Are you prepared for the new TDS (Tax Deducted at Source) rates?
The government has announced significant reductions across several sections, effective October 1, 2024, and April 1, 2025 for some categories. These changes aim to reduce the burden on taxpayers and streamline compliance. Here’s everything you need to know:
🔸 Section 194D: Payment of insurance commission (non-corporate) – 5% reduced to 2% (Effective: April 1, 2025)
🔸 Section 194DA: Payment in respect of life insurance policy – 5% reduced to 2% (Effective: October 1, 2024)
🔸 Section 194G: Commission on lottery tickets – 5% reduced to 2% (Effective: October 1, 2024)
🔸 Section 194H: Commission or brokerage payments – 5% reduced to 2% (Effective: October 1, 2024)
🔸 Section 194IB: Rent paid by individuals/HUF – 5% reduced to 2% (Effective: October 1, 2024)
🔸 Section 194M: Payment by individuals/HUF – 5% reduced to 2% (Effective: October 1, 2024)
🔸 Section 194-O: E-commerce payments – 1% reduced to 0.10% (Effective: October 1, 2024)
🔸 Section 194F: Omitted entirely (Effective: October 1, 2024)
🔸 Section 194T: Introducing a new section with a TDS rate of 10%, starting from FY 2024-25.
Whether you’re an individual, a business owner, or a professional, these changes will directly impact various transactions you engage in—insurance commissions, brokerage payments, rental transactions, and more. With reduced TDS rates, there’s potential for improved cash flow and reduced tax outgo, but it’s important to stay compliant!
With these revisions, understanding and implementing the changes can be complex. At Bhauwala & Associates, our goal is to make sure that our clients not only comply with the new rules but also take full advantage of the benefits.
✅ We provide
Expert Tax Advisory: Tailored advice on how these changes impact your financial situation.
Compliance & Filing Support: Ensuring your business meets all TDS requirements seamlessly.
Tax Optimization Strategies: Identify opportunities for reducing tax liability while staying compliant.
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