TDS Rate Chart FY 2025-26
Complete section-wise TDS rates for FY 2025-26 (AY 2026-27). All payment types, thresholds, and applicable rates for residents and non-residents in one place.
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| Section | Nature of Payment | Payer / Payee | Threshold | TDS Rate (Resident) | TDS Rate (NRI) |
|---|---|---|---|---|---|
| SALARY & WAGES | |||||
| 192 | Salary / Wages | Any employer → Employee | Any salary income | As per slab rate | N/A (192E for NRI) |
| 192A | PF premature withdrawal (EPF) | EPFO/Trustees → Member | ₹50,000 | 10% | 30% |
| INTEREST INCOME | |||||
| 193 | Interest on securities (Debentures, Govt. securities) | Any → Any | ₹5,000 (listed); ₹10,000 (others) | 10% | 20% + surcharge + cess |
| 194 | Dividend on shares | Domestic company → Shareholder | ₹5,000 per year | 10% | 20% + surcharge + cess |
| 194A | Interest (Banks, Co-op banks, Post office) | Bank/NBFC → Individual | ₹40,000/yr (₹50,000 for seniors) | 10% | 30% |
| 194A | Interest (Others: Company FD, Loans, Bonds) | Any → Any | ₹5,000 per year | 10% | 30% |
| LOTTERY, GAMES & WINNINGS | |||||
| 194B | Lottery, Crossword puzzle, Card games | Any → Winner | ₹10,000 per prize | 30% | 30% |
| 194BA | Online gaming winnings (net of deposits) | Online gaming platform → User | Any amount (no threshold) | 30% | 30% |
| 194BB | Horse race winnings | Bookmaker → Winner | ₹10,000 per prize | 30% | 30% |
| CONTRACTOR & SUBCONTRACTOR | |||||
| 194C | Payment to individual/HUF contractor | Any → Individual/HUF | ₹30,000 per payment; ₹1,00,000 p.a. | 1% | N/A (195 applies) |
| 194C | Payment to company/firm contractor | Any → Company/Firm | ₹30,000 per payment; ₹1,00,000 p.a. | 2% | N/A (195 applies) |
| INSURANCE & COMMISSION | |||||
| 194D | Insurance commission | Insurance company → Agent | ₹15,000 per year | 5% | 20% |
| 194DA | Life insurance maturity proceeds | Insurer → Policyholder | ₹1,00,000 per policy per year | 5% on profit portion | 5% |
| 194EE | NSS repayment | NSS → Depositor | ₹2,500 | 10% | 10% |
| 194G | Lottery ticket commission | State lottery → Agent | ₹15,000 per year | 5% | 5% |
| 194H | Commission / Brokerage | Any → Agent | ₹15,000 per year | 5% | 5% |
| RENT & PROPERTY | |||||
| 194I | Rent — land, building, furniture/fittings | Any (audit required) → Any | ₹2,40,000 per year | 10% | 30% |
| 194I | Rent — Plant & Machinery | Any (audit required) → Any | ₹2,40,000 per year | 2% | 30% |
| 194IB | Rent by individual/HUF (not subject to audit) | Individual/HUF → Landlord | Monthly rent > ₹50,000 | 5% | N/A |
| 194IC | Payment under Joint Development Agreement | Developer → Land owner | Any amount | 10% | N/A |
| 194IA | Purchase of immovable property | Buyer → Seller | ₹50,00,000 per property | 1% | 20% + surcharge + cess |
| PROFESSIONAL & TECHNICAL FEES | |||||
| 194J | Professional fees (Doctors, Lawyers, CA, etc.) | Any → Professional | ₹30,000 per year | 10% | N/A (195 applies) |
| 194J | Technical services / Royalty / Non-compete | Any → Any | ₹30,000 per year | 2% | N/A (195 applies) |
| 194J | Call centre operations | Any → Call centre | ₹30,000 per year | 2% | N/A |
| 194LA | Compulsory acquisition compensation | Govt/authority → Land owner | ₹2,50,000 per year | 10% | N/A |
| MUTUAL FUNDS & INVESTMENT INCOME | |||||
| 194K | Income from mutual fund units (dividends) | Mutual fund → Investor | ₹5,000 per year | 10% | 20% |
| 194LB | Interest from infrastructure bonds (NRI) | Indian company → NRI | Any amount | 5% | 5% |
| 194LC | Interest on FCCB / ECB | Indian co. to foreign investor | Any amount | 4% | 4% |
| 194LD | Interest on Rupee-denominated bonds (FII) | Any → FII | Any amount | 5% | 5% |
| BUSINESS PAYMENTS | |||||
| 194M | Payment by individual/HUF to contractor/professional | Individual/HUF → Any | ₹50,00,000 per year | 5% | N/A |
| 194N | Cash withdrawal from bank | Bank → Account holder | ₹1,00,00,000 (ITR filer); ₹20,00,000 (non-filer) | 2% (ITR filer); 2%+18% hybrid (non-filer) | N/A |
| 194O | E-commerce sales proceeds | E-commerce operator → Seller | ₹5,00,000 per year (individuals/HUF) | 1% | 5% |
| 194P | Pension/salary of senior citizen 75+ (bank) | Specified bank → Senior citizen | Slab basis | As per slab | N/A |
| 194Q | Purchase of goods | Buyer → Seller | ₹50,00,000 per year | 0.1% | N/A |
| 194R | Benefits/perquisites in business | Any → Recipient | ₹20,000 per year | 10% | N/A |
| 194S | Transfer of VDA / Crypto assets | Buyer/Exchange → Seller | ₹50,000 (specified); ₹10,000 (others) | 1% | 1% |
| 194T | Payment to partners of firm | Partnership firm → Partner | ₹15,000 per year | 10% | N/A |
| NON-RESIDENT / NRI PAYMENTS | |||||
| 195 | Income of NRI (interest, royalty, FTS, capital gains, etc.) | Any → NRI | Any amount (no threshold) | As per DTAA or 20–40% | As per DTAA |
| 196A | Income of non-resident from MF units | Mutual fund → NRI | Any amount | 20% | 20% |
| 196B | Income from offshore fund (long-term capital gain) | Any → Non-resident | Any amount | 10% | 10% |
| 196C | Income from foreign currency bonds/GDR | Any → Non-resident | Any amount | 10% | 10% |
| 196D | Income from securities (FII) | Any → FII | Any amount | 20% | 20% |
| SPECIAL PROVISIONS | |||||
| 206AB | Non-filer surcharge (higher TDS) | All payers → Non-filers of ITR | Same as base section | Higher of: 2× rate, 2× in-force rate, or 5% | Not applicable |
| 206C | TCS on sale of goods (non-resident) | Seller → Buyer NRI | ₹50L+ | N/A | 5% |
⚠ Consequences of TDS Default
- Non-deduction of TDS: Interest @ 1% per month from date TDS was deductible till date of deduction
- Non-deposit of TDS: Interest @ 1.5% per month from date of deduction till actual deposit
- Late filing of TDS Return: ₹200 per day under Section 234E (max: total TDS amount)
- Non-filing penalty (271H): ₹10,000 to ₹1,00,000
- Expense disallowance (40(a)(ia)): 30% of expenses disallowed if TDS not deducted/deposited
Understanding TDS — Complete Guide FY 2025-26
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act, 1961, where the payer deducts tax at the time of payment and deposits it with the government on behalf of the payee. It ensures a regular flow of tax revenue and prevents tax evasion.
How to Calculate TDS?
TDS = Payment Amount × TDS Rate ÷ 100. The deducted amount must be deposited by the 7th of the following month (30th April for March). Annual TDS returns must be filed in Form 24Q (salary), 26Q (resident non-salary), 27Q (NRI), 27EQ (TCS).
When is TDS NOT Required?
- Payment is below the threshold limit specified for that section
- Payee submits Form 15G/15H (declaration of no taxable income)
- TDS Certificate issued by Assessing Officer under Section 197
- Specified government transactions (e.g., 194N threshold for ITR filers: ₹1 crore)
TDS Due Dates — FY 2025-26
- April to February: 7th of next month
- March: 30th April
- TDS Return (Q1 — Apr–Jun): 31st July
- TDS Return (Q2 — Jul–Sep): 31st October
- TDS Return (Q3 — Oct–Dec): 31st January
- TDS Return (Q4 — Jan–Mar): 31st May
Form 15G vs Form 15H
Form 15G: For individuals below 60 years whose estimated total income is below the basic exemption limit. Submit to banks to avoid TDS on FD interest.
Form 15H: For senior citizens (60+ years) to declare that total income is below taxable limit. Higher threshold — senior citizens can submit even with taxable income up to ₹7L in new regime.
Need help with TDS deduction, returns or compliance?
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Questions people ask
Short answers on TDS Rate Chart 2025-26. Tap a question to open it.
01What is the TDS rate on salary for FY 2025-26?
TDS on salary is deducted at the applicable income tax slab rates of the employee, considering the tax regime chosen. Employers must compute estimated annual tax liability and deduct TDS in equal monthly instalments under Section 192. No fixed percentage applies — it is individualised.
02What is the TDS rate on commission and brokerage payments?
Under Section 194H, TDS at 5% must be deducted on commission or brokerage payments exceeding Rs 15,000 per financial year. This applies to payments by companies to their agents, distributors, and referral partners. The threshold is Rs 15,000 in aggregate during the year.
03Is TDS applicable on GST amount included in an invoice?
No. TDS under income tax provisions is deducted on the base amount (excluding GST) when the GST component is shown separately on the invoice. As per CBDT Circular No. 23/2017, TDS is not to be deducted on the GST portion if it is separately indicated in the invoice.
04What is the TDS rate if the deductee does not provide PAN?
If the deductee does not furnish their PAN, TDS must be deducted at the higher of: the applicable TDS rate, 20%, or the rate in force. Similarly, if a deductee's PAN is inoperative (not linked to Aadhaar), TDS is deducted at double the normal rate under Section 206AA.
05What is Section 194Q TDS on purchases?
Under Section 194Q, a buyer with turnover above Rs 10 crore must deduct TDS at 0.1% on purchases from a seller exceeding Rs 50 lakh in a financial year. This applies where TCS under Section 206C(1H) is not already collected by the seller. The higher of TDS or TCS applies, not both.
06What is the TDS rate for contractor payments?
Under Section 194C, TDS is 1% on payments to an individual or HUF contractor and 2% to any other contractor. It applies when a single payment exceeds ₹30,000 or the total for the year exceeds ₹1,00,000.
07What is TDS on rent under Section 194I?
TDS on rent is 10% for land, building and furniture or fittings, and 2% for plant and machinery, once rent for the year exceeds the threshold (₹50,000 a month from FY 2025-26). Rent paid by an individual or HUF not liable to audit falls under Section 194IB instead: 2% when monthly rent exceeds ₹50,000.
08What happens if TDS is not deducted or not deposited?
Interest runs at 1% a month from the date tax was deductible to the date it is deducted, and at 1.5% a month from deduction to deposit. A penalty equal to the TDS amount can be levied under Section 271C, and 30% of the expense can be disallowed under Section 40(a)(ia).
09Can TDS be adjusted against my tax liability?
Yes. TDS shown in Form 26AS / AIS is credited against your income tax when you file the ITR. If the TDS is more than the tax due, the excess is refunded.
10What is Form 26AS and how do I check my TDS?
Form 26AS is your consolidated tax statement: all TDS and TCS against your PAN, advance tax and self-assessment tax. Log in at incometax.gov.in → e-File → Income Tax Returns → View Form 26AS, or check it on the TRACES portal.
11Is TDS deducted on cash withdrawals?
Yes, under Section 194N. Banks deduct 2% on cash withdrawn above ₹1 crore in a year by a person who has filed ITR. For someone who has not filed returns for the last three years, 2% applies above ₹20 lakh and 5% above ₹1 crore.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.