Revised TDS Rate Chart for AY 2025-26 – Published by the CBDT
Published In : EvoBreyta Download
Author : Navneet Singal
Revised TDS Rate Chart for AY 2025-26 – Published by the CBDT
The Union Budget 2024 introduced several important proposals enacted through the Finance (No. 2) Act, 2024. Among these was the revision of TDS rates for the Assessment Year (AY) 2025-26, effective October 1, 2024.
In light of this, the Central Board of Direct Taxes (CBDT) has published the revised TDS Rate Chart for AY 2025-26 on its website, which will apply from October 1, 2024.
Revised TDS Rates on Accumulated Balance of Provident Fund
Section 192A:
10% TDS shall be payable on Payment of the accumulated balance of provident fund which is taxable in the hands of an employee.
Revised TDS Rates on Interest on securities
Section 193:
10% TDS shall be payable on interest on securities. Any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State, or Provincial Act. Any debentures issued by a company where such debentures are listed on a recognized stock exchange by the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
The rate of 10% TDS shall be payable on any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security] and interest on any other security.
Revised TDS Rates Dividend Income
Section 194:
10% TDS shall be payable on Income by way of dividend and income by way of interest other than “Interest on securities”.
Revised TDS Rates Gaming
Section 194B:
30% TDS shall be payable on Income by way of winnings from lotteries, crossword puzzles, card games, and other games of any sort, or from gambling or betting of any form or nature whatsoever.
Section 194BA:
30% TDS shall be payable on Income by way of winnings from any online game.
Section 194BB:
30% TDS shall be payable on Income by way of winnings from horse races.
Revised TDS Rates Payment to contractor/sub-contractor
Section 194C:
In case of HUF/Individuals 1% TDS and 2% TDS in case of others shall be payable on Payment to contractor/sub-contractor.
TDS on Insurance
Section 194D:
5% TDS shall be payable on Insurance commission.
Section 194DA:
5% TDS shall be payable on payment in respect of life insurance policy w.e.f. 01-09-2019, the tax shall be deducted on the amount of income comprised in insurance pay-out till 30-09-2024.
However, 2% TDS shall be payable on payment in respect of life insurance policy w.e.f. 01-09-2019, the tax shall be deducted on the amount of income comprised in insurance pay-out w.e.f. 01-10-2024.
(The TDS CHART for the FY 2024-25 is enclosed herewith)
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