TDS Rate Chart for FY 2025-26 (AY 2026-27)
The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. The TDS rates to be applicable on income for the current year is updated in the TDS rates for FY 2025-26.
TDS stands for Tax Deducted at Source. It is an indirect way of collecting income tax at source by the government of India. The person on whom the responsibility of deducting tax is imposed has to deduct tax at source at appropriate rates and the deducted sum is deposited to the credit of government of India.
What is TDS Rate Chart?
A TDS Rate Chart is an official reference guide that outlines the type of payments which are subject to TDS and the corresponding sections of the Income Tax Act, the limit for deduction and TDS Rates. A TDS rate chart provides a general reference point for deductors to understand when and how much tax should be deducted from a specific type of transaction. The amount of deduction will depend on:
- (i) the type of payment,
- (ii) the residency status of the payee -whether they are a resident or non-resident
- (iii) the amount in question.
The TDS Rate Chart is generally updated every year as part of the Union Budget. Being aware of the latest rate chart is essential for deductors in order to fully abide by the tax provisions and to relieve frustration later (to avoid penalties due to negligence in not deducting or deducting TDS late).
TDS Rate Chart for FY 2025-26 (AY 2026-27)
TDS Rate Chart for Resident Indians
Tax Deducted at Source (TDS) is applicable on different kinds of payments including salary, interest, commission, rent, professional fees, and winnings. Some thresholds and rates have changed effective 1st April 2025. Please find below a structured summary for residents to consider:
Section | Nature of Payment | Threshold (Rs.) | TDS Rate |
192 | Salary | As per slab | Slab Rate |
192A | EPF Withdrawal (Before 5 Yrs) | Rs. 50,000 | 10% / 20% (No PAN) |
193 | Interest on Securities | Rs. 5,000 / Rs. 10,000 | 10% |
194 | Dividend | Rs. 10,000 | 10% |
194A | Bank/Post Interest | Rs. 50,000 / Rs. 1,00,000 | 10% |
194B | Lottery/Cards/Crosswords | Rs. 10,000 (per txn) | 30% |
194BA | Online Game Winnings | No threshold | 30% |
194BB | Horse Race Winnings | Rs. 10,000 (yearly) | 30% |
194C | Contractor/Subcontractor Payments | Rs. 30,000/Contract or Rs. 1L/Yr | 1% (Ind./HUF), 2% Others |
194D | Insurance Commission | Rs. 20,000 | 2% |
194DA | Life Insurance Maturity (Taxable Portion) | Rs. 1,00,000 | 2% |
194G | Lottery Ticket Commission | Rs. 15,000 | 5% |
194H | Brokerage/Commission | Rs. 15,000 | 5% |
194I | Rent - Land/Furniture/Machinery | Rs. 2,40,000/year | 2% / 10% |
194IA | Immovable Property Purchase | Rs. 50,00,000 | 1% |
194IB | Monthly Rent (Individuals/HUF) | Rs. 50,000/month | 5% |
194IC | JDA Payments | No threshold | 10% |
194J | Professional/Technical/Director Fees | Rs. 30,000 | 10% / 2% (Tech/Film) |
194K | Mutual Fund Income | Rs. 10,000 | 10% |
194LA | Property Compensation | Rs. 5,00,000 | 10% |
194LBA(1-3) | Income from Business Trusts | No threshold | 5% / 10% / 30% |
194LBB | AIF Distributions | No threshold | 10% |
194LBC | Securitisation Trust | No threshold | 10% |
194M | Ind./HUF Payments (Not liable under other sec.) | Rs. 50,00,000 | 5% |
194N | Cash Withdrawals | Rs. 20L - 1Cr / Above Rs. 1Cr | 2% / 5% |
194O | E-commerce Payments | Rs. 5,00,000 (Ind./HUF) | 0.1% |
194Q | Purchase of Goods | Rs. 50,00,000 | 0.1% |
194R | Business Perquisites | Rs. 20,000 | 10% |
194S | Crypto / VDA Transfer | Rs. 10,000 / Rs. 50,000 | 1% |
194T | Partner Remuneration (taxable in hands) | Rs. 20,000 | 10% |
Income Tax TDS Rates Applicable for NRIs (Non-Resident Indians)
Section | Nature of Payment / Particulars | Threshold Limit (Rs.) | TDS Rate |
192 | Payment of salary | As per income slab | As per slab |
192A | Premature withdrawal from EPF | Rs. 30,000 | 10% |
194B | Winnings from lottery, card games, puzzles, etc. | Rs. 10,000 per transaction | 30% |
194BB | Winnings from horse races | Rs. 10,000 per transaction | 30% |
194E | Payment to non-resident sportsmen, entertainers or sports associations | No threshold | 20% |
194EE | Payment from National Savings Scheme (NSS) | No threshold | 10% |
194G | Commission, etc. on sale of lottery tickets | Rs. 20,000 | 2% |
194LB | Interest from infrastructure debt fund | No threshold | 5% |
194LBA(2) | Interest income received by a business trust from SPV and distributed to unitholders | No threshold | 5% |
194LBA(2) | Dividend income from SPV by business trust (100% owned except required govt. shareholding) | No threshold | 10% |
194LBA(3) | Rental income from real estate assets distributed by business trust | No threshold | 30% |
194LBB | Certain income paid by investment fund to unitholder | No threshold | 30% |
194LBC | Income from securitisation trust | No threshold | 30% |
194LC | Interest on foreign currency loan taken by Indian Co. or business trust | No threshold | 5% |
If interest paid on long-term bonds listed in IFSC | No threshold | 4% | |
194LD | Interest on rupee-denominated bonds to FIIs/QFIs | No threshold | 5% |
195 | Income from investment made by NRI | No threshold | 20% |
LTCG under Section 115E (NRI-specific provisions) | No threshold | 12.5% | |
LTCG under Section 112(1)(c)(iii) | No threshold | 12.5% | |
LTCG under Section 112A (on equity shares and mutual funds) | No threshold | 12.5% | |
STCG under Section 111A (on listed equity shares or equity mutual funds) | No threshold | 20% | |
Any other income by way of LTCG | No threshold | 12.5% | |
Interest payable on foreign currency borrowings by Govt. or Indian entity | No threshold | 20% | |
Royalty for technical agreement (under industrial policy) | No threshold | 20% | |
Royalty for copyright, software (Section 115A provisos) | No threshold | 20% | |
Technical fees for industrial policy agreements | No threshold | 20% | |
Any other income (not categorised above) | No threshold | 30% | |
196B | Income from offshore fund units | No threshold | 10% |
Long-term Capital Gains on sale of offshore fund units | No threshold | 12.5% | |
196C | Income (including LTCG) from GDRs/foreign currency bonds of Indian company | No threshold | 12.5% |
196D | Income (excluding capital gains & dividends) earned by Foreign Institutional Investors (FIIs) | No threshold | 20% |
TDS Rates for Domestic Companies
The following are details regarding the TDS rates applicable for a domestic company:
Section | Nature of Payment | Details / Applicability | Threshold Limit | TDS Rate |
193 | Interest on securities | Interest on securities including debentures and government securities | - Debentures (listed): Rs.5,000- 8%/7.75% Savings Bonds: Rs.10,000- Other securities: Rs.10,000 | 10% |
194 | Dividend | Dividend paid by company to shareholder | Rs.10,000 | 10% |
194A | Interest (not being securities) | Paid by banks, firms etc. except on securities | - Senior Citizens: Rs.1,00,000- Others: Rs.50,000 | 10% |
194B | Winnings – Lottery / Puzzles / Games | Includes card games, crossword puzzles, TV/game shows etc. | Rs.10,000 (per transaction) | 30% |
194BB | Winnings from horse races | Applicable to total winnings in a financial year | Rs.10,000 (aggregate) | 30% |
194C | Contractor / Sub-contractor payments | - Individual/HUF: 1%- Others (e.g. firms/companies): 2% | - Rs.30,000 (per contract)- Rs.1,00,000 (in aggregate per FY) | 1% / 2% |
194D | Insurance commission | Commission payments to insurance agents | Rs.20,000 | 10% |
194DA | Life insurance maturity proceeds | TDS on income portion of life insurance pay-out | Rs.1,00,000 | 5% |
194EE | National Savings Scheme | Withdrawal from NSS account | Rs.2,500 | 10% |
194G | Commission on lottery tickets | Applicable to agents selling lottery tickets | Rs.15,000 | 5% |
194H | Commission or brokerage | Includes referral, introducer commissions etc. | Rs.15,000 | 5% |
194-I | Rent | a) Plant & machinery – 2%b) Land/building/furniture – 10% | Rs.2.4 lakhs per annum (combined) | 2% / 10% |
194-IA | Sale of immovable property | Payment to resident seller (except agricultural land) | Rs.50 lakhs | 1% |
194-IC | Joint Development Agreement | Consideration paid in any form under JDA | No threshold | 10% |
194J | Professional & technical services | Includes fee to professionals, directors, royalties etc. | Rs.30,000 (per category)(No threshold for directors) | - Professional/royalty: 10%- Technical services: 2%- Call centre: 2% |
194K | Income from mutual fund units | Income from mutual funds covered under Sec. 10(23D) | Rs.10,000 | 10% |
194LA | Compensation for land acquisition | Paid under RFCTLARR Act, 2013 or otherwise | Rs.2.5 lakhs | 10% |
194LBA(1) | Business Trust Income | Distributed to resident unitholders | No threshold | 10% |
194LBB | Investment Fund Income | Pay-out to resident unitholders | No threshold | 10% |
194LBC | Securitisation trust income | Pay-out to investors by securitisation trust | No threshold | 10% |
194M | Individual/HUF making certain payments | Payments for contractual, professional or technical services not covered under 194C/194J | Rs.50 lakhs | 5% |
194N | Cash withdrawals | a) Rs.1 crore +: 2%b) Rs.20 lakh – Rs.1 crore: 2% (if ITR not filed)c) Rs.1 crore +: 5% (if ITR not filed) | Rs.20 lakh / Rs.1 crore / Rs.3 crore (Co-op societies) | 2% / 5% |
194O | E-commerce transactions | Payment by platform operator to seller | Rs.5 lakhs | 0.1% |
194Q | Purchase of goods | Buyer turnover > Rs.10 crores in previous year | Rs.50 lakhs | 0.1% |
194R | Business perquisites or benefits | Value of benefit/perquisite provided to resident | Rs.20,000 | 10% |
194S | Virtual Digital Assets (VDA) | Transfer of crypto assets, NFTs etc.Lower threshold for specified persons (non-business individuals/HUFs) | General: Rs.10,000Specified persons: Rs.50,000 | 1% |
Related Articles on Tax
TDS Rates for Foreign Companies in India
Here are the details about the TDS rates applicable for a company other than domestic company:
Section | TDS Rate | Detailed Description |
194LBA(3) | 40% | Rental income distributed by a business trust owning real estate. |
194LBB | 40% | Income (non-business) distributed by AIFs to unitholders. |
194LBC | 40% | Income from securitisation trusts to investors like NBFCs. |
195 | 35% | Other income to foreign companies, including unexplained income. |
194B | 30% | Winnings from lottery, puzzles, or card games (over ₹10,000). |
194BB | 30% | Horse race winnings to non-residents (above ₹10,000 aggregate). |
195 | 20% | STCG under Section 111A from listed equity or mutual funds. |
195 | 20% | Interest on foreign currency borrowings. |
195 | 20% | Royalty to non-residents under approved agreements. |
195 | 20% | Technical service fees under industrial policy. |
196D | 20% | Income (non-dividend/capital gains) to FIIs. |
194E | 20% | Payments to foreign athletes or entertainers in India. |
195 | 12.5% | LTCG on unlisted assets under Section 112(1)(c)(iii). |
195 | 12.5% | LTCG on listed shares or equity mutual funds (Sec 112A). |
195 | 12.5% | Other LTCG not covered elsewhere. |
196B | 12.5% | LTCG from offshore fund units by non-residents. |
196C | 12.5% | LTCG on GDRs or foreign currency bonds by Indian firms. |
196B | 10% | Income (not LTCG) from offshore funds. |
196C | 10% | Income from GDRs or foreign currency bonds (not LTCG). |
194LBA(3) | 10% | Dividend income from SPV distributed by business trust. |
194LB | 5% | Interest paid by infra debt funds to non-residents. |
194LBA(3) | 5% | Interest from SPV distributed by business trust. |
194LC | 5% | Interest on foreign borrowings or bonds by Indian firms. |
194LD | 5% | Interest on rupee bonds to FIIs/QFIs. |
194LC | 4% | Interest on IFSC-listed long-term bonds. |
194G | 2% | Commission on lottery ticket sales (if > ₹20,000/year). |
Please note: There is no threshold limit in respect of TDS deduction when the payment is made to foreign companies. TDS needs to be deducted regardless of the amount paid.
Union Budget 2025 - Revised TDS Threshold Limits (Effective from 1st April 2025)
The Union Budget 2025 has made significant changes to the TDS provisions in the Income Tax Act. These changes are intended to increase the limits for tax deduction, streamline an existing compliance burden, and add TDS to some new income. Let’s consider the main changes effective from 1st April 2025:
New TDS Limit:
The TDS deduction limits under various sections have been increased to give taxpayers relief and to limit TDS deductions for smaller amounts of income. The TDS deduction limits under various sections have been increased to give taxpayers relief and to limit TDS deductions for smaller amounts of income. In addition to the new limits, the government amended key procedural TDS provisions which influence the way TDS is deducted and reported.
Section | Nature of Payment | Threshold till 31st March 2025 | Threshold from 1st April 2025 |
193 | Interest on securities | NIL | ₹10,000 |
194A | Bank/Credit Society/Post Office (Senior Citizens) | ₹50,000 | ₹1,00,000 |
194A | Bank/Credit Society/Post Office (Others) | ₹40,000 | ₹50,000 |
194A | Other Payers | ₹5,000 | ₹10,000 |
194 | Dividend (for individual shareholders) | ₹5,000 | ₹10,000 |
194K | Income from mutual fund units | ₹5,000 | ₹10,000 |
194B | Winnings from lottery/crossword puzzle | Aggregate > ₹10,000/year | ₹10,000 per transaction |
194BB | Winnings from horse race | Aggregate > ₹10,000/year | ₹10,000 per transaction |
194D | Insurance commission | ₹15,000 | ₹20,000 |
194G | Commission/prize on lottery tickets | ₹15,000 | ₹20,000 |
194H | Commission or brokerage | ₹15,000 | ₹20,000 |
194-I | Rent | ₹2,40,000/year | ₹50,000/month |
194J | Professional or technical fees | ₹30,000 | ₹50,000 |
194LA | Enhanced compensation (land acquisition etc.) | ₹2,50,000 | ₹5,00,000 |
New and Simplified Provisions (Additional Key TDS Changes from 1st April 2025)
Apart from the increased limits, the government has provided some important policy-level changes regarding TDS systems, and how they are deducted and reported:
- Section 206AB – Deleted: Higher TDS rates for non-ITR filers are removed to simplify compliance.
- Section 194LBC – Uniform Rate: A flat 10% TDS now applies on income from securitisation trusts for resident investors.
- Section 194T – New Addition: TDS @10% to be deducted on remuneration paid to partners of a firm.
FAQs on TDS Rates
- Where can I verify the amount of TDS credit available?
You can verify the amount of TDS credit available to you through Form 26AS available by logging into the income tax e-filing portal. This tax credit statement collates all TDS deducted and deposited against your PAN by various deductors like - employers, banks, etc.
- How is TDS calculated on salary?
TDS on salary is calculated on your expected annual income, barring your deductions and exemptions. The employer will have estimated what your total tax liability would be for that financial year and take the remaining months of employment to split the deductions evenly each month to deduct the current month's TDS.
- What is TDS on immovable property?
On the sale of immovable property (other than agricultural land), TDS is applicable at 1% on the sale of the property if the sale consideration is Rs. 50 lakhs or more. The buyer must deduct the TDS amount prior to making payment to the seller and deposit this amount using Form 26QB within thirty days from the end of the month during which the deduction is made.
- What is the interest rate for delayed deduction and late payment of TDS?
If TDS is not deducted on time, the interest is charged at 1% on a monthly basis or part thereof from the time when it should have been deducted to the time when it was deducted. For delayed payment after deduction, the interest is charged at 1.5% monthly or part thereof until the time when the amount has been deposited with the government.
- When is TDS deducted at a higher rate?
Section 206AB provides for higher TDS deduction and is applicable when the deductee has not filed an income tax return for the last 2 years and the TDS amount exceeds Rs. 50,000 in each of the past 2 years. In this case, TDS shall be deducted at double the applicable rate or 5%, whichever is higher.
- What happens if TDS is deducted incorrectly?
If TDS has been deducted incorrectly - either at the incorrect rate or because it is under the wrong section - the deductor will have to rectify this when filing the TDS return, which may also involve some revised returns to the extent now required. In this case, the deductor may also be liable to additional taxes or penalties for the shortfall/delay.
- What is the TDS rate for fees for professional services and commissions?
In the case of professional services (that is services provided by consultants, doctors, freelancers) TDS will be deducted at 10% under Section 194J as long as the payment to the professional services provider exceeds Rs. 30,000 in a financial year. In the case of commission or brokerage fees, TDS will be deducted at 5% under Section 194H when the total amount of commission or brokerage for the financial year exceeds Rs. 15,000.
- What is the TDS rate for casual income like lottery/games?
Casual income of lottery winnings, being on a TV game show, making money from crossword puzzles, and betting always brings a flat TDS rate of 30% under Section 194B regardless of the tax slab of the receiver. Casual income has no threshold benefit in terms of TDS if the casual income exceeds Rs. 10,000 in one transaction.
- Is TDS applicable on payments to government or tax-exempt organizations?
In the case of making payments to the Central/State Governments, the Reserve Bank of India (RBI) and exempt organisations as defined under Central Acts such as mutual funds registered under Section 10(23D), TDS does not have to be deducted. Exempt organisations are clearly exempt from TDS.
- Where can I check the amount of TDS credit available?
You can check the TDS credit in Form 26AS by logging into your income tax e-filing account. It shows all TDS deducted and deposited against your PAN.
- What are the current TDS rates for FY 2025-26 (AY 2026-27)?
The TDS rates for FY 2025-26 vary based on the nature of payment and the recipient type (resident, NRI, company, etc.). Refer to the TDS Rate Chart above for a detailed breakdown.
- How is TDS calculated on salary?
TDS on salary is calculated based on the estimated annual income and applicable tax slabs. The total tax liability is divided by the number of service months in the financial year.
- Is TDS applicable to payments made to the government or exempt institutions?
No, TDS is not deducted on payments to: Government bodies, RBI, Tax-exempt institutions under Central Acts and Mutual Funds under Section 10(23D).
- What happens if TDS is deducted at an incorrect rate?
If TDS is deducted at a lower rate due to an error, the deductor may be liable for penalties and interest. It’s crucial to apply the correct rate before filing TDS returns.
- Who is responsible for deducting TDS?
Any individual, HUF, or company making specified payments (salary, rent, commission, etc.) must deduct TDS if the amount exceeds the prescribed threshold limit.
- Is Form 16A the same as TDS?
No. Form 16A is a certificate that shows TDS deducted on non-salary income. TDS is the tax itself; Form 16A is just the record of its deduction.
- What is the TDS rate on property transactions?
TDS @ 1% is applicable if the property's sale value exceeds ₹50 lakhs. No TDS is required below this threshold.
- What is the rate of TDS on salary?
The amount of TDS to be deducted is calculated by dividing the employee's projected tax due for the fiscal year by the number of months they worked for the specific employer.
- What are the responsibilities of the person deducting tax at source?
Taxpayers must obtain a Tax Deduction Account Number (TAN) and include it in all TDS-related documentation. Apart from this, the tax will be deducted at an applicable rate.
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