Check the updated TDS rate chart for FY 2025-26 (AY 2026-27) with details on rates, sections, payment types, and thresholds for easy tax compliance.
Anisha Kumari | May 23, 2025 |
TDS Rates for FY 2025-26
A TDS (Tax Deducted at Source) rate chart is a simpler table that shows how much tax should be deducted prior to making different kinds of payments. These payments can be salary, interest, rent, professional fees or commissions.
The chart shows what percentage of the payment is required to be deducted as tax and sent to the government. The TDS rate depends on the type of payment you’re making and who is receiving it, like an individual, a company or a non-resident.
This chart is updated every year during the Union Budget, which helps people to follow the tax rules properly. TDS helps people to pay their taxes on time and avoid further penalties for not following the rules.
From April 1, 2025, the TDS limits have been increased by the government in Budget 2025.
| Section | TDS Limit up to March 31, 2025 | TDS Limit From April 1, 2025 |
|---|---|---|
| 193 – Interest on Securities | NIL | Rs. 10,000 |
| 194A – Interest other than interest on securities | (i) Rs. 50,000 (for senior citizens) (ii) Rs. 40,000 (for others – banks, co-op societies, post offices) (iii) Rs. 5,000 (in other cases) | (i) Rs. 1,00,000 (for senior citizens) (ii) Rs. 50,000 (for others – banks, co-op societies, post offices) (iii) Rs. 10,000 (in other cases) |
| 194 – Dividend (for an individual shareholder) | Rs. 5,000 | Rs. 10,000 |
| 194K – Income (from mutual fund units) | Rs. 5,000 | Rs. 10,000 |
| 194B – Lottery, crossword puzzle winnings | Aggregate exceeding Rs. 10,000 (in a financial year) | Rs. 10,000 (per transaction) |
| 194BB – Winnings (from a horse race) | Aggregate exceeding Rs. 10,000 (in a financial year) | Rs. 10,000 (per transaction) |
| 194D – Insurance Commission | Rs. 15,000 | Rs. 20,000 |
| 194G – Commission, prize, etc. (on lottery tickets) | Rs. 15,000 | Rs. 20,000 |
| 194H – Commission or brokerage | Rs. 15,000 | Rs. 20,000 |
| 194-1 – Rent | Rs. 2,40,000 (per financial year) | Rs. 50,000 (per month or part of the month) |
| 194J – Professional/technical fees | Rs. 30,000 | Rs. 50,000 |
| 194LA – Enhanced compensation income | Rs. 2,50,000 | Rs. 5,00,000 |
This will make things easier for people and reduce paperwork as no tax will be deducted on small payments.
The TDS rates for some payments have been reduced inthe budget 2024 to help businesses and make the tax filing process easier. A new chart shows the updated rates and their affected payments.
| Section | Current Rate | New Rate | Effective Date |
|---|---|---|---|
| Section 194H – Payment of commission or brokerage | 5% | 2% | October 1, 2024 |
| Section 194-IB – Payment of rent by certain individuals or HUF | 5% | 2% | October 1, 2024 |
| Section 194M – Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% | October 1, 2024 |
| Section 194-0 – Payment of certain sums by e-commerce operator to e-commerce participant | 1% | 0.1% | October 1, 2024 |
| Section 194F – Payments on account of repurchase of units by Mutual Fund or Unit Trust of India | Proposed to be omitted | — | October 1, 2024 |
This was effective from October 1, 2024.
Here is the TDS chart for the FY 2025-26. TDS rates on Salary, funds, interests and more are included in this.
| S.No. | Particulars | Section | Threshold limit | TDS Rate |
| 1 | Salaries | 192 | Old Tax Regime: If net taxable income is less than the maximum amount which is not chargeable to tax (i.e. Rs. 2,50,000 for an individual other than senior citizen, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens) New Tax Regime: If net taxable income is less than the maximum amount which is not chargeable to tax (i.e. Rs. 4,00,000) | New or Old Tax Regime Slabs plus surcharge and education cess |
| 2 | EPF- Premature Withdrawal | 192A | Rs. 50,000. | 10% |
| 3 | Interest on securities | 193 | Rs. 10,000. | 10% |
| 4 | Interest payable to resident individual/HUF on any debenture issued by public company | 193 | Rs. 10,000. | 10% |
| 5 | Dividend for an individual shareholder | 194 | Rs. 10,000. | 10% |
| 6 | Interest other than Interest on securities | 194A | Rs. 1,00,000/- for senior citizen | 10% |
| 7 | Interest other than Interest on securities | 194A | Rs. 50,000/- in case of others when payer is bank, cooperative society and post office | 10% |
| 8 | Interest other than Interest on securities | 194A | Rs. 10,000/- in other cases | 10% |
| 9 | Lottery / Cross Word Puzzles /Card game/gambling/betting of any form or nature | 194B | Rs. 10,000/- in respect of a single transaction | 30% |
| 10 | Winnings from horse races | 194BB | Rs. 10,000/- in respect of a single transaction | 30% |
| 11 | Contractor | 194C | a) If sum paid/credited to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid/credited to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year. | 1% when payment/credit to an individual or a Hindu undivided family 2% when payment/credit to any person other than an individual or a Hindu undivided family |
| 12 | Insurance commission paid or payable during the financial year to resident person | 194D | Rs. 20,000 | 5% if recipient is a resident (other than a company) 10% if recipient is a domestic company |
| 13 | Sum payable under a life insurance policy (including bonus) to a resident person | 194DA | Rs. 1,00,000 | 2% |
| 14 | Payments made out of deposits under NSS | 194EE | Rs. 2,500. In case of payment is received by legal heirs no tax shall be deducted. | 10% |
| 15 | Commission paid on sale of lottery tickets | 194G | Rs. 20,000 | 2% |
| 16 | Commission or brokerage | 194H | Rs. 20,000 Further no tax to be deducted from commission payable by BSNL/ MTNL to their Public call office franchisees. | 2% |
| 17 | Payment of rent in respect of any land or building, furniture or fittings or plant and machinery to a resident person | 194-I | Rs. 50,000/- per month or part of a month. No tax deductions shall be made under this section if rent is paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in 10(23FCA), owned directly by such business trust. | 2% on rent of plant and machinery 10% on rent of land or building or furniture or fitting |
| 18 | Payment of consideration for purchase of an immovable property (other than agriculture land) to a resident transferor | 194-IA | Rs. 50 Lakhs. | 1% |
| 19 | Payment of rent of any land or building or both by an individual/HUF [whose books of account are not required to be audited under section 44AB to resident person. | 194-IB | If amount of rent does not exceed Rs. 50,000 for a month or part of a month. | 2% |
| 20 | Payment of fee for professional services, fee for technical services, royalty, any sum referred to in section 28(va) to a resident person | 194J | Rs. 50,000. | 2% if payee is engaged in the business of operation of call center; 2% on sum paid or payable towards fees for technical services; 2% on sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; 10% on Any other sum |
| 21 | Income in respect of units payable to resident | 194K | Rs. 10,000. | 10% |
| 22 | Payment of compensation/enhanced compensation on compulsory acquisition of immovable property (other than Agricultural Land) to a resident person | 194LA | Rs. 5,00,000 | 10% |
| 23 | Sum payable to a person with respect to contractual work, commission, brokerage or for professional services | 194M | Rs. 50 Lakhs. | 2% |
| 24 | No TDS is required to be deducted on the amount withdrawn in cash from any account | 194N | If the aggregate amount withdrawn does not exceed Rs. 1 crore during the previous year. Note:(a) The threshold limit shall be Rs. 20 lakh if the person, has not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under 139(1) has expired.(b) The threshold limit of Rs. 1 crore is increased to Rs. 3 crores for the deduction of tax under Section 194N from the withdrawal of cash made by co-operative society. | 2% when cash deposit is more than 1Cr. * for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of: a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs but not exceeding Rs. 1 crore during the previous year; or b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year. |
| 25 | No TDS from payment to participants of e-commerce | 194-O | Rs. 5 Lakhs | 0.10% |
| 26 | No TDS on sum paid to seller for purchase of goods | 194Q | Rs. 50 Lakhs. | 0.10% |
| 27 | No TDS in case any benefit or perquisite is provided to a resident | 194R | Rs. 20,000 | 10% |
| 28 | No TDS from payment on transfer of Virtual Digital Asset | 194S | No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession. | 1% |
| 29 | Payments to partners of firms | 194T | Rs. 20,000 | 10% |
The details like section, type of payment, limit for tax deduction, and the TDS rate as per the 2025 tax rules are given in this chart. Hope you find the same helpful.
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