CBDT Releases Updated TDS Rates for FY 2024-25

The Central Board of Direct Taxes (CBDT) has released updated TDS (Tax Deducted at Source) rates for the financial year 2024-25, applicable for the assessment year 2025-26. These revisions, introduced through the Finance (No. 2) Act, 2024, impact various types of income, including salaries, interest on securities, lottery winnings, and more. Below are the key changes:

• Salary Payments (Section 192): TDS will be deducted as per the individual's applicable income tax slab rates.

• Winnings from Online Games (Section 194BA): TDS will be deducted on winnings from online games at 30%, irrespective of the prize amount.

• Virtual Digital Assets (VDAs) and Other Updates: New regulations apply to the taxation of Virtual Digital Assets, commission payments, and life insurance payouts. From October 1, 2024, the TDS on life insurance policy payouts (Section 194DA) has been reduced to 2%.

• Interest on Securities (Section 193): For interest earned on debentures, government bonds, and similar securities, the TDS rate is set at 10%.

• Contract Payments (Section 194C): Contractors who are individuals or HUFs will face a 1% TDS rate, while other entities will see a 2% deduction on payments made under contracts.

• Winnings from Lotteries (Section 194B): A TDS rate of 30% remains in place for winnings from lotteries, crossword puzzles, and other such games.

  
  

These updated TDS rates are set to streamline tax compliance for individuals and businesses alike.

The official document outlining the revised rates has also been attached.

671907_24009_cbdt_tds_rates.pdf

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