Tax Deducted at Source (TDS) is an essential mechanism under the Indian Income Tax Act to ensure tax collection at the source of income generation. The government regularly updates TDS rates to align with economic policies and revenue needs. Below is the latest TDS rate chart for the Financial Year (FY) 2024-25, including key changes announced in the Union Budget 2025. Here is the complete breakdown of tax Deducted at Source Rate Chart for FY 2024-25.
Key Updates in TDS Rates and Exemption Limits
1. Interest Income (Section 194A)
- Previous Exemption Limit: ₹50,000 (for senior citizens)
- Revised Exemption Limit: ₹1,00,000
- TDS Rate: 10%
- Details: The exemption limit for senior citizens has been increased, reducing the tax burden on their interest earnings from banks, cooperative societies, and post offices.
Check out Tax Deducted at Source on Salary Calculator
2. Rent Payments (Section 194-I)
- Previous Exemption Limit: ₹2,40,000 per annum
- Revised Exemption Limit: ₹6,00,000 per annum
- TDS Rate: 2% for plant & machinery; 10% for land, building, furniture, or fittings
- Details: The higher exemption threshold benefits tenants and landlords by reducing tax deductions on rental payments.
3. Dividend Income (Section 194)
- Previous Exemption Limit: ₹5,000
- Revised Exemption Limit: ₹10,000
- TDS Rate: 10%
- Details: Shareholders receiving annual dividends up to ₹10,000 will not be subject to TDS, encouraging investment in equity markets.
4. Commission and Brokerage (Section 194H)
- Previous Exemption Limit: ₹15,000
- Revised Exemption Limit: ₹20,000
- TDS Rate: Reduced from 5% to 2% (effective from October 1, 2024)
- Details: Lowering the TDS rate on commissions and brokerage will ease financial constraints for small businesses and agents.
5. Professional or Technical Services (Section 194J)
- Previous Exemption Limit: ₹30,000
- Revised Exemption Limit: ₹50,000
- TDS Rate: 2% for technical services; 10% for other professional services
- Details: Professionals and consultants will benefit from the increased threshold, reducing immediate tax liabilities.
6. Overseas Remittances & Tour Packages (Section 206C(1G))
- Previous Exemption Limit: ₹7,00,000
- Revised Exemption Limit: ₹10,00,000
- TCS Rate: 5%
- Details: The increased limit facilitates higher foreign remittances and international travel without additional tax collection at the source.
Revised Income Tax Slabs (New Tax Regime)
The Union Budget 2025 has also revised the income tax slabs under the new tax regime to provide relief to taxpayers:
- Income up to ₹12,00,000: Nil
- ₹12,00,001 to ₹15,00,000: 10%
- ₹15,00,001 to ₹20,00,000: 20%
- Above ₹20,00,000: 30%
Conclusion
The updated tax deducted at source rate chart and exemption limits reflect the government’s effort to streamline tax compliance while providing relief to individuals and businesses. Taxpayers should stay informed about these changes to ensure proper tax planning and compliance for the Financial Year 2024-25.
