TDS rates changed: Tax deducted at source on these payments increased in Budget 2024

There are a lot of changes for salaried individuals to get used to, particularly with regard to the modifications made to the Tax Deducted at Source (TDS) framework announced in Budget 2024.

After transferring listed equity shares, equity-oriented mutual fund units, or business trusts, the tax deducted at source (TDS) on long-term capital gains exceeding Rs. 1.25 lakh has been raised from 10% to 12.5%.

The transfer of unlisted shares or shares of a closely held corporation carries a long-term capital gains tax (TDS), which is now 12.5% instead of 10%.

The non-resident Indian's long-term capital gains tax (TDS) on the transfer of certain assets has been raised from 10% to 12.5%.

Section 194-IA: This provision stipulates that payments for the sale of immovable property exceeding Rs 50 lakh must include a 1% TDS. In transactions involving many buyers or sellers, the new budget makes it clear that this rule applies collectively. The amendments will take effect from the 1st day of October, 2024.

It is proposed that on interest surpassing ten thousand rupees on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 or any other security of the Central or State Government that has been notified, TDS will be applicable.

The amendments will take effect from October 1, 2024.