TDS Rates Chart FY 2025-26
Section-wise TDS Rate List
Quick Answer
TDS rates for FY 2025-26 vary based on the nature of payment and applicable section of the Income Tax Act. Common rates include 10% for professional fees (Section 194J), 1%/2% for contractor payments (Section 194C), and slab-based deduction for salary under Section 192.
Summary
TDS (Tax Deducted at Source) ensures tax collection at the point of income generation. Different sections define different TDS rates depending on the type of payment. This guide provides a complete section-wise TDS rate chart, examples, rules, and compliance tips.
For complete understanding of TDS, TCS, returns, payment, and certificates, refer to the Complete Guide to TDS & TCS in India.
What is TDS?
TDS is a tax deducted by the payer while making specified payments such as salary, rent, commission, or professional fees. The deducted tax is deposited with the government on behalf of the recipient.
Why TDS Rates Are Important?
- Ensures timely tax collection ✔️
- Prevents tax evasion ✔️
- Helps in advance tax adjustment ✔️
- Mandatory compliance ✔️
Latest TDS Rates Chart FY 2025-26
| Section | Nature of Payment | Threshold Limit | TDS Rate |
|---|---|---|---|
| 192 | Salary | Basic exemption | As per slab |
| 194C | Contractor | ₹30,000 / ₹1,00,000 | 1% / 2% |
| 194J | Professional Fees | ₹30,000 | 10% |
| 194I | Rent | ₹2,40,000 | 10% / 2% |
| 194H | Commission | ₹15,000 | 5% |
| 194A | Interest | ₹40,000 | 10% |
Section-wise Explanation of TDS Rates
Section 192 – TDS on Salary
TDS on salary is deducted based on applicable income tax slab rates after considering deductions and exemptions.
Section 194C – TDS on Contractor Payments
1% for individual/HUF contractors and 2% for others. Applicable when payment exceeds threshold.
Section 194J – TDS on Professional Fees
10% TDS applies on professional services such as legal, medical, and consultancy.
Section 194I – TDS on Rent
10% for land/building and 2% for plant and machinery.
TDS Rate Example
Professional fee = ₹1,00,000
TDS @10% = ₹10,000
Net payment = ₹90,000
TDS Rate Comparison Table
| Payment Type | TDS Rate | Frequency |
|---|---|---|
| Salary | Slab based | Monthly |
| Contractor | 1% / 2% | Per payment |
| Professional Fees | 10% | Per payment |
Comprehensive TDS Rate Chart for Fy 2025-26 (Ay 2026-27)
A detailed TDS Rate Chart for FY 2025-26 (AY 2026-27), with major common TDS Provisions / Sections, Thresholds (where applicable), and Rates. The table focuses on typical payments like salary, interest, rent, professional fees, etc. under domestic (resident) context, plus a few common others. Rates and thresholds are based on publicly available 2025-26 charts. This chart also included many additional sections covering payments such as property transfers, rent, insurance, mutual funds, e-commerce, digital assets, cash withdrawals, etc. Rates and thresholds are based on recent 2025-26 reference charts
- This chart covers a wide variety of common & key TDS provisions as of FY 2025-26 (resident contexts, and some non-resident cases where relevant).
- Some categories (especially newer ones, e-commerce, digital assets, cash withdrawals, trust income, funds) have specific compliance requirements - the deductor must ensure the correct code, PAN/Aadhaar validation, and timely deposit.
- Thresholds and applicability may vary depending on the payer type (individual / HUF / company / resident / non-resident) and the transaction context. Always check the latest circulars.
- For non-PAN/non-compliance cases, high "non-filer" or "no PAN/Aadhaar" rates may apply, which are often the maximum of the applicable rate or a certain high rate.
Important: In most cases, TDS must be deposited by the 7th of the following month, while TDS and TCS returns are filed quarterly. Missing these due dates may lead to interest and late fees.
| Section | Nature of Payment | Threshold Limit | TDS Rate |
|---|---|---|---|
| 192 | Salary | (As per Income-Tax Slab) | (as per IT slab) |
| 192A | Premature Withdrawal from EPF | ₹50,000 | 10% |
| 193 | Interest on Securities | ₹10,000 | 10% |
| 194 | Dividends | ₹10,000 | 10% |
| 194A | Interest Other Than on Securities (Bank Interest, Post-Office Interest, FD Interest, etc.) | ₹10,000 | 10% |
| 194A | Interest Other than on Securities - Senior Citizen | ₹1,00,000 | 10% |
| 194I | Rent Paid to Plant & Machinery / Furniture & Fittings | ₹50,000 | 2% |
| 194I | Rent Paid to Land & Building | ₹50,000 | 10% |
| 194C | Payment to Contractors & Subcontractors (Single Transaction) | ₹30,000 | 1% |
| 194C | Payment to Contractors & Subcontractors | ₹1,00,000 | 1% |
| 194C | Payment to Contractors & Subcontractors (Single Transaction-Firm / Company) | ₹30,000 | 2% |
| 194C | Payment to Contractors & Subcontractors (Firm / Company) | ₹1,00,000 | 2% |
| 194J | Professional Fees / Technical Fees / Consultancy / Advertisement / Call Centre, Royalty / Distribution / Exhibition Of Cinematography Films, Etc. | ₹30,000 | 2% |
| 194J | Professional Fees - All Other Professional Services | ₹30,000 | 10% |
| 194H | Commission / Brokerage | ₹20,000 | 2% |
| 194IA | Transfer of Immovable Property (Other than Agricultural Land) | ₹ 50 Lakhs | 1% |
| 194IB | Rent by Individual or HUF not covered U/s. 194I | ₹50,000 (Per Month) | 2% |
| 194IC | Payment of Monetary Consideration Under a Joint Development Agreement (JDA) | -- | 10% |
| 194LA | Compensation on Acquisition of Certain Immovable Property (Non- Agricultural Land) | ₹ 5 Lakhs | 10% |
| 194LB | Interest from Infrastructure Debt Fund (NRI / Non-Resident) | -- | 5% |
| 194LBA | Certain Income Distributed by a Business Trust to its Unit-Holders (Resident) | -- | 10% |
| 194LBC | Income from Securitisation Trust paid to Investors (Residents) | -- | 10% 40% for NRI |
| 194LD | Interest on Certain Bonds, Municipal Debt / Securities, or Government Securities (Residents) | -- | 5% |
| 194M | Payment by Individual/HUF (Not Liable for 194C/194H/194J) to Contract, Brokerage, Professional Fees | ₹ 50 Lakhs | 2% |
| 194N | Cash Withdrawal from Bank / Co-Operative Society / Post Office) | ₹1 Crore ₹3Crore for Co-Operative Society | 2% |
| " | " | 20 Lakh (if ITR not Filed for Previous 3 Years) | 2% (Rs. 20 Lakh to 1 Crore) |
| " | " | -- | 5% (above 1 Crore) |
| 194O | Payment or Credit by E-commerce Operator to E-commerce Participant | ₹ 5 Lakhs | 0.1% |
| 194Q | Purchase of goods | ₹ 50 Lakhs | 0.1% |
| 194R | Benefit or Perquisite Provided by Business or Profession | ₹20,000 | 10% |
| 194S | Payment for Transfer of Virtual Digital Assets (VDAs) / Crypto | ₹10,000 | 1% |
| 194S | Payment for Transfer of Virtual Digital Assets (VDAs) / Crypto for Specified Person | ₹50,000 | 1% |
| 194T | Payments by Partnership Firms to Partners (Interest, Salary, Bonus, Commission, Other Remuneration) | ₹20,000 | 10% |
| 194DA | Payment Under Life Insurance Policy (Maturity or Other Proceeds) | ₹1,00,000 | 2% |
| 194D | Insurance Commission | ₹15,000 | 2% (ind / HUF) 10% (others / companies) |
| 194EE | Payment from National Savings Scheme (NSS), NSC, SCSS, etc. | ₹2,500 | 10% |
| 194G | Commission on Sale of Lottery Tickets | ₹20,000 | 2% |
| 194BA | Online Gaming Winnings / Virtual Games or Contests | -- | 30% |
| 194B | 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% |
| 194BB | Winnings From Horse Races | ₹10,000 | 30% |
| 194E | Income to Non-Resident Sportsman / Sports Association / Entertainer (Non-Resident) | -- | 20% |
| 194F | Repurchase of Units of Mutual Funds / Units by Investor (Redemption / Distribution), where not Exempt | -- | 20% |
Additional Notes :
- 194N - Withdrawal > ₹1,00,00,000 in FY (if ITR filed) If ITR not filed for past 3 yrs: lower threshold (often ₹20 lakh) for 2% and above ₹1 Crore 5%
- This chart covers common domestic TDS provisions - there are many more sections (e.g. for foreign payments, property sale (194-IA / 194-IB), insurance commission (194D / 194DA), mutual fund / securities, retirement benefits, etc.) which may have different rates or exemptions
- For senior citizens, especially in interest income under 194A, threshold limits and rules may differ. The ₹1,00,000 p.a. threshold for senior citizens is mentioned in some 2025-26 sources.
- PAN / Aadhaar / compliance conditions: If PAN / Aadhaar is not provided by the payee, TDS may need to be deducted at higher "maximum marginal rate" (MMR) (commonly ~20% or more depending on surcharge/cess). Many sections' notifications mention higher rates if PAN not furnished.
- Always confirm with the latest official circulars / your company's or payer's TDS policy - some thresholds or rates may slightly vary depending on context or payer type (resident / non-resident / company / HUF / etc.)
- The above chart covers a wide variety of common & key TDS provisions as of FY 2025-26 (resident contexts, and some non-resident cases where relevant).
- Some sections (especially newer ones, e-commerce, digital assets, cash-withdrawal, trust-income, funds) tend to have special compliance requirements - deductor should ensure correct code, PAN/Aadhaar validation, timely deposit & return filing.
- Thresholds & applicability may vary based on payer type (individual / HUF / company / resident / non-resident) and transaction context. Always cross-check with latest circulars.
- For non-PAN / non-compliance cases, higher "non-filer" or "no PAN/Aadhaar" rates may apply, often the maximum of either the rate in force or a fixed higher rate.
Download the Complete TDS / TCS Rate Chart for Fy 2025-26 (Ay 2026-27)
Download the Complete TDS / TCS Rate Chart for Fy 2025-26 (Ay 2026-27) for offline use. 📥
When to Deduct TDS?
- At time of payment ✔️
- At time of credit ✔️
- Whichever is earlier ✔️
TDS Payment Process (Overview)
After deducting TDS, it must be deposited with the government using Challan 281.
Step-by-step guide: TDS Payment Online.
TDS Return Filing Requirement
TDS returns must be filed quarterly using appropriate forms like 24Q and 26Q.
Learn more: TDS Return Filing.
TDS Certificate
After deduction, a TDS certificate (Form 16/16A) must be issued to the deductee.
Details here: TDS Certificate.
Checklist for TDS Compliance
- Identify applicable section ✔️
- Check threshold limit ✔️
- Apply correct rate ✔️
- Deposit TDS on time ✔️
- File return ✔️
Common Mistakes to Avoid
- Wrong TDS rate ❌
- Late deduction ❌
- Non-payment ❌
- Incorrect section ❌
Consequences of Wrong TDS Deduction
- Interest penalty ❌
- Late fee ❌
- Disallowance of expense ❌
Process Flow – TDS Compliance
- Identify transaction
- Check TDS section
- Deduct TDS
- Deposit tax
- File return
- Issue certificate
Suggested Posts
Important External Resources
Conclusion
Understanding TDS rates is essential for correct tax deduction and compliance. Businesses must ensure correct section selection, timely payment, and accurate return filing to avoid penalties.
For complete TDS and TCS compliance guidance, visit the Complete Guide to TDS & TCS in India.
Frequently Asked Questions (FAQs)
What is TDS?
Tax deducted at source.
What are TDS rates?
Rates vary by section.
Who deducts TDS?
Payer.
When to deduct?
At payment/credit.
Is TDS mandatory?
Yes.
What is Section 194J?
Professional fees TDS.
What is rate?
10%.
Where to pay TDS?
Income tax portal.
Is return filing required?
Yes.
Penalty for delay?
Interest applies.