The TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) rates for Financial Year 2025-26 (Assessment Year 2026-27) vary based on the nature of the transaction and the recipient’s residency status. For resident recipients, common TDS sections include Section 192 (Salary, as per slab), 192A (Provident Fund withdrawals above ₹50,000 at 10%), and 194A (Bank interest—₹50,000 for non-senior citizens, ₹1 lakh for senior citizens—at 10%). High-value lottery and game winnings (Sections 194B, 194BA, 194BB) attract 30% TDS. Contractual payments, commissions, and rents have rates ranging from 1% to 10% based on entity type and transaction nature. New additions include Section 194T (10% on payments to partners) and adjustments under Sections 194N and 194S.
For non-residents, rates are generally higher and fixed. Lottery winnings, game winnings, and certain capital gains attract 30%, while interest on infrastructure bonds (Section 194LB) and foreign currency loans (Section 194LC) have lower rates (5% and 4%-9% respectively). Payments under Section 195 cover various income types, with rates ranging from 10% to 30%, depending on income nature.
TCS applies to transactions like liquor, timber, and scrap at 1%-5%. Notable high-value transactions include sale of motor vehicles above ₹10 lakh (1%), overseas tour packages (5%-20%), and foreign remittances under LRS (20% in general, 5% for education/medical purposes). Section 206C(1H) applies to sale of goods not covered elsewhere.
These rates assist in timely tax compliance for both residents and non-residents in FY 2025-26.
TDS Rates for Financial Year 2025-26
Assessment Year 2026-27
Where Recipient is Resident
| Section | Nature of payment | Threshold Limit | Rate |
| 192 | Salary | As per Slab |
As per Slab |
| 192A | Provident Fund amount which is not exempt from tax | 50,000 | 10% |
| 193 | Interest on securities-
Interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company, (c) any security of the Central or State Government [ie., interest exceeding Rs. 10,000 on 8% Savings |
10,000 | 10% |
| Any other interest on securities (including interest on non-listed debentures | 10,000 | 10% | |
| 194 | 194-Dividend Buy-back of shares deemed as dividend under section 2(22)(f) | 10,000 | 10% |
| Any other dividend or deemed dividend | 10,000 | 10% | |
| 194A | Interest other than interest on securities-
– Paid/payable by a bank/co-operative bank/post office to a senior citizen |
1,00,000 | 10% |
| Paid/payable by a bank/co-operative bank/post office to a person other than senior citizen | 50,000 | 10% | |
| Paid/payable by any other person | 10,000 | 10% | |
| 194B | Winning from Lotteries (Excluding Online Games) | 10,000 in respect of a single transaction. | 30% |
| 194BA | Net Winning from any Online Games | 0 | 30% |
| 194BB | Winnings from Horse Races | 10,000 in respect of a single transaction | 30% |
| 194C | Payments to Contractors | ||
| (1) Payment to Transporter covered by Section 44AE | NA | Nil | |
| (2) Payment to individual HUF (other than above) | 30,000 | 1% | |
| (3) Payment to Others (other than above) | 30,000 | 2% | |
| 194D | Insurance Commission | 20,000 | 5% |
| 194DA | Income component received from LIC (including ULIP) which are not covered under section 10(10D) | 1,00,000 | 2% |
| 194E | Non-Resident Sportsman/Sports Association/ Entertainer | 0 | 20% |
| 194EE | Payment of deposits under NSS to Resident/Non- Resident | 2,500 | 10% |
| 194F | Repurchase of units of Mutual Fund/UTI from Resident/Non-resident (Applicable up to September 30, 2024) | 0 | 20% |
| 194G | Commission on Sale of lottery tickets | 20,000 | 2% |
| 194H | Commission or Brokerage to Resident | 20,000 | 2% |
| 194-I | Rent to Resident | ||
| (a) Rent for machinery/plant/equipment | 50,000 per month or part of month. | 2% | |
| (b) Rent for other than in (a) | 50,000 per month or part of month | 10% | |
| 194-IA | Payment on transfer of certain immovable properties (Other than agricultural land) | 50,00,000 | 1% |
| 194-IB | Payment of Rent by certain Individuals or HUF (other than those who are covered under section 194I) to a resident | 50,000 p.m. |
2% |
| 194-IC | Payment under specified agreement (in case of joint development agreement excluding payment in kind) | 0 | 10% |
| 194J | – Fees for professional services | 50,000 | 10% |
| – Fees for technical services and payment to call
centers |
50,000 | 2% | |
| – Remuneration or fees to Director (other than 192) | 0 | 10% | |
| – Royalty | 50,000 | 2% | |
| – Non-compete fees | 50,000 | 10% | |
| 194K | Income/Dividend in respect of Units of Mutual Fund registered under section 10(23D) payable to resident | 10,000 | 10% |
| 194LA | Compensation to a resident on acquisition of immovable property (excluding compensation received under RFCTLAAR Act, 2013) | 5,00,000 | 10% |
| 194M | Payment by Individual/HUF for carrying out any work pursuant to contract, commission & fees for profession services (not covered by 194C, 194D & 194J) | INR 50 Lakhs |
2% |
| 194N | TDS on cash withdrawal | ||
| – Person who did not file ITR for preceding three
A Y & time limit to file original ITR is expired and said person withdrawing cash not exceeding INR 1 Crore |
INR 20 Lakhs |
2% | |
| – Person who did not file ITR for preceding three
AYs & time limit to file original ITR is expired and said person withdrawing cash exceeding INR 1 Crore (INR 3 Cr. In case of Co- Operative Society) |
On amount exceeding INR 1Cr./ INR 3 Cr. | 5% | |
| – Any other person (Except Co-Operative Society) Co-Operative Society | INR 1 Cr. INR 3 Cr. | 2%
2% |
|
| 194O | Payment by e-commerce operator to e-commerce participant in respect of sale of goods or services | INR 5 lakhs |
0.1% |
| 194P | TDS in case of resident senior citizen having age of 75 year or more and receiving only pension in the bank and interest income from the same bank. | As per Slab |
As per Slab |
| 194Q | TDS on payment for purchase of goods by specified buyer | 50,00,000 | 0.1% |
| 194R | TDS on benefits or perquisites in respect of business or profession to a resident assessee | 20,000 | 10% |
| 194S | TDS on payment for transfer of Virtual Digital Assets to a resident assessee
(1) Specified person |
50,000 | 1% |
| (2) Other than Specified person | 10,000 | 1% | |
| 194T | TDS on payment of any sum in nature of salary, remuneration, commission, bonus or interest to a partner of a firm (with effect from April 1, 2025) | 20,000 | 10% |
Assessment Year 2026-27
Where Recipient is Non-Resident
INDIVIDUAL/HUF/AOP/BOI/AJP
| Section | Nature of payment | Rate |
| 192 | Payment of salary | Normal Non Resident (other than company) Slab Rate |
| 192A | Payment of taxable accumulated balance of provident fund | 10% |
| 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort)
(Above Rs. 10,000/- in respect of a single |
30% |
| 194BA | Winnings from online games | 30% |
| 194BB | Winnings from horse races (Above Rs. 10,000/- in respect of a single transaction) | 30% |
| 194E | 194E-Payment to a non-resident foreign citizen sportsman/entertainer or non-resident sports association | 20% |
| 194EE | Payment in respect of deposits under National Saving Scheme, 1987 | 10% |
| 194G | Commission on sale of lottery tickets | 2% |
| 194LB | Payment/credit by way of interest by infrastructure debt fund | 5% |
| 194LBA
(2) |
Payment by business trust to unit holders of the nature referred to in- | 10% |
| 194LBA
(3) |
Payment of the nature referred to in section
10(23FCA) by business trust to unit holders |
30% |
| 194LBB | Payment in respect of units of investments fund specified in section 115UB | 30% |
| 194LBC
(2) |
Payment in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA | 30% |
| 194LC
|
Payment/credit of interest by an Indian specified company or business trust on –
|
5% |
long-term bond/rupee denominated bond
|
4%
9% |
|
| 194LD | Interest on a rupee de- nominated bond of an Indian company or Government security | 5% |
| 194N | TDS on cash withdrawal | |
| – Person who did not file ITR for preceding three A
Y & time limit to file original ITR is expired and said person withdrawing cash not exceeding INR 1 Crore |
2% | |
| – Person who did not file ITR for preceding three
AYs & time limit to file original ITR is expired and said person withdrawing cash exceeding INR 1 Crore (INR 3 Cr. In case of Co- Operative Society) |
5% | |
| Any other person (Except Co-Operative Society) Co- Operative Society | 2% | |
| 194T | Payment of remunera- tion/interest by a firm to its partner(s) | 10% |
| 195 | Payment of other sums to Non-Resident (Other than those specified in Section 194LB) | |
| (A) on any investment income | 20% | |
| (B) on income by way of longterm capital gains referred to in section 115E or sub-clause (iii) of clause (c) of sub-section (1) of section 112 | 12.5% | |
| C) on income by way of longterm capital gains referred to in section 112A exceeding one lakh twenty-five thousand rupees, | 12.5% | |
| (D) on other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10] | 12.5% | |
| (E) on income by way of shortterm capital gains referred to in section 111A | 20% | |
| (F) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or | 20 % | |
| section 194LC) | ||
| (G) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Incometax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India | 20% | |
| (H) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(G)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy | 20% | |
| ( ) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy | 20% | |
| (I) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games) | 30% | |
| (J) on income by way of winnings from horse races | 30% | |
| (K) on income by way of net winnings from online games | 30% | |
| (L) on the income by way of dividend, referred to in the proviso to sub-clause (A) of clause (a) of subsection (1) of section 115A | 10% | |
| (M) on income by way of dividend other than the | 20% | |
| income referred to in sub-item (b)(i)(M) | ||
| (O) on the whole of the other income | 30% | |
| 196A | Income in respect of units of non-resident/foreign company | 20% |
| 196B | Payment/credit of income from units to an offshore fund
|
10%
12.5% |
| 196C | Payment/credit of interest of foreign currency bonds or GDR
long-term capital gains on transfer of aforesaid bonds/GDR |
10%
12.5% |
| 196D(1) | Payment/credit of in- come from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors | 20% |
| 196D (1A) |
Payment/credit of interest from securities to a specified fund [referred to in section 10(4D), Expln. (c)] | 10% |
TCS Rates for Financial Year 2025-26
Assessment Year 2026-27
Rates of Tax Collected at Source
| Section | Nature of payment | Threshold Limit | Rate |
| 206C | Alcoholic Liquor for human consumption | 0 | 1% |
| 206C | Timber or any other forest produce (not being tendu leaves) obtained under a forest lease | 0 | 2% |
| 206C | Timber obtained by any mode other than under a forest lease | 0 | 2% |
| 206C | scrap | 0 | 1% |
| 206C | Parking Lot/Toll plaza/mining and Quarrying | 0 | 2% |
| 206C | Tendu Leaves | 0 | 5% |
| 206C | Minerals, being coal or lignite or iron ore | 0 | 1% |
| 206C(1F) | Sale of Motor Car or any other goods as specified | 10,00,000 | 1% |
| 206C(1G) | Remittance out of India under the LRS for purpose other than educational, medical and overseas tour package | 10,00,000 | 20% |
| 206C(1G) | Remittance out of India – Education Loan (Loan is taken from financial institution as defined under section 80E) | Not
applicable |
Not
applicable |
| 206C(1G) | Remittance out of India – Medical treatment or Educational Purpose other than above | 10,00,000 | 5% |
| 206C(1G) | Sale of overseas Tour Package | Upto
10,00,000 |
5% |
| Above
10,00,000 |
20% | ||
| 206C(1H) | Sale of goods (not covered under any of the above provision) excluding the case where the buyer of goods is liable to deduct tax at source on such goods under any other provision and has deducted such TDS) | Not
applicable |
Not
applicable |
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