Summary: The Tax Deducted at Source (TDS) rate chart for the financial year 2023-24 provides a comprehensive guide to the tax provisions under the Income Tax Act. It covers different categories of taxpayers, including resident individuals, Hindu Undivided Families (HUF), domestic companies, non-resident Indians (NRIs), and foreign companies. The chart includes the latest updates and amendments introduced in the Union Budget 2023. For resident individuals and HUF, TDS rates vary based on the nature of payment, such as salary, interest, dividend, rent, professional fees, and more. Notable changes include the introduction of Section 194R for TDS on providing benefits or perquisites to businesses and Section 194S for TDS on crypto income. Responsibilities of the person deducting TDS include obtaining a Tax Deduction Account Number (TAN), deducting TDS at the applicable rate, depositing the tax to the government, filing TDS statements, and issuing TDS certificates to the payee. Specific transactions, like the sale of immovable property and rent payments not covered under Section 194-I, have unique TDS provisions. The chart also outlines TDS rates for domestic companies and non-resident Indians/foreign companies. The TDS rate chart serves as a crucial tool for taxpayers to ensure compliance with the dynamic regulatory landscape, and staying informed is key to avoiding penalties and interest on TDS-related matters. VirtualGGC offers expert services to assist taxpayers in managing TDS rates effectively. The chart also includes FAQs covering the basics of TDS, its working, and the key elements of the FY 2023-24 TDS rate chart.

1. TDS rates Charts FYI 2023-24
Introduction to TDS
TDS is a system of tax collection where the payer deducts tax from the payment made to the
payee and deposits the deducted tax to the government. The deduction amount gets credited to
the payee's income tax liability. TDS is applicable on various types of income, such as salary,
interest, commission, rent, professional fees, and more. The TDS system's primary goals are to
make sure the government receives a consistent stream of income and to make tax compliance
easier for citizens.
The TDS rate chart is a comprehensive guide that lists all the TDS provisions under the Income
Tax Act for different categories of taxpayers, such as resident individuals, Hindu Undivided
Families (HUF), domestic companies, and non-resident Indians (NRIs) or foreign companies.
The chart also includes the latest updates and amendments introduced in the Union Budget
2023.
TDS Rates for Resident Individuals and Hindu Undivided
Family (HUF)
The following table provides the TDS rates applicable for resident individuals and HUF for the
financial year 2023-24.

2. Sectio
n
Nature of Payment Threshold Limit
(INR)
TDS Rate
192 Payment of Salary Basic exemption
limit of employee
Normal Slab
Rates
192A Premature withdrawal from EPF 50,000 10%
193 Interest on securities Varies based on
the type of security
10%
194 Payment of Dividend 5,000 10%
194A Interest from deposits with banks, post
office, co-operative society, etc.
Senior Citizens:
50,000; Others:
40,000
10%
194A Interest from other sources (e.g., interest
from friends and relatives)
5,000 10%
194B Income from lottery winnings, card games,
crossword puzzles, etc.
10,000 30%
194BB Income from horse race winnings 10,000 30%
194C Payment to contractor/sub-contractor Single transaction:
30,000; Aggregate
transactions:
1,00,000
Individuals/HUF:
1%; Others: 2%
194D Insurance commission 15,000 10%
194DA Payment in respect of a life insurance
policy
1,00,000 5%
194EE Payment of amount standing to the credit
of a person under National Savings
Scheme (NSS)
2,500 10%
194F Payment for the repurchase of the unit by
Unit Trust of India (UTI) or a Mutual Fund
No limit 20%
194G Payments, commission, etc., on the sale
of lottery tickets
15,000 5%
194H Commission or brokerage 15,000 5%

3. 194-I Rent on (a) Plant and machinery; (b)
Land/building/furniture/fitting
2,40,000 (a) 2%; (b) 10%
194-IA Payment in consideration of transfer of
certain immovable property other than
agricultural land
50,00,000 1%
194-IB Rent payment by an individual or HUF not
covered u/s. 194-I
50,000 per month 5%
194-IC Payment under Joint Development
Agreements (JDA) to Individual/HUF
No limit 10%
194J Fee for professional services,
remuneration/fee/commission to a
director, etc.
30,000 10%
194J Fee for technical services, royalty towards
the sale or distribution, or exhibition of
cinematographic films
30,000 2%
194K Payment of any income for units of a
mutual fund
No limit 10%
194LA Payment in respect of compensation on
acquiring certain immovable property
2,50,000 10%
194M Certain payments by Individual/HUF not
liable to deduct TDS under Section 194C,
194H, and 194J
50,00,000 5%
194N Cash withdrawal exceeding a certain
amount
Co-operative
society: 3 Crore;
Others: 1 crore
2%
194N Cash withdrawal in case a person has not
filed ITR for the last three years and the
original ITR filing due date has expired
20 lakh to 1 crore:
2%; Above 1 crore:
5%
194O Payment for the sale of goods or provision
of services by the e-commerce operator
through its digital or electronic facility or
platform
5,00,000 1%

4. 194P Payment of pension or interest to
specified senior citizens of age 75 years
or more
Basic exemption
limit of senior
citizens or super
senior citizens
Normal tax slab
rates
194Q Payments for the purchase of goods 50,00,000 0.10%
194R Perquisite or benefit to a business or
profession
20,000 10%
194S TDS on the transfer of virtual digital
assets
Specified Persons:
50,000; Others:
10,000
1%
195 Income on investments made by NRI
citizens
No limit 20%
TDS Rates for Domestic Companies
The following table provides the TDS rates applicable for domestic companies for the financial
year 2023-24.
Sectio
n
Nature of Payment Threshold Limit
(INR)
TDS Rate
193 Interest on securities Varies based on
the type of security
10%
194 Payment of Dividend 5,000 10%
194A Interest from deposits with banks, post
office, co-operative society, etc.
40,000 10%
194A Interest from other sources (e.g., interest
from friends and relatives)
5,000 10%

5. 194B Income from lottery winnings, card games,
crossword puzzles, etc.
10,000 30%
194BB Income from horse race winnings 10,000 30%
194C Payment to contractor/sub-contractor Single transaction:
30,000; Aggregate
transactions:
1,00,000
Individuals/HUF:
1%; Others: 2%
194D Insurance commission 15,000 10%
194DA Payment in respect of a life insurance
policy
1,00,000 5%
194EE Payment of amount standing to the credit
of a person under National Savings
Scheme (NSS)
2,500 10%
194F Payment for the repurchase of the unit by
Unit Trust of India (UTI) or a Mutual Fund
No limit 20%
194G Payments, commission, etc., on the sale
of lottery tickets
15,000 5%
194H Commission or brokerage 15,000 5%
194-I Rent on (a) Plant and machinery; (b)
Land/building/furniture/fitting
2,40,000 (a) 2%; (b) 10%
194-IA Payment in consideration of transfer of
certain immovable property other than
agricultural land
50,00,000 1%
194-IB Rent payment by an individual or HUF not
covered u/s. 194-I
50,000 per month 5%
194-IC Payment under Joint Development
Agreements (JDA) to Individual/HUF
No limit 10%
194J Fee for professional services,
remuneration/fee/commission to a
director, etc.
30,000 10%

6. 194J Fee for technical services, royalty towards
the sale or distribution, or exhibition of
cinematographic films
30,000 2%
194K Payment of any income for units of a
mutual fund
No limit 10%
194LA Payment in respect of compensation on
acquiring certain immovable property
2,50,000 10%
194M Certain payments by Individual/HUF not
liable to deduct TDS under Section 194C,
194H, and 194J
50,00,000 5%
194N Cash withdrawal exceeding a certain
amount
Co-operative
society: 3 Crore;
Others: 1 crore
2%
194N Cash withdrawal in case a person has not
filed ITR for the last three years and the
original ITR filing due date has expired
20 lakh to 1 crore:
2%; Above 1 crore:
5%
194O Payment for the sale of goods or provision
of services by the e-commerce operator
through its digital or electronic facility or
platform
5,00,000 1%
194P Payment of pension or interest to
specified senior citizens of age 75 years
or more
Basic exemption
limit of senior
citizens or super
senior citizens
Normal tax slab
rates
194Q Payments for the purchase of goods 50,00,000 0.10%
194R Perquisite or benefit to a business or
profession
20,000 10%
194S TDS on the transfer of virtual digital
assets
Specified Persons:
50,000; Others:
10,000
1%
195 Income on investments made by NRI
citizens
No limit 20%

7. TDS Rates for Non-Resident Indians (NRIs) and Foreign
Companies
The following table provides the TDS rates applicable for non-resident Indians (NRIs) and
foreign companies for the financial year 2023-24.
Sectio
n
Nature of Payment Threshold
Limit (INR)
TDS Rate
192 Payment of Salary Basic
exemption
limit of
employee
Normal Slab Rates
192A Premature withdrawal from EPF 50,000 10%
194B Income by way of winnings from lotteries,
crossword puzzles, card games and
other games of any sort
10,000 30%
194BB Income by way of winnings from horse
races
10,000 30%
194E Payment to non-resident sportsman
(including an athlete) or an entertainer
(not a citizen of India) or non-resident
sports association
No limit 20%
194G Payments, commission, etc., on the sale
of lottery tickets
15,000 5%
194LB Payment of interest on infrastructure
debt fund
No limit 5%
194LB
A
Income from units of a business trust No limit 5% (interest income);
10% (dividend income)
194LB
C
Income in respect of investment in
securitization fund
No limit 30% (for NRIs); 40% (for
foreign companies)

8. 194LC Payment of interest by an Indian
Company or a business trust in respect
of money borrowed in foreign currency
under a loan agreement or by way of
issue of long-term bonds (including
long-term infrastructure bond)
No limit 5%
194LD Payment of interest on rupee
denominated bond of an Indian
Company or Government securities to a
Foreign Institutional Investor or a
Qualified Foreign Investor
No limit 5%
195 Payment of any other sum to a
Non-resident
No limit 20% (investment
income); 10% (long-term
capital gains); 15%
(short-term capital
gains); 30% (other
income)
Union Budget 2023: New TDS Provisions
The Union Budget 2023 introduced several new provisions and amendments to the TDS rates
and rules. Some of the key changes are as follows:
Section 194R: TDS on Providing Benefit or Perquisite to Businesses
A new section, 194R, has been introduced to ensure that recipients of benefits or perquisites do
not avoid reporting such benefits as income in their Income Tax Return (ITR). Under this
provision, TDS must be deducted at 10% on the value or aggregate value of benefits or
perquisites provided to any resident for carrying out any business or profession. The threshold
limit for TDS deduction under this section is INR 20,000.
Section 194S: TDS on Crypto Income

9. To ensure the proper reporting and taxation of virtual digital assets, the government has
introduced a new provision, Section 194S. Under this provision, TDS must be deducted at 1%
by the persons making payment of any sum as consideration for the transfer of virtual digital
assets. The threshold limit for TDS deduction under this section is INR 10,000 for most
taxpayers, and INR 50,000 for specified persons.
TDS Rate Chart for FY 2021-22
The TDS rate chart for the financial year 2021-22 is provided in the respective sections for
resident individuals and HUF, domestic companies, and non-resident Indians (NRIs) and foreign
companies mentioned earlier in this article.
TDS Rate Chart for FY 2020-21
In light of the COVID-19 pandemic and its impact on the economy, the government provided
relief in TDS rates for the period between 14.05.2020 and 31.03.2021. The relief was limited to
TDS rates for resident taxpayers and did not apply to non-resident taxpayers. The TDS rate
chart for the financial year 2020-21 is provided in the respective sections for resident individuals
and HUF, domestic companies, and non-resident Indians (NRIs) and foreign companies
mentioned earlier in this article.
Responsibilities of the Person Deducting TDS
● Obtaining a Tax Deduction Account Number (TAN) and mentioning it in all TDS-related
documents.
● Deducting TDS at the applicable rate and depositing the tax deducted to the government
account within the stipulated due dates.
● Filing TDS statements (TDS return) periodically within the specified due dates.

10. ● Issuing TDS certificates (Form 16 or Form 16A) to the payee for the TDS deducted by
the deductor within the specified due dates.
TDS on Specific Transactions
While TDS is applicable to a wide range of income sources, some specific transactions may
have unique TDS provisions. For example, TDS on the sale of immovable property (Section
194-IA) requires the buyer to deduct TDS at 1% if the transaction value exceeds INR 50,00,000.
Similarly, TDS on rent payment by an individual or HUF not covered under Section 194-I
(Section 194-IB) requires the payer to deduct TDS at 5% if the rent payment exceeds INR
50,000 per month.
Conclusion
Navigating the financial landscape of the financial year 2023-24 requires a keen understanding
of the TDS rate chart. This essential tool empowers taxpayers to grasp the diverse TDS rates
applicable to various income sources. Adhering to these rates and provisions outlined in the
Income Tax Act is pivotal for compliance and avoiding penalties or interest on TDS-related
matters. Staying abreast of the latest amendments and updates in TDS rates, often introduced
in the Union Budget and other government notifications, is crucial. As a valuable resource,
VirtualGGC offers expert services in managing TDS rates, ensuring seamless compliance and
assistance for taxpayers in adhering to the dynamic regulatory landscape. Stay informed and
compliant with VirtualGGC's support, making TDS management a hassle-free experience.
FAQ’s
What is TDS, and how does it work?
TDS (Tax Deducted at Source) is a system of tax collection where the payer deducts tax from
the payment made to the payee and deposits the deducted tax to the government. The

11. deduction amount is credited to the payee's income tax liability. TDS is applicable on various
types of income, such as salary, interest, commission, rent, professional fees, and more.
What does the TDS rate chart for FY 2023-24 include?
The TDS rate chart for FY 2023-24 is a comprehensive guide that lists all the TDS provisions
under the Income Tax Act for different categories of taxpayers, including resident individuals,
Hindu Undivided Families (HUF), domestic companies, and non-resident Indians (NRIs) or
foreign companies. It also includes the latest updates and amendments introduced in the Union
Budget 2023.
What are the TDS rates for resident individuals and HUF in FY 2023-24?
The TDS rates for resident individuals and HUF cover various payments such as salary, interest,
dividend, rent, professional fees, and more. Rates vary based on the nature of payment,
threshold limits, and other factors.
Are there any new TDS provisions introduced in Union Budget 2023?
Yes, the Union Budget 2023 introduced new provisions and amendments to the TDS rates and
rules. Notably, Section 194R was introduced for TDS on providing benefits or perquisites to
businesses, and Section 194S was introduced for TDS on crypto income.
What is the threshold limit for TDS under Section 194R for providing benefits or
perquisites to businesses?
Under Section 194R, TDS must be deducted at 10% on the value or aggregate value of benefits
or perquisites provided to any resident for carrying out any business or profession, with a
threshold limit of INR 20,000.
Is there a TDS provision for the transfer of virtual digital assets?
Yes, Section 194S introduced in Union Budget 2023 mandates TDS at 1% on the transfer of
virtual digital assets, with a threshold limit of INR 10,000 for most taxpayers and INR 50,000 for
specified persons.
What are the responsibilities of the person deducting TDS?
The person deducting TDS is responsible for obtaining a Tax Deduction Account Number (TAN),
deducting TDS at the applicable rate, depositing the deducted tax to the government within due
dates, filing TDS statements periodically, and issuing TDS certificates to the payee.
How can taxpayers stay updated on TDS provisions and rates?

12. Taxpayers can stay updated with the latest amendments and updates in TDS rates and
provisions by referring to the TDS rate chart for the financial year, keeping track of Union
Budget announcements, and reviewing government notifications related to income tax.