Under the Income Tax Act, any individual or entity making specified payments is required to deduct Tax Deducted at Source (TDS), with exceptions for individual or Hindu Undivided Families (HUF) whose sales or business income do not exceed certain thresholds (Rs. 1 crore for business and Rs. 50 lakhs for profession). The TDS rates for Assessment Year (AY) 2025-26 differ based on the type of income and the residency status of the taxpayer. For residents, TDS rates range from 2% for insurance commissions to 30% for lottery winnings and net winnings from online games. Non-resident Indians (NRIs) face higher rates, with a 20% TDS on income from investment, royalty, and interest on foreign currency loans. Long-term capital gains, depending on the section under which they are classified, are taxed at 12.5%, while short-term capital gains and other incomes attract rates of 20% or 30%. Companies, both domestic and non-domestic, also have specific TDS rates, with companies receiving a standard rate of 10% on certain types of interest, 30% on winnings, and up to 50% on older royalty agreements. Understanding these rates ensures compliance with tax obligations and accurate deduction of TDS across various income types.
TDS Rates for A.Y 2025-26
TDS Rate – A person other than a company
- The person is resident in India.
| PARTICULAR | TDS RATE |
| Income by way of interest other than “Interest on securities”. | 10% |
| Income by way of Winning from lotteries, puzzles, card games any sort (other than winning from online games). | 30% |
| Income by way of Winning from horse races. | 30% |
| Income by way of Net winning from online games. | 30% |
| Income by way of Insurance commission. | 2% |
| Income by way of interest payable. | 10% |
- Any debenture or securities for money issued by or on
behalf of any local authorities or a corporation established
by a Central Act, State Act or Provincial Act.
- Any debenture issued by company where such debenture are
Listed on a recognised stock exchange in India as per the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) and the rules made thereunder.
- Any security of the Central Govt. or State Govt.
(vii) Any other Income 10%
- The person is not resident in India.
- In case of a non- resident Indian–
| Particulars | TDS Rate |
| (a) Any investment income | 20% |
| (b) Income by way of long-term capital gains referred to in Sec 115E or Sec 112(1)(c)(iii) | 12.5% |
| (c) Income by way of long-term capital gains referred to in Sec 112A exceeding ₹1,25,000 | 12.5% |
| (d) Income by way of long-term capital gains (excluding gains under Sec 10 clauses 33 and 36) | 12.5% |
| (e) Income by way of short-term capital gains referred in Sec 111A | 20% |
| (f) Interest payable by Government or Indian concern on foreign currency loans (excluding interest under Sec 194LB/194LC) | 20% |
| (g) Royalty for book copyright transfer under Sec 115A(1A) first/second proviso | 20% |
| (h) + (i) Royalty or fees for technical services | 20% |
| (j) Winnings from lotteries, puzzles, card games, and other games (excluding online games) | 30% |
| (k) Winnings from horse races | 30% |
| (l) Net winnings from online games | 30% |
| (m) Dividend income referred in the proviso to Sec 115A(1)(a)(A) | 10% |
| (n) Other dividend income (excluding item (m)) | 20% |
| (o) All other income | 30% |
–
| Particulars | TDS Rate |
| (a) Interest payable by Govt. or Indian concern on foreign currency loans (excluding Sec 194LB/194LC) | 20% |
| (b) Royalty for book copyright under agreements with Govt./Indian concern as per Sec 115A(1A) | 20% |
| (c)+(d) Royalty or fees for technical services | 20% |
| (e) Winnings from lotteries, puzzles, card games, and other such games (excluding online games) | 30% |
| (f) Winnings from horse races | 30% |
| (g) Net winnings from online games | 30% |
| (h) Short-term capital gains referred in Sec 111A | 20% |
| (i) Long-term capital gains under Sec 115E or Sec 112(1)(c)(iii) | 12.5% |
| (j) Long-term capital gains under Sec 112A exceeding ₹1,25,000 | 12.5% |
| (k) Other long-term capital gains (excluding those under Sec 10 clauses 33 & 36) | 12.5% |
| (l) Dividend income as per proviso to Sec 115A(1)(aA) | 10% |
| (m) Other dividend income (not covered in item l) | 20% |
| (n) All other income | 30% |
TDS RATE – In case of Company-
- The company is a domestic company-
| Particulars | TDS Rate |
| (i) Income by way of interest other than “Interest on securities” | 10% |
| (ii) Income by way of winnings from lotteries, puzzles, card games (excluding online games) | 30% |
| (iii) Income by way of winnings from horse races | 30% |
| (iv) Income by way of net winnings from online games | 30% |
| (v) Any other income | 10% |
(b) The company is not a domestic company–
| Particulars | TDS Rate |
| (i) Income by way of winning from lotteries, puzzles, card games (excluding online games) | 30% |
| (ii) Income by way of winning from horse races | 30% |
| (iii) Income by way of net winnings from online games | 30% |
| (iv) Income by way of interest payable by Govt. or an Indian concern on moneys borrowed or debt incurred by Govt. or the Indian concern in foreign currency (not being interest under sec 194LB or sec 194LC) | 20% |
| (v) Income by way of royalty payable by Govt. or an Indian concern in pursuance of an agreement made by it with the Govt. or the Indian concern where such royalty is in consideration for the transfer of rights in respect of copyright | 20% |
| (vi) Income by way of royalty — agreement made after 31st March 1961 but before 1st April 1976 | 50% |
| (vi) Income by way of royalty — agreement made after 31st March 1976 | 20% |
| (vii) Income by way of fees for technical services — agreement made after 29th February 1964 but before 1st April 1976 | 50% |
| (vii) Income by way of fees for technical services — agreement made after 31st March 1976 | 20% |
| (viii) Income by way of short-term capital gains referred in sec 111A | 20% |
| (ix) Income by way of long-term capital gains referred to in sec 115E or sec 112(1)(c)(iii) | 12.5% |
| (x) Income by way of long-term capital gains referred to in sec 112A exceeding Rs.1,25,000 | 12.5% |
| (xi) Income by way of long-term capital gains (not being long-term capital gains under sec 10) | 12.5% |
| (xii) Income by way of dividend referred to in the proviso to section 115A(1)(aA) | 10% |
| (xiii) Income by way of dividend other than income referred to in item (xii) | 20% |
| (xiv) The whole of other income | 35% |
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