TDS & TCS Rate Chart PDF for FY 2025-26 (AY 2026-27)
Latest Updated Rates, Sections & Limit

Are you looking for a clean, simple, and updated guide on the latest TDS and TCS rate chart for FY 2025-26? This article explains the complete TDS rate chart, TCS rate chart, deductions, sections, limits, percentages, and rules in an easy, beginner-friendly way. You will also find tables, examples, thresholds, due dates, and tax law updates for the current financial year. The goal is to help you understand how TDS and TCS deductions work so you can avoid penalties, file income tax returns smoothly, check your Form 26AS, and stay informed. You can also download the TDS & TCS Rate Chart PDF for tomorrow's planning and business needs. This blog post covers all relevant topics, including salary, rent, commissions, contractors, professional fees, PAN rules, GST-linked items, and more.

TDS & TCS Rate Chart for FY 2025-26 (AY 2026-27) - Introduction

Looking for the latest TDS and TCS rates for FY 2025-26 (AY 2026-27)? Understanding the correct TDS or TCS rate is important to avoid excess deduction, penalties, or compliance issues. The TDS & TCS rate chart for FY 2025-26 helps you identify the correct rate, applicable section, threshold limit, and deduction process for different types of payments.

This guide explains the latest and updated TDS and TCS rates for FY 2025-26 (AY 2026-27), including relevant Budget updates. It also includes a complete and structured TDS rate chart PDF and TCS rate chart PDF for easy reference. Whether you are a salaried employee, freelancer, business owner, professional, or investor, this guide will help you understand tax deductions clearly and stay compliant.

Quick Jump to: TDS Rates | TCS Rates | Due Dates | Penalties | FAQs

Quick Overview: TDS & TCS for FY 2025-26

• TDS is deducted by the payer while making payments like salary, rent, interest, or professional fees.
• TCS is collected by the seller during specific transactions such as sale of goods or foreign remittances.
• TDS and TCS rates vary by section, payment type, and threshold limit.
• Late deduction or filing may attract interest, late fees, and penalties.
• The complete TDS & TCS rate chart for FY 2025-26 is explained below with tables and examples.

What is TDS and TCS?

TDS (Tax Deducted at Source) is deducted by the payer while making certain payments such as salary, rent, interest, or professional fees. On the other hand, TCS (Tax Collected at Source) is collected by the seller from the buyer during specific transactions like sale of scrap, motor vehicles, overseas tour packages, or foreign remittances under the Liberalised Remittance Scheme (LRS). Both mechanisms help the government track income at the source and improve overall tax compliance.

Why This Matters:

• Ensures taxes are paid on time
• Reduces burden when filing returns
• Keeps track of transactions
• Helps avoid uncessary interest, penalties and other charges
• Ensures accurate reporting in Form 26AS and AIS

Who Should Use This TDS & TCS Rate Chart?

• Salaried employees checking salary TDS
• Freelancers and professionals receiving fees
• Business owners making contractor or vendor payments
• Investors earning interest, dividends, or capital gains
• Travelers and buyers under TCS-applicable transactions

Download TDS & TCS Rate Chart PDF for FY 2025-26

You can download the complete and easy-to-read TDS and TCS rate chart PDF for FY 2025-26 (AY 2026-27). It includes section-wise rates, thresholds, and applicability. The PDF helps individuals, businesses, accountants, and students quickly check applicable rates for financial planning.

Note: You can also visit the official Income Tax website or refer to trusted resources like Wikipedia for additional knowledge.

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.

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.

Key notes & clarifications (quick)

1. 194Q vs 206C(1H): Section 194Q requires the buyer to deduct TDS @ 0.1% when purchases from a seller exceed ₹50 lakh in the FY (and buyer meets turnover criteria). Section 206C(1H) requires the seller to collect TCS @ 0.1% on sale of goods where receipts from a buyer exceed ₹50 lakh. Both can interact; rules specify who is liable in overlapping cases - check section provisions. :contentReference[oaicite:1]{index=1}

2. No PAN / PAN not furnished: For many TDS/TCS provisions, if PAN is not furnished the applicable rate will be higher - commonly 20% (statutory default) for many TDS sections or a specific higher collection/ deduction (e.g., 1% for 206C(1H) no PAN; for 194Q earlier clarifications indicate higher rate (e.g., 5%) if PAN not furnished). Always check the specific section and provisos. :contentReference[oaicite:2]{index=2}

3. 194O (e-commerce): The rate for TDS by e-commerce operators was reduced to 0.1% w.e.f. 1-Oct-2024 (earlier 1%). A ceiling of ₹5 lakh exists for resident individuals / HUFs for exemption from deduction operator-wise. :contentReference[oaicite:3]{index=3}

4. Cash withdrawals (194N): TDS on cash withdrawals is generally 2% (for amounts exceeding threshold) and 5% for very large withdrawals or for non-filers as per rules. Check the exact sub-limits: withdrawals > ₹20 lakh and ≤ ₹1 crore and > ₹1 crore are treated differently depending on filing history. :contentReference[oaicite:4]{index=4}

5. Threshold updates (FY 2025-26): The Budget / Finance Act changes effective 1-Apr-2025 have increased some thresholds (for example Section 194H threshold moved to ₹20,000 p.a.; LRS/TCS threshold was revised). Always confirm the particular sub-section and effective date when applying rates. :contentReference[oaicite:5]{index=5}

Why these five references matter (most load-bearing):

• Income Tax Department TDS rates / charts: authoritative primary source for statutory rates and notes. Use this as the source of truth for disputes. :contentReference[oaicite:6]{index=6}
• Income Tax tutorial on 194Q: explains TDS on purchase of goods (0.1% threshold ₹50 lakh) and operational mechanics. :contentReference[oaicite:7]{index=7}
• Published TDS/TCS PDF charts (CA firms & institutional PDFs): practical consolidated tables used by practitioners; they reflect updated thresholds and ministerial clarifications. :contentReference[oaicite:8]{index=8}
• Recent explanatory writeups (TaxGuru / TaxBuddy / ClearTax): reputable commentary that highlights interactions (194Q vs 206C(1H)), no-PAN consequences, and recent Budget changes. :contentReference[oaicite:9]{index=9}

Note: Higher TDS applies (usually 20%) if PAN is not furnished.

You may also check our Income Tax Slab FY 2025-26 for better tax planning.

Purpose of the TDS Rate Chart for FY 2025-26

The TDS Rate Chart for FY 2025-26 is essential for understanding how much tax should be deducted or collected under different sections. It simplifies tax planning for individuals, HUFs, trusts, and companies by showing the exact percentage and threshold limit under each section. You can avoid mistakes, penalties, and late payment issues by referring to this chart before making any payment.

The government of India updates these rates and slabs every financial year, sometimes based on the Union Budget. Therefore, knowing the latest TDS and TCS rates for FY 2025-26 ensures compliance with current laws and helps you plan your taxes smartly 💡.

Key Highlights of TDS for FY 2025-26 (AY 2026-27)

• TDS is deducted when income is paid or credited - not at year-end.
• The deductor (payer) must deposit TDS using Challan ITNS 281.
• Different sections apply to different types of payments like salary, rent, commission, professional fees, etc.
• TDS must be deposited within the 7th of the next month (30th April for March deductions).
• Late filing or depositing attracts interest and penalties under Section 201 and 234E.

Important Sections Covered in TDS Rate Chart FY 2025-26

Here are some of the important sections of TDS that are included in the chart:

• Section 192: TDS on salary payments
• Section 194A: TDS on interest other than securities
• Section 194C: TDS on payments to contractors or sub-contractors
• Section 194H: TDS on commission or brokerage
• Section 194I: TDS on rent payments
• Section 194J: TDS on professional or technical fees
• Section 194IA: TDS on immovable property transactions
• Section 194N: TDS on cash withdrawals exceeding ₹1 crore

Each of these sections has its own threshold limit and rate of deduction. The complete TDS rate chart table below will give you the detailed picture 👇

Important Highlights of TDS for FY 2025-26

• TDS deduction must be deposited using Challan ITNS-281
• Default or delay leads to interest of 1%-1.5% per month
• Form 16 is issued for salary TDS
• Form 16A is issued for non-salary TDS
• All deductions appear in Form 26AS and AIS
• TDS return forms include 24Q, 26Q, and 27Q

When and How is TDS Deducted?

TDS is deducted either at the time of credit of income to the payee's account or at the time of actual payment - whichever is earlier. Once deducted, it must be deposited to the Central Government within the due dates. The deductor must also issue a TDS certificate (Form 16 or 16A) to the deductee as proof of deduction.

If the deductor fails to deduct or deposit TDS, they are liable to pay interest and penalty. Hence, every payer - whether an employer, company, or even an individual responsible for making certain payments - should check the applicable TDS rates before any transaction.

TCS Rate Chart for FY 2025-26 (AY 2026-27)

Below is the latest TCS rate chart covering all major categories such as goods, scrap, LRS remittances, tour packages, and motor vehicles.

Important highlights :

• The government removed TCS on the sale of goods under section 206C(1H) effective 1 April 2025 (so no seller-collected TCS on general sale-of-goods from FY 2025-26); other specific TCS provisions (motor vehicles, notified luxury goods, scrap, timber, LRS/remittance etc.)
• Liberalised Remittance Scheme (LRS) / foreign remittances: A ₹10 Lakhs per FY exemption is used for LRS TCS; rates differ by purpose - education/medical (lower rates; concession if loan funded), overseas tour packages, and other remittances (higher rate).
• Section 206C(1F) (motor vehicles and notified luxury goods > ₹10 lakh) collects 1% TCS on notified items (the government has notified a list of 10 luxury goods).

Additional Notes :

• Key changes for FY 2025-26 you should note: removal of section 206C(1H) (TCS on sale of goods) w.e.f. 1-Apr-2025; LRS threshold settled at ₹10 Lakhs per FY with purpose-wise rates; extension/notification around 206C(1F) (motor vehicles & notified luxury goods) and specified notified list of luxury goods.
• Practical tip: TCS amounts collected are creditable while computing tax (appear in Form 26AS / Form 27D) - the fact of collection does not mean final tax liability; the payer can claim credit. Consult your tax advisor for transactions near thresholds and for buyer/seller compliance.
• TCS must be collected and deposited monthly. If TDS is not deducted or deposited on time, the tax department may charge interest and penalties, which can increase the overall tax burden.

TDS vs TCS - Simple Comparison

TDS on Professional Fees, Contracts, and Commission 🧾

TDS also applies to non-salary payments like professional services, contractor payments, rent, or commission. For example:

• Section 194C: Payment to contractors or sub-contractors (1% for individuals/HUFs, 2% for others)
• Section 194J: Fees for professional or technical services (10%)
• Section 194H: Commission or brokerage (5%)
• Section 194I: Rent on land, building, or furniture (10%)
• Section 194-IA: Purchase of immovable property (1% if value > ₹50 lakh)

These sections ensure tax collection at the source of income generation. Businesses and individuals making such payments must check the TDS threshold limits and deduct accordingly. The deducted amount is then deposited under the relevant section.

Understanding the Chart - How to Read It Easily 🧾

The TDS chart for FY 2025-26 is structured to show:

1. Section number (like 194C, 194J, etc.)
2. Nature of payment (such as salary, interest, rent, commission, etc.)
3. Applicable to whom (individual, HUF, company, etc.)
4. Threshold limit (minimum amount before TDS applies)
5. Rate of TDS (%)

For instance, under Section 194C, if a contractor receives payment exceeding ₹30,000 (single transaction) or ₹1,00,000 in aggregate during the year, TDS will be deducted at 1% (for individuals/HUFs) or 2% (for others). Such clarity helps businesses and individuals avoid confusion or under-deduction.

How to Calculate TDS - Easy 3-Step Process

1. Identify the applicable section (example 194C, 194J, 194I).
2. Check the threshold and rate from the TDS rate chart.
3. Deduct TDS before payment and deposit it within the due date.

Example:

If you pay ₹1,00,000 professional fees (Section 194J at 10%), TDS = ₹10,000. Payee receives ₹90,000.

TDS on Salary and Other Payments 💰

Under Section 192, TDS is deducted by employers from salary payments based on the employee's estimated income and applicable tax slabs. The Income Tax Act mandates that every employer calculates the taxable income of employees after considering eligible exemptions (like HRA, LTA, etc.) and deductions (under Section 80C, 80D, etc.).

For instance, if an employee's annual taxable income is ₹9 lakh under the old regime, the applicable TDS is calculated according to the current income tax slab rates. However, under the new regime (FY 2025-26), the slabs are more simplified with lower rates, but fewer exemptions. You can use online TDS calculators or refer to your Form 16 for the exact amount deducted.

Stay Tax-Smart and Informed 💼

Knowing your TDS and TCS obligations not only helps in accurate deduction but also simplifies your tax return filing (ITR). Whether you're an individual, HUF, or company, being updated with current FY 2025-26 rates saves you from unnecessary hassles and ensures correct credit in your Form 26AS. This article is written to make these topics simple, understandable, and useful for everyone - from students to professionals.

TDS Deposit, Due Dates, and Return Filing Timelines ⏰

After deducting TDS, the deductor must deposit it to the Central Government using Challan ITNS 281 within the specified due dates. The timelines are important because late deposit attracts interest and penalties. Here's a quick summary:

TDS and TCS Due Dates for FY 2025-26

It is important for both individuals and businesses to follow these due dates carefully. Even a small delay in depositing TDS or filing returns can result in interest charges and late fees. In case of delayed TDS or TCS return filing, a late fee of ₹200 per day under Section 234E may apply until the return is filed.

Common Mistakes to Avoid

• Deducting TDS at wrong rate
• Missing or wrong PAN
• Wrong section applied (194C vs 194J)
• Delay in depositing TDS
• Not filing returns on time
• Mismatch in Form 26AS

Why You Should Check Updated TDS Rates Each Year 📅

The Income Tax Department of India updates the TDS and TCS rates every financial year to reflect changes in law, exemptions, or budget proposals. If you continue to use outdated rates, you risk deducting the wrong amount, which may lead to defaults, interest, and penalties.

That's why our updated TDS rate chart for FY 2025-26 (AY 2026-27) ensures you stay compliant and confident. Whether you're filing returns, making payments, or preparing Form 16 / Form 26Q, having the correct TDS chart handy can save time and reduce errors ✅.

Consequences of Non-Deduction or Late Deduction of TDS ⚠️

Failing to deduct or deposit TDS on time can lead to financial and legal consequences, including:

• Interest: 1% per month for non-deduction and 1.5% per month for non-deposit under Section 201.
• Penalty: Equal to the amount of tax not deducted or deposited.
• Disallowance: Expense may be disallowed while calculating taxable income.
• Prosecution: In extreme cases, imprisonment up to 7 years.

Thus, deductors must ensure timely deduction, payment, and filing of returns. Tools like the TRACES portal and Form 26AS can help verify compliance and prevent mismatch errors.

What changed in FY 2025-26?🔍

Every year, the Union Budget may introduce revised TDS or TCS sections, modify threshold limits, or change certain rates. For FY 2025-26, the government has focused on better compliance and transparency rather than increasing rates. While most TDS and TCS rates remain unchanged, stricter monitoring through AIS, PAN-Aadhaar linking, and digital reporting has been emphasized. Small taxpayers benefit from simplified reporting and clearer thresholds, whereas large businesses face tighter scrutiny for late deduction, delayed deposits, and mismatches in Form 26AS. The government also emphasizes electronic filing, linking PAN and Aadhaar, and timely challan payments to improve transparency.

Stay tuned to the Income Tax Department's official website for notifications, or bookmark this page for updates as new circulars and budget changes roll out during FY 2025-26.

TCS (Tax Collected at Source) Overview for FY 2025-26

TCS applies when a seller collects tax from the buyer during certain transactions like sale of scrap, liquor, tendu leaves, or even foreign travel packages. It ensures that tax is collected right at the source of income. The TCS rate chart for FY 2025-26 includes both domestic and international transactions such as remittances or purchase of overseas tour programs.

Like TDS, TCS rates and sections are revised periodically, and the collector must deposit the tax and furnish a TCS certificate to the buyer. Non-compliance leads to similar penalties as TDS defaults.

TCS Provisions and Key Highlights 🧾

Similar to TDS, TCS (Tax Collected at Source) is applicable on the sale of specific goods or services. The seller collects tax from the buyer and deposits it with the government. For FY 2025-26, TCS is applicable on:

• Sale of scrap, liquor, tendu leaves, and minerals
• Foreign remittances under LRS scheme
• Sale of motor vehicles exceeding ₹10 lakh
• Overseas tour packages

For example, when a person buys an international travel package worth ₹5 lakh, the seller collects TCS (typically 5%) and deposits it. This helps track high-value transactions and ensures tax transparency in compliance with the Income Tax Department of India.

How to Verify Your TDS Details 🧾

You can easily verify your TDS deductions online using:

• Form 26AS: Available on the Income Tax e-filing portal
• AIS (Annual Information Statement): A new consolidated statement showing income and tax details
• TRACES portal: For deductors to download Form 16, 16A, and file TDS returns

This ensures that all TDS deducted by your employer or others reflects correctly against your PAN. In case of mismatch, you can request a rectification from the deductor before filing your ITR.

Smart Tips for Taxpayers to Save TDS 💡

• Submit Form 15G/15H to avoid TDS on bank interest (if eligible).
• Link your PAN and Aadhaar to prevent higher TDS under Section 206AA.
• Claim eligible deductions under Section 80C, 80D, and 80TTA.
• Keep proof of investments ready before the financial year-end.
• Ensure your bank details and PAN are correctly updated.

A little tax planning and awareness go a long way in ensuring smooth returns and refunds. 🎯

Conclusion

Understanding the TDS and TCS rate chart for FY 2025-26 helps you avoid penalties, ensure correct tax deduction, and stay compliant with law. Use the tables, examples, and PDF provided to simplify your tax planning. Whether you are a business owner, freelancer, salaried employee, or investor, this guide ensures you clearly understand all rates, sections, threshold limits, and rules applicable for the current financial year. Staying updated with tds rate chart pdf and tcs rate chart pdf gives you strong financial control and helps in smooth filing of income tax returns.

Bookmark this page, check the chart above, and stay updated as we continuously update this information based on government notifications and budget announcements. Stay informed, stay compliant, and stay tax-smart 💼💡.

Disclaimer: This content is for informational purposes only and does not constitute tax or legal advice. Please consult a qualified tax professional for specific cases.

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