What are the TDS Rates applicable for FY 2023-24?

Published On: Sep 2, 2023Last Updated: Sep 11, 20234.4 min read


TDS, or Tax Deducted at Source, is an essential concept in the realm of taxation. It pertains to the practice of collecting taxes from various sources of income, such as salary, rent, dividends, and more before the payee receives the amount. For the financial year 2023-24, understanding the TDS rate chart is crucial to ensure accurate tax compliance and TDS Return Filing. Let’s delve into the intricacies of the TDS rate chart for FY 2023-24, deciphering its implications and significance.

TDS Rates in India: A Quick Overview

In India, the TDS rates are meticulously defined by the Income Tax Act. These rates are also upated on the income tax website annually. These rates vary based on the nature of the transaction, the payee’s residency status, and the specific provisions of the Act. The primary objective of TDS is to ensure a steady stream of tax revenue for the government and simplify the taxation process. For the financial year 2023-24, the TDS rate chart encapsulates a wide spectrum of transactions, ranging from salary payments to dividends and more.

TDS Rate Charts for FY 2023-24

Let’s take a closer look at some of the key TDS rates for the financial year 2023-24:

  • Firstly, comes Section 192, which deals with the payment of Salary
    • TDS Rate: Normal Slab Rates
  • After that, comes Section 192A. This section deals with premature withdrawal from EPF
    • TDS Rate: If there is a PAN, then: 10%
    • TDS Rate: If there is no PAN, then: 20%
  • Next comes Section 193, which deals with interest on Securities
    • TDS Rate: 10%
  • After that another important section is section 194 for payments of Dividend
    • TDS Rate: 10%
  • Then there is Section 194A for Interest other than interest from securities
    • TDS Rate: 10%
  • Then there is Section 194B for Income from lottery winnings, card games, etc.
    • TDS Rate: 30%
  • After that, there’s section 194BA for income from online games
    • TDS Rate: 30%
  • Finally, there is Section 194C for payment to the contractor/sub-contractor
    • TDS Rate: Individuals/HUF – 1%
    • TDS Rate: Others – 2%

These are just a few examples from the extensive TDS rate chart for FY 2023-24. The rates vary depending on the transaction type and the payee’s characteristics. Hence, it’s crucial to understand these rates to ensure accurate tax deduction and submission.

All TDS Rate Chart: A Holistic View

For a complete understanding of TDS rates for FY 2023-24, it’s essential to consider all relevant sections and transactions. Whether it’s TDS on payment of salary, interest, dividends, or other transactions, the rates play a critical role in ensuring tax compliance. Stay informed about the latest updates in the TDS provisions to avoid any penalties or discrepancies.

Section 192

SectionNature of TransactionTDS Rate
192Payment of SalaryNormal Slab Rates
192APremature withdrawal from EPFWith PAN: 10%; Without PAN: 20%

Section 193

SectionNature of TransactionTDS Rate
193Interest on Securities10%

Section 194

SectionNature of TransactionTDS Rate
194Payment of Dividend10%
194AInterest other than interest from securities10%
194BIncome from lottery winnings, card games, crossword puzzles, etc.30%
194BAIncome from online games30%
194BBIncome from horse race winnings30%
194CPayment to contractor/sub-contractorFor Individuals/HUF: 1%; For others: 2%
194DInsurance commissionFor Domestic Companies: 10%; For other Companies: 5%
194DAIncome in respect of life insurance policy5%
194EPayment to non-resident sportsmen/sports association20% + Surcharge + 4% Cess
194EEPayment under National Savings Scheme (NSS)10%
194FPayment for the repurchase of the unit by UTI or a Mutual Fund20%
194GPayments on sale of lottery tickets5%
194HCommission or brokerage5%
194-IRentRent on Plant and Machinery: 2%; Rent on Land/Building/Furniture/Fitting: 10%
194-IAPayment in consideration of transfer of immovable property1%
194-IBRent payment by individual or HUF not covered u/s. 194-I5%
194-ICPayment under Joint Development Agreements (JDA) to Individual/HUF10%
194JPayment for professional or technical services10%
194KPayment of income for units of a mutual fund10%
194LAPayment in respect of compensation on acquiring certain immovable property10%
194LBPayment of interest on infrastructure debt fund to Non-Resident5% + Surcharge + 4% Cess
194LCPayment of interest on foreign currency loans or bonds5%
194LDPayment of interest on rupee-denominated bonds to FII or QFI5%
194MCertain payments by Individual/HUF5%
194NCash withdrawal from a banking company, co-operative society, or post officeCo-operative Society: 2% (if cash withdrawal exceeds Rs 3 crore); For others: 2% (if cash withdrawal exceeds Rs 1 crore)
194OPayment for the sale of goods or provision of services by an e-commerce operatorWith PAN: 1%; Without PAN: 5%
194PPayment of pension or interest to specified senior citizensNormal tax slab rates
194QPayments for the purchase of goods0.10%
194RPrerequisite or benefit to a business or profession10%
194STDS on the transfer of virtual digital assetsSpecified Persons: 1%; For others: 1%

Section 195

SectionNature of TransactionTDS Rate
195Income on investments made by NRI citizen20%
195Income by way of LTCG referred to in section 115E in the case of NRI10%

Budget 2023 Updates and Their Impact on TDS Rates

The Budget 2023 brought several significant updates to the TDS provisions, affecting various transactions. For instance, Section 194N saw an increase in the threshold for cash withdrawal by cooperative societies. The TDS rate on income from online gaming, covered under Section 194BA, remains at 30%. Additionally, Section 194S introduced TDS on the transfer of virtual digital assets, where the TDS rate stands at 1%.


In conclusion, the TDS rate chart for FY 2023-24 serves as a roadmap for accurate tax deduction and submission. By comprehending the nuances of TDS rates across various transactions and staying updated with the latest amendments, individuals and businesses can effectively navigate the taxation landscape and contribute to the nation’s revenue while abiding by the law.

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Monjima Ghosh
About the Author

Monjima Ghosh

Monjima is a lawyer and a professional content writer at LegalWiz.in. She has a keen interest in Legal technology & Legal design, and believes that content makes the world go round.

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