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Introduction:
Tax Deducted at Source (TDS) is a vital compliance mechanism under the Indian Income Tax Act, 1961. It ensures the steady inflow of revenue to the government and brings more people into the tax net. Every year, based on the Finance Act amendments, TDS rates and thresholds are revised or clarified.
This article brings to you the latest TDS Rate Chart for Financial Year 2025-26 (Assessment Year 2026-27) along with key notes and practical compliance insights to help professionals, businesses, and individuals stay updated.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
| Section | Nature of Payment | Threshold for TDS Applicability | TDS Rate | Key Notes / Exceptions |
| 192 | Salary | Basic exemption limit | Slab Rate | Based on Form 12BB & 16 |
| 192A | Premature withdrawal from EPF | ₹ 50,000 | 10% | No TDS if: withdrawal < ₹50K, service ≥ 5 yrs, EPF transfer to new account, ill health, or Form 15G/H submitted |
| 193 | Interest on securities | |||
| Debentures (Pysical Form) | ₹ 5,000 | 10% | ||
| 8% / 7.75% Taxable Savings Bonds | ₹ 10,000 | 10% | ||
| Other securities | ₹ 10,000 | 10% | ||
| 194 | Dividend | ₹ 10,000 | 10% | |
| 194A | Interest (other than securities) | 10% | ||
| Bank, Post Office and Cooperative Society | ₹50,000 (₹1,00,000 for Senior Citizens) | |||
| Others (e.g., companies, firms, etc.) | ₹ 10,000 | |||
| 194B | Lottery, crossword puzzle Etc. | ₹10,000 (per transaction) | 30% | |
| 194BA | Online Games | No Threshold Limit | 30% | |
| 194BB | Winning from horse race | ₹10,000 (per transaction) | 30% | If aggregate winnings exceed ₹10,000 |
| 194C | Contractor/ Subcontractor |
₹30,000 (single)/ ₹1,00,000 (annual) |
1% (Ind/HUF) | |
| 2% (others) | ||||
| 194D | Insurance Commission | ₹ 20,000 | 2% (Individuals/HUF) | |
| 10% (for others) | ||||
| 194DA | Life Insurance Proceeds | ₹ 1,00,000 | 2% | |
| 194E | Payments to non-resident sportsmen or sports associations | No Threshold Limit | 20% | |
| 194EE | Payments in respect of deposits under National Savings Scheme | ₹ 2,500 | 10% | |
| 194G | Commission, price, etc. on sale of lottery tickets | ₹ 20,000 | 2% | |
| 194H | Commission or Brokerage | ₹ 20,000 | 2% | |
| 194I(a) | Rent – Plant & Machinery | ₹50,000/month | 2% | |
| 194I(b) | Rent – Land, Building, Furniture | ₹50,000/month | 10% | |
| 194IA | Transfer of immovable property | ₹ 50,00,000 | 1% | TDS deducted on entire sale value |
| 194IB | Rent by Individuals/HUF (non-audit cases) | ₹50,000/month | 2% | |
| 194IC | Payment under Joint Development Agreement | No threshold | 10% | On Cash or in kind |
| 194J(a) | Fees for technical services | ₹ 50,000 | 2% | |
| 194J(b) | Fees for professional services | ₹ 50,000 | 10% | |
| 194K | Income from units (mutual funds) | ₹ 10,000 | 10% | |
| 194LA | Compensation for immovable property acquisition | ₹ 5,00,000 | 10% | Eexcluding agricultural land |
| 194LB | Interest from Infrastructure Debt Fund to non-resident or foreign company | No threshold | 5% | |
| 194LBA | Income from units of a business trust | No threshold | 10% | |
| 194LBB | Income in respect of units of investment fund | No threshold | 10% | |
| 194LBC | Income in respect of investment in securitization trust | No threshold | 10% | |
| 194LD | Interest on government securities to FII/QFI | No threshold | 5% | |
| 194M | Payments to contractors/professionals by Ind/HUF (non-audit) | ₹ 50,00,000 | 2% | |
| 194N | Cash withdrawals | Cooperative Society > 3 Cr | 2% | |
| Others > 1 Cr | 2% | |||
| ITR not filed for 3 Ays | ₹20 lakh to ₹1 crore | 2% | ||
| Above ₹1 crore | 5% | |||
| 194O | Payments by e-commerce operator | ₹5,00,000 (Ind/HUF) | 10% | |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Basic exemption limit | Slab Rate | |
| 194Q | Purchase of goods | ₹50,00,000 (buyer turnover > ₹10 Cr) | 0.10% | |
| 194R | Benefits or perquisites of business or profession | ₹ 20,000 | 10.00% | |
| 194S | Payment of consideration for transfer of virtual digital asset | |||
| Specified persons | ₹ 20,000 | 1.00% | ||
| Other than specified persons | ₹ 10,000 | 1.00% | ||
| 194T | Partner’s Remuneration | ₹ 20,000 | 10.00% | |
| 206AB | Higher TDS for Non-filers | Removed |
Conclusion:
Staying compliant with TDS provisions not only avoids penalties but also enhances the credibility of businesses and professionals. This ready reckoner is meant to serve as a one-stop reference for all your TDS-related queries for FY 2025-26.
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Author Bio
is TDS applicable for NSS withdrawals now as no interest paid after Oct 2924 and budget 2025 allows tax exemption fir such deposits? why then post offices are insisting in form 15H to avoid tds even now??)