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

Q: What is the TDS rate chart for FY 2025-26?

The TDS rate chart for FY 2025–26 largely continues the rates from the previous year, with some changes made with effect from 01st April 2025.

By Chandni Anandan

Updated on: Dec 30th, 2025

10 min read

The following are the popular TDS rates applicable with effect from FY 2025-26:

TDS Rates for Residents

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%)
192	Salary	Basic exemption limit of employee	Slab rates
192A	Premature withdrawal from EPF	Rs. 50,000	10%
193	Interest on Securities	Rs. 10,000	10%
194	Dividends	Rs. 10,000	10%
194A	on bank/post office deposits	Rs. 50,000	10%
	Interest on bank/post office deposits (Senior Citizen)	Rs. 1,00,000	10%
	Interest (Others)	Rs. 10,000	10%
194K	Payment of dividend by mutual Funds	Rs. 10,000	10%
194B	Lottery, game shows, gambling winnings	Rs. 10,000	30%
194BA	Online gaming winnings	-	30%
194BB	Winnings from horse races	Rs. 10,000 (Aggregate winnings during a financial year not single transaction)	30%
194C	Payment to contractors or sub-contractors	Rs. 30,000 (Single Transaction) or Rs. 1 lakh (In a FY)	1% for individuals and HUF, 2% for others
194D	Insurance Commission	Rs. 20,000	2% for individuals and HUF, 10% for others
194DA	Payment received – Life insurance Policy	Rs. 1 lakh	2%
194EE	Payment received – National Savings Scheme (NSS)	Rs. 2,500	10%
194G	Lottery Commission	Rs. 20,000	2%
194H	Commission/Brokerage	Rs. 20,000	2%
194J(a)	Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc.	Rs. 50,000	2%
194J(b)	Fees – All other Professional Services	Rs. 50,000	10%
194I(a)	Rent for Plant & Machinery	Rs. 50,000	2%
194I(b)	Rent of Land Building & Furniture	Rs. 50,000	10%
194IA	Transfer of certain immovable property other than agricultural land	Rs. 50 lakh	1%
194IB	Rent payment by individual / HUF not covered u/s 194I	Rs. 50,000 pm	2%
194IC	Payment under specified Joint Development Agreement	-	10%
194LA	Compensation on transfer of certain immovable property other than agricultural land	Rs. 5 lakh	10%
194LBA	Certain income from units of a business trust	-	10%
194LBB	Income in respect of investment of investment fund	-	10%
194LBC	Income in respect of investment in securitization trust	-	10%
194M	Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF	Rs. 50 lakh	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%
		20 Lakh (if ITR not filed for previous 3 years)	2% (Rs. 20 Lakh – 1 Crore)
			5% (Rs. 1 Crore and above)
194O	TDS on e-commerce participants	Rs. 5 lakh	0.10%
194P	TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required)	-	Slab Rates
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakh	Rs. 50 lakh	0.10%
194R	Benefits or perquisites of business or profession	Rs. 20,000	10%
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified person	Rs. 10,000	1%
194S	Payment of consideration for transfer of virtual digital asset by specified person	Rs. 50,000	1%
194T	Payments by Partnership Firms to Partners	Rs. 20,000	10%

TDS Rates for Non- Residents FY 2025-26

Section Reference	Payment Type	TDS Rate
Section 192	Payment of Salary	Normal Slab Rate
Section 192A	Payment of accumulated balance of provident fund which is taxable in the hands of an employee.	10%
Section 194B	Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.	30%
Section 194BA	Income by way of winnings from any online game	30%
Section 194BB	Income by way of winnings from horse races	30%
Section 194E	Payment to non-resident sportsmen/sports association	20%
Section 194EE	Payment in respect of deposits under National Savings Scheme	10%
Section 194F	Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India*	20%
Section 194G	Commission, etc., on sale of lottery tickets	2%
Section 194LB	Payment of interest on infrastructure debt fund	5%
Sec. 194LBA(2)	Payment of the nature referred to in Section 10(23FC)(a)	5%
Section 194LBA(2)	Payment of the nature referred to in Section 10(23FC)(b)	10%
Section 194LBA(3)	Payment of the nature referred to in section 10(23FCA) by business trust to unit holders	30%
Section 194LBB	Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].	30%
Section 194LBC	Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)	30%
Section 194LC	When an Indian company pays interest in foreign currency :
	1. When interest is paid for a long term bond or RDB - listed on IFSC	4%
	2. When bonds specified in (1) is issued after 01-04-2023	9%
Section 194LD	Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
Section 194N	Cash withdrawals in excess of Rs. 1 crore	2%
	ii) If ITR not filed for preceding 3 years:
	a) in excess of Rs. 20 lakhs*	2%
	b) in excess of Rs. 1 crore	5%
Section 194T	Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. From 01-04-2025, when the payment exceeds Rs 20,000.	10%
Section 195	Payment of any other sum to a Non-resident
	a) Income in respect of investment made by a Non-resident Indian Citizen
	b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen,	20%
	c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	12.50%
	d) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 1,25,000	12.50%
	e) Income by way of short-term capital gains referred to in Section 111A	12.50%
	f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in sections 10(33), 10(36)]	20%
	g) Income by way of dividend from a unit in International Financial Services Centre	12.50%
	h) Income by way of dividend [Other than (g)]	10%
	i)Interest on foreign-currency borrowings payable by the Government or an Indian concern (excluding Sections 194LB and 194LC).	20%
	j) Royalty paid by the Government or an Indian concern for transfer or licensing of specified book copyrights or computer software under Section 115A.	20%
	k) Royalty income (other than (j)) payable by the government or Indian Concern under central government approved agreement or in accordance with industrial policy	20%
	l) Fees for technical services in accordance with government agreement, government approved agreement or included in industrial policy in force	20%
	m) Any other income	20%
Section 196A	Income in respect of units of non-resident	30%
Section 196B	Income from units referred to in section 115AB(1)(i)	20%
Section 196B	Long-term capital gain on transfer of units referred to in section 115AB,	12.50%
Section 196C	Income by way of interest or dividends in respect of bonds or GDR referred to in section 115AC	12.50%
Section 196C	Long-term capital gain arising from transfer of bonds or GDR referred to in section 115AC	12.50%
Section 196D	Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)	20%
Section 196D	Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.	20%
Section 196D(1A)	Income in respect of securities referred to in section 115AD(1)(a) payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)]	10%
Section 196D(1A)	Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil.	10%

TDS Rate Changes 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%.

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

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 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 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 chart for FY 2025-26?

The TDS rate chart for FY 2025–26 largely continues the rates from the previous year, with some changes made with effect from 01st April 2025.

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