Income Tax Update: CBDT issued Revised TDS Rate Chart for AY 2025-26

The Central Board of Direct Taxes (CBDT) has released the revised Income Tax TDS (Tax Deducted at Source) rate chart for the Assessment Year 2025-26, which applies to the financial year 2024-25. The current Budget amends the TDS rates for different sections of the Income Tax Act for both residents and non-residents.

TDS (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) means that the payer collects tax on defined income while crediting or paying the payee and deposits it with the government on their behalf. This approach aims to reduce tax evasion by the payee.

TDS rates vary for resident and non-resident payments, as well as domestic and foreign enterprises in India. Individuals who pay income must deduct tax at the source and deposit TDS before the due date.

TDS and TCS are the government’s primary sources of revenue. Furthermore, businesses must pay their taxes on time to avoid fines and remain compliant.

Tax Department released this revised Rate Chart for Tax Deducted at Source (TDS) for Assessment year 2025-26 and these revised rates may benefit the taxpayers as some rates are reduced below from its previous rates in order to ease compliance.

For Revised TDS Rate Chart Download PDF Given Below: