⌖ Utility / Direct Tax
Rates of TDS.
Section-wise TDS rates for FY 2025-26 across the 192–196 series.
As of
Finance Act, 2024 — applicable from 1 April 2025
⌖ Context
Tax Deducted at Source rates applicable to resident payees for FY 2025-26 (AY 2026-27). Rates below assume the payee has furnished PAN — Section 206AA mandates 20% (or the rate in the Act, whichever is higher) where PAN is not furnished. Section 206AB further doubles the rate for non-filers of returns (with specified exceptions). Surcharge and cess do not apply to TDS on resident payments other than salary.
Salary and Salary-like payments
| Section | Nature of Payment | Threshold (₹) | Rate |
|---|---|---|---|
| 192 | Salary | As per slab | Average rate |
| 192A | Premature withdrawal from EPF | 50,000 | 10% |
| 194P | Pension to senior citizen ≥ 75 (bank deducts) | Basic exemption | As per slab |
Interest, Dividend and Lottery
| Section | Nature of Payment | Threshold (₹) | Rate |
|---|---|---|---|
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Dividend (other than 115-O) | 5,000 | 10% |
| 194A | Interest other than on securities (bank/co-op/PO) | 50,000 (sr. citizen 1,00,000) | 10% |
| 194A | Interest other than on securities (others) | 10,000 | 10% |
| 194B | Lottery, crossword, card game winnings | 10,000 (single payment) | 30% |
| 194BA | Online gaming — net winnings | Nil | 30% |
| 194BB | Winnings from horse races | 10,000 | 30% |
Contractors, Commission and Professional Fees
| Section | Nature of Payment | Threshold (₹) | Rate |
|---|---|---|---|
| 194C | Payment to contractor — Individual/HUF | 30,000 single / 1,00,000 aggregate | 1% |
| 194C | Payment to contractor — Others | 30,000 single / 1,00,000 aggregate | 2% |
| 194D | Insurance commission — Individual | 20,000 | 2% |
| 194D | Insurance commission — Company | 20,000 | 10% |
| 194DA | Life insurance maturity (taxable portion) | 1,00,000 | 2% |
| 194G | Commission on sale of lottery tickets | 20,000 | 2% |
| 194H | Commission or brokerage | 20,000 | 2% |
| 194J | Professional fees | 50,000 | 10% |
| 194J | Technical fees / royalty (call centres etc.) | 50,000 | 2% |
| 194JB | Fees / royalty paid to film artists | 50,000 | 10% |
Rent and Property
| Section | Nature of Payment | Threshold (₹) | Rate |
|---|---|---|---|
| 194I(a) | Rent — plant & machinery | 2,40,000 p.a. | 2% |
| 194I(b) | Rent — land, building, furniture | 2,40,000 p.a. | 10% |
| 194-IA | Transfer of immovable property (other than agri) | 50,00,000 (consideration) | 1% |
| 194-IB | Rent by Ind/HUF not under audit | 50,000 per month | 2% |
| 194-IC | Joint development agreement — monetary consideration | Nil | 10% |
Cash withdrawal, E-commerce and Misc
| Section | Nature of Payment | Threshold (₹) | Rate |
|---|---|---|---|
| 194N | Cash withdrawal (banks/co-op/PO) | 1 Cr p.a. (20L for non-filers) | 2% / 5% |
| 194-O | E-commerce operator — payment to participant | 5,00,000 (Ind/HUF only) | 0.1% |
| 194Q | Purchase of goods (turnover > 10 Cr) | 50,00,000 (per seller) | 0.1% |
| 194R | Benefit or perquisite arising from business | 20,000 p.a. | 10% |
| 194S | Transfer of virtual digital asset (VDA) | 50,000 (specified) / 10,000 | 1% |
| 194T | Payment by firm to partner — salary/remuneration/interest | 20,000 p.a. | 10% |
| 194LA | Compensation on compulsory acquisition | 2,50,000 | 10% |
Section 194T was introduced by Finance (No. 2) Act, 2024 and is effective from 1 April 2025 — partner remuneration, salary, commission, bonus and interest paid by a firm are now within TDS.
Higher rate for non-PAN / non-filer payees
Section 206AA — where the payee fails to furnish PAN, deduct at the highest of: (a) the rate prescribed in the Act, (b) the rates in force, or (c) 20%.
Section 206AB — where the payee is a non-filer (no return for the prior year and aggregate TDS/TCS ≥ ₹50,000), deduct at twice the prescribed rate or 5%, whichever is higher. Both sections do not apply to salary, lottery, VDA and Section 194-IA / 194-IB / 194M / 194N.
⌖ Related in Direct Tax
Keep reading.
TDS Rates for N.R.I u/s 195
Withholding on payments to non-residents — Section 195 read with Part II of First Schedule.
Rates of Income Tax
Slab rates, surcharge, cess and rebate — Old vs New regime for FY 2025-26.
Cost Inflation Index
Year-wise CII for indexation of long-term capital gains — base year 2001-02 = 100.
Deduction u/s 80TTA vs 80TTB
Side-by-side comparison of the two interest deductions — eligibility, cap, account types.