TDS rates of these 7 payments reduced to 2% in Budget 2024

One of the key highlights of Budget 2024 was the proposed changes to various tax-related policies, including revisions to the Tax Deducted at Source (TDS) rates.

Tax deducted at source on payment of insurance commission, life insurance policy, commission on the sale of lottery tickets, commission of brokerage, payment of rent by individual or HUF and payment of certain sums by certain individuals or HUF have been proposed to be reduced from 5% to 2%, as per a Press Information Bureau tweet on social media platform, X. Other than the TDS rates on payment of insurance commission (it will come into effect from March 1, 2025), all other rate changes are effective from October 1, 2024.

TDS on payment of certain sums by e-commerce operator to e-commerce participant has been proposed to be reduced from 1% to 0.1%

Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India is proposed to be omitted.

Section 195: These changes have been proposed under this section
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%.

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.