Complete TDS rates for all sections — FY 2025-26 / Tax Year 2026-27
| Section | Nature of Payment | Rate (Ind.) | Rate (Co.) | Threshold | Without PAN | New Section (Act 2025) |
|---|---|---|---|---|---|---|
| 192 | Salary | As per slab | N/A | Basic exemption limit | 30% | 392 |
| 192A | Premature EPF Withdrawal | 10% | N/A | ₹50,000 | 34.608% | — |
| 194 | Dividend from domestic company | 10% | 10% | ₹5,000 per year | 20% | 394 |
| 194A | Interest (other than securities) | 10% | 10% | ₹40,000 (₹50,000 for senior citizens) per year | 20% | 393 |
| 194B | Lottery / Crossword Puzzle / Games | 30% | 30% | ₹10,000 per prize | 30% | 394A |
| 194BB | Winnings from Horse Race | 30% | 30% | ₹10,000 per race | 30% | — |
| 194C | Payments to Contractors / Sub-contractors | 1% | 2% | ₹30,000 per payment; ₹1,00,000 per year aggregate | 20% | 394B |
| 194D | Insurance Commission | 5% | 10% | ₹15,000 per year | 20% | — |
| 194DA | Life Insurance Policy Maturity | 5% | 5% | ₹1,00,000 per year | 20% | — |
| 194E | Non-Resident Sportsmen / Entertainment | 20% | 20% | No threshold | 20% | — |
| 194G | Commission on Lottery Tickets | 5% | 5% | ₹15,000 per year | 20% | — |
| 194H | Commission / Brokerage | 5% | 5% | ₹15,000 per year | 20% | 394G |
| 194I | Rent (Plant/Machinery) | 2% | 2% | ₹2,40,000 per year | 20% | 394H |
| 194I | Rent (Land/Building/Furniture) | 10% | 10% | ₹2,40,000 per year | 20% | 394H |
| 194IA | Purchase of Immovable Property | 1% | 1% | ₹50,00,000 | 20% | — |
| 194IB | Rent by Individuals / HUF | 5% | N/A | ₹50,000 per month | 20% | — |
| 194J | Professional / Technical Services | 10% | 10% | ₹30,000 per year | 20% | 394I |
| 194J | Call Centre / Technical Royalty | 2% | 2% | ₹30,000 per year | 20% | 394I |
| 194K | Income from Mutual Fund Units | 10% | 10% | ₹5,000 per year | 20% | 394J |
| 194LA | Compensation on Acquisition of Land | 10% | 10% | ₹2,50,000 per year | 20% | — |
| 194N | Cash Withdrawal from Bank | 2% | 2% | ₹1 crore (₹20 lakh if no ITR filed for 3 years) | 20% | 394L |
| 194O | E-Commerce / Online Platform Sales | 1% | 1% | ₹5,00,000 per year (PAN/Aadhaar linked seller) | 5% | 394M |
| 194P | TDS on Specified Senior Citizens | As per slab | N/A | Age 75+ with only pension/bank interest | As per slab | — |
| 194Q | Purchase of Goods | 0.1% | 0.1% | ₹50,00,000 per year from a single seller | 5% | 394N |
| 194R | Benefits / Perquisites from Business | 10% | 10% | ₹20,000 per year | 20% | — |
| 194S | Transfer of Virtual Digital Assets (VDA / Crypto) | 1% | 1% | ₹50,000/year (specified persons); ₹10,000 others | 20% | 394P |
| 194T | Payments to Partners of Firm | 10% | N/A | ₹20,000 per year | 20% | 394Q |
If the payee doesn't provide PAN, TDS is deducted at the higher rate (usually 20% or more). Always furnish your PAN to avoid excess TDS deduction.
Submit Form 15G (below 60 years) or Form 15H (senior citizens) to your bank if your total income is below the taxable limit. This prevents TDS on FD/savings interest.
TDS returns must be filed quarterly: Q1 by July 31, Q2 by October 31, Q3 by January 31, Q4 by May 31. TDS must be deposited by the 7th of the following month (30th April for March).
Effective FY 2025-26, firms must deduct 10% TDS on salary, bonus, commission, or interest paid to partners exceeding ₹20,000 per year. This is a new compliance requirement.
Tax Deducted at Source (TDS) is a system where the person making a payment deducts tax at a prescribed rate before remitting the balance to the recipient. The deducted tax is deposited with the government and credited to the recipient's tax account. TDS ensures a steady flow of tax revenue and widens the tax base by collecting tax at the point of income generation.
Any person (individual, HUF, company, firm, trust, etc.) making specified payments is required to deduct TDS if the payment exceeds the threshold for that section. However, individuals and HUFs not subject to tax audit are generally exempt from TDS obligations, except for rent payments above ₹50,000/month (Section 194IB) and property purchases above ₹50 lakh (Section 194IA).
The Income Tax Act 2025 (effective April 1, 2026) renumbers all TDS sections but keeps the rates and thresholds the same. For example, Section 194A (interest) maps to Section 393, and Section 194J (professional fees) maps to Section 394I. The "New Section" column in the table above shows the corresponding section under the new Act. Use our Section Mapper for complete mapping.
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