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

Updated on: Apr 25th, 2025

8 min read

Ever waited for your pending payments only to be disappointed when you got less than the amount expected? One of the primary reasons could be TDS deduction! Tax Deducted at Source is a crucial revenue generating mechanism of the government, whereby tax is deducted at the stage of income generation itself.

While making specified payments to persons, it is necessary to deduct tax before making a payment under the provisions of Income Tax Act. You can refer to the following article for TDS rate chart 2025 for the latest tax deduction rates applicable to various types of income.

What is TDS?

TDS stands for Tax Deducted at Source. The person who is making the payment should deduct TDS for different kinds of transactions. For example, salaries, commissions and professional services.
The person who is making the payment is responsible for deducting the tax while making the payment, called deductor. The person receiving the payment is called deductee.
There are different rates at which TDS needs to be deducted based on the nature of transaction, the person to whom we are making the payment (payee) and his residential status.
It is necessary to deduct tax, deposit the same within specified due date and file TDS statements on time.

TDS rates applicable for payments to residents, non-residents, domestic and foreign companies in India are presented in the following tables.

TDS Changes from 1st April, 2025

The following are the changes made in TDS provisions with effect from 1st April, 2025.

The government has changed threshold limit for TDS deduction for various sections. The relaxed threshold limits are as follows

Section	Till 31st March,2025	From 1st April, 2025
193 - Interest on securities	NIL	10,000
194A - Interest other than Interest on securities	When payer is bank, cooperative society or post office: (i) 50,000/- for senior citizen; (ii) 40,000/- in case of others	When payer is bank, cooperative society or post office: (i) 1 lakh for senior citizen (ii) 50,000/- in case of others
194A - Interest other than Interest on securities	In case the payer is others: (i) 5,000/-	In case the payer is others: (i) 10,000/-
194 – Dividend, for an individual shareholder	5,000	10,000
194K - Income in respect of units of a mutual fund	5,000	10,000
194B - Winnings from lottery, crossword puzzle Etc.	Aggregate of amounts exceeding 10,000/- during the financial year	10,000/- in respect of a single transaction
194BB - Winnings from horse race	Aggregate of amounts exceeding 10,000/- during the financial year	10,000/- in respect of a single transaction
194D - Insurance commission	15,000	20,000
194G - Income by way of commission, prize etc. on lottery tickets	15,000	20,000
194H - Commission or brokerage	15,000	20,000
194-I - Rent	2,40,000 (in a financial year)	50,000 (in a month)
194J - Fee for professional or technical services	30,000	50,000
194LA - Income by way of enhanced compensation	2,50,000	5,00,000

Section 206AB which added compliance burden for TDS deductors has been removed.
The TDS rate for section 194LBC - Income received from investment in securitization trusts for residents has been reduced to 10%.
With effect from 1st April, 2025, a new section 194T is inserted, wherein TDS to be deduction on partner's remuneration at 10%.

TDS Changes from 1st October, 2024

The following rate changes are made in TDS provisions with effect from 1st October, 2024.

Section	Old Rate	Revised Rate from 1st October,2024
194DA - TDS on Payouts from Life Insurance Policies	5%	2%
194F- Repurchase of units by Mutual Funds Units or UTI	30%	Omitted
194G - Commission on Sale of Lottery Tickets	5%	2%
194H - Commission or Brokerage	5%	2%
194IB - Rent for individuals and HUFs not liable to tax audit	5%	2%
194M - Payment to certain resident Contractors and Professionals	5%	2%
194O - Payment made by E-Commerce Operators	1%	0.1%

TDS Rate Chart - For Residents

The following are the rates of TDS when the amount is to be paid to a resident.

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate
192	Payment of salary	Basic exemption limit of employee	Normal Slab Rates
192A	Premature withdrawal from EPF	50,000	With PAN: 10%
192A	Premature withdrawal from EPF	50,000	Without PAN: 20%
193	Interest on securities	Debentures- 5,000	10%
		8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000
		Other securities-10,000
194	Payment of any dividend	10,000	10%
194A	Interest other than interest from securities (from deposits with banks/post office/co-operative society)	Senior Citizens- 1 lakh	10%
194A		Others- 50,000	10%
194B	Income from lottery winnings, card games, crossword puzzles etc.	Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 for each transaction	30%
194B		Online Gaming - Refer 194BA	30%
194BA	Income from online games	No limit	30%
194BB	Income from horse race winnings	10,000 (Aggregate winnings during a financial year not single transaction)	30%
194C	Payment to contractor/sub-contractor:-	Single transaction- 30,000	1%
	a) Individuals/HUF	Single transaction- 30,000	1%
	b) Other than Individuals/HUF	Total transactions during FY- 1 lakh	2%
194D	Insurance Commission	20,000	2%
194DA	Insurance pay-out in respect of a life insurance policy	1 lakh	2%
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194G	Payments, commission, etc., on the sale of lottery tickets	20,000	2%
194H	Commission or brokerage	20,000	2%
194-I	Rent:	50,000 per month or part of the month	2%
	194-I(a) Rent on plant and machinery		2%
	194-I(b) Rent on land/building/furniture/fitting		10%
194-IA	Payment in consideration of transfer of certain immovable property other than agricultural land.	50 lakhs	1%
194-IB	Rent payment by an individual or HUF not covered u/s. 194-I.	50,000 per month	2%
194-IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10%
194J	Any sum paid by way of fee for professional services	30,000	10%
	Any sum paid by way of remuneration/fee/commission to a director	30,000	10%
	Any sum paid for not carrying out any activity concerning any business;	30,000	10%
	Any sum paid for not sharing any know-how, patent, copyright, etc.	30,000	10%
	Any sum paid as a fee for technical services	30,000	2%
	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	30,000	2%
	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	30,000	2%
194K	Payment of any income for units of a mutual fund, for example, dividend	10,000	10%
194LA	Payment in respect of compensation on acquiring certain immovable property	5 lakhs	10%
194LBA(1)	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBA(2)	Interest income of a business trust from SPV distribution to its unitholders	No limit	5%
194LBA(2)	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders.	No limit	10%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	30%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	No limit	10%
194LBC	Income from investment in securitisation fund received by a resident	No limit	10%
194M	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	50 lakhs	2%
194N	Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired	20 lakh to 1 crore	2%
194N		1 crore	5%
194O	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	5 lakhs	0.10%
194P	Payment of pension or interest to specified senior citizens of age 75 years or more	Basic exemption limit of senior citizens or super senior citizens	Normal tax slab rates
194Q	Payments for the purchase of goods	50 lakhs	0.10%
194R	Perquisite or benefit to a business or profession	20,000	10%
194S	TDS on the transfer of Virtual Digital Assets	10,000	1%
194S	Specified persons: Individual or a HUF not having income from business or profession	50,000	1%
194T	Partner's Remuneration	20,000	10%

TDS Rate Chart - For Non Residents (Other than a Company)

The following are the TDS rates when the amount is paid to a non-resident. There is no threshold limit for non-residents except u/s 192A.

Section	Particulars	TDS Rate
192	Payment of salary	Normal Slab Rate
192A	Premature withdrawal from EPF *No TDS to be deducted if the amount paid is less than threshold limit of Rs.30,000.	10%
194B	Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
194BB	Income by way of horse race winnings	30%
194E	Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
194G	Payments such as commission, etc., on the sale of lottery tickets	2%
194LB	Payment of interest on infrastructure debt fund.	5%
194LBA(2)	Interest income received or receivable to a business trust from SPV and distribution to its unitholders.	5%
194LBA(2)	Dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.	10%
194LBA(3)	payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	30%
194LBB	Payment of certain income by an investment fund to a unitholder.	30%
194LBC	Income from investment in securitization fund	30%
194LC	Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.	5%
194LC	If interest is payable against long term bonds listed in recognized stock exchange in IFSC	4%
194LD	Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor	5%
195	Payment of any other sum to NRI : Income on investments made by NRI citizen;	20%
	Income by way of LTCG referred to in section 115E in the case of NRI;	12.5%
	Income by way of LTCG under section 112(1)(c)(iii);	12.5%
	Income by way of LTCG under section 112A;	12.5%
	Income by way of STCG under section 111A;	20%
	Any other income by way of LTCG;	12.5%
	Interest payable on money borrowed by the government or Indian concern in foreign currency;	20%
	Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy;	20%
	Income from royalty payable to the Indian concern, by government or Indian concern, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	20%
	Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy;	20%
	Any other income.	30%
196B	Income from units of an offshore fund.	10%
196B	Long-term Capital Gain on transfer of units an offshore fund.	12.5%
196C	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	12.5%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

TDS Rate Chart - For Domestic Company

Section	Particulars	Threshold Limit	TDS Rate
193	Interest on securities	Debentures- 5,000	10%
	a) any security of the Central or State Government;	Debentures- 5,000	10%
	b) any debentures (listed on a recognized stock exchange) issued by a company	8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000	10%
	c) interest on any other security	Other securities-10,000	10%
194	Payment of any dividend	10,000	10%
194A	Income in the form of interest (other than interest on securities).	Senior Citizens- 1 lakh	10%
194A		Others- 50,000	10%
194B	Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 for each transaction	30%
194BB	Income by way of horse race winnings	10,000 (Aggregate winnings during a financial year not single transaction)	30%
194C	Payment to contractor/sub-contractor.	Single transaction- 30,000	1%
	a) Individuals/HUF	Single transaction- 30,000	1%
	b) Others	Total transactions during FY- 1 lakh	2%
194D	Insurance commission	20,000	10%
194DA	Payment of any sum in respect of a life insurance policy. w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out.	1 lakh	2%
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194G	Payments such as commission, etc., on the sale of lottery tickets	20,000	2%
194H	Commission or brokerage	20,000	2%
194-I	Rent on	50,000 per month or part of the month	2%
	a) Plant and Machinery		2%
	b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.		10%
194-IA	Payment in consideration of transfer of certain immovable property other than agricultural land.	50 Lakhs	1%
194-IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10%
194J	Any sum paid by way of	30,000	10%
	(a) Fee for professional services;	30,000	10%
	(b) Remuneration/fee/commission to a director;	30,000	10%
	(c) For not carrying out any activity in relation to any business;	30,000	10%
	(d) For not sharing any know-how, patent, copyright etc.	30,000	10%
	(e) Fee for technical services	30,000	2%
	(f) Fees for technical services but payee is engaged in the business of operation of call centre	30,000	2%
194K	Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company	10,000	10%
194LA	Payment in respect of compensation on acquisition of certain immovable property.	5 lakhs	10%
194LBA(1)	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBB	Certain income paid in respect of units of an investment fund to a unitholder.	No limit	10%
194LBC	Income from investment in securitization fund	No limit	10%
194M	Certain payments by Individual/HUF	5 lakhs	2%
194N	Cash withdrawal exceeding a certain amount (limit- Rs 1 crore)	Co-operative society: 3 Crore	2%
	In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for any of the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs-
	For the amount more than Rs.20 lakh but up to Rs. 1 crore,	20 lakh to 1 crore	2%
	For the amount exceeding Rs. 1 crore	1 crore	5%
194O	For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	5 lakhs	1%
194Q	Payments to residents for the purchase of goods	50 Lakhs	0.10%
194R	Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000	20,000	10%
194S	Payment on transfer of Virtual Digital Asset	10,000	1%
194S	Specified persons: Individual or a HUF not having income from business or profession	50,000	1%

TDS Rate Chart- For Foreign Companies

Note: No threshold limit for TDS deduction when the amount is paid to foreign companies. TDS needs to be deducted irrespective of amount paid.

Section	Particulars	TDS Rate
194B	Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
194BB	Income by way of horse race winnings	30%
194E	Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
194G	Payments such as commission, etc., on the sale of lottery tickets	5%
194LB	Payment in respect of compensation on acquisition of certain immovable property.	5%
194LBA(3)	Interest income received or receivable to a business trust from SPV and distribution to its unitholders.	5%
	Dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.	10%
	Payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	40%
194LBB	Payment of certain income by an investment fund to a unitholder.	40%
194LBC	Income from investment in securitization fund	40%
194LC	Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.	5%
194LC	If interest is payable against long term bonds listed in recognized stock exchange in IFSC	4%
194LD	Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor	5%
195	Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii);	12.5%
	Income by way of LTCG under section 112A;	12.5%
	Income by way of STCG under section 111A;	20%
	Any other income by way of LTCG;	12.5%
	Interest payable on money borrowed by the government or Indian concern in foreign currency;	20%
	Income by way of royalty	20%
	Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy.	20%
	Any other income.	35%
196B	Income from units of an offshore fund.	10%
196B	Long-term Capital Gain on transfer of units an offshore fund.	12.5%
196C	Income from foreign currency bonds or GDR of an Indian company	10%
196C	LTCG foreign currency bonds or GDR of an Indian company	12.5%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

TDS Payment and Returns

It is necessary for the deductors to deduct TDS, pay it within due dates and furnish the statements of TDS deduction to the government on time.

TDS Payment

TDS needs to be deducted at the earliest of payment or credit in books of accounts for most of the payments.
It is very crucial that the deducted amount should be paid to the government within specified due dates, non- compliance of which would attract late payment interest.
TDS deducted needs to be paid within 7th of next month. However, for the month of march, the due date for TDS payment is 30th April.
On non-compliance of the TDS deduction, interest @1% per month needs to be deducted. Part month is also considered as a full month for reckoning number of months.
Whereas on non-compliance of the TDS payment, interest @1.5% per month needs to be deducted. Part month is also considered as a full month for reckoning number of months.

TDS Returns

For most of the TDS transactions, a quarterly statement needs to be filed, which contains details such as PAN of the payee, section in which TDS is deducted, rate, amount and quantum of transaction.
For sale of property, TDS payment and returns must be made using form 26QB within 30 days from the end of the month in which deduction is made.
TDS returns needs to be filed on the end of next month following the end of the quarter. However, for Jan-March quarter, the due date is 31st May.
On non-compliance, penalty can be levied by the assessing officer under section 271H.

Conclusion

Stay-informed, stay-tax smart! The knowledge of latest TDS rates is very crucial for deduction of TDS in just the right rates. And since the threshold limit of TDS deduction is revised for many sections in budget 2025, it is important to be updated as we might end up deducting TDS for transactions that falls below threshold limit. A better tax planning today might lead to a bigger tax saving tomorrow!

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Frequently Asked Questions

What are the responsibilities of the person deducting tax at source (TDS)?

Following are the basic responsibilities of the person who is liable to deduct TDS.

Obtain Tax Deduction Account Number (TAN) and mention the same in all the documents of TDS.
Deduct TDS at the applicable rate.
Deposit the tax deducted to the Government account (within the specified due dates).
Periodically file TDS statements, i.e., TDS return (within the specified due date).
Issue the TDS certificate (Form 16 or Form 16A) to the payee in respect of TDS deducted by him (within the specified due dates).

What to do if there is any mistake in deduction of Tax at Source (TDS)?

Sometimes due to ignorance or otherwise, the person may deduct TDS at the rates lower than the rates prescribed in the Act. Hence, it is important that before filing the TDS return, the rate at which TDS is deducted should be verified for every transaction. If any case is found where the TDS is shortly deducted, If such a case is found then the balance tax should immediately be deposited vide a new challan.

Whether TDS should be deducted on payment made to the Government?

No, tax should be deducted by any person from any sum payable to-

1. the Government, or

2. the Reserve Bank of India (RBI), or

3. a corporation established under a Central Act whose income is exempt from income-tax, or

4. a Mutual Fund specified under clause (23D) of section 10, where the amount is payable to it as interest or dividend in respect of any shares/securities owned by it or in which the specified mutual funds has full beneficial interest, or any other income accruing or arising to it.

Where can we check the amount of TDS credit available?

The amount of TDS credit can be checked under Form 26AS.

What are the key changes in TDS rates effective from April 2025?

TDS rates under section 194LBC - income from investments in securitization trust is changed from FY 2025-26. The TDS rate when the payee is a resident is 10%, regardless of whether the assessee is an individual, HUF, or any other entity. Previously, it was 25% when the payee is an individual or HUF, 30% for other entities.

What is interest rate for late payment of TDS?

When TDS is appropriately deducted but not paid to the government within specified due dates, late onterest at the rate of 1.5% per month needs to be paid. It is to be paid from the due date for TDS payment and the date in which TDS is actually paid to government.

What is the interest rate for late deduction of TDS?

Interest at the rate of 1% per month needs to be paid if the TDS is not deducted on time. Interest to be paid from the date in which TDS should be deducted to the date in which it is actually deducted.

When should we deduct TDS at higher rate?

When PAN is not duly furnished by the payee, a higher rate of TDS needs to be deducted. Deduction should be made at 20%. If the higher TDS rate for non furnishing of PAN is specifically mentioned in the section, rate as mentioned in that section should be considered.

What is the TDS rate for professional fees?

10% is the rate of TDS for professional services. In case of technical services 2% TDS needs to be deducted.

What is the rate of TDS for casual income?

30% TDS needs to be deducted for casual income.

What is the TDS rate for commission?

2% of TDS needs to be deducted for commission. If the commission is paid to a director as a part of his remuneration, 10% needs to be deducted u/s 194J.

What is the TDS rate for NRI?

When the amount is paid to an NRI, TDS rates is specifically mentioned for certain kinds of payments. TDS needs to be deducted u/s 195 if the nature of payment is not specifically covered under any TDS rates. Also, cess needs to be deducted in addition to TDS on making payment to NRI.

What is the TDS rate for sale of property?

1% TDS needs to be deducted for sale of property for residents. No TDS needs to be deducted if the payment made is up to Rs.50 Lakhs. For NRIs, TDS needs to be deducted under section 195 at 12.5% plus cess.

About the Author

CA Mohammed S Chokhawala

Content Writer

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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