TDS rate chart for assessment year 2023-24

 As we approach the Assessment Year 2023-24, taxpayers in India need to be aware of the latest Tax Deducted at Source (TDS) rates. TDS is a tax collection mechanism under which the payer deducts a certain percentage of the payment made to the payee as tax and deposits it with the government. The TDS rates are revised from time to time, and it is essential to stay updated to avoid any penalties or interest charges. In this blog, we will take a look at the TDS rate chart for Assessment Year 2023-24.

1. TDS on Salaries TDS on salaries is deducted by the employer at the time of payment to the employee. The TDS rates for the Assessment Year 2023-24 are as follows:

   • Up to Rs. 2.5 lakh - Nil
   • From Rs. 2.5 lakh to Rs. 5 lakh - 5%
   • From Rs. 5 lakh to Rs. 10 lakh - 20%
   • Above Rs. 10 lakh - 30%

2. TDS on Interest Income TDS on interest income is deducted by the payer, i.e., the bank, post office, or company, at the time of payment of interest. The TDS rates for the Assessment Year 2023-24 are as follows:

   • Interest on Savings Account - Up to Rs. 10,000 - Nil
   • Interest on Savings Account - Above Rs. 10,000 - 10%
   • Interest on Recurring Deposit - 10%
   • Interest on Fixed Deposit - 10%
   • Interest on National Savings Certificate - 10%
   • Interest on Kisan Vikas Patra - 10%
   • Interest on Corporate Bonds - 5%
   • Interest on Debentures - 10%
   • Interest on Government Securities - Nil

3. TDS on Rent TDS on rent is deducted by the tenant at the time of payment of rent. The TDS rate for the Assessment Year 2023-24 is 2% of the rent paid in a financial year.

4. TDS on Professional Fees and Commission TDS on professional fees and commission is deducted by the payer at the time of payment. The TDS rates for the Assessment Year 2023-24 are as follows:

   • Commission or Brokerage - 5%
   • Professional Fees - 10%

5. TDS on Sale of Property TDS on the sale of property is deducted by the buyer at the time of payment. The TDS rate for the Assessment Year 2023-24 is 1% of the sale consideration. However, if the seller does not provide their PAN details, the TDS rate will be 20%.

6. TDS on Other Payments TDS on other payments, such as lottery winnings, insurance commission, and payment to non-residents, is deducted by the payer at the time of payment. The TDS rates for the Assessment Year 2023-24 are as follows:

   • Lottery Winnings - 30%
   • Insurance Commission - 5%
   • Payment to Non-Residents - As per the rates prescribed in the Income Tax Act or as per the tax treaty, whichever is applicable.

It is essential to note that these are only the basic TDS rates, and there may be additional TDS rates for certain categories of taxpayers, such as senior citizens, women, or those with certain disabilities. Also, if the taxpayer does not provide their PAN details, the TDS rate may be higher. It is, therefore, advisable to consult with a tax professional to determine the correct TDS rate applicable to your situation.