look news india
New Delhi: After the formation of the Prime Minister Narendra Modi-led government at the Center for the third time, Finance Minister Nirmala Sitharaman presented the full Union Budget in the month of July. During this, he announced changes in many rules including TDS rates, which are coming into effect from today i.e. 1 October 2024. Let us tell you that the full name of TDS is Tax Deducted at Source. Understand this: If a person has any income, then after deducting tax from that income, if the remaining amount is given to the person, then the amount deducted as tax is called TDS.
Does TDS have to be paid on every income?
Actually, the government collects tax through TDS. Each tax applies to a variety of income sources such as salary, interest or commission on any investment, dividends and share buybacks, etc. However, this tax is not imposed on every income. Different interest rates have been fixed on many different types of payments received from income tax.
new tds rate
- Section 194-IB – It is proposed to reduce TDS charges on payments by way of rent by certain individuals or HUFs from 5% to 2%.
- Section 194M – Tax on payment of certain amounts by certain individuals or Hindu undivided families has been reduced from 5% to 2%.
- Section 194-O – Tax on payment of certain amounts by e-commerce operators to e-commerce participants has been reduced from 1% to 0.1%.
- Relating to payments on account of repurchase of units by a mutual fund or Unit Trust of India It is proposed to abolish section 194F.
- TDS rate for payments under sections 19DA, 194H, 194-IB and 194M has been reduced from 5% to 2%.
- TDS rate for e-commerce operators has been reduced from 1% to 0.1%.
- Section 194DA – TDS on payments related to life insurance policies has been reduced from 5% to 2%.
- Section 194G – TDS on commission on sale of lottery tickets etc. has been reduced from 5% to 2%.