TDS Rate Chart for FY 2025-26 (AY 2026-27)
- taxchela
- Mar 30
- 5 min read
What is TDS?
TDS, or Tax Deducted at Source, is a taxation system in which the tax is deducted at the
source of the income at the time of making the payment. The Indian government introduced it to prevent tax evasion. The TDS deducted is then submitted to the government. TDS is applicable on incomes such as rent, interest, salaries, and commission. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deducted.
TDS on Payment to Partners by Firm under Section 194T
Starting from April 1, 2025, if a firm makes any payments to its partners, it must deduct TDS at 10% if the payment amount exceeds the threshold limit of 20,000. These payments include salary, remuneration, bonus, commission, and interest.
Note: TDS is not applicable to the drawings and the capital repayment to the partners. But TDS applies to the interest on capital or borrowings from partners.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
Section | Nature | Threshold | Individual/HUF | Others |
192 | Payment in form of salary | ₹ 2,50,000 | Slab Rates | Slab Rates |
192A (Note 1) | Employee Provident Fund withdrawal prematurely/early | ₹ 50,000 | 10% | 10% |
193 | Interest earned on securities including listed debentures and other securities | ₹ 10,000 | 10% | 10% |
194 | Payment of dividends by domestic Co. | ₹ 10,000 | 10% | 10% |
194A | Interest on deposits from banks or post offices | ₹ 50,000₹ 1,00,000(senior citizens) | 10% | 10% |
Interest income other than securities | ₹ 10,000 | 10% | 10% | |
194B | Winnings of lotteries, puzzles, or games (Casual income) | 10,000 in a single transaction | 30% | 30% |
194BA | Winnings from online Games | - | 30% | 30% |
194BB | Winnings from Horse races | 10,000 in a single transaction | 30% | 30% |
194C | Payments made to contractors or sub-contractors (one time) | ₹ 30,000 | 1% | 2% |
Payments made to contractors or sub-contractors on an aggregate basis | ₹ 1,00,000 | 1% | 2% | |
194D | Commission paid on insurance sales to domestic companies | ₹ 20,000 | Not Applicable | 10% |
Commission paid on insurance sales to non-domestic companies | ₹ 20,000 | 5% | Not Applicable | |
194DA | Maturity of life insurance policy | ₹ 1,00,000 | 2% | 2% |
194EE | Payment received from the National Savings Scheme by individuals | ₹ 2,500 | 10% | 10% |
194G | Payments or commission made from the sale of lottery tickets | ₹ 20,000 | 2% | 2% |
194H | Commission or brokerage fees | ₹ 20,000 | 2% | 2% |
194I | Rent paid for land, building, or furniture | ₹ 50,000 per month i.e. 6,00,000 in a financial year | 10% | 10% |
Rent paid for plant and machinery | 2% | 2% | ||
194IA | Payment for the transfer of immovable property excluding agricultural land | ₹ 50,00,000 | 1% | 1% |
194IB | Rent payment made by an individual or HUF not covered under section 194I | ₹ 50,000 (per month) | 2% | Not Applicable |
194IC | Payments made under a Joint Development Agreement to I / HUF | No Limit | 10% | 10% |
194J | Fees paid for professional and technical services (doctor/CA etc) | ₹ 50,000 | 10% | 10% |
Royalty paid for the sale, distribution, or exhibition of cinematographic films | ₹ 50,000 | 2% | 2% | |
194K | Income received from units of a mutual fund, such as dividends | ₹ 10,000 | 10% | 10% |
194LA | Compensation for acquiring certain immovable property | ₹ 5,00,000 | 10% | 10% |
194LB | Interest on infrastructure bonds to Non-Resident Indians | Not Applicable | 5% | 5% |
194LBA(1) | Distribution of certain income by a business trust to its unit holders | Not Applicable | 10% | 10% |
194LD | Interest payment on rupee-denominated bonds, municipal debt security, and government securities | Not Applicable | 5% | 5% |
194M (Note 2) | Payments made for contracts, brokerage, commission, or professional fees excluding sections 194C, 194H, 194J- Individual/HUF | ₹ 50,00,000 | 2% | 2% |
194N (Note 3) | Cash withdrawal exceeding a specified amount from the bank, with filed ITR | ₹ 1,00,00,000 | 2% | 2% |
When ITR is not filed | ₹ 20,00,000 | 2% then 5% after 1cr on slab basis | 2% then 5% after 1cr on slab basis | |
194O | Amount received for the sale of products/services by e-commerce service providers through digital platforms | ₹ 5,00,000 | 0.10% | 0.10% |
194P | Senior citizen above 75 yr of age having salary and interest Income, ITR not required | Not Applicable | Slab rates | Not Applicable |
194Q | Payments made for the purchase of goods | ₹ 50,00,000 | 0.10% | 0.10% |
194R | Perquisite provided | ₹ 20,000 | 10% | 10% |
194S | TDS on the payment of cryptocurrencies or other virtual assets | ₹ 50,000 (specified person) ₹ 10,000 (others) | 1% | 1% |
194T | TDS on payments made by firms to their partners | ₹ 20,000 | Not applicable | 10% |
206AA | TDS applicable in case of non-availability of PAN | Not Applicable | At a higher rate than:-2X the rate specified by the act-20%-The currently applicable rate | At a higher rate than:-2X the rate specified by the act-20%-The currently applicable rate |
TDS Rates Applicable on Non-Resident Indian (Other than a Company) for FY 2024-25
Particulars | TDS Rate |
Section 192: Payment of salary | Normal Slab Rate |
Section 192A: Premature withdrawal from EPF | 10% |
Section 194B: Income by way of lottery winnings, card games, etc. | 30% |
Section 194BB: Income by way of horse race winnings | 30% |
Section 194E: Payment to non-resident sportsman/entertainer | 20% |
Section 194EE: Payment under National Savings Scheme (NSS) | 10% |
Section 194F: Payment due to repurchase by UTI or Mutual Fund | 20% |
Section 194G: Commission on the sale of lottery tickets | 5% |
Section 194LB: Payment for compensation on acquisition of property | 5% |
Section 194LBA(2): Payment from SPV to business trust/unitholders | 5% / 10% |
Section 194LBA(3): Rental income payment by business trust | 30% |
Section 194LBB: Payment by investment fund to unitholder | 30% |
Section 194LBC: Income from investment in securitization fund | 30% |
Section 194LC: Interest payment on foreign currency loan | 5% / 4% |
Section 194LD: Interest on rupee-denominated bond | 5% |
Section 195: Payment of any other sum to NRI | 10% / 20% / 30% |
Section 196B: Income from units of an offshore fund | 10% |
Section 196C: Income from foreign currency bonds or GDR | 10% |
Section 196D: Income from Foreign Institutional Investors | 20% |
TDS Rates Applicable for a Domestic Company for FY 2024-25
Particulars | TDS Rate |
Section 192: Payment of salary | Normal Slab Rate |
Section 192A: Premature withdrawal from EPF | 10% |
Section 193: Interest on securities | 10% |
Section 194: Payment of any dividend | 10% |
Section 194A: Interest income (excluding securities) | 10% |
Section 194B: Income by way of lottery winnings, card games, etc. | 30% |
Section 194BB: Income by way of horse race winnings | 30% |
Section 194C: Payment to contractor/sub-contractor | 1% / 2% |
Section 194D: Insurance commission | 10% |
Section 194DA: Income portion of life insurance payout | 5% |
Section 194EE: Payment under National Savings Scheme (NSS) | 10% |
Section 194F: Payment due to repurchase by UTI or Mutual Fund | 20% |
Section 194G: Commission on the sale of lottery tickets | 5% |
Section 194H: Commission or brokerage | 5% |
Section 194-I: Rent on plant/machinery or land/building/furniture | 2% / 10% |
Section 194-IA: Transfer of immovable property | 1% |
Section 194-IC: Payment under Joint Development Agreements (JDA) | 10% |
Section 194J: Payment for professional/technical services, etc. | 2% / 10% |
Section 194K: Income from units of mutual funds | 10% |
Section 194LA: Compensation on acquisition of immovable property | 10% |
Section 194LBA(1): Income distributed by a business trust | 10% |
Section 194LBB: Income paid by investment fund to unitholder | 10% |
Section 194LBC: Income from investment in securitization fund | 10% |
Section 194M: Payments by Individual/HUF exceeding ₹50 Lakhs | 5% |
Section 194N: Cash withdrawals exceeding ₹1 Crore | 2% / 5% |
Section 194O: Sale of goods/services via e-commerce platforms | 1% |
Section 194Q: Purchase of goods exceeding ₹50 Lakhs | 0.10% |
Any Other Income | 10% |
TDS Rates Applicable for a company other than Domestic Company for FY 2024-25
Particulars | TDS Rate |
Section 194B: Income by way of lottery winnings, card games, etc. | 30% |
Section 194BB: Income by way of horse race winnings | 30% |
Section 194E: Payment to non-resident sportsman/entertainer | 20% |
Section 194G: Commission on the sale of lottery tickets | 5% |
Section 194LB: Payment for compensation on acquisition of property | 5% |
Section 194LBA(2): Payment from SPV to business trust/unitholders | 5% / 10% |
Section 194LBA(3): Rental income payment by business trust | 40% |
Section 194LBB: Payment by investment fund to unitholder | 40% |
Section 194LBC: Income from investment in securitization fund | 40% |
Section 194LC: Interest payment on foreign currency loan | 5% / 4% |
Section 194LD: Interest on rupee-denominated bond | 5% |
Section 195: Payment of any other sum, including capital gains | 10% / 20% / 40% |
Section 196B: Income from units of an offshore fund | 10% |
Section 196C: Income from foreign currency bonds or GDR | 10% |
Section 196D: Income from Foreign Institutional Investors | 20% |
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