Tax Deducted at Source (TDS) Rate Chart
Financial Year 2025-26 (AY 2026-27)
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate (Ind/HUF) | TDS Rate (Others) |
|---|---|---|---|---|
| 192 | Salary | As per Slab* | Slab Rate | Slab Rate |
| 192A | Premature EPF Withdrawal | 50,000 | 10% | 10% |
| 193 | Interest on Securities | 10,000 | 10% | 10% |
| 194 | Dividends | 10,000 | 10% | 10% |
| 194A | Interest (Banks/Post Office) | 50,000 (Non-Sr. Citizen) 1,00,000 (Sr. Citizen) | 10% | 10% |
| 194A | Interest (Others) | 10,000 | 10% | 10% |
| 194B | Winnings (Lottery, Games, etc.) | 10,000 | 30% | 30% |
| 194BA | Winnings from Online Games | Net Winnings | 30% | 30% |
| 194C | Payment to Contractors | 30,000 (Single) 1,00,000 (Aggregate) | 1% | 2% |
| 194D | Insurance Commission | 20,000 | 2% | 10% |
| 194DA | Life Insurance Maturity | 1,00,000 | 2% | 2% |
| 194H | Commission / Brokerage | 20,000 | 2% | 2% |
| 194I(a) | Rent: Plant & Machinery | 50,000 p.m. | 2% | 2% |
| 194I(b) | Rent: Land, Building, Furniture | 50,000 p.m. | 10% | 10% |
| 194IA | Purchase of Immovable Property | 50 Lakhs | 1% | 1% |
| 194IB | Rent by Ind/HUF (Not under Audit) | 50,000 p.m. | 2% | 2% |
| 194J(a) | Fees for Technical Services / Royalty / Call Center | 50,000 | 2% | 2% |
| 194J(b) | Professional Fees / Directors Fees | 50,000 | 10% | 10% |
| 194M | Payments by Ind/HUF (Contract, Prof., Comm.) | 50 Lakhs | 2% | 2% |
| 194Q | Purchase of Goods | 50 Lakhs | 0.1% | 0.1% |
| 194R | Business Perquisites / Benefits | 20,000 | 10% | 10% |
| 194S | Transfer of Virtual Digital Assets (VDA) | 10,000 / 50,000** | 1% | 1% |
| 194T | (New) Payments to Partners (Salary, Int, Comm) | 20,000 | 10% | 10% |
Key Updates & Notes for FY 2025-26:
- New Section 194T - Partner Payments
- Applicability: Payments from a Firm (including LLPs) to its Partners (Salary, Remuneration, Commission, Bonus, or Interest).
- Rate: 10%.
- Threshold: Aggregate payment exceeds ₹20,000 in the financial year.
- Section 194J - Increased Threshold
- The threshold limit for deducting TDS on Professional Fees, Technical Fees, and Royalty has been increased from ₹30,000 to ₹50,000.
- The rate remains 10% for Professional Fees and 2% for Technical Services.
- Section 206CCA - Omitted
- The provision for collecting higher TCS from "Non-Filers" of income tax returns has been omitted effective April 1, 2025, reducing the compliance burden.
Important Compliance Reminders:
- No PAN/Invalid PAN: TDS is generally deducted at 20% (or higher rates as applicable) if the deductee fails to furnish a valid PAN.
- Due Dates: TDS deducted in a month must be deposited by the 7th of the next month (except for March, which is due by April 30th).
Tax Collected at Source (TCS) Rate Chart
Financial Year 2025-26 (AY 2026-27)
| Section | Nature of Transaction | Threshold Limit | TCS Rate |
|---|---|---|---|
| 206C(1) | Alcoholic Liquor for Human Consumption | Nil | 1% |
| 206C(1) | Tendu Leaves | Nil | 5% |
| 206C(1) | Timber (Forest lease / other modes) | Nil | 2.5% |
| 206C(1) | Other Forest Produce | Nil | 2.5% |
| 206C(1) | Scrap | Nil | 1% |
| 206C(1) | Minerals (Coal, Lignite, Iron Ore) | Nil | 1% |
| 206C(1C) | Lease/License of Parking Lot, Toll Plaza, Mine/Quarry | Nil | 2% |
| 206C(1F) | Sale of Motor Vehicle | > ₹10 Lakhs | 1% |
| 206C(1G) | Foreign Remittance (LRS) | ||
| * Education (Loan from Fin. Inst.) | Nil | Nil | |
| * Education / Medical | > ₹10 Lakhs* | 5% | |
| * Others (LRS) | > ₹10 Lakhs* | 20% | |
| 206C(1G) | Overseas Tour Program Package | Up to ₹10 Lakhs* Above ₹10 Lakhs | 5% 20% |
| 206CC | Non-furnishing of PAN by Collectee | Nil | Higher of 2x Rate or 5% |
| 206C(1H) | Sale of Goods (> ₹50 Lakhs) | -- | Abolished |
| 206CCA | Higher TCS for Non-Filers | -- | Abolished |