FY 2025-26 (AY 2026-27) — Updated
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.)
| 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.
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.