Understanding TDS
TDS (Tax Deducted at Source) is a mechanism to collect income tax in India. Under this system, the person making specified payments deducts tax at the time of payment itself.
TDS Rates for FY 2024-25
Section 192 - Salary
Tax deduction from salary income as per income tax slab rates applicable to the employee.
Section 194A - Interest on Securities
Rate: 10% (for individuals/HUF if total interest exceeds ₹40,000 or ₹50,000 for senior citizens)
Section 194C - Payments to Contractors
- Individual/HUF: 1%
- Others: 2%
Section 194H - Commission or Brokerage
Rate: 5%
Section 194I - Rent
- Plant & Machinery: 2%
- Land, Building, Furniture: 10%
Section 194J - Professional/Technical Services
Rate: 10% (2% for technical services under Section 194J(b))
When is TDS Not Deducted?
- Payment below threshold limits
- Valid Form 15G/15H submitted
- Lower or NIL TDS certificate obtained
TDS Filing Deadlines
- Q1 (Apr-Jun): 31st July
- Q2 (Jul-Sep): 31st October
- Q3 (Oct-Dec): 31st January
- Q4 (Jan-Mar): 31st May
Need help with TDS compliance? Check out our TDS filing service.