| Contractor Payments | 1% (individual/HUF) |
| 2% (others) | |
| Rent | 10% |
| Commission or Brokerage | 5% |
| Winning from Lotteries and Game Shows | 30% |
| Payment to Non-Residents | Varies (generally 40%) |
| Fees for Technical Services | 10% |
| Fees for Professional Services | 10% |
| Payment for Life Insurance Policy | 1% (on maturity) |
| Payment for Electricity Bills | 2% |
Notes:
- Salaries: TDS is deducted based on the applicable income tax slab for the employee.
- Non-Residents: The rate varies depending on the type of income and the applicable Double Tax Avoidance Agreement (DTAA) provisions.
- Threshold Limits: Some payments may have threshold limits below which TDS is not deducted (e.g., interest payments below ₹40,000).
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