Revised TDS Rates from October 1, 2024

Revised TDS Rates from October 1, 2024

Blog Article

Looking to stay on top of the latest TDS rate changes? You're in luck! Starting from October 1, 2024, several changes to the Tax Deducted at Source (TDS) rates are coming into play, impacting various types of transactions. Here's a simplified breakdown that will help you navigate through these updates without any confusion.

???? Key Changes in TDS Rates:

• Life Insurance Payouts: The TDS on life insurance payouts has dropped from 5% to 2%. So, if you’re receiving payouts, you’ll now enjoy a bit more in hand.


• Lottery Commission: For those handling lottery commissions, the TDS has been reduced from 5% to 2%. Time to celebrate that win!


• Rent Payments by Individuals/HUFs: If you're paying over ₹50,000 in rent per month, the TDS rate has been reduced from 5% to 2%. Less tax on rent? Yes, please!


• E-commerce Payments: Online sellers rejoice! TDS on payments from e-commerce platforms has been cut from 1% to 0.1%. That's a big relief for e-commerce operators and sellers alike!

???? Property Purchases

If you're buying a property worth more than ₹50 lakhs, the TDS rate stays at 1%. This applies even if multiple buyers or sellers are involved.

???? Government Bonds

Investing in government bonds? A new 10% TDS is applicable once your earnings cross ₹10,000 in a financial year.

???? Share Buybacks

Share buybacks will now be taxed at the shareholder level, similar to how dividends are taxed. A bit more tax on this front, but at least you're prepared!

How These Changes Impact You

In short, these TDS changes aim to make things easier for individuals and businesses by lowering the rates on certain payments. Whether you're a policyholder, a renter, or an e-commerce seller, you'll benefit from a lower tax burden in these areas. Just remember, if you're investing in government bonds or involved in share buybacks, keep an eye on those taxes!

So, what do you think? Time to plan around these updates for the upcoming tax season! For more detailed insights, check out the full article at Tax Heaven Blog.