TDS Rate Chart for FY 2025-2026 (AY 2026-2027)
- by legalbabu
- Updated Mar 31, 2025
- 3 mins read
Tax Deducted at Source (TDS) is a mechanism where tax is deducted at the time of making specified payments such as salaries, interest, rent, and professional fees. The deductor (payer) is responsible for withholding tax before making the payment and depositing it with the government. This ensures tax collection at the source and prevents tax evasion.
The TDS Rate Chart for FY 2025-26 (AY 2026-27) outlines the applicable rates and threshold limits for different types of payments, ensuring compliance with tax regulations. Below is the updated TDS rate chart for the financial year, covering various payments and deductions.
| Section | Nature of Payment | Threshold Limit | Rates |
| 192 | Salay Payment | INR 2, 50,000 | Slab Rates |
| 192A | Premature Withdrawal from EPF | INR 50,000 | 10% |
| 193 | Interest on Securities (including Listed Debentures) |
INR 10,000 | 10% |
| 194 | Dividend | INR 10,000 | 10% |
| 194A | Interest (Other than on Securities) by a Banking Company/ Post Office | Senior citizen : Rs. 1,00,000 p.a. Others : Rs. 50,000 p.a. |
10% |
| 194B | Winning from Lotteries & Cross Word Puzzles, Card games and other games on any sort (Other than winning from online Games) |
Rs. 10,000 p.a. in respect of a single transaction (aggregate earlier) | 30% |
| 194BA | Winning From Online Games | NO LIMIT | 30% |
| 194BB | Winnings from horse races | Rs. 10,000 p.a. in respect of a single transaction (aggregate earlier) |
30% |
| 194C | Payment to contractor/sub-contractor | Rs.30,000 Single Transaction (or) |
Individual/HUF : 1% |
| Rs. 1,00,000 Aggregate of transactions. |
Others : 2% | ||
| 194H | *Commission/Brokerage | Rs. 20,000 | 2% |
| 194-I(a) | *Rent of Plant / Machinery | Rs. 50,000 pm ( i.e. 6L p.a.) | 2% |
| 194-I(b) | Rent of Land or building or furniture or fitting |
Rs. 50,000 pm ( i.e. 6L p.a.) | 10% |
| 194-IA | Payment or transfer of immovable property (other than rural agriculture land) |
Rs. 50,00,000 & above | 1% |
| 194-IB | Rent payable by an individual or HUF not liable to tax audit |
Rs.50,000 per month ( i.e. 6L p.a.) |
2% |
| 194J | *Fees for Professional / Technical Services / Royalty / Remuneration to director | Rs. 50,000 p.a. (Rs. NIL in case of Directors) |
2% (For Call Centre, Fees for Technical Services & Royalty in case of cinematograh films) _______________ 10% (For Professional Services, Director remuneration and other royalty |
| 194M | Payment to resident contractors and professionals or by way of commission / brokerage (other than those who covered u/s 194C or 194J) by individual/HUF not liable for tax audit. |
Rs. 50 lacs | 2% |
| 194N | Aggregate Cash withdrawal from Bank / Co-operative bank / Post office etc. (* by persons who have not filed ITR for 3 previous years immediately preceding the previous year and the due date for filing ITR under section 139(1) has expired) |
Rs. 20 lakhs | Cash withdrawal betwee n Rs. 20 lakhs to Rs. 1 crore : 2% ________________ Cash withdrawal above Rs. 1 crore : 5% |
| 194N | Aggregate Cash withdrawal from Bank, Post office etc. in case of others. |
Rs. 1 crore | 2% |
| 194-O | Payment by E-commerce operator to e- commerce participants |
Individual /HUF : Rs. 5 Lakh |
0.10% |
| Others : No limit. | |||
| 194Q | Payment for purchase of goods | 50 Lakhs | 0.1% (on the value above Rs. 50 lakhs) |
| 194T | TDS on payment of salary, remuneration, interest, bonus, or commission by partnership firm to partners |
Rs. 20,000 | 10% |
| 206AA | TDS rate in case of Non availability of PAN | – | Higher of- Rates in force Or 20% |
Senior citizens are exempt from filing ITR if all the following conditions are met:
- The individual is a resident of India.
- They are 75 years or older in the relevant financial year.
- Their income consists only of a pension and interest earned from the same specified bank where they receive the pension.
- They have submitted a declaration in Form 12BBA to the bank.
- The specified bank computes total income, applies eligible deductions under Chapter VI-A and rebate under Section 87A, and deducts tax accordingly.
- As per Notification No. S.O. 3595(E) dated 2nd Sept 2021, specified banks include scheduled banks appointed as RBI agents under Section 45 of the RBI Act, covering most major public, private, and foreign banks.
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TDS Rate Chart for FY 2025-2026 (AY 2026-2027)
Tax Deducted at Source (TDS) is a mechanism where tax is deducted at the time
