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ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
Stay informed about the new TDS rate in India for FY 2023-24 (AY 2024-25) with this detailed blog.
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.
The government of India has announced several changes to the TDS rules in the 2023 budget. The New TDS provisions include:
A TDS of 30% will be deducted from income earned from online gaming.
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.
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).
Tax will now be deducted from the interest earned on listed securities in dematerialized form.
The TDS threshold for cooperative societies has been increased from Rs. 1 Crore to Rs. 3 Crore.
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.
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 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% |
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:
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:
Premiums paid for insurance policies are not taxable income, but you may have to pay TDS on a claim if the policy matures.
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.
If you pay more than necessary based on your income, you can apply for a TDS refund claim online.
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.
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.
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.
1
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
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
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).
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.
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
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
