TDS Rates

TDS, or Tax Deducted at Source, serves as an essential mechanism for the collection of income tax. Through this method, the government collects tax at the point where income is earned, rather than at a later date. The main goal of TDS is to curb tax evasion by ensuring the tax is deducted at the source of income generation.

TDS applies to a wide range of income types, such as salaries, interest from term deposits, and income from securities. The TDS rates vary based on the type of income and the individual subject to taxation.

What Are the TDS Rates in India?

In India, TDS is applicable to four categories of individuals –

• Resident individuals
• Non-resident individuals
• Domestic companies
• Entities other than domestic companies

Residents of India

Below are tables displaying the various TDS rates applicable to payments made to both residents and non-residents, as well as the TDS deduction rates for domestic and international companies in India. Any person receiving income must deduct tax at the source and remit the TDS within the specified deadline.

TDS Rates for FY 2023-24 (AY 2024-25)

TDS Rate Chart

Particulars	Section	TDS Rates
Salary	Section 192	Applicable slab rate
Withdrawal from Employee Provident Fund	Section 192A	10%
Income from repurchasing of any unit by Unit Trust of India or Mutual Fund	Section 194F	20%
Brokerage or commission	Section 194H	5%
Interest income from securities – Issued by a local government authority or corporation Central or State Government issued debenture Corporate bonds or securities Other debt instruments	Section 193	10%
Income from National Savings Scheme deposits	Section 194EE	10%
Amount received from a life insurance policy	Section 194D	5%
Commission from selling lottery tickets	Section 194G	5%
Earnings from horse racing	Section 194BB	30%
Dividend income, excluding those covered by Section 115-O	Section 194	10%
Rent from – Land or building Furniture or fittings Plant and machinery	Section 194-I	10% 10% 2%
Payment for – Royalties, technical services Professional services excluding patents, know-how, copyrights, etc.	Section 194J	2% 10%
Interest income from term deposits Note: No TDS on such interest income if it does not exceed Rs.40,000 (Rs.50,000 for senior citizens) in a financial year.	Section 194A	10%
Insurance commission income	Section 194D	5%
Income from the sale of immovable property (excluding agricultural land)	Section 194-IA	1%
Winnings from lotteries, card games, crossword puzzles, etc.	Section 194B	30%
Income from – Mutual fund units Units from a specified organization Units from the administrator	Section 194K	10%
Rent income from HUF or individual (except covered under Section 194-I)	Section 194-IB	5%
Compensation for the sale of specific immovable property	Section 194LA	10%
Income from HUFs or individuals (up to Rs.50 lakh)	Section 194M	5%
Rent income under Joint Development Agreements exceeding Rs.50,000 per month	Section 194-IC	10%
Cash withdrawals – More than Rs.20 lakh but up to Rs.1 crore Above Rs.1 crore	Section 194N	2% 5%
Income from a securitisation fund – HUFs and individuals Others	Section 194LBC	25% 30%
Specific income for an investor	Section 194LBB	10%

The Indian Finance Ministry has introduced new TDS rates applicable for various types of payments and incomes during FY 2023-24 (Assessment Year 2024-25). Always ensure to check applicable rates on the Income Tax website or consult an expert to avoid any issues.

Non-resident Individuals

The TDS rates for non-residents in India are listed in the table below.

Particulars	Section	Effective TDS Rates
Income from repurchase of units by Mutual Fund or UTI	Section 194F	20%
Income from securitization funds	Section 194LBC	30%
Earnings from National Savings Scheme deposits	Section 194EE	10%
Returns from units transferred to an offshore fund, including long-term capital gains	Section 196B	10%
Income from foreign-currency funds of an Indian organization	Section 196C	10%
Income from the following sources – Long-term capital gains as per Section 115E Short-term capital gains as per Section 111A Long-term Capital Gains under Section 193(1)(c)(iii) Long-term Capital Gains not specified in Section 10 clauses 33, 36, and 38 Interest from foreign-currency debt instruments issued by the Indian Government or an Indian concern (except as per Sections 194LC or 194LB)	Section 195	10% 15% 10% 20% 20%
Income from MF units under Section 10(23D) from a company listed in Section 10(35)	Section 196A	20%
Earnings from securities by Foreign Institutional Investors (other than dividends and capital gains)	Section 196D	20%
Interest earnings from infrastructure debt funds	Section 194LB	5%
Interest from loans or long-term bonds in foreign currency issued by a business trust or an Indian organization	Section 194LC	5%
Income earned by a non-resident sports organization or individual	Section 194E	20%
EPF withdrawals	Section 192A	10%
Interest from rupee-denominated government securities or corporate bonds by a Qualified Foreign Investor or Foreign Institutional Investor	Section 194LD	5%

Domestic Companies

The table below lists the TDS rates applicable on income by domestic companies.

Particulars	Section	Applicable TDS Rates
Interest on securities	Section 193	10%
Income from insurance policies	Section 194DA	5%
Brokerage commissions	Section 194H	5%
Dividends received	Section 194	10%
Income from business trust	Section 194LBA	10%
Earnings from National Savings Scheme deposits	Section 194EE	10%
Income from MF or UTI unit repurchases	Section 194F	20%
Income from insurance commissions	Section 194D	10%

Companies Other Than Domestic Entities

The TDS rates that apply to companies other than domestic entities are listed in the table below.

Particulars	Section	Applicable TDS Rates
Income from a foreign sports organisation	Section 194E	20%
Income received from a business trust	Section 194LBA	5%
Interest earnings from an infrastructure debt fund	Section 194LB	5%
Income from investments in rupee-denominated bonds by Foreign Institutional Investors or Qualified Foreign Investors	Section 194LD	5%