TDS Rate Chart for FY 2025-26 (AY 2026-27): Complete Guide with Latest Updates TDS Rate chart

Are you searching for the TDS rate chart FY 2025-26 or TDS rates 2025? Understanding Tax Deducted at Source (TDS) is essential for individuals, businesses, and professionals to ensure compliance and avoid penalties. In this comprehensive guide, we’ll break down the latest TDS rate chart for FY 2025-26, covering all key sections, threshold limits, and recent Budget 2025 changes. Whether you’re a salaried employee, freelancer, or business owner, this will help you navigate TDS deductions effortlessly.

What is TDS?

TDS, short for Tax Deducted at Source, involves deducting tax directly from specific payments like salaries, interest earnings, rental income, or fees for services before the money reaches the recipient. The entity making the payment handles the deduction and must transfer it to the government. Rates depend on factors such as the payment category, the payee’s status (resident or non-resident), and total amounts involved. Accurate deduction, prompt deposit, and proper return filing are key to steering clear of fines.

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
192	Salary Payments	Basic exemption limit	As per Slab Rates	As per Slab Rates
192A	Premature or Early withdrawal from EPF	Rs. 50,000	10%	10%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
193	Interest on Securities	Rs. 10,000	10%	10%
194	Dividends	Rs. 10,000	10%	10%
194A	Interest on bank/post office deposits	Rs. 50,000	10%	10%
	Interest on bank/post office deposits (Senior Citizen)	Rs. 1,00,000	10%	10%
194A	Interest (Others)	Rs. 10,000	10%	10%
194K	Payment of dividend by mutual Funds	Rs. 10,000	10%	10%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
194	Lottery, game shows, gambling winnings	Rs. 10,000	30%	30%
194BA	Online gaming winnings	–	30%	30%
194BB	Winnings from horse races	Rs. 10,000 (Total winnings during a financial year)	30%	30%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
194C	Payment to contractors or sub-contractors	Rs. 30,000 (Single Transaction) or Rs. 1 lakh (In a FY)	1%	2%
194D	Insurance Commission	Rs. 20,000	2%	10%
194DA	Payment received – Life insurance Policy	Rs. 1 lakh	2%	2%
194EE	Payment received – National Savings Scheme (NSS)	Rs. 2,500	10%	10%
194G	Commission on Lottery	Rs. 20,000	2%	2%
194H	Commission/Brokerage	Rs. 20,000	2%	2%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
194J (a)	Fees for Technical Services, Call Center, Royalty, Distribution / Exhibition of Cinematography Films, etc.	Rs. 50,000	2%	2%
194J (b)	Fees – All other Professional Services (e.g CA, CS, Lawyer)	Rs. 50,000	10%	10%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
194I(a)	Rent for Plant & Machinery	Rs. 50,000	2%	2%
194I(b)	Rent of Land Building & Furniture	Rs. 50,000	10%	10%
194IA	Transfer of immovable property other than agricultural land	Rs. 50 lakh	1%	1%
194IB	Rent by individuals/HUFs (not under 194I)	Rs. 50,000 pm	2%	2%
194IC	Joint development agreement payments	No Limit	10%	10%

Section	Nature of Transaction	Threshold Limit (Rs)	TDS Rate (%) – Indv/HUF	TDS Rate (%) – Others
194LA	Compensation for immovable property transfer (non-agricultural)	Rs. 5 lakh	10%	10%
194LB	Interest from infrastructure debt funds (to non-residents)	–	5%	5%
194LBA	Income from business trust units	–	10%	10%
194LBB	Investment fund income	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Securitization trust investment income	–	10% for residents, 40% for non-residents, 10% for individual & HUF	10% for residents, 40% for non-residents, 10% for individual & HUF
194M	Individual/HUF payments for contracts, brokerage, or fees	Rs. 50 lakh	2%	2%
194N	Cash withdrawals over 1 crore from All banks/co-ops	1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society)	2%	2%
194N	Cash withdrawals over 1 crore from All banks/co-ops	20 Lakh (if ITR not filed for previous 3 years)	2% (Rs. 20 Lakh – 1 Crore) 5% (Rs. 1 Crore and above)	2% (Rs. 20 Lakh – 1 Crore) 5% (Rs. 1 Crore and above)
194O	TDS on e-commerce participants	Rs. 5 lakh	0.1%	0.1%
194P	TDS for senior citizens (75+) with salary/interest (no ITR needed)	–	Slab Rates	NA
194Q	Goods purchases above 50 lakh	Rs. 50 lakh	0.1%	0.1%
194R	Benefits or perquisites of business or profession	Rs. 20,000	10%	10%
194S	Virtual digital asset transfers (non-specified persons)	Rs. 10,000	1%	1%
194S	Virtual digital asset transfers (specified persons)	Rs. 50,000	1%	1%
194T	Partnership firm payments to partners	Rs. 20,000	10%	10%

Important Note:

If PAN details are missing, apply a flat 20% rate (if lower than the standard rate).

TDS Rates Applicable to Foreign Entities

Section	Particulars	TDS Rate
194B	Lottery, card game, puzzle, or similar winnings (no TDS up to 10,000 per transaction)	30%
194BB	Horse race prizes (no TDS up to 10,000 per transaction)	30%
194E	Payments to non-resident athletes, entertainers, or sports groups	20%
194G	Lottery ticket sales commissions (no TDS up to 20,000)	2%
194LB	Immovable property acquisition compensation	5%
194LBA(3)	Business trust interest from SPV to unit holders	5%
	Dividend from SPV where trust holds full shares (except govt-required) to unit holders	10%
	Rental income from trust-owned real estate to unit holders	40%
194LBB	Investment fund income to unit holders	40%
194LBC	Securitization fund income	40%
194LC	Foreign currency loan interest to Indian firms/trusts	5%
	Interest on listed long-term bonds in IFSC	4%
194LD	Rupee bond interest to FIIs or QFIs (Qualified Foreign Investor)	5%
195	Payment of any other sum, such as- Income by way of LTCG under section 112(1)(c)(iii);	12.5%
	Income by way of LTCG under section 112A;	12.5%
	Income by way of STCG under section 111A;	20%
	Any other income by way of LTCG;	12.5%
	Govt/Indian concern foreign currency interest	20%
	Income by way of royalty	20%
	Technical fees related to industrial policy agreements	20%
	Any other income.	35%
196B	Income from units of an offshore fund.	10%
196B	Long-term Capital Gain on transfer of units an offshore fund.	12.5%
196C	Income from foreign currency bonds or GDR of an Indian company	10%
196C	LTCG foreign currency bonds or GDR of an Indian company	12.5%
196D	Income from Foreign Institutional Investors.	20%

Budget 2025: Key TDS Changes for FY 2025-26

Section	Till 31st March, 2025	From 1st April, 2025
193 – Interest on securities	NIL	10,000
194A – Interest other than Interest on securities	When payer is bank, cooperative society or post office: (i) 50,000/- for senior citizen; (ii) 40,000/- in case of others. In case the payer is others: (i) 5,000/-	When payer is bank, cooperative society or post office: (i) 1 lakh for senior citizen (ii) 50,000/- in case of others. In case the payer is others: (i) 10,000/-
194 – Dividend, for an individual shareholder	5,000	10,000
194K – Income in respect of units of a mutual fund	5,000	10,000
194B – Winnings from lottery, crossword puzzle Etc.	Aggregate of amounts exceeding 10,000/- during the financial year	10,000/- in respect of a single transaction
194BB – Winnings from horse race	Aggregate of amounts exceeding 10,000/- during the financial year	10,000/- in respect of a single transaction
194D – Insurance commission	15,000	20,000
194G – Income by way of commission, prize etc. on lottery tickets	15,000	20,000
194H – Commission or brokerage	15,000	20,000
194-I – Rent	2,40,000 (in a financial year)	50,000 (in a month)
194J – Fee for professional or technical services	30,000	50,000
194LA – Income by way of enhanced compensation	2,50,000	5,00,000

Conclusion

Keeping tabs on the TDS rate chart 2025 empowers better financial decisions and compliance. With these updates, including relaxed thresholds, you can optimize deductions and potentially save more. Remember, informed planning today means stronger savings tomorrow—consult a tax advisor for tailored guidance.