New TDS Regulations Go Into Effect on October 1, 2024: Entire Catalog

New TDS (Tax Deducted at Source) regulations have been introduced by the Income Tax Department, and they will go into effect on October 1, 2024. These regulations are intended to decrease tax evasion, increase revenue collection, and simplify the TDS procedure. The full set of new TDS regulations is provided here:

1. Raised TDS Barrier for Independent Contractors

The monthly TDS barrier for independent contractors has been raised from Rs. 25,000 to Rs. 50,000. This implies that payments made to independent contractors up to Rs. 50,000 per month will not be subject to TDS.

2. TDS on Sale of Immovable Property

Effective immediately, TDS will be subtracted from sales proceeds of real estate at the time of credit or payment, whichever comes first. The property's fair market value will determine the TDS rate.

3. TDS on Rent Received by Non-Resident Landlords

A 20% TDS will be withheld from rent received by non-resident landlords. Even if the rent received is less than the TDS level, this still applies.

4. TDS on Cash Payments

If a cash payment exceeds Rs. 2.5 lakhs in a single day, TDS would be withheld. This holds true for all forms of payments, such as rent, salary, and the acquisition of products and services.

5. TDS on Interest Income from Deposits

In a fiscal year, TDS is withheld from interest income from deposits that exceeds Rs. 40,000. This holds true for savings accounts, recurring deposits, fixed deposits, and all other kinds of deposits.

6. TDS on Sale of Securities

Depending on when payment or credit is made, TDS will be subtracted from the sale of securities. The fair market value of the securities will determine the TDS rate.

7. TDS on Rent Paid to Individuals and HUFs

If the landlord's PAN is not provided, 10% of the rent payment to individuals and HUFs will be subject to TDS.

8. TDS on Payments to Foreign Companies

If the foreign company's PAN is not provided, 20% of payments made to them will be subject to TDS.

9. TDS on Payments to Partnership Firms

If the PAN of the partnership firm is not provided, 10% of payments made to partnership firms will be subject to TDS.

10. TDS on Payments to Associations and Trusts

If the PAN is present, 10% of payments made to associations and trusts will be subject to TDS.

In Summary

The new TDS regulations, which go into effect on October 1, 2024, are designed to boost revenue collection and enhance tax compliance. It is crucial that taxpayers understand these regulations and make sure TDS is appropriately withheld and paid. Penalties and interest are possible for breaking the TDS regulations.

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