Updated TDS Rates for AY 2025–2026 and FY 2024–2025: In Force as of October 1, 2024

The updated TDS rates for the fiscal year 2024–2025 and the academic year 2025–2026 have been revealed and will take effect on October 1, 2024. The full chart of the updated TDS rates may be found here:

Section 206AB: TDS on Non-Filers

Slab Rate Existing Rate Revised Rate
Up to Ôé╣5 lakh 10% 8%
Ôé╣5 lakh to Ôé╣7.5 lakh 15% 12%
Ôé╣7.5 lakh to Ôé╣10 lakh 20% 18%
Ôé╣10 lakh to Ôé╣12.5 lakh 25% 22%
Ôé╣12.5 lakh to Ôé╣15 lakh 30% 27%
Above Ôé╣15 lakh 35% 32%

TDS Rates for Non-Resident Indians (NRIs)

Section Existing Rate Revised Rate
195 20% 18%
196A 20% 18%
196B 10% 8%
196C 20% 18%
196D 20% 18%

TDS Rates for Domestic Companies

Section Existing Rate Revised Rate
194 10% 8%
194A 10% 8%
194B 30% 25%
194BB 30% 25%
194C 2% 1.5%
194D 10% 8%
194DA 10% 8%
194EE 10% 8%
194F 20% 18%
194G 5% 4%
194H 5% 4%
194I 10% 8%
194J 10% 8%
194K 10% 8%
194LA 10% 8%
194LB 10% 8%
194LC 10% 8%
194LD 10% 8%
194M 5% 4%
194N 2% 1.5%

Impact of Revised TDS Rates

The government, corporations, and individuals are among the many stakeholders who are anticipated to be significantly impacted by the revised TDS rates. Businesses and individuals will have more cash flow as a result of the lower TDS rates, which they can utilize for expansion, investments, and other uses. Conversely, the decreased TDS rates can result in less money coming in for the government.

In Summary

For both people and corporations, the lower TDS rates for FY 2024–25 and AY 2025–26 are a welcome change. The economy will benefit from the lower TDS rates, which will raise cash flow. To guarantee compliance with the tax rules and to take appropriate action, it is imperative that individuals and organizations comprehend the revised TDS rates and their ramifications.