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 are 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 responsible for deducting tax must deduct TDS at the applicable rates and deposit the deducted amount with the 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:
- The type of payment.
- The residency status of the payee -whether they are a resident or non-resident.
- The amount in question.
The TDS Rate Chart is generally updated every year during the Union Budget. Staying updated with the latest rates is important for deductors to ensure compliance with tax laws and avoid issues later, such as penalties for delayed or incorrect TDS deduction.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
The TDS rates for FY 2025-26 (AY 2026-27) are as follows:
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% |
193 | Interest on Securities | 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 | 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.1 lakh per year | 1% (Ind./HUF), 2% Others |
194D | Insurance Commission | Rs. 20,000 | 2% (Ind./HUF), 10% Others |
194DA | Life Insurance Maturity (Taxable Portion) | Rs. 1,00,000 | 2% |
194EE | NSS – Payments Received | Rs.2,500 | 10% |
194G | Lottery Ticket Commission | Rs.20,000 | 2% |
194H | Brokerage/Commission | Rs.20,000 | 2% |
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% |
194J(A) | Fees – Exhibition of Cinematography Films, Call Centre, Technical Services, etc. | Rs.50,000 | 2% |
194J(B) | Fees – All Other Professional Services | Rs.50,000 | 10% |
194K | Mutual Fund Income | Rs. 10,000 | 10% |
194LA | Property Compensation | Rs. 5,00,000 | 10% |
194LBA | Income from Business Trusts | No threshold | 10% |
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 | 2% |
194N | Cash Withdrawals | Rs. 20L - 1Cr / Above Rs. 1Cr | 2% / 5% |
194O | E-commerce Payments | Rs. 5,00,000 (Ind./HUF) | 0.1% |
194P | Senior Citizens with Salary Interest (above 75 years) | No threshold | Slab Rates |
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% |
196D(1A) | Income earned from securities covered under Section 115AD(1)(a) and payable to a specified fund as defined in Section 10(4D). | No threshold | 10% |
The following are details regarding the TDS rates applicable for a domestic company:
Related Articles on Tax
TDS Limit Applicable for FY 2025-26
The TDS deduction limits under different sections have been revised upward to provide some relief to taxpayers and to reduce TDS deductions on smaller income amounts. The increase in these limits aims to ease the tax burden and minimise deductions on lower-value earnings.
In addition to the new limits, the government amended key procedural TDS provisions which influence the way TDS is deducted and reported.
The new threshold limits are as follows:
Section | Nature of Payment | Threshold till 31st March 2025 | Threshold from 1st April 2025 |
193 | Interest on securities | NIL | Rs.10,000 |
194A | Bank/Credit Society/Post Office (Senior Citizens) | Rs.50,000 | Rs.1,00,000 |
194A | Bank/Credit Society/Post Office (Others) | Rs.40,000 | Rs.50,000 |
194A | Other Payers | Rs.5,000 | Rs.10,000 |
194 | Dividend (for individual shareholders) | Rs.5,000 | Rs.10,000 |
194K | Income from mutual fund units | Rs.5,000 | Rs.10,000 |
194B | Winnings from lottery/crossword puzzle | Aggregate > Rs.10,000/year | Rs.10,000 per transaction |
194BB | Winnings from horse race | Aggregate >Rs.10,000/year | Rs.10,000 per transaction |
194D | Insurance commission | Rs.15,000 | Rs.20,000 |
194G | Commission/prize on lottery tickets | Rs.15,000 | Rs.20,000 |
194H | Commission or brokerage | Rs.15,000 | Rs.20,000 |
194-I | Rent | Rs.2,40,000/year | Rs.50,000/month |
194J | Professional or technical fees | Rs.30,000 | Rs.50,000 |
194LA | Enhanced compensation (land acquisition etc.) | Rs.2,50,000 | Rs.5,00,000 |
206C(1G) | Remittance under LRS and overseas tour program package | Rs.7,00,000 | Rs.10,00,000 |
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.
- How is TDS calculated on salary?
TDS on salary is calculated on your expected annual income, barring your deductions and exemptions.
- 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 is deducted incorrectly, either at the wrong rate or under the wrong section, the deductor must correct the error while filing the TDS return. To do so, the deductor may also be required to submit a revised return.
- 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.
- 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 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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