Revised TDS rates from October 1: Here are the new tax deducted at source rates on various transactions

 

The Union Budget 2024 included several significant proposals, which have been ratified in the Finance Bill. Some of these changes have come into effect from October 1. These changes included revised TDS rates applicable from October 1, 2024.

·  The TDS rate for payments under sections 19DA, 194H, 194-IB, and 194M was reduced from 5% to 2%.

·  TDS rate reduction for e-commerce operators: The TDS rate for e-commerce operators was reduced from 1% to 0.1%.

·  Section 194DA - Payment in respect of life insurance policy is reduced from 5% to 2%. This will be effective from October 1, 2024.

·  Section 194G – Commission etc on sale of lottery tickets is reduced from 5% to 2%. This will be effective from October 1, 2024. ..

·  Section 194-IB - Payment of rent by certain individuals or HUF is proposed to be reduced from 5% to 2%. This will be effective from October 1, 2024.

·  Section 194M - Payment of certain sums by certain individuals or Hindu undivided families is reduced from 5% to 2%. This will be effective from October 1, 2024.

·  Section 194-O - Payment of certain sums by e-commerce operators to e-commerce participants is reduced from 1% to 0.1%. This will be effective from October 1, 2024.< ..

Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India is proposed to be omitted. This will be effective from October 1, 2024.

Floating rate of bonds TDS

In Budget 2024, it was announced that starting from October 1, 2024, tax deducted at source (TDS) will be deducted at a 10% rate from specified central and state government bonds, including floating rate bonds.

There is a Rs 10,000 threshold limit, after which the tax is deducted. This means that there is no TDS if the revenue earned throughout the year is less than Rs 10,000.