Latest TDS Rate Chart for Financial year 2025-26(AY 2026-27)
Here’s the latest TDS Rate Chart applicable for the financial year 2025-26 & assessment year 2026-27. Rate of TDS, Section-wise, with nature of payment and threshold limit.
Understanding TDS (Tax Deducted at Source) is important for every business, professional, and individual taxpayer. The TDS Rate Chart for FY 2025-26 helps you know when TDS is applicable, at what rate, and under which section of the Income Tax Act.
In this simple and updated guide, you will find all major TDS rates, threshold limits, and applicability rules that will help you file TDS returns accurately and avoid penalties
What is TDS?
TDS means Tax Deducted at Source. It is a system where tax is deducted by the payer at the time of making specific payments. TDS helps ensure timely tax collection and smooth compliance throughout the financial year.
Common payments where TDS is deducted include:
- Salary
- Interest
- Commission
- Rent
- Contractor payments
- Professional fees
- Property transactions
- Cash withdrawals
- Dividends
The correct TDS rate depends on the section, payment type, and the PAN status of the deductee.
Why TDS Rate Chart for FY 2025-26 is Important?
The TDS chart gives clarity on:
- Applicable TDS rates
- Threshold limits
- Sections of the Income Tax Act
- When to deduct TDS
- Whether PAN is available or not
- TDS for non-residents
This chart helps businesses, accountants, and taxpayers deduct TDS correctly and file quarterly TDS returns without errors.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
Below is the updated and simplified TDS rate chart for the financial year 2025-26:
TDS on Salary – Section 192
- Rate: As per income tax slab of employee
- Threshold: No fixed limit
- Rule: Employer must consider investment declarations and actual proofs
Section 192A – TDS on EPF Withdrawal
- Rate: 10%
- Threshold: ₹50,00
- Applicable when PF withdrawal exceeds ₹50,000.
- No TDS if employee submits Form 15G/15H and conditions are fulfilled
Section 193 – TDS on Interest on Securities
- Rate: 10%
- Threshold: ₹10,000
- Applies to interest on debentures, securities, government securities (if taxable)
Section 194 – TDS on Dividend
- Rate: 10%
- Threshold: ₹5,000
- Applies when a company or mutual fund pays dividends to resident shareholders
Section 194A – Interest (Banks, NBFCs, Others)
- Rate: 10%
- Threshold limits:
- Bank/Post Office: ₹40,000
- Senior Citizens: ₹50,000
- Others: ₹5,000
- Applies on fixed deposits (FD), recurring deposits (RD), etc
Section 194B – Lottery, Crossword, Games
- Rate: 30%
- Threshold: ₹10,000
- Applies to winnings from game shows, online gaming, lottery, card games, etc.
Section 194BB – Horse Race Winnings
- Rate: 30%
- Threshold: ₹10,000
Section 194C – TDS on Contractor/Sub-Contractor
- Rates:
- Individual/HUF contractor: 1%
- Others: 2%
- Threshold:
- Single payment > ₹30,000
- Yearly limit > ₹1,00,000
- Applies on labour contracts, supply of manpower, advertising, packaging, etc.
Section 194D – Insurance Commission
- Rate: 5%
- Threshold: ₹15,000
Section 194DA – Payment from Insurance Policy
- Rate: 5% (on income portion)
- Threshold: ₹1,00,000
Section 194H – Commission and Brokerage
- Rate: 5%
- Threshold: ₹15,000
- Covers commission on sales, brokerage, referral fees, etc
Section 194I – TDS on Rent
- Rates:
- Plant & Machinery: 2%
- Land/Building/Furniture: 10%
- Threshold: ₹2,40,000
- Includes rent for office, godown, machinery, equipment, land, etc.
Section 194IA – TDS on Purchase of Property
- Rate: 1%
- Threshold: ₹50,00,000
- Applies on sale/purchase of immovable property (other than agricultural land).
- TDS to be deposited using Form 26QB
Section 194IB – Rent Paid by Individual/HUF (Not in Business)
- Rate: 5%
- Threshold: ₹50,000 per month
- TDS deposited via Form 26QC.
Section 194IC – Joint Development Agreement
- Rate: 10%
- Applies when monetary consideration is paid to landowners
Section 194J – Professional / Technical Services
- Rates:
- Professional fees: 10%
- Technical services: 2%
- Threshold: ₹30,000
Section 194K – Income from Mutual Funds
- Rate: 10%
- Threshold: ₹5,000
- TDS is applicable only on dividend income
Section 194LA – Compensation on Land Acquisition
- Rate: 10%
- Threshold: ₹2,50,000
Section 194M – Contract/Professional Payment by Individual/HUF (Not under 44AB)
- Rate: 5%
- Threshold: ₹50,00,000
- Deposit TDS via Form 26QD
Section 194N – TDS on Cash Withdrawal
- Rate:
- 2% when cash withdrawal exceeds ₹1 crore
- 5% if non-filer withdrawing more than ₹20 lakh
- Encourages digital payments and reduces large cash transactions.
Section 194O – E-Commerce TDS
- Rate: 1%
- Threshold: ₹5,00,000 for individual sellers
- Applies when e-commerce operators like Amazon, Flipkart deduct TDS
Section 194P – For Senior Citizens (75+ Years)
- Bank deducts TDS for senior citizens above 75 years having only pension & interest income.
- No need to file ITR if conditions are met.
Section 194Q – Purchase of Goods
- Rate: 0.1%
- Threshold: Purchases above ₹50,00,000 per year
- Applies on buyers with turnover above ₹10 crore
Section 195 – TDS on Payments to Non-Residents
- Rate: Depends on nature of payment / DTAA
- Examples:
- Royalty: 10%
- FTS: 10%
- Interest: 5% / 20%
- Capital gains: As per Income Tax Act
- PAN is mandatory to avoid higher TDS under Section 206AA
Section 196A/B/C – Payments to Non-Residents
- Rates vary for dividends, units, and income from foreign companies.
- Generally ranges from 10% to 20%.
Section 206AA – Higher TDS if PAN Not Provided
- Rate: 20%, or section rate if higher
- Applies to almost all TDS payments
Section 206AB – Higher TDS for Non-Filers
- Rate: Higher of:
- 2x normal TDS rate
- 5%
- Applies to “specified persons” who have not filed ITR for previous years.
TDS Rate Chart for FY 2025-26 – Quick Summary Table
| Section | Payment Type | TDS Rate | Threshold |
|---|---|---|---|
| 192 | Salary | Slab rate | — |
| 192A | PF Withdrawal | 10% | ₹50,000 |
| 193 | Interest on Securities | 10% | ₹10,000 |
| 194 | Dividend | 10% | ₹5,000 |
| 194A | Interest | 10% | ₹5,000–₹40,000 |
| 194B | Lottery/Games | 30% | ₹10,000 |
| 194BB | Horse Race | 30% | ₹10,000 |
| 194C | Contractor | 1%/2% | ₹30k/₹1L |
| 194D | Insurance Commission | 5% | ₹15,000 |
| 194DA | Life Insurance | 5% | ₹1,00,000 |
| 194H | Commission/Brokerage | 5% | ₹15,000 |
| 194I | Rent | 2%/10% | ₹2,40,000 |
| 194IA | Property Purchase | 1% | ₹50,00,000 |
| 194IB | Rent (Individual) | 5% | ₹50,000 pm |
| 194IC | JDA | 10% | — |
| 194J | Professional Fees | 2%/10% | ₹30,000 |
| 194K | MF Dividend | 10% | ₹5,000 |
| 194LA | Compensation | 10% | ₹2,50,000 |
| 194M | Individual Payments | 5% | ₹50,00,000 |
| 194N | Cash Withdrawal | 2%–5% | ₹20L–₹1Cr |
| 194O | E-Commerce | 1% | ₹5,00,000 |
| 194Q | Purchase of Goods | 0.1% | ₹50,00,000 |
| 195 | Non-Resident | Varies | — |
Important Notes for TDS Compliance in FY 2025-26
✔ Always collect PAN before making any payment
✔ Verify ITR filing status for 206AB compliance
✔ Deduct TDS at the time of payment OR credit, whichever is earlier
✔ Deposit TDS before the due date (7th of next month)
✔ File quarterly TDS returns (Form 24Q, 26Q, 27Q)
✔ Issue Form 16/16A on time
✔ Report all transactions properly to avoid penalties
TDS Rate Chart for FY 2025-26 (AY 2026-27) for Companies, Firms, LLPs, Trusts, AOP/BOI
| Section | Nature of Payment | TDS Rate (Company, Firm, LLP, Trust, AOP/BOI) | Threshold Limit |
|---|---|---|---|
| 192 | Salary | As per income slab | No limit |
| 192A | EPF Withdrawal | 10% | ₹50,000 |
| 193 | Interest on Securities | 10% | ₹10,000 |
| 194 | Dividend | 10% | ₹5,000 |
| 194A | Interest (Banks, NBFCs, Others) | 10% | Bank: ₹40,000 (₹50,000 for senior citizens) Others: ₹5,000 |
| 194B | Lottery / Game Show / Online Gaming winnings | 30% | ₹10,000 |
| 194BB | Horse Race Winnings | 30% | ₹10,000 |
| 194C | Contractor / Sub-Contractor Payments | 2% (for companies) | ₹30,000 per bill / ₹1,00,000 per year |
| 194D | Insurance Commission | 10% | ₹15,000 |
| 194DA | Payment from Life Insurance Policy | 5% (on income component) | ₹1,00,000 |
| 194H | Commission / Brokerage | 5% | ₹15,000 |
| 194I(a) | Rent – Plant & Machinery | 2% | ₹2,40,000 |
| 194I(b) | Rent – Land, Building, Furniture, Fittings | 10% | ₹2,40,000 |
| 194IA | Purchase of Property | 1% | Property value ≥ ₹50,00,000 |
| 194IB | Rent by Individual/HUF (Not applicable to companies) | — | — |
| 194IC | Joint Development Agreement (JDA) | 10% | No limit |
| 194J(a) | Professional Fees | 10% | ₹30,000 |
| 194J(b) | Technical Services (other than professional) | 2% | ₹30,000 |
| 194K | Income from Mutual Fund Units (Dividend) | 10% | ₹5,000 |
| 194LA | Compensation for Property Acquisition | 10% | ₹2,50,000 |
| 194M | Payments by Individual/HUF only (Not applicable to companies) | — | — |
| 194N | Cash Withdrawal | 2% > ₹1 crore (5% for non-filers > ₹20 lakh) | As specified |
| 194O | E-commerce Operator Payment | 1% | ₹5,00,000 (for individuals) |
| 194Q | Purchase of Goods | 0.1% | Purchases > ₹50,00,000 |
| 195 | Payment to Non-Residents | Rates vary (5%–30% or DTAA) | No threshold |
| 196A | Income from Units to Non-Residents | 20% | No limit |
| 196D | Income of FII from Securities | 20% | No limit |
| 206AA | If PAN Not Provided | Higher of 20% or applicable rate | — |
| 206AB | Higher TDS for Non-Filers | Twice the rate or 5% (whichever higher) | — |
Important TDS Rate List
Here is the summarized list of TDS rate charts applicable for the Financial Year (FY) 2022-23:
- TDS on Salary: As per Slab (Old & New Tax regime)
- TDS on Interest (other than Interest on Securities): 10%
- TDS on Rent (Plant & Machinery): 2%
- TDS on Rent (Land & Building): 10%
- TDS on Commission and Brokerage (194H): 5%
- TDS on Professional Fees (194J): 10%
- TDS on Payments to Contractors and Sub-Contractors (194C): 1% in case of Individual / HUF, otherwise, 2%
- TDS on Payment to Non-Resident Sportsmen or Sports Associations: 10%
- TDS on Insurance Commission (194D): 5% in case of Individual / HUF, otherwise, 10%
- TDS on Winnings from Lottery, Crossword Puzzles, etc (194B): 30%
- TDS on Winnings from Horse Races: 30%
Please note that these rates are subject to change and you should always check with the latest notifications from the Income Tax department for the updated TDS rates.
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