Financial Year: 2024-25 / Assessment Year: 2025-26
Updated based on Finance Act, 2024
**Section 195 of the Income-tax Act, 1961** mandates that any person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of this Act (excluding salary), must deduct tax at source. The tax is deducted at the rates in force.
| Type of Income | TDS Rate (%) | Surcharge (%) | Health & Education Cess (%) | Effective TDS Rate |
|---|---|---|---|---|
| **Interest Income** (other than certain bonds) | 20% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr but ≤ ₹2 Cr) 25% (if income > ₹2 Cr but ≤ ₹5 Cr) 37% (if income > ₹5 Cr) |
4% | 20.80% (without surcharge) |
| **Royalty & Fees for Technical Services** | 10% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr but ≤ ₹2 Cr) 25% (if income > ₹2 Cr but ≤ ₹5 Cr) 37% (if income > ₹5 Cr) |
4% | 10.40% (without surcharge) |
| **Long-Term Capital Gains** (under Section 112A) | 10% (on gains > ₹1 Lakh) |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | 11.44% (for income > ₹50 Lakhs) |
| **Short-Term Capital Gains** (under Section 111A) | 15% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | 17.16% (without surcharge) |
| **Long-Term Capital Gains** (other than Sec 112A) | 20% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | 20.80% (without surcharge) |
| **Winnings from Lotteries, Crossword Puzzles, etc.** | 30% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | 31.20% (without surcharge) |
| **Sale of Immovable Property** (by NRI) |
20% (LTCG) 30% (STCG) |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | Calculated on the sale consideration |
| **Any Other Income** | 30% |
10% (if income > ₹50 Lakhs but ≤ ₹1 Cr) 15% (if income > ₹1 Cr) |
4% | 31.20% (without surcharge) |