TDS Rate Chart FY 2025-26
Every Section, Rate & Threshold
The complete FY 2025-26 (AY 2026-27) TDS rate chart with the Budget 2025 threshold changes, no-PAN 20% rule, deposit and return due dates — for salary, contractors, professionals, rent, interest and more.
For FY 2025-26 (AY 2026-27), the most-used TDS rates are: salary (192) at slab rates; contractor (194C) 1% (individual/HUF) or 2% (others); professional fees (194J) 10%, technical 2% (threshold raised to ₹50,000); rent of land/building (194I) 10% (annual threshold raised to ₹6,00,000); bank interest (194A) 10%; commission (194H) 2%. If the payee gives no PAN, deduct 20% under Section 206AA. Sections 206AB / 206CCA (higher rate for non-filers) were omitted from 1 April 2025.
TDS Rate Chart FY 2025-26 — All Major Sections
Section-wise TDS rates and threshold limits for FY 2025-26 (AY 2026-27), incorporating the Budget 2025 changes. For residents, no surcharge or cess is added on TDS; on payments to non-residents under Section 195, add applicable surcharge and 4% cess.
| Section | Nature of payment | Threshold (FY 2025-26) | TDS rate |
|---|---|---|---|
| 192 | Salary | Basic exemption limit | Slab rate |
| 192A | Premature EPF withdrawal | ₹50,000 | 10% |
| 193 | Interest on securities | ₹10,000 | 10% |
| 194 | Dividend (domestic company) | ₹10,000 | 10% |
| 194A | Bank / post-office interest | ₹50,000 (₹1,00,000 senior citizen) | 10% |
| 194A | Interest — other than bank | ₹10,000 | 10% |
| 194B | Lottery / game winnings | ₹10,000 per transaction | 30% |
| 194BB | Horse-race winnings | ₹10,000 | 30% |
| 194C | Contractor — individual / HUF | ₹30,000 single / ₹1,00,000 FY | 1% |
| 194C | Contractor — others | ₹30,000 single / ₹1,00,000 FY | 2% |
| 194D | Insurance commission | ₹20,000 | 5% / 10% |
| 194DA | Life-insurance maturity | ₹1,00,000 | 2% |
| 194H | Commission / brokerage | ₹20,000 | 2% |
| 194I | Rent — land / building / furniture | ₹6,00,000 per year | 10% |
| 194I | Rent — plant & machinery | ₹6,00,000 per year | 2% |
| 194-IA | Transfer of immovable property | ₹50,00,000 | 1% |
| 194-IB | Rent by individual / HUF (not audited) | > ₹50,000 per month | 2% |
| 194-IC | Joint development agreement | No threshold | 10% |
| 194J | Professional fees / royalty | ₹50,000 | 10% |
| 194J | Technical / call-centre services | ₹50,000 | 2% |
| 194K | Mutual-fund / units income | ₹10,000 | 10% |
| 194LA | Compensation on land acquisition | ₹5,00,000 | 10% |
| 194N | Cash withdrawal | > ₹1 crore (non-filer > ₹20L) | 2% / 5% |
| 194O | E-commerce operator → seller | ₹5,00,000 (individual/HUF seller) | 0.1% |
| 194Q | Purchase of goods (buyer > ₹10Cr t/o) | ₹50,00,000 | 0.1% |
| 194R | Benefit / perquisite to business | ₹20,000 | 10% |
| 194S | Virtual digital asset (crypto) | ₹50,000 (₹10,000 others) | 1% |
| 194T | Partner remuneration / interest | ₹20,000 | 10% |
| 195 | Payments to non-residents | No threshold | Rate + DTAA |
| 206AA | Payee furnishes no PAN | — | 20% |
Base rates only. For residents no surcharge/cess is added on TDS; add surcharge + 4% cess for non-residents (Sec 195). Section 194T is new from 1 April 2025. Always verify the latest notification at incometax.gov.in.
If the deductee does not furnish a valid PAN, TDS must be deducted at 20% (or twice the applicable rate, whichever is higher) under Section 206AA. Since Sections 206AB and 206CCA were omitted from 1 April 2025, you no longer check a payee's return-filing status — only the PAN-based 20% rate now applies.
Budget 2025 TDS Changes for FY 2025-26
The Finance Act 2025 revised several TDS thresholds and rates with effect from 1 April 2025. The headline changes deductors must apply this year:
| Section | Change | From | To |
|---|---|---|---|
| 194J | Professional / technical fee threshold | ₹30,000 | ₹50,000 |
| 194I | Rent — annual threshold | ₹2,40,000 | ₹6,00,000 |
| 194A | Bank interest — senior citizen | ₹50,000 | ₹1,00,000 |
| 194A | Interest — other than bank | ₹5,000 | ₹10,000 |
| 194H | Commission / brokerage threshold | ₹15,000 | ₹20,000 |
| 194D | Insurance-commission threshold | ₹15,000 | ₹20,000 |
| 194LA | Land-acquisition compensation | ₹2,50,000 | ₹5,00,000 |
| 194T | TDS on partner remuneration (new) | — | 10% > ₹20,000 |
| 206AB / 206CCA | Higher rate for non-filers | In force | Omitted |
| 206C(1H) | TCS on sale of goods | 0.1% | Omitted |
194H and 194-IB rates were already reduced to 2% (from 5%) w.e.f 1 October 2024 and apply fully for FY 2025-26.
From 1 April 2025, firms and LLPs must deduct 10% TDS under Section 194T on salary, remuneration, bonus, commission or interest paid to a partner once the annual total exceeds ₹20,000. Earlier, no TDS applied on partner payments. Partnership firms should obtain a TAN if they do not already have one.
Unsure which revised threshold applies to your payments? Get your TDS position reviewed.
Talk to a TDS Expert →TDS Deposit & Return Due Dates FY 2025-26
TDS deducted in a month must be deposited by the 7th of the next month (for March, by 30 April). Quarterly TDS returns are filed in Form 24Q (salary) and Form 26Q (non-salary residents); Form 27Q covers non-resident payments.
| Activity | Due date | Form | Default penalty |
|---|---|---|---|
| TDS deposit (Apr–Feb) | 7th of following month | Challan 281 | Interest 1.5% p.m. |
| TDS deposit (March) | 30 April | Challan 281 | Interest 1.5% p.m. |
| Return Q1 (Apr–Jun) | 31 July | 24Q / 26Q / 27Q | ₹200/day u/s 234E |
| Return Q2 (Jul–Sep) | 31 October | 24Q / 26Q / 27Q | ₹200/day u/s 234E |
| Return Q3 (Oct–Dec) | 31 January | 24Q / 26Q / 27Q | ₹200/day u/s 234E |
| Return Q4 (Jan–Mar) | 31 May | 24Q / 26Q / 27Q | ₹200/day u/s 234E |
| Form 16 (salary certificate) | 15 June | Form 16 | ₹100/day u/s 272A |
| Form 16A (non-salary) | 15 days after return due date | Form 16A | ₹100/day u/s 272A |
A worked example — deducting TDS on a ₹2,00,000 professional-fee and a ₹2,00,000 contractor bill:
10% Professional fee (194J) — ₹2,00,000
2% Company contractor (194C) — ₹2,00,000
TDS Compliance Checklist FY 2025-26
The core steps every deductor must complete to stay clear of interest, late-fee and disallowance. TDS is deducted on the value excluding GST where GST is shown separately (CBDT Circular 23/2017).
- Obtain a TAN before deducting TDS
- Collect a valid PAN from every payee (else 20% u/s 206AA)
- Deduct at credit or payment, whichever is earlier
- Deposit challan by the 7th of the next month
- File Form 24Q / 26Q / 27Q every quarter
- Issue Form 16 / 16A to deductees on time
- Reconcile deducted TDS with Form 26AS / AIS
Non-deduction or non-payment leads to 30% expense disallowance under Section 40(a)(ia), interest of 1% p.m. (non-deduction) or 1.5% p.m. (non-payment) under Section 201, and a ₹200/day late-filing fee under Section 234E. Deduct on advances too — the trigger is credit or payment, whichever is earlier.
Filing Form 26Q or 24Q this quarter? Let TaxClue handle deposit, return and Form 16A.
Get TDS Return Filing →TDS Rate Chart FY 2025-26 — Frequently Asked Questions
Related TaxClue Services
Next in this TDS cluster
TDS Deduction & Return Filing — Sorted End to End
From TAN and correct-rate deduction to quarterly 24Q/26Q/27Q, challan deposits, Form 16/16A and notice replies — TaxClue's CA-led team handles your TDS compliance, 100% online across India.