TDS Rate Chart for FY 2025-26 (AY 2026-27)
TDS stands for Tax Deducted at Source. It is a way for the government to collect taxes when income is paid. When making certain payments, like salary, rent, or professional fees, the payer must deduct a small portion of tax before paying the receiver. This deducted amount is then deposited with the government on behalf of the receiver.
TDS helps ensure taxes are collected in advance and reduces the chances of tax evasion. Below, you’ll find a TDS rate chart that covers different types of payments and the applicable tax rates.
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TDS Rates in India
The tables below show TDS rates for residents and non-residents as well as for domestic and foreign companies in India. If you are making a payment where TDS is applicable, it is your responsibility to deduct tax and deposit it with the government within the due date.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
Tax Deducted at Source (TDS) is a way for the government to collect tax at the time of payment. If you make certain payments like salary, interest, rent, or professional fees, you must deduct TDS before paying the receiver and deposit it with the government.
Here’s a simple and updated TDS rate chart for FY 2025-26 (AY 2026-27) that shows different payments, thresholds, and applicable tax rates.
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TDS Rates on Salaries & Withdrawals
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 192 | Salary payment | Basic exemption limit of the employee | As per income tax slab |
| 192A | Premature EPF withdrawal | 50,000 | 10% |
TDS Rates on Interest & Dividends
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 193 | Interest on securities (debentures) | 5,000 | 10% |
| 193 | Interest on savings bonds | 10,000 | 10% |
| 194 | Dividend payments | 10,000 | 10% |
| 194A | Bank/Post Office interest (Senior Citizens) | 1,00,000 | 10% |
TDS Rates on Lotteries, Games & Gambling
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194B | Lottery, card games, crossword puzzles | 10,000 per transaction | 30% |
| 194BA | Online gaming winnings | No limit | 30% |
| 194BB | Horse race winnings | 10,000 (aggregate in a year) | 30% |
TDS Rates on Contractors & Professionals
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194C | Contractor payments (Single) | 30,000 | 1% (Individuals/HUF) / 2% (Others) |
| 194C | Contractor payments (Aggregate) | 1,00,000 | 1% (Individuals/HUF) / 2% (Others) |
| 194J | Professional fees | 50,000 | 10% |
| 194J | Technical services | 30,000 | 2% |
TDS Rates on Rent & Property Transactions
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194-I | Rent (land/building/furniture) | 50,000/month | 10% |
| 194-I | Rent (plant & machinery) | 50,000/month | 2% |
| 194-IA | Property sale (other than agriculture land) | 50,00,000 | 1% |
| 194-IB | Rent paid by Individual/HUF (not covered under 194-I) | 50,000/month | 5% (before Oct 1, 2024) / 2% (after Oct 1, 2024) |
TDS on Commissions & Brokerage
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194D | Insurance commission | 20,000 | 10% |
| 194G | Lottery ticket commission | 20,000 | 5% (before Oct 1, 2024) / 2% (after Oct 1, 2024) |
| 194H | Brokerage/Commission | 20,000 | 5% (before Oct 1, 2024) / 2% (after Oct 1, 2024) |
TDS Rates for Non-Residents & Foreign Companies
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194E | Payments to non-resident sportsmen/associations | No limit | 20% |
| 194LB | Interest on infrastructure debt fund to Non-Residents | No limit | 5% |
| 194LC | Foreign currency loan interest | No limit | 5% (4% if listed in IFSC) |
| 194LBA | Rental/Dividend/Interest income of Business Trusts | No limit | 5%-30% |
| 195 | Payments to NRIs (LTCG, STCG, Royalty, Interest) | No limit | 10%-50% |
Special TDS Rates for Certain Payments
| Section | Payment Type | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 194M | Payments by Individual/HUF not covered under 194C, 194H, 194J | 50,00,000 | 5% (before Oct 1, 2024) / 2% (after Oct 1, 2024) |
| 194N | Cash withdrawals (for ITR filers) | 1 crore (3 crore for co-op societies) | 2% |
| 194N | Cash withdrawals (for non-filers of ITR) | 20 lakh – 1 crore | 2% |
| 194N | Cash withdrawals (for non-filers exceeding 1 crore) | 1 crore | 5% |
Higher TDS in Case of No PAN or Non-Filing of ITR
Section 206AA: If PAN is not available, TDS will be deducted at the specified rate or 20%, whichever is higher.
Section 206AB: If the recipient has not filed ITR for the last two years, the TDS will be twice the standard rate.
Key Terms Explained:
• “R” means Resident (Indian taxpayers).
• “NR” means Non-Resident (foreign individuals/entities).
• “FC” means Foreign Company.
Important Notes:
From FY 2025-26, the new tax regime has updated slab rates for individuals and Hindu Undivided Families (HUFs).
For Non-Residents (NR) and Foreign Companies (FC), an extra surcharge and health & education cess will be added on top of the TDS rates mentioned.
In the chart, “Resident” includes both individual taxpayers and Indian companies.
This TDS chart includes all changes introduced in Budget 2025, ensuring you have the latest updates.
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TDS Rate Chart for FY 2025-26
1. Salary & Withdrawals
• Salary Payment (Section 192) – As per normal tax slab rates
• Premature EPF Withdrawal (Section 192A) –
• With PAN – 10%
• Without PAN – 20%
2. Interest & Dividend
• Interest on securities (Section 193) – 10%
• Dividend Payment (Section 194) – 10%
• Bank/Post Office Deposit Interest (Section 194A) – 10%
3. Lottery, Games & Betting
• Lottery, Card Games, Crossword Puzzles, etc. (Section 194B) – 30%
• Online Gaming Winnings (Section 194BA) – 30%
• Horse Race Winnings (Section 194BB) – 30%
4. Payments to Contractors & Professionals
• Contractor Payments (Section 194C)
• Individuals/HUFs – 1%
• Others (Companies, Firms, etc.) – 2%
• Insurance Commission (Section 194D)
• For Domestic Companies – 10%
• For Others – 5%
• Life Insurance Payouts (Section 194DA) – 2%
5. Payments to Non-Residents
• Sportsmen/Sports Associations (Section 194E) – 20% + surcharge + 4% cess
• Interest on Infrastructure Debt Fund (Section 194LB) – 5% + surcharge + 4% cess
6. Rent Payments
• Plant & Machinery Rent (Section 194-Ia) – 2%
• Land, Building, Furniture, Fittings Rent (Section 194-Ib) – 10%
• Rent Paid by Individuals/HUFs (Section 194-IB) – 2%
7. Property Transactions
Sale of Immovable Property (except Agricultural Land) (Section 194-IA) – 1%
Joint Development Agreements (JDA) (Section 194-IC) – 10%
8. Professional Fees & Royalties (Section 194J)
• Professional Fees & Director Fees – 10%
• Technical Service Fees – 2%
• Royalty for Cinematographic Films – 2%
• Royalty for Copyrights, Patents, etc. – 10%
9. Mutual Funds & Compensation
• Mutual Fund Dividends (Section 194K) – 10%
• Compensation for Property Acquisition (Section 194LA) – 10%
10. Payments for Business & Digital Transactions
• E-commerce Transactions (Section 194O) – 0.1%
• Payments for Purchase of Goods (Section 194Q) – 0.1%
• Perquisites & Benefits to Businesses (Section 194R) – 10%
11. Virtual Digital Assets (Crypto, NFTs, etc.)
• Sale of Virtual Digital Assets (Section 194S) – 1%
12. TDS on Non-Resident Income (Section 195)
• Investments by NRIs – 20%
• Long-Term Capital Gains (LTCG) as per Section 115E – 10%
• LTCG under Section 112, 112A – 10%
• Short-Term Capital Gains (STCG) under Section 111A – 15%
• Other LTCG – 20%
• Interest on Foreign Loans – 20%
• Royalty Payments (before April 1, 1976) – 50%
• Royalty Payments (after April 1, 1976) – 10%
• Technical Service Fees (before April 1, 1976) – 50%
• Technical Service Fees (after April 1, 1976) – 10%
Other Non-Resident Income –
• Individuals/Non-Corporates – 30%
• Foreign Companies – 40%
13. Cash Withdrawals (Section 194N)
• If ITR filed in the last 3 years and withdrawal is over ₹3 crore – 2%
If ITR NOT filed in last 3 years:
• ₹20 lakh to ₹3 crore – 2%
• Above ₹3 crore – 5%
14. Special Provisions for Non-Filers (Section 206AB)
If a person hasn’t filed ITR, the TDS rate will be:
• 2x the normal rate OR
• 5% (whichever is higher)
15. Higher TDS Rate for No PAN (Section 206AA)
If PAN is not available, TDS will be either the normal rate or 20% (whichever is higher)
TDS Rates for FY 2025-26
TDS Rates for Non-Resident Individuals (Other than Companies)
• Salary & EPF Withdrawals
Salary Payment (Section 192) – As per tax slab rates
Premature EPF Withdrawal (Section 192A) – 10%
• Lotteries, Games & Betting
Lottery, Crossword Puzzles, Card Games, etc. (Section 194B) – 30%
Horse Race Winnings (Section 194BB) – 30%
• Payments to Non-Residents
Payments to Non-Resident Sportsmen & Entertainers (Section 194E) – 20%
National Savings Scheme (NSS) Withdrawals (Section 194EE) – 10%
Repurchase of UTI or Mutual Fund Units (Section 194F) – 20%
Commission on Lottery Sales (Section 194G) – 5%
• Investment & Business Income
Interest/Dividend Payments by Business Trusts (Section 194LBA(2))
Interest from SPV to Business Trust & Distribution to Unitholders – 5%
Dividend from SPV to Business Trust & Distribution to Unitholders – 10%
Rental Income from Real Estate (Section 194LBA(3)) – 30%
Income from Investment Funds (Section 194LBB) – 30%
Securitization Fund Income (Section 194LBC) – 30%
Interest on Foreign Loans to Indian Companies (Section 194LC) – 5%
Interest on Bonds to Foreign Investors (Section 194LD) – 5%
Capital Gains & Royalties (Section 195)
Investment Income by NRIs – 20%
Long-Term Capital Gains (LTCG) (Section 115E, 112, 112A) – 10%
Short-Term Capital Gains (STCG) (Section 111A) – 15%
Other LTCG – 20%
Interest on Foreign Loans to Government/Indian Company – 20%
Royalty from Copyrights or Software (Section 115A) – 10%
Royalty & Technical Fees for Industrial Policy Agreements – 10%
Any Other Income – 30%
• Foreign Investments
Income from Offshore Funds (Section 196B) – 10%
Income from Foreign Currency Bonds or GDRs (Section 196C) – 10%
Other Foreign Institutional Investor Income (Section 196D) – 20%
TDS Rates for Domestic Companies
• Salary & EPF Withdrawals
Salary Payment (Section 192) – As per tax slab rates
Premature EPF Withdrawal (Section 192A) – 10%
• Interest & Dividends
Interest on Government & Corporate Securities (Section 193) – 10%
Dividend Payment (Section 194) 10%
Bank/Post Office Interest (Section 194A) – 10%
• Lotteries, Betting & Games
Lottery, Crossword, Card Games, etc. (Section 194B) – 30%
Horse Race Winnings (Section 194BB) – 30%
• Payments to Contractors & Professionals
Payments to Contractors (Section 194C)
Individuals/HUFs – 1%
Others – 2%
Insurance Commission (Section 194D) – 10%
Life Insurance Payouts (Section 194DA) – 5%
• Business Payments & Brokerage
National Savings Scheme Withdrawals (Section 194EE) – 10%
Repurchase of UTI or Mutual Fund Units (Section 194F) – 20%
Lottery Commission (Section 194G) – 5%
Commission or Brokerage (Section 194H) – 5%
Rent Payments (Section 194-I)
Plant & Machinery – 2%
Land, Building, Furniture, Fittings – 10%
• Property & Real Estate
Sale of Immovable Property (Section 194-IA) – 1%
Joint Development Agreement (JDA) (Section 194-IC) – 10%
• Professional Fees & Royalties
Professional Fees & Director Fees (Section 194J) – 10%
Technical Service Fees – 2%
Royalty for Copyrights, Patents, etc. – 10%
Royalty for Cinematographic Films – 2%
Call Center Service Fees – 2%
• Mutual Funds & Compensation
Mutual Fund Income (Section 194K) – 10%
Compensation for Property Acquisition (Section 194LA) – 10%
Income from Business Trusts (Section 194LBA(1)) – 10%
Income from Investment Funds (Section 194LBB) – 10%
Securitization Fund Income (Section 194LBC) – 10%
• High-Value Transactions
Payments above ₹50 Lakh by Individuals/HUFs (Section 194M) – 5%
Cash Withdrawals (Section 194N)
Above ₹1 Crore – 2%
Above ₹20 Lakh (if no ITR filed in 3 years)
₹20 Lakh to ₹1 Crore – 2%
Above ₹1 Crore – 5%
• E-Commerce & Digital Transactions
E-commerce Sales by Sellers (Section 194O) – 1%
Purchase of Goods Over ₹50 Lakh (Section 194Q) – 0.1%
Any Other Income – 10%
TDS Rates for Foreign Companies in India
If a company is not a domestic company (i.e., a foreign company), different TDS rates apply when they earn income from India. Below is a breakdown of the tax deducted at source (TDS) on various types of income.
High-Tax Categories (Flat 30-40% TDS)
Lottery winnings, card games, crossword puzzles, and other similar games – 30%
Horse race winnings – 30%
Rental income from real estate assets owned by a business trust – 40%
Income paid by an investment fund to a unitholder – 40%
Income from investments in securitization funds – 40%
Payments to Non-Residents (Sports, Commission, etc.)
Payments to non-resident sportsmen, entertainers, or sports associations – 20%
Commission or payments for selling lottery tickets – 5%
• Payments Related to Property & Business Trusts
Compensation for acquiring certain immovable property – 5%
Interest or dividend received from a Special Purpose Vehicle (SPV) by a business trust – 5% / 10%
Interest on foreign loans borrowed by Indian companies/business trusts – 5%
(If the interest is on long-term bonds listed in an IFSC stock exchange, the rate drops to 4%.)
• Payments to Foreign Investors & Other Incomes
Interest on rupee-denominated bonds paid to Foreign Institutional Investors (FIIs) or Qualified Foreign Investors (QFIs) – 5%
Long-term capital gains (LTCG) under Section 112 & 112A – 10%
Short-term capital gains (STCG) under Section 111A – 15%
Royalty income paid for copyright, software, or industrial agreements – 10% / 20%
Technical service fees paid under industrial agreements – 10% / 20%
Any other income not specifically mentioned – 40% / 50% (depending on category)
• TDS on Offshore & Foreign Investments
Income (including LTCG) from offshore mutual fund units – 10%
Income (including LTCG) from foreign currency bonds or Global Depository Receipts (GDRs) of Indian companies – 10%
Income earned by Foreign Institutional Investors (FIIs) – except dividends & capital gains – 20%
Conclusion
Understanding TDS rates is crucial for accurate tax compliance and financial planning. By following the latest TDS provisions, businesses and individuals can avoid penalties and ensure smooth tax filing.
Why Choose E Accountax Manager?
At E Accountax Manager, we simplify tax compliance with expert guidance and up-to-date financial insights. Whether you’re an individual, MSME, or corporate, our virtual CFO services help you manage taxation seamlessly. Get accurate, hassle-free tax solutions with our professional support.
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FAQs
1. What are the duties of the person responsible for deducting TDS?
If you are required to deduct TDS, here’s what you must do:
✅ Get a TAN (Tax Deduction Account Number) – You need this number for all TDS-related work.
✅ Deduct TDS at the correct rate – Ensure you apply the right rate while making payments.
✅ Deposit the deducted TDS – Send the deducted tax to the government before the deadline.
✅ File TDS returns on time – Submit TDS statements as per the due dates.
✅ Issue TDS certificates – Give Form 16 (for salary payments) or Form 16A (for non-salary payments) to the payee after deducting TDS.
2. What if there’s a mistake in TDS deduction?
Mistakes happen! If TDS is deducted at a lower rate than required, verify all transactions before filing the TDS return. If any short deduction is found, pay the balance amount immediately using a new challan to avoid penalties or interest.
3. Do I need to deduct TDS on payments made to the Government?
No, TDS does not apply when making payments to:
❌ The Government
❌ The Reserve Bank of India (RBI)
❌ A government corporation whose income is exempt from tax
❌ A specified Mutual Fund (on interest or dividend income)
4. How can I check my TDS credit?
You can check your TDS credit in Form 26AS. It shows all the tax deducted on your behalf and helps you verify if the correct amount has been credited to your account.
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