Updated TDS Rate Chart For Financial Year 2024-25 (AY 2025-26)

TDS, or Tax Deducted at Source, is a method introduced by the Income Tax Department of India to prevent tax evasion. It applies to various payments like contractor payments, salary, and commission. The Government sets the rates for TDS under the Income Tax Act. Our blog provides the latest TDS rate chart for the Financial Year 2024-25 and Assessment Year 2025-26 to help you calculate and pay TDS accurately.

 

TDS Rate Chart for FY 2024-25

Payment

Threshold (Rs.)

Individual/HUF Rate (%)

Others Rate (%)

Salaries

2,50,000 (Slab Rates)

As per Slab

As per Slab

Premature EPF Withdrawal

50,000

10

10

Interest on Deposits

40,000 (50,000 for Seniors)

10

10

Interest by Others

5,000

10

10

Lottery, Games Winnings

10,000

30

30

Horse Race Winnings

10,000

30

30

Contractor/Subcontractor Payment (Single)

30,000

1

2

Contractor/Subcontractor Payment (Total)

1,00,000

1

2

Rent (Land, Building, Furniture)

2,40,000

10

10

Rent (Plant & Machinery)

2,40,000

2

2

Property Sale (Except Agricultural Land)

50,00,000

1

1

Professional Fees

30,000

10

10

Mutual Fund Units Payment

5,000

10

10

E-commerce Transactions

5,00,000

1

1

Purchase of Goods (>50 Lakhs)

50,00,000

0.1

0.1

Crypto/Virtual Asset Transactions

-

1

1

 

FAQs

Are companies required to deduct TDS?

Yes, companies must deduct TDS from salaries under section 192 of the Income Tax Act. If an employer pays wages to an employee exceeding a certain threshold, TDS must be deducted from the salary.

What are the TDS rates for contractors?

For payments made to individuals or Hindu Undivided Families (HUFs), the TDS rate for contractors is 1%. For others, it's 2%.

What does TDS rate on salary mean?

TDS rate on salary indicates that tax has been deducted by the employer when depositing the salary into the employee's account.

 

Also Read: New Guidelines for Cash Transactions