TDS Rates for AY 2025-26 released by IT Department

TDS and TCS are two of the government’s main sources of revenue. And, it is critical for businesses to make timely tax payments in order to avoid penalties and stay compliant.

TDS, or Tax Deducted at Source, is an income tax levied on certain payments such as rent, salary, commission, interest, and professional fees. Tax deduction at source (TDS) indicates that the payer collects tax on specified income while crediting/paying the payee and deposits it with the government on the payee’s behalf. This mechanism was implemented to reduce tax evasion by the payee.

Various TDS rates apply to resident and non-resident payments, as well as domestic and foreign firms in India. Any individual who pays income is required to deduct tax at the source and deposit TDS by the due date.

In the Union Budget 2024, the government proposed changes to the TDS/ TCS rates and other changes.

The Income Tax Department has released the Rates for Tax Deducted at Source (TDS) for Assessment year 2025-26. These revised rates that were proposed in the Budget 2024, may benefit the taxpayers as some rates are reduced below from its previous rates in order to ease compliance.

For TDS Rates Download PDF Given Below: