TDS Rate Chart for FY 2024-2025 (AY 2025-2026) Every taxpayer must learn TDS ( Tax Deducted at Source ) in detail, especially in India. It is necessary to know about the new rates, limits, and rules regarding TDS as the period for 2024-25 begins. This article will cover TDS for employees, business people, and freelancers, while giving everyone easy access to the TDS rate chart for the FY 2024-25 (AY 2025-26). What is TDS? Tax Deducted at Source (TDS) is a system established by the Government of India for a tax collection at source level of income. According to the Income Tax Act, any organization or person remitting a payment needs to deduct tax where applicable and the payment is in excess of particular limits. The Government receives that withdrawn amount.
TDS guarantees some sort of payment revenue collection at all times and also serves as a proof of payment for money spent by taxpayers. Sometimes special allowances can be claimed and TDS rates may be lower according to the type of payment and also based on the resident status of the payee (non-resident or resident).
Applicable Period Financial Year (FY): 2024-2025
Assessment Year (AY): 2025-2026
TDS Rate Chart for FY 2024-25 (AY 2025-26) for Residents Section Nature of Payment Threshold Limit TDS Rate 192 Salary As per slab rates As per income tax slab 193 Interest on securities ₹5,000 (₹10,000 for listed co.) 10% 194 Dividend ₹5,000 10% 194A Interest (Bank/Co-op/Post Office) ₹5,000 (₹50,000 for senior citizens) 10% 194B Lottery/Winnings ₹10,000 30% 194BB Horse Race Winnings ₹10,000 30% 194C Payment to Contractors ₹30,000 (single) / ₹1,00,000 (aggregate) 1% (Individual/HUF), 2% (Others) 194D Insurance Commission ₹15,000 5% 194DA Maturity of Life Insurance ₹1,00,000 5% on income portion 194EE NSS Scheme ₹2,500 10% 194F Repurchase of units by UTI No limit 20% 194G Commission on lottery tickets ₹15,000 5% 194H Brokerage/Commission ₹15,000 5% 194I(a) Rent on Plant & Machinery ₹2,40,000 2%
TDS Rate Chart for Non-Residents (FY 2024-25) Section Payment Type Threshold TDS Rate 192 Salary As per slab As per slab rate 195 Interest (non-Govt.) NA 20% (subject to DTAA) 195 Royalty NA 10% / 15% 195 Technical Services NA 10% 195 Any other payment NA 30% 196D Income of FIIs (no PAN) NA 20% 194E Payment to foreign sportsmen NA 20% 194LB Interest from infrastructure debt fund NA 5% 194LC Interest by Indian Co. to non-residents NA 5% 194LD Interest on rupee-denominated bonds NA 5%
Note: All the above rates are subject to surcharge & cess wherever applicable.
Important Points to Remember 1. PAN is Mandatory If PAN is not available , TDS will be deducted at higher of the following:
Prescribed rate
20%
Rates in force
2. No TDS Deduction No TDS if the deductee submits:
Form 15G/15H
Exemption certificate under section 197
3. TDS Return Filing Due Dates (FY 2024-25) Quarter Period TDS Return Due Date Q1 Apr-Jun 31 July 2024 Q2 Jul-Sep 31 Oct 2024 Q3 Oct-Dec 31 Jan 2025 Q4 Jan-Mar 31 May 2025
Latest Updates in TDS FY 2024-25 Here are some important TDS updates introduced in Budget 2024:
Higher TDS for Non-ITR Filers: Under Section 206AB , TDS will be deducted at double the applicable rate or 5% (whichever is higher) if the payee:
Has not filed ITR for the last 2 years
TDS on Cryptocurrency Transactions: 1% TDS continues under Section 194S for transfer of virtual digital assets (VDAs) like Bitcoin, Ethereum, etc.
PAN, KYC and transaction-level details are required.
0.1% TDS on Purchase of Goods:
Under Section 194Q , TDS applies if:
Buyer turnover > ₹10 crore
Purchase > ₹50 lakh
TDS on Salary (Section 192) for FY 2024-25 Employees can choose between the Old Regime and the New Regime :
Old Tax Regime Slabs (with Deductions) Income Range Tax Rate ₹0 – ₹2.5 lakh Nil ₹2.5 – ₹5 lakh 5% ₹5 – ₹10 lakh 20% Above ₹10 lakh 30%
New Regime (Default from FY 2023-24) Income Range Tax Rate ₹0 – ₹3 lakh Nil ₹3 – ₹6 lakh 5% ₹6 – ₹9 lakh 10% ₹9 – ₹12 lakh 15% ₹12 – ₹15 lakh 20% Above ₹15 lakh 30%
Employees must inform employers about their chosen regime at the start of the year.
TDS vs TCS – What’s the Difference? Criteria TDS TCS Full Form Tax Deducted at Source Tax Collected at Source Responsibility Deducted by payer Collected by seller Applicability On payments On receipts (sales) Examples Salary, Rent, Interest Sale of goods, Tendu leaves
How to Check Your TDS? Visit TRACES Website
Log in with PAN & password
Go to Form 26AS to view deducted TDS
Or check on Income Tax Portal for AIS/TIS
How to Claim TDS Refund? If more TDS is deducted than your final tax liability:
File ITR before the due date
Provide the correct bank details
The refund will be auto-credited after processing
TDS Calculator & Compliance Tools Many portals like ClearTax, TaxBuddy, and the official income tax websites offer free:
TDS calculators
Return preparation tools
Due date reminders
Make sure you stay compliant and avoid penalties.
Conclusion TDS is a vital part of the Indian revenue system. Knowing the applicable TDS rates, whether you're a freelancer, contractor, salaried employee, or business owner, helps you budget appropriately and guarantee compliance for the financial year of 2024-25.
FAQs Q1. What is the basic exemption limit for TDS on salary? As per the regime. Under Old: ₹2.5 lakh, New: ₹3 lakh.
Q2. Is TDS applicable to freelancers? Yes, under Section 194J (10% for professional fees).
Q3. Can I avoid TDS by submitting Form 15G/15H? Yes, if you're eligible and your income is below the taxable limit.
Q4. Is TDS applicable on cryptocurrency? Yes, 1% TDS applies under Section 194S .
Q5. What happens if TDS is not deducted? The deductor may face interest, penalties, and disallowance of expenses.
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