FY 2026-27 (AY 2027-28) · rates continue for FY 2027-28

TDS Rate Chart FY 2025-26

Complete section-wise TDS rates for FY 2025-26 (AY 2026-27). All payment types, thresholds, and applicable rates for residents and non-residents in one place.

40+
TDS Sections Covered
1%
Lowest TDS Rate (194C)
30%
Highest TDS Rate
4%
Cess on TDS (194O etc.)
Search the full section-wise chart Last updated: FY 2025-26 | April 2025
⬇ PDF Chart
Section Nature of Payment Payer / Payee Threshold TDS Rate (Resident) TDS Rate (NRI)
SALARY & WAGES
192 Salary / Wages Any employer → Employee Any salary income As per slab rate N/A (192E for NRI)
192A PF premature withdrawal (EPF) EPFO/Trustees → Member ₹50,000 10% 30%
INTEREST INCOME
193 Interest on securities (Debentures, Govt. securities) Any → Any ₹5,000 (listed); ₹10,000 (others) 10% 20% + surcharge + cess
194 Dividend on shares Domestic company → Shareholder ₹5,000 per year 10% 20% + surcharge + cess
194A Interest (Banks, Co-op banks, Post office) Bank/NBFC → Individual ₹40,000/yr (₹50,000 for seniors) 10% 30%
194A Interest (Others: Company FD, Loans, Bonds) Any → Any ₹5,000 per year 10% 30%
LOTTERY, GAMES & WINNINGS
194B Lottery, Crossword puzzle, Card games Any → Winner ₹10,000 per prize 30% 30%
194BA Online gaming winnings (net of deposits) Online gaming platform → User Any amount (no threshold) 30% 30%
194BB Horse race winnings Bookmaker → Winner ₹10,000 per prize 30% 30%
CONTRACTOR & SUBCONTRACTOR
194C Payment to individual/HUF contractor Any → Individual/HUF ₹30,000 per payment; ₹1,00,000 p.a. 1% N/A (195 applies)
194C Payment to company/firm contractor Any → Company/Firm ₹30,000 per payment; ₹1,00,000 p.a. 2% N/A (195 applies)
INSURANCE & COMMISSION
194D Insurance commission Insurance company → Agent ₹15,000 per year 5% 20%
194DA Life insurance maturity proceeds Insurer → Policyholder ₹1,00,000 per policy per year 5% on profit portion 5%
194EE NSS repayment NSS → Depositor ₹2,500 10% 10%
194G Lottery ticket commission State lottery → Agent ₹15,000 per year 5% 5%
194H Commission / Brokerage Any → Agent ₹15,000 per year 5% 5%
RENT & PROPERTY
194I Rent — land, building, furniture/fittings Any (audit required) → Any ₹2,40,000 per year 10% 30%
194I Rent — Plant & Machinery Any (audit required) → Any ₹2,40,000 per year 2% 30%
194IB Rent by individual/HUF (not subject to audit) Individual/HUF → Landlord Monthly rent > ₹50,000 5% N/A
194IC Payment under Joint Development Agreement Developer → Land owner Any amount 10% N/A
194IA Purchase of immovable property Buyer → Seller ₹50,00,000 per property 1% 20% + surcharge + cess
PROFESSIONAL & TECHNICAL FEES
194J Professional fees (Doctors, Lawyers, CA, etc.) Any → Professional ₹30,000 per year 10% N/A (195 applies)
194J Technical services / Royalty / Non-compete Any → Any ₹30,000 per year 2% N/A (195 applies)
194J Call centre operations Any → Call centre ₹30,000 per year 2% N/A
194LA Compulsory acquisition compensation Govt/authority → Land owner ₹2,50,000 per year 10% N/A
MUTUAL FUNDS & INVESTMENT INCOME
194K Income from mutual fund units (dividends) Mutual fund → Investor ₹5,000 per year 10% 20%
194LB Interest from infrastructure bonds (NRI) Indian company → NRI Any amount 5% 5%
194LC Interest on FCCB / ECB Indian co. to foreign investor Any amount 4% 4%
194LD Interest on Rupee-denominated bonds (FII) Any → FII Any amount 5% 5%
BUSINESS PAYMENTS
194M Payment by individual/HUF to contractor/professional Individual/HUF → Any ₹50,00,000 per year 5% N/A
194N Cash withdrawal from bank Bank → Account holder ₹1,00,00,000 (ITR filer); ₹20,00,000 (non-filer) 2% (ITR filer); 2%+18% hybrid (non-filer) N/A
194O E-commerce sales proceeds E-commerce operator → Seller ₹5,00,000 per year (individuals/HUF) 1% 5%
194P Pension/salary of senior citizen 75+ (bank) Specified bank → Senior citizen Slab basis As per slab N/A
194Q Purchase of goods Buyer → Seller ₹50,00,000 per year 0.1% N/A
194R Benefits/perquisites in business Any → Recipient ₹20,000 per year 10% N/A
194S Transfer of VDA / Crypto assets Buyer/Exchange → Seller ₹50,000 (specified); ₹10,000 (others) 1% 1%
194T Payment to partners of firm Partnership firm → Partner ₹15,000 per year 10% N/A
NON-RESIDENT / NRI PAYMENTS
195 Income of NRI (interest, royalty, FTS, capital gains, etc.) Any → NRI Any amount (no threshold) As per DTAA or 20–40% As per DTAA
196A Income of non-resident from MF units Mutual fund → NRI Any amount 20% 20%
196B Income from offshore fund (long-term capital gain) Any → Non-resident Any amount 10% 10%
196C Income from foreign currency bonds/GDR Any → Non-resident Any amount 10% 10%
196D Income from securities (FII) Any → FII Any amount 20% 20%
SPECIAL PROVISIONS
206AB Non-filer surcharge (higher TDS) All payers → Non-filers of ITR Same as base section Higher of: 2× rate, 2× in-force rate, or 5% Not applicable
206C TCS on sale of goods (non-resident) Seller → Buyer NRI ₹50L+ N/A 5%

⚠ Consequences of TDS Default

  • Non-deduction of TDS: Interest @ 1% per month from date TDS was deductible till date of deduction
  • Non-deposit of TDS: Interest @ 1.5% per month from date of deduction till actual deposit
  • Late filing of TDS Return: ₹200 per day under Section 234E (max: total TDS amount)
  • Non-filing penalty (271H): ₹10,000 to ₹1,00,000
  • Expense disallowance (40(a)(ia)): 30% of expenses disallowed if TDS not deducted/deposited

Understanding TDS — Complete Guide FY 2025-26

Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act, 1961, where the payer deducts tax at the time of payment and deposits it with the government on behalf of the payee. It ensures a regular flow of tax revenue and prevents tax evasion.

How to Calculate TDS?

TDS = Payment Amount × TDS Rate ÷ 100. The deducted amount must be deposited by the 7th of the following month (30th April for March). Annual TDS returns must be filed in Form 24Q (salary), 26Q (resident non-salary), 27Q (NRI), 27EQ (TCS).

When is TDS NOT Required?

  • Payment is below the threshold limit specified for that section
  • Payee submits Form 15G/15H (declaration of no taxable income)
  • TDS Certificate issued by Assessing Officer under Section 197
  • Specified government transactions (e.g., 194N threshold for ITR filers: ₹1 crore)

TDS Due Dates — FY 2025-26

  • April to February: 7th of next month
  • March: 30th April
  • TDS Return (Q1 — Apr–Jun): 31st July
  • TDS Return (Q2 — Jul–Sep): 31st October
  • TDS Return (Q3 — Oct–Dec): 31st January
  • TDS Return (Q4 — Jan–Mar): 31st May

Form 15G vs Form 15H

Form 15G: For individuals below 60 years whose estimated total income is below the basic exemption limit. Submit to banks to avoid TDS on FD interest.

Form 15H: For senior citizens (60+ years) to declare that total income is below taxable limit. Higher threshold — senior citizens can submit even with taxable income up to ₹7L in new regime.

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Frequently Asked Questions

Can TDS be adjusted against future tax liability?+
Yes. TDS reflected in Form 26AS / AIS is automatically credited against your income tax liability when you file ITR. If TDS exceeds tax liability, you get a refund from the Income Tax Department.
What is Form 26AS and how to check TDS?+
Form 26AS is your consolidated tax statement showing all TDS deducted, advance tax paid, and self-assessment tax. Login at incometax.gov.in → e-File → Income Tax Returns → View Form 26AS, or through TRACES portal.
Is TDS applicable on cash payments?+
Section 194N covers cash withdrawals from banks exceeding ₹1 crore (for ITR filers) at 2%. For non-filers, TDS of 2% starts from ₹20 lakh withdrawals. TDS on actual business cash payments under 194Q applies above ₹50L on goods purchases.
What if wrong PAN is given and TDS is deducted at higher rate?+
If you provide wrong PAN or no PAN, TDS is deducted at 20% (Section 206AA). Submit your correct PAN to the deductor to correct this. Once TDS is deposited correctly, you can claim credit in ITR.
Frequently Asked Questions
What is the TDS rate on salary for FY 2025-26?

TDS on salary is deducted at the applicable income tax slab rates of the employee, considering the tax regime chosen. Employers must compute estimated annual tax liability and deduct TDS in equal monthly instalments under Section 192. No fixed percentage applies ÔÇö it is individualised.

What is the TDS rate on commission and brokerage payments?

Under Section 194H, TDS at 5% must be deducted on commission or brokerage payments exceeding Rs 15,000 per financial year. This applies to payments by companies to their agents, distributors, and referral partners. The threshold is Rs 15,000 in aggregate during the year.

Is TDS applicable on GST amount included in an invoice?

No. TDS under income tax provisions is deducted on the base amount (excluding GST) when the GST component is shown separately on the invoice. As per CBDT Circular No. 23/2017, TDS is not to be deducted on the GST portion if it is separately indicated in the invoice.

What is the TDS rate if the deductee does not provide PAN?

If the deductee does not furnish their PAN, TDS must be deducted at the higher of: the applicable TDS rate, 20%, or the rate in force. Similarly, if a deductee's PAN is inoperative (not linked to Aadhaar), TDS is deducted at double the normal rate under Section 206AA.

What is Section 194Q TDS on purchases?

Under Section 194Q, a buyer with turnover above Rs 10 crore must deduct TDS at 0.1% on purchases from a seller exceeding Rs 50 lakh in a financial year. This applies where TCS under Section 206C(1H) is not already collected by the seller. The higher of TDS or TCS applies, not both.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.