The government has updated TDS rates for FY 2024-25. Notable changes include revised rates on e-commerce transactions, dividend payments, and professional fees. Non-filers face a higher TDS rate of 20% under Section 206AB.
The newly published Tax Deducted at Source (TDS) rate chart for FY 2024-25 outlines several subtle adjustments to ease compliance. Notably, e-commerce operators face new clarificatory conditions, while the rate threshold on dividend payouts has been nuanced. Furthermore, the provisions under Section 206AB remain strictly enforced—meaning anyone who is classified as a 'specified non-filer' will be subject to a penal TDS rate of twice the designated rate or 5%, whichever is higher, sometimes soaring up to 20%.
Impact and Action Required
Given the rapidly evolving regulatory landscape, this update may significantly impact your standard compliance flows. Our analysts recommend immediately verifying your internal accounts against the new standards. Reach out to our specialized advisory desk for a custom consultation regarding this change.
Need Clarifications on this Update?
Our Chartered Accountants are equipped to provide precise context and actionable advice to safeguard your business compliance.
Setup a Free Consultation