TDS Rate Chart for FY 2025-26 ( AY 2026-2027)
(Effective from April 1, 2025)
The Finance Bill 2025 introduces significant changes to TDS rates and thresholds, aiming to simplify compliance and reduce the tax burden on individuals and businesses. Below is the updated TDS rate chart for FY 2025-26, incorporating the proposed amendments:
- TDS Rates for Resident Individuals and Entities
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate (%) |
| 192 | Payment of salary | Basic exemption limit | Normal Slab Rate |
| 192A | Premature EPF withdrawal | 50,000 | 10% |
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Dividend | 10,000 | 10% |
| 194A | Interest other than securities | Senior Citizens: 1,00,000; Others: 50,000 (bank/PO/co-op society); 10,000 (other cases) | 10% |
| 194B | Lottery winnings, crossword puzzles, etc. | 10,000 (per transaction) | 30% |
| 194BA | Winnings from online games | No threshold | 30% |
| 194BB | Winnings from horse races | 10,000 (per transaction) | 30% |
| 194C | Payment to contractors | Single: 30,000; Aggregate: 1,00,000 | 1% (HUF/Individuals); 2% (Others) |
| 194D | Insurance commission | 20,000 | 5% (till 30-09-2024); 2% (w.e.f 01-10-2024) |
| 194DA | Life insurance pay-out | 1,00,000 | 5% (till 30-09-2024); 2% (w.e.f 01-10-2024) |
| 194G | Commission on lottery tickets | 20,000 | 5% (till 30-09-2024); 2% (w.e.f 01-10-2024) |
| 194H | Commission or brokerage | 20,000 | 5% (till 30-09-2024); 2% (w.e.f 01-10-2024) |
| 194-I | Rent | 50,000 per month | 2% (Plant & Machinery); 10% (Land/Building) |
| 194J | Professional/technical fees | 50,000 | 10% |
| 194LA | Compensation on immovable property acquisition | 5,00,000 | 10% |
| 194N | Cash withdrawal | 1 crore (3 crore for co-op societies) | 2% (20 lakhs-1 crore); 5% (>1 crore) |
| 194-O | E-commerce transactions | 5,00,000 | 1% (till 30-09-2024); 0.1% (w.e.f 01-10-2024) |
| 194Q | Purchase of goods | 50,00,000 | 0.1% |
| 194S | Transfer of virtual digital assets | 10,000 (non-specified persons); 50,000 (specified persons) | 1% |
- TDS Rates for Non-Residents
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate (%) |
| 194E | Payment to non-resident sportsmen/sports associations | No threshold | 20% |
| 194LB | Interest on infrastructure debt fund | No threshold | 5% |
| 194LC | Interest on foreign currency loans | No threshold | 5% (4% for IFSC-listed bonds) |
| 195 | Other payments to non-residents | No threshold | 20% (royalty, technical fees); 10% (LTCG) |
- Key Changes in TDS Thresholds and Rates
- Section 193 (Interest on securities): Threshold increased from ₹5,000 to ₹10,000 24.
- Section 194A (Interest other than securities): Threshold for senior citizens doubled to ₹1,00,000; for others, increased to ₹50,000 (bank/PO/co-op society) and ₹10,000 (other cases) 211.
- Section 194B (Lottery winnings): TDS now applicable on single transactions exceeding ₹10,000, instead of aggregate amounts 24.
- Section 194-I (Rent): Threshold increased to ₹50,000 per month from ₹2,40,000 annually 211.
- Section 194J (Professional fees): Threshold raised from ₹30,000 to ₹50,000 211.
- Reduced TDS Rates (Effective from October 1, 2024)
- Section 194G (Lottery commission): Reduced from 5% to 2%.
- Section 194H (Brokerage): Reduced from 5% to 2%.
- Section 194-O (E-commerce): Reduced from 1% to 0.1%Â 1617.
This chart summarizes the key TDS rates and thresholds for FY 2025-26 as per the Finance Bill 2025. For detailed provisions, refer to the official documents or consult a tax professional.
Download pdf –TDS Rate Chart for FY 2025 26