TCS & TDS Rate chart for the FY 2023-24 (AY 2024-25)

 

Tax collection at source Rate Chart for Assessment Year 2024-2025 – Income Tax

• TDS is one of the key regulatory frameworks for the Income Tax Authority. Each deductor shall deduct the TDS at the specified rate if the payment exceeds the limit specified in that respective section under income tax.
• There are different sections of the Income Tax Act that define distinct TDS rates, the nature of the payment, and its limit for TDS, and the same has been summarised in this Article.
• Every Year Budget is announces by FM under Direct Tax changes under the respective Finance Act Proposals, a No of changes are also incorporated in regard of TCS/TDS.

TCS Rate Chart for financial Year 2023-24

Under Section	Nature of Payment	Applicable limit for Tax collection at source	Tax collection at source Rate in %
206C(1)	Sale of Timber obtained under a forest lease or other mode	Not applicable	2.5 percentage
206C(1)	Sale of Tendu Leaves	Not applicable	5 percentage
206C(1)	Sale of Scrap	Not applicable	1 percentage
206C(1)	Sale of Minerals, coal lignite, Iron ore by a trader	Not applicable	1 percentage
206C(1)	Sale of Alcoholic Liquor for Human Consumption	Not applicable	1 percentage
206C(1)	Sale of any other forest produce not being Timber or tendu leaves	Not applicable	2.5 percentage
206C(1F)	Sale Value of Motor vehicle whether in cheque or in any other mode of receipt	INR 10,00,000/- per transaction	1 percentage
206C(1G)	Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding INR  7,00,000/- in a FY, remitted amount is out of loan obtained from any financial institution under section 80E to pursue any education	Not applicable	0.5 percentage
206C(1C)	License/ Lease of Parking lot, toll plaza, mining and quarrying	Not applicable	2 percentage
206C(1G)	Foreign remittance through Liberalised Remittance Scheme (LRS) in any other case	Not applicable	20 percentage
206C(1G)	Selling of overseas tour package	Not applicable	20% (FY 2022-23, it was 5%)
206C(1G)	Foreign remittance via Liberalised Remittance Scheme (LRS) for medical purpose & education	INR 7,00,000/-	5% (FY 2022-23, it was 5% in excess of INR 7,00,000/-)
206C(1H)	Sale of goods (Other than those being exported) of value exceeding INR  50 Lakh where aggregate Sale/ gross receipts/turnover from business exceeds INR 10 Cr during immediately FY	Not applicable	0.1%
206CC(1)	Non-Filer of Income tax return	Not applicable	Twice the TCS Rate or 5% whichever is higher (Maximum Rate will not increase 20%)

Tax Deducted at source Rate Chart for AY 2024-2025 – Income Tax

TDS Rate Chart for FY 2022-23

Under Section	For Payment towards	Threshold limit (Amount in Rs )	Tax deduction at source Rate in Percentage
Section 206AA	Tax deduction at source rate in case of Non availability of permanent account number	–	Higher of – As per act 2 time of rate or rate in of Tax deduction at source in force 20%
Section 206AB	Tax deduction at source on non-filers of ITR at higher rates	–	Higher of – 5% – 2 time of rate or rate in of Tax deduction at source  in force
Section 194	Income from Dividend	INR 5,000	10 Percentage
Section 194A	Interest bypost office or banks other than on securities	INR 40,000 (INR 50,000 for Senior Citzens)	10 Percentage
Section 194A	Interest by others other than on securities	Rs. 5,000	10 Percentage
Section 194B	Winnings from Lotteries / Puzzle / Game	Rs. 10,000	30 Percentage
Section 194BB	Winnings from Horse Race	Rs. 10,000	30 Percentage
Section 194C	Contract	Rs 30,000 (Single Transaction) Rs 1,00,000 (Aggregate of Transactions)	1 Percentage (Individuals/HUF) 2 Percentage (Others)
Section 194D	Payment of Insurance Commission	Rs. 15,000	5 Percentage (10 Percentage in case of domestic companies)
Section 194DA	Life Insurance Policy on Maturity	INR 1,00,000	5 Percentage
Section 194E	While making the payment to Nonresident sportsmen / sports association	INR 0	20 Percentage + Cess
Section 194G	While making the payment  for Commission on Sale of Lottery tickets	INR 15,000	5 Percentage
Section 194H	While making the payment for Commission or Brokerage	INR 15,000	5 Percentage
Section 194I	While making the payment  for Rent of Land, Building or Furniture	INR 2,40,000	10 Percentage
Section 194I	While making the payment Rent of Plant & Machinery	INR 2,40,000	2 Percentage
Section 194 IA	Transfer of Immovable Property ( other than Agricultural land)	INR 50 lakh	1 Percentage
Section 194 IB	Making payment Transfer of Other Rent	INR 50,000 (per month)	5 Percentage
Section 194IC	Payment of monetary consideration under JDA (Joint Development Agreements)	INR 0	10 Percentage
Section 194J	Fees for professional or technical services	Not applicable 30,000 ( INR 0 in case of Directors)	2 Percentage (Technical services or call centers), 10 Percentage (Professional services)
Section 194K	Income in respect of units (UTI/MF)	INR 5,000	10 Percentage
Section 194LA	Payment of compensation on acquisition of certain immovable property	INR 2,50,000	10 Percentage
Section 194 LB	Interest from Infrastructure Bond to NRI	Not applicable	10 Percentage
Section 194 LD	Interest on Rupee denominated bond, municipal debt security and govt. Securities	Not applicable	5 Percentage
Section 194M	Contract, commission, brokerage or professional fee (other than 194C, 194H or 194J)	INR 50,00,000/-	5 Percentage
Section 194N	Cash withdrawal from bank and ITR filed	INR 1,00,00,000/-	2 Percentage
Section 194N	Cash withdrawal from bank and ITR not filed	INR 20,00,000/-	2 Percentage
Section 194N	Cash withdrawal from bank and ITR not filed	INR 1,00,00,000/-	5 Percentage
Section 194O	E-commerce sale	INR 5,00,000/-	1 Percentage
Section 194P	Tax deduction at source on Senior Citizen above 75 Years (No ITR filing cases)	INR 3,00,000/-	Normal Income tax Slab Rates
Section 194Q	Purchase of goods	INR 50,00,000/-	0.10 Percentage
Section 194R	Benefits or perquisites arising from business or profession	INR 20,000	10 Percentage
Section 194S	Tax deduction at source on payment for Virtual Digital Assets or crypto currency (with effect from  01.07.2022)	–	1 Percentage
Section 192	Income from Salary	INR 2,50,000	Normal Income tax Slab rates
Section 192 A	Employees’ Provident Fund – Premature withdrawal	INR 50,000	10 Percentage
Section 193	Interest on Govt Securities	INR 10,000	10 Percentage

Tax Collected at Source(TCS) Rate

• Under the Proposed section, 206CCA of the income Tax Act would apply on any amount received by a person from a specified person.
• In case of non-furnishing of Aadhaar/PAN by collectee, Tax Collected at Source will be charged at twice of the normal rate applicable or 5% {1% in case of sale of any goods (given in the last point) of the value exceeding 50 Lacs}, whichever is higher.
• In other words, The proposed Tax Collected at Source rate in this section is higher than the Below given Rates
  • twice the rate specified in the relevant provision of the Act; or
  • the rate of 5%

TCS Rate in case of Non-Availability of PAN & Not filing of ITR Return:

• Provision of section 206CC (i.e. PAN not available) of the Income Tax Act is applicable to a “specified person”, in addition to the provision of this section,
• the TDS shall be collected at higher of the 2 Rates provided in this section & in section 206CC of the Income Tax Act 1961.

CBIC Instructions on issue of SCN

• Central Board of Indirect Taxes and Customs issued instructions on dt 26/10/2021 regarding Indiscreet issue of SCNs by Service Tax Authorities.
• Proper verification & reconciliation required on difference in Income tax return & TDS data (Form 26 AS) and Service Tax Returns for issue of SCN

Guidelines for Online Corrections in TDS/TCS Statements

Note: TCS Rates on Non Filing of ITR u/s. 206CCA w.e.f 01/07/2021 (Budget 2021 Amendment)

• Extention of TDS/TCS statement filing Date
• TDS Deduction Rate Chart  for (AY 2023-2024) FY 2022-2023
• New TDS deduction No cash transactions exceeding 1 Crore -Section 194N
• key features of TCS on goods sale section-206c

Reduction in TDS rates w.e.f October 1, 2024

New TDS Rate chart apply from 1 Oct 2024

TDS Rates & TCS Rate Chart Compiled by CA Swatantra Kumar Singh singh@carajput.com You can reach us at singh.swatantra@carajput.com for any queries, issues, and recommendations relating to the Blog. Any kind of feedback for improvement would be really appreciated,