1. What are the new TDS rates effective from October 1, 2024?
The government has announced a reduction in TDS rates for certain payments. For transactions under sections 194DA, 194H, 194-IB, and 194M, the TDS rate has been lowered from 5% to 2%. Additionally, the TDS rate for e-commerce operators has been reduced from 1% to 0.1%, and the rate for life insurance policies and commission from lottery tickets has also been reduced to 2%.
2. How has the TDS rate for e-commerce operators changed?
The TDS rate for payments made by e-commerce operators to participants has been reduced from 1% to 0.1%.
3. What is the new TDS rate for life insurance policies?
The TDS rate for payments made in connection with life insurance policies has been reduced from 5% to 2%.
4. How has the TDS rate for commission from lottery tickets changed?
The TDS rate for commission from the sale of lottery tickets has been reduced from 5% to 2%.
5. What is the new TDS rate for rental payments?
The TDS rate for rental payments by certain individuals or Hindu Undivided Families (HUFs) has been reduced from 5% to 2%.
6. How has the TDS rate for payments made by individuals or HUFs changed?
The TDS rate for payments made by individuals or HUFs for certain sums has been reduced from 5% to 2%.
7. What is the new TDS rate for payments made by Mutual Funds or Unit Trust of India?
Section 194F, which pertains to payments made by Mutual Funds or the Unit Trust of India when repurchasing units, is proposed to be omitted.
8. What is the new TDS rate for specified central and state government bonds?
A 10% TDS will be deducted from specified central and state government bonds, including floating rate bonds, effective from October 1, 2024. However, there is a threshold limit of Rs 10,000, below which no TDS will be deducted.
9. How has the TDS rule for immovable property transactions changed?
A 1% TDS is now mandatory for payments exceeding Rs 50 lakh for the sale of immovable property. This rule applies collectively in transactions involving multiple buyers or sellers.
10. What changes have been made to the securities transaction tax (STT)?
The securities transaction tax (STT) has been increased on Futures & Options (F&O) of securities to 0.02% and 0.1%, respectively, effective from October 1, 2024.
11. How have the TDS deposit rules for employers changed?
Companies now have more time to deposit TDS with the government. The deadline has been extended from 60 days to 80 days after the original due date. However, if the TDS is deposited after the original due date, penal interest must be paid in addition.
