TDS Rate Chart for FY 2025-26 (AY 2026-27)

Updated on: Aug 29th, 2025

6 min read

Tax Deducted at Source (TDS) is deducted by the payer before making certain payments like salary, interest, rent, or professional fees. The TDS rate chart for FY 2025-26 (AY 2026-27) specifies the percentage of tax to be deducted for each type of payment. Knowing the correct TDS rates helps avoid defaults, penalties, and ensures timely tax compliance.

Key Highlights
Budget 2025 has resulted in relaxation of threshold limits for various TDS payments.
The TDS rates have remained mostly unchanged for most of the payments.
Deducting TDS at wrong rates may lead to interest and late fees.

What is TDS?

TDS, or Tax Deducted at Source, is a system where tax is deducted by the payer at the time of making certain payments like salary, interest, rent, or professional fees. The person making the payment is responsible for deducting and depositing this tax with the government. TDS rates vary based on the type of payment, the recipient, and their residential status. It is important to deduct TDS correctly, deposit it before the due date, and file TDS returns on time to avoid penalties.

What is TDS Rate Chart?

A TDS rate chart is a table that shows the applicable TDS rates for different types of payments along with their relevant sections and exemption limits. The TDS rates vary based on the residential status of the recipient, the nature of the transaction, and the amount involved during the financial year. This chart helps taxpayers know how much tax to deduct for each payment to ensure compliance and avoid penalties. The following TDS rate chart is updated as per Budget 2025 for FY 2025-26.

Budget 2025: Key TDS Changes for FY 2025-26

The following are the changes made in TDS provisions with effect from 1st April, 2025.

The government has changed threshold limit for TDS deduction for various sections. The relaxed threshold limits are as follows

Section	Previous Threshold Limits	Modified Threshold Limits
193 - Interest on securities	NIL	10,000
194A - Interest other than Interest on securities	(i) 50,000/- for senior citizen; (ii) 40,000/- in case of others when payer is bank, cooperative society and post office (iii) 5,000/- in other cases	(i) 1,00,000/- for senior citizen (ii) 50,000/- in case of others when payer is bank, cooperative society and post office (iii) 10,000/- in other cases
194 – Dividend, for an individual shareholder	5,000	10,000
194K - Income in respect of units of a mutual fund	5,000	10,000
194B - Winnings from lottery, crossword puzzle Etc. & 194BB - Winnings from horse race	Aggregate of amounts exceeding 10,000/- during the financial year	10,000/- in respect of a single transaction
194D - Insurance commission	15,000	20,000
194G - Income by way of commission, prize etc. on lottery tickets	15,000	20,000
194H - Commission or brokerage	15,000	20,000
194-I - Rent	2,40,000 (in a financial year)	6,00,000 (in a financial year)
194J - Fee for professional or technical services	30,000	50,000
194LA - Income by way of enhanced compensation	2,50,000	5,00,000
206C(1G) – Remittance under LRS and overseas tour program package	7,00,000	10,00,000

Section 206AB which added compliance burden for TDS deductors has been removed.
The TDS rate for section 194LBC - Income received from investment in securitization trusts for residents has been reduced to 10%.
With effect from 1st April, 2025, a new section 194T is inserted, wherein TDS has to be deducted on partner's remuneration at 10%.

TDS Rates for Salary and Retirement Payments

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
192	Salary	Basic exemption limit of employee	Slab Rates	Slab Rates
192A	Premature withdrawal from EPF	Rs. 50,000	10%	10%

TDS Rates for Interest

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
193	Interest on Securities	Rs. 10,000	10%	10%
194	Dividends	Rs. 10,000	10%	10%
194A	Interest on bank/post office deposits	Rs. 50,000	10%	10%
194A	Interest on bank/post office deposits (Senior Citizen)	Rs. 1,00,000	10%	10%
194A	Interest (Others)	Rs. 10,000	10%	10%
194K	Payment of dividend by mutual Funds	Rs. 10,000	10%	10%

TDS Rates for Lottery, Gambling, and Gaming Winnings

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
194	Lottery, game shows, gambling winnings	Rs. 10,000	30%	30%
194BA	Online gaming winnings	-	30%	30%
194BB	Winnings from horse races	Rs. 10,000 (Aggregate winnings during a financial year not single transaction)	30%	30%

TDS Rates for Contractor, Subcontractor and Commission Payments

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
194C	Payment to contractors or sub-contractors	Rs. 30,000 (Single Transaction) or Rs. 1 lakh (In a FY)	1%	2%
194D	Insurance Commission	Rs. 20,000	2%	10%
194DA	Payment received – Life insurance Policy	Rs. 1 lakh	2%	2%
194EE	Payment received – National Savings Scheme (NSS)	Rs. 2,500	10%	10%
194G	Lottery Commission	Rs. 20,000	2%	2%
194H	Commission/Brokerage	Rs. 20,000	2%	2%

TDS Rate Chart for Professional Services and Royalties

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
194J(a)	Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc.	Rs. 50,000	2%	2%
194J(b)	Fees – All other Professional Services	Rs. 50,000	10%	10%

TDS Rates for Rent

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
194I(a)	Rent for Plant & Machinery	Rs. 50,000	2%	2%
194I(b)	Rent of Land Building & Furniture	Rs. 50,000	10%	10%
194IA	Transfer of certain immovable property other than agricultural land	Rs. 50 lakh	1%	1%
194IB	Rent payment by individual / HUF not covered u/s 194I	Rs. 50,000 pm	2%	2%
194IC	Payment under specified Joint Development Agreement	-	10%	10%

TDS Rates for Other Payments

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
			Indv/HUF	Others
194LA	Compensation on transfer of certain immovable property other than agricultural land	Rs. 5 lakh	10%	10%
194LB	Income by way of interest from infrastructure debt fund (non-resident)	-	5%	5%
194LBA	Certain income from units of a business trust	-	10%	10%
194LBB	Income in respect of investment of investment fund	-	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	-	10% for residents, 40% for non-residents, 10% for individual & HUF	10% for residents, 40% for non-residents, 10% for individual & HUF
194M	Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF	Rs. 50 lakh	2%	2%
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society	1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society)	2%	2%
		20 Lakh (if ITR not filed for previous 3 years)	2% (Rs. 20 Lakh – 1 Crore)	2% (Rs. 20 Lakh – 1 Crore)
			5% (Rs. 1 Crore and above)	5% (Rs. 1 Crore and above)
194O	TDS on e-commerce participants	Rs. 5 lakh	0.1%	0.1%
194P	TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required)	-	Slab Rates	NA
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakh	Rs. 50 lakh	0.1%	0.1%
194R	Benefits or perquisites of business or profession	Rs. 20,000	10%	10%
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified person	Rs. 10,000	1%	1%
194S	Payment of consideration for transfer of virtual digital asset by specified person	Rs. 50,000	1%	1%
194T	Payments by Partnership Firms to Partners	Rs. 20,000	10%	10%

Note: TDS Rates when PAN is not available is flat 20% (if TDS applicable is lower than 20%)

TDS Rate Chart for Foreign Companies

Note: No threshold limit for TDS deduction when the amount is paid to foreign companies. TDS needs to be deducted irrespective of amount paid.

Section	Particulars	TDS Rate
194B	Income by way of lottery winnings, card games, crossword puzzles, and other games of any type (Up to Rs.10,000 per transaction- No TDS needs to be deducted)	30%
194BB	Income by way of horse race winnings (Up to Rs.10,000 per transaction - No TDS needs to be deducted)	30%
194E	Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
194G	Payments such as commission, etc., on the sale of lottery tickets (Up to Rs.20,000 - No TDS needs to be deducted)	2%
194LB	Payment in respect of compensation on acquisition of certain immovable property.	5%
194LBA(3)	Interest income received or receivable to a business trust from SPV and distribution to its unitholders.	5%
	Dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.	10%
	Payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	40%
194LBB	Payment of certain income by an investment fund to a unitholder.	40%
194LBC	Income from investment in securitization fund	40%
194LC	Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.	5%
194LC	If interest is payable against long term bonds listed in recognized stock exchange in IFSC	4%
194LD	Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor	5%
195	Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii);	12.5%
	Income by way of LTCG under section 112A;	12.5%
	Income by way of STCG under section 111A;	20%
	Any other income by way of LTCG;	12.5%
	Interest payable on money borrowed by the government or Indian concern in foreign currency;	20%
	Income by way of royalty	20%
	Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy.	20%
	Any other income.	35%
196B	Income from units of an offshore fund.	10%
196B	Long-term Capital Gain on transfer of units an offshore fund.	12.5%
196C	Income from foreign currency bonds or GDR of an Indian company	10%
196C	LTCG foreign currency bonds or GDR of an Indian company	12.5%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

Conclusion

Stay-informed, stay-tax smart! The knowledge of latest TDS rates is very crucial for deduction of TDS in just the right rates. And since the threshold limit of TDS deduction is revised for many sections in budget 2025, it is important to be updated as we might end up deducting TDS for transactions that falls below threshold limit. A better tax planning today might lead to a bigger tax saving tomorrow!

Frequently Asked Questions

What are the responsibilities of the person deducting tax at source (TDS)?

Following are the basic responsibilities of the person who is liable to deduct TDS.

Obtain Tax Deduction Account Number (TAN) and mention the same in all the documents of TDS.
Deduct TDS at the applicable rate.
Deposit the tax deducted to the Government account (within the specified due dates).
Periodically file TDS statements, i.e., TDS return (within the specified due date).
Issue the TDS certificate (Form 16 or Form 16A) to the payee in respect of TDS deducted by him (within the specified due dates).

What to do if there is any mistake in deduction of Tax at Source (TDS)?

Sometimes due to ignorance or otherwise, the person may deduct TDS at the rates lower than the rates prescribed in the Act. Hence, it is important that before filing the TDS return, the rate at which TDS is deducted should be verified for every transaction. If any case is found where the TDS is shortly deducted, If such a case is found then the balance tax should immediately be deposited vide a new challan.

Whether TDS should be deducted on payment made to the Government?

No, tax should be deducted by any person from any sum payable to-

1. the Government, or

2. the Reserve Bank of India (RBI), or

3. a corporation established under a Central Act whose income is exempt from income-tax, or

4. a Mutual Fund specified under clause (23D) of section 10, where the amount is payable to it as interest or dividend in respect of any shares/securities owned by it or in which the specified mutual funds has full beneficial interest, or any other income accruing or arising to it.

Where can we check the amount of TDS credit available?

The amount of TDS credit can be checked under Form 26AS.

What are the key changes in TDS rates effective from April 2025?

TDS rates under section 194LBC - income from investments in securitization trust is changed from FY 2025-26. The TDS rate when the payee is a resident is 10%, regardless of whether the assessee is an individual, HUF, or any other entity. Previously, it was 25% when the payee is an individual or HUF, 30% for other entities.

What is interest rate for late payment of TDS?

When TDS is appropriately deducted but not paid to the government within specified due dates, late onterest at the rate of 1.5% per month needs to be paid. It is to be paid from the due date for TDS payment and the date in which TDS is actually paid to government.

What is the interest rate for late deduction of TDS?

Interest at the rate of 1% per month needs to be paid if the TDS is not deducted on time. Interest to be paid from the date in which TDS should be deducted to the date in which it is actually deducted.

When should we deduct TDS at higher rate?

When PAN is not duly furnished by the payee, a higher rate of TDS needs to be deducted. Deduction should be made at 20%. If the higher TDS rate for non furnishing of PAN is specifically mentioned in the section, rate as mentioned in that section should be considered.

What is the TDS rate for professional fees?

10% is the rate of TDS for professional services. In case of technical services 2% TDS needs to be deducted.

What is the rate of TDS for casual income?

30% TDS needs to be deducted for casual income.

What is the TDS rate for commission?

2% of TDS needs to be deducted for commission. If the commission is paid to a director as a part of his remuneration, 10% needs to be deducted u/s 194J.

What is the TDS rate for NRI?

When the amount is paid to an NRI, TDS rates is specifically mentioned for certain kinds of payments. TDS needs to be deducted u/s 195 if the nature of payment is not specifically covered under any TDS rates. Also, cess needs to be deducted in addition to TDS on making payment to NRI.

What is the TDS rate for sale of property?

1% TDS needs to be deducted for sale of property for residents. No TDS needs to be deducted if the payment made is up to Rs.50 Lakhs. For NRIs, TDS needs to be deducted under section 195 at 12.5% plus cess.

About the Author

Chandni Anandan

Tax Content Writer

I’m a Chartered Accountant with a deep interest in Direct Tax Laws, drawn to the fascinating blend of numbers and legal provisions. Right from my preparation days, I had specific attraction on areas where tax provisions are often difficult to interpret, aiming to simplify and make them easily understandable.I stay updated by connecting with other professionals and closely following industry news and media.My approach to writing is straightforward and comprehensive, ensuring that even complex topics are accessible to a wide audience.. Read more

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