BUDGET
Govt proposes to rationalise rates of tax deducted at source
This story was originally published at 21:00 IST on 23 July 2024
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NEW DELHI – In a bid to rationalise the rates of tax deducted at source, the government has proposed to cut the rate under several sections of the Income-tax Act, Finance Minister Nirmala Sitharaman said today while detailing the Budget for 2024-25 (Apr-Mar). The government has also proposed to omit tax deducted at source rate of 20% under Section 194F that relates to payments on account of repurchase of units by mutual fund or Unit Trust of India.
The following table gives details on the previous and new tax deducted at source rates under various sections, and their effective dates:
| Section | Present TDS Rate | Proposed TDS Rate | With effect from |
| Section 194D - Payment of insurance commission (in case of person other than company) | 5% | 2% | Apr 1 |
| Section 194DA - Payment in respect of life insurance policy | 5% | 2% | Oct 1 |
| Section 194G – Commission etc on sale of lottery tickets | 5% | 2% | Oct 1 |
| Section 194H - Payment of commission or brokerage | 5% | 2% | Oct 1 |
| Section 194-IB - Payment of rent by individual or HUF | 5% | 2% | Oct 1 |
| Section 194M - Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% | Oct 1 |
| Section 194-O - Payment of certain sums by e-commerce operator to e-commerce participant | 1% | 0.1% | Oct 1 |
| Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India | Proposed to be omitted | Oct 1 | |
End
Reported by Krity Ambey
Edited by Tanima Banerjee
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