Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan.

Kotak e-Term

Protect your family's financial future.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan.

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family.

Kotak Assured Pension

A plan that offers immediate or deferred stream of income

Kotak Lifetime Income Plan

Retirement years are the golden years of life.

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

TDS Rate Chart for FY 2023-24 (AY 2024-25)

Stay informed about the new TDS rate in India for FY 2023-24 (AY 2024-25) with this detailed blog.

  • 4,097 Views | Updated on: May 24, 2024

TDS, or Tax Deducted at Source, is a tax in which a person is supposed to deduct tax for the services given. The government uses the tax deducted from the full payment sum for a variety of purposes, including building infrastructure, defense, and growth, and a specific type of tax (TDS) is imposed depending upon the nature of the service.

It is intended to be deducted by the person. The deductee can claim  a TDS refund online or offline if the deductions are more than the necessary tax amount. The person must file something known as a TDS Return to get the return. TDS can be collected on a monthly, periodic, or one-time basis, and it pertains to salaries, interest, commissions, and fees, among other things. This blog will explore the changes in tax slabs for the FY 2023-24 tax exemptions under Section 80C. But let us take a quick look at the new provisions under the Union budget 2023.

Union Budget 2023 New TDS Provisions

The government of India has announced several changes to the TDS rules in the 2023 budget. The New TDS provisions include:

  • Section 194BA
  • A TDS of 30% will be deducted from income earned from online gaming.

  • Section 196A
  • Non-residents earning income from mutual funds in India can now choose to pay a lower tax rate given in the tax treaty by providing a tax residency certificate.

  • Section 192A
  • Employees who do not furnish PAN will now receive their provident fund balance after a 20% tax deduction instead of the maximum marginal rate (MMR).

  • Section 193
  • Tax will now be deducted from the interest earned on listed securities in dematerialized form.

  • Section 194N
  • The TDS threshold for cooperative societies has been increased from Rs. 1 Crore to Rs. 3 Crore.

  • Section 194R
  • It has been clarified that TDS should be deducted from benefits or perquisites, whether they are in cash, in kind, or a combination of both.

  • New Section 155(20)
  • Taxpayers can now apply for the tax credit in the financial year in which the income is declared in their tax return if the tax on that income is deducted in the following financial year.

    These changes are designed to improve tax compliance and ensure that taxpayers pay the correct amount of tax. They will also help to simplify the tax system and make it easier for taxpayers to file their returns.

TDS SLAB for TDS Calculator FY 2023-24 (AY 2024-25)

TDS is a crucial aspect of the Indian tax system and plays a vital role in determining the tax liabilities of individuals and organizations. With the introduction of the TDS SLAB, taxpayers can now accurately calculate their TDS liability based on the latest tax slab.

TDS calculator is designed to simplify the tax calculation process and make it easier for taxpayers to understand their tax obligations. Whether you are an individual taxpayer or a business owner, a TDS Calculator is the ideal solution for calculating your TDS liability in an accurate and efficient manner.

So, let us dive in and learn more about the TDS rates in India for FY 2023-24 (AY 2024-25) with this TDS rate chart:

Section

Nature of Payment

TDS Rate

192A

Payment of salary to resident employees

20% (or 30% if PAN is not provided)

192B

Payment of pension to resident pensioners

10% (or 20% if PAN is not provided)

193

Interest on securities

10%

194A

Rent paid to a resident

10%

194B

Interest on securities other than listed securities

20%

194C

Commission on the sale of immovable property

1%

194D

Payment to contractors

2%

194EE

Payment for lottery winnings

30%

194F

Payment to non-resident sportsmen

20%

194G

Brokerage or commission

5%

194H

Commission on the sale of newspapers and magazines

2%

194IA

Sale of immovable property

1% or 0.75%, whichever is higher

194J

Payment to foreign companies

10%

194K

Payment to non-resident firms

20%

194L

Payment to non-resident individuals or HUFs

20%

Tax Exemption Under 80C

Section 80C is amongst the most well-known sections for tax persons since it permits them to lower their tax liability by undertaking tax-saving investments. It provides a maximum deduction of ₹1.5 lakhs from the person’s overall income each year. Individuals and HUFs can both take advantage of this exemption, and this deduction is not available to corporations, partnership businesses, or LLPs. Tax exemption under 80C and its subsections are as follows:

  • 80CCC80CCD (1)
  • 80CCD (1B)
  • 80CCD (1C)

Tax Exemption Under TDS

Tax exemptions under TDS are subject to specific conditions and requirements laid down by the Income Tax Act and relevant rules and notifications issued by the government. Additionally, taxpayers must meet the eligibility criteria and furnish the necessary documents to avail of these exemptions. TDS exemption rates are applied based on the following criteria:

Exemption of TDS On Insurance

Premiums paid for insurance policies are not taxable income, but you may have to pay TDS on a claim if the policy matures.

House Rental Earnings

A paid employee who lives in rented accommodation can use the House Rent Allowance or HRA. This might be completely or partially exempt from income tax.

Claim For TDS Refund

If you pay more than necessary based on your income, you can apply for a TDS refund claim online.

Mobile Bills

The cost of a taxpayer’s mobile phone and home phone may be deducted. An employee can request a tax-free reimbursement for expenses incurred under income tax laws. A request for compensation of either the exact amount paid on their bill or the amount included in their salary package (whichever is smaller) can be raised.

TDS Rates for Non-Resident Indians (Other than a Company), Domestic and Non-domestic Companies

The TDS rates for non-resident Indians (NRIs) differ from those for residents. The TDS rates for NRIs depend on the type of income they receive. For example, the TDS rate on interest income received by NRIs is 20%, while the TDS rate on dividend income received by NRIs is 30%.

Here is the latest information on TDS rates for NRI transactions (other than a company):

Transaction

TDS rate

Interest on securities

20%

Royalties and fees for technical services

20%

Dividends from Indian companies

20%

Income from transfer of capital assets

20% (or lower rate as per DTAA)

Income from business or profession

20% (or lower rate as per DTAA)

Payments for carrying out technical services in India

20%

Payments for use or right to use any industrial, commercial or scientific equipment

10%

Payments for imparting training or providing any other technical services

10%

The TDS rates for companies also vary depending on the type of income they receive. For example, the TDS rate on interest income received by companies is 10%, while the TDS rate on dividend income received by companies is 20%.

The TDS rates for the financial year 2023-24 are subject to change. The latest TDS rates can be found on the website of the Income Tax Department of India.

Conclusion

TDS plays a vital role in the nation’s revenue collection. It makes sure that taxes are deducted at the source of income, making the tax compliance process more efficient and transparent. It is always a good idea to keep a watch on the new TDS slab information in order to stay up to date on the newest guidelines, tax percentages, and even deadlines. Remember, taxation is not just a legal obligation but a responsible contribution toward building a stronger and prosperous nation. The more you educate yourselves about TDS and other tax-related matters, the better you can contribute to your country’s growth and development.

Key Takeaways

  • TDS is the tax deducted from a taxpayer’s income at the payment source.
  • The government uses the TDS to collect taxes from taxpayers. It helps ensure taxpayers pay their taxes on time and in full.
  • The TDS rates vary depending on the type of income and the payer.
  • The TDS amount can be claimed as a deduction on the taxpayer’s income tax return.
  • The government can change the TDS rates, so checking the latest TDS rates before making any payment is essential.

FAQs

1

What Exactly is a TDS Certificate?

The certificate of tax deducted at source, or Form 16/ 16A, is given out when the employer deducts tax on behalf of the employees. These certificates offer TDS/TCS information for numerous transactions involving the deductor and the deductee.

2

What are the TDS Rates that Apply to Securities Interest?

Before releasing the interest, anyone who is transferring interest income from securities to an Indian resident must deduct taxes. 10% is the tax rate under Section 193.

3

How is TDS Calculated?

The average income tax rate calculates the TDS is equal to the projected employee income for the financial year divided by the amount of income tax due (calculated using slab rates).

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak Guaranteed Fortune Builder

Download Brochure

Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.

  • Guaranteed@ Income Benefit for upto 25 years
  • Flexibility to choose income period
  • Premium break for females on child birth or any listed specific illnesses
  • Life cover for the premium payment period
  • Enhance your life cover with rider offerings

ARN. No. KLI/23-24/E-BB/1201

T&C

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Buy Online

- A Consumer Education Initiative series by Kotak Life

Kotak Guaranteed Fortune Builder Kotak Guaranteed Fortune Builder

Kotak Guaranteed Fortune Builder

Guaranteed Income for bright financial future

Invest Now
Kotak Assured Savings Plan Kotak Assured Savings Plan

Kotak Assured Savings Plan

Guaranteed Lumpsum returns for achieving life goals

Invest Now
Kotak Guaranteed Savings Plan Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan

Achieve your long-term goals and get life cover

Invest Now