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TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)
Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax Department of India. When you receive income from sources like salary, rent, or interest, the payer deducts a portion of the tax before giving you the remaining amount. This deducted TDS is then deposited to the government on your behalf. The TDS rates for FY 2024 25 are determined by the Government of India as per the TDS percentage chart. The article provides you with the current TDS Rate chart for the Financial Year 2025-26 (Assessment Year 2026-27), TDS section chart, TDS on salary slab, TDS slab rates and containing new rate chart of TDS 2025.Need help with TDS compliance? Our experts can assist you with accurate TDS payment, return filing, and timely submissions to avoid penalties.
What is the TDS Rate Chart?
A TDS (Tax Deducted at Source) rate chart is a comprehensive table that outlines the applicable tax deduction rates for various types of payments under the Income Tax Act, 1961. This TDS percentage chart specifies the percentage of tax to be deducted by the payer before making payments such as salaries, interest, rent, professional fees, and commissions. The TDS slab rates varies based on the nature of the transaction and the recipient’s category, such as individuals, companies, or non-residents. Updated annually in the Union Budget, the TDS rate chart helps taxpayers and deductors comply with tax regulations and avoid penalties for non-compliance.
Budget 2025: Key TDS Changes Effective from April 1, 2025
The Budget 2025 has revised threshold limits for TDS, ensuring that smaller transactions remain exempt from tax deduction, thereby reducing the compliance burden. These revised limits, effective from April 1, 2025, apply to various sections of the Income Tax Act, 1961.
Section | Before April 1, 2025 | From April 1, 2025 |
193 - Interest on Securities | NIL | ₹10,000 |
194A - Interest other than interest on securities | (i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases |
194 - Dividend for an individual shareholder | ₹5,000 | ₹10,000 |
194K - Income from mutual fund units | ₹5,000 | ₹10,000 |
194B - Lottery, crossword puzzle winnings | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
194BB - Winnings from a horse race | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
194D - Insurance commission | ₹15,000 | ₹20,000 |
194G - Commission, prize, etc. on lottery tickets | ₹15,000 | ₹20,000 |
194H - Commission or brokerage | ₹15,000 | ₹20,000 |
194-I - Rent | ₹2,40,000 per financial year | ₹50,000 per month |
194J - Professional/technical fees | ₹30,000 | ₹50,000 |
194LA - Enhanced compensation income | ₹2,50,000 | ₹5,00,000 |
For a detailed understanding of these TDS changes, please refer to our comprehensive article on TDS Rule Changes from April 2025!
Budget 2024: Rationalization of TDS Rates
Budget 2024 introduces reductions in the rate chart of TDS for specific payments to foster business operations and improve compliance among taxpayers. These changes of TDS tax rate chart are set to take effect on either October 1, 2024 or April 1, 2025. Below is a TDS tax rate chart table capturing the TDS slab rates detailing the affected payments, the corresponding changes in TDS rates and the New TDS rates,| Section | Current Rate | New Rates | Effective Date |
|---|---|---|---|
| Section 194H – Payment of commission or brokerage | 5% | 2% | October 1, 2024 |
| Section 194-IB – Payment of rent by certain individuals or HUF | 5% | 2% | October 1, 2024 |
| Section 194M – Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% | October 1, 2024 |
| Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant | 1% | 0.1% | October 1, 2024 |
| Section 194F – Payments on account of repurchase of units by Mutual Fund or Unit Trust of India | Proposed to be omitted | — | October 1, 2024 |
Current TDS Rate Chart for FY 2025-2026
The TDS rates for as applicable in the Financial Year 2025-2026 (Assessment Year 2026-2027) are highlighted in the TDS chart 2025 table below including TDS on salary slab, fund, etc. Below, we have given the comprehensive TDS section chart,| Section | Nature of payment | Threshold limit (INR) | Rate of TDS |
| 192 | Salary | Taxable income liable to income tax | Any of the following rate as opted by the employee – · Normal slab rate; or · New tax regime slab rate. |
| 192A | Premature withdrawal from Employees’ Provident Fund | INR 50,000 | 10% |
| 193 | Interest on securities | INR 10,000 | 10% |
| 194 | Dividend | INR 10,000 | 10% |
| 194A | Interest (other than interest on securities) | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases | 10% |
| 194B | Winning from lottery/ crossword puzzle | ₹10,000 per transaction | 30% |
| 194BA | Winning from online games | - | 30% |
| 194BB | Winning a horse race | ₹10,000 per transaction | 30% |
| 194C | Payments to contractors | Single transaction – INR 30,000; and Aggregate of transactions – INR 1,00,000 | In case of individuals/ HUF – 1% Any other case – 2% |
| 194D | Insurance commission | INR 20,000 | In the case of individuals – 5% In case of company – 10% |
| 194DA | Payment relating to life insurance policy | INR 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/ sports association | - | 20% |
| 194EE | Payments relating to deposits under NSS (National Savings Scheme) | INR 2,500 | 10% |
| 194F | Payment towards repurchase of the unit by Unit Trust of India/ Mutual Fund | - | 20% |
| 194G | Commission/ prize, etc. on sale of the lottery tickets | INR 20,000 | 5% |
| 194H | Commission/ Brokerage | INR 20,000 | 5% |
| 194-I | Rent | INR 50,000 per month | In the case of plant and machinery – 2% In the case of land/ building/ factory/ furniture/ fittings – 10% |
| 194-IA | Payment towards transfer of certain immovable property (other than agricultural land) | INR 50 Lakhs | 1% |
| 194-IB | Payment of rent by HUF/ individual (not liable to tax audit) | INR 50,000 per month | 5% |
| 194-IC | Payment under JDA (Joint Development Agreement) | NIL | 10% |
| 194J | FTS (Fees for Professional or Technical Services) | INR 50,000 | In the case of fees for technical services/ specified royalties – 2% In any other case – 10% |
| 194K | Income relating to specified units | INR 10,000 | 10% |
| 194LA | Payment towards compensation for acquisition of certain specified immovable property [land (other than agricultural land)/ building or part thereof] | INR 5,00,000 | 10% |
| 194LB | Income relating to interest from infrastructure debt fund | NIL | 5% |
| 194LBA | Income from the units of business trust | NIL | 10% |
| 194LBB | Income from units of investment funds | NIL | 10% |
| 194LBC | Income relating to investment in securitization trust | NIL | In case the payee is individual/ HUF – 25% In any other case – 30% |
| 194LC | Income relating to interest from Indian Company/ business trust | NIL | 5% |
| 194LD | Income relating to interest on certain specified bonds/ government securities | NIL | 5% |
| 194M | Payment of certain sums (i.e. commission/ brokerage/ fees for professional | INR 50 Lakhs | 5% |
| 194N | Payment of certain amounts in cash, i.e. cash withdrawals | INR 20 Lakhs in case the recipient has not furnished income tax return for three previous years (immediately preceding the previous year in which cash is withdrawn) INR 1 crore in any other case | In case amount/ aggregate amounts exceed INR 20 Lakhs – 2% In case amount/ aggregate amounts exceed INR 1 crore – 5% |
| 194-O | Payment of sum by an e-commerce operator to participant | INR 5 Lakhs | 1% |
| 194P | Tax deduction in case of senior citizen of 75 or more years age | Taxable income which is liable to tax | As per rates in force |
| 194Q | Payment towards purchase of goods | INR 50 Lakhs | 0.10% |
| 194R | Benefit/ perquisite in respect of business/ profession | INR 20,000 | 10% |
| 194S | Payment relating to transfer of virtual digital asset | Payment done by specified person – INR 50,000 Payment done by any other person – INR 10,000 | 1% |
| 195 | Payment of any other amount/ sum to a non-resident | ||
| Income relating to investment done by a non-resident Indian Citizen | NIL | 20% | |
| Income relating to LTCG referred in section 115E of the Income Tax Act with regard to a non-resident Indian Citizen | NIL | 10% | |
| Income relating to LTCG referred in section 112(1)(iii) of the Income Tax Act | NIL | 10% | |
| Income relating to LTCG referred in section 112A of the Income Tax Act | NIL | 10% | |
| Income relating to STCG referred in section 111A of the Income Tax Act | NIL | 15% | |
| Any other income relating to LTCG | NIL | 20% | |
| Income relating to interest payable by the Government/ Indian concerns on money borrowed/ debt incurred in foreign currency | NIL | 20% | |
| Any other income | NIL | 30% | |
| 206AA | TDS deduction in case Permanent Account Number (PAN) of deductee is not furnished to deductor | NIL | Higher of the following – 1. At rates specified in relevant section; 2. At rate/ rates in force; or 3. At 20%. |
| 206AB | TDS deduction in case of non-filers of income tax return | NIL | Higher of the following – 1. At twice the rates specified in relevant section; 2. At twice the rate/ rates in force; or 3. At 5%. |
Important amendments introduced on TDS rate chart vide the Finance Act, 2023
Below, we have provided the important amendment introduced on the TDS percentage chart as per Finance Act, 2023,
Section 193 – Interest on Securities –
With effect from 1st April 2023, provisions of section 193 of the Income Tax Act will be applicable to payments relating to interest on listed debentures to any resident. Notably, earlier the said payment was exempted from TDS.Section 194B – Winning from lottery/ crossword puzzle –
- Threshold TDS limit of INR 10,000 will be applicable aggregate amount from winning from lottery/ crossword puzzle/ card game or any other game/ gambling/ betting.
- With effect from 1st April 2023, provisions of section 194B of the Income Tax Act will not apply to winning from any online game.
Section 194BA – Winning from online games (newly inserted provisions effective from 1st April 2023) –
Any person responsible for paying, income by way of winning from any online games, to any person is required to deduct TDS u/s 194BA. TDS is deductible on net winning in the user account at the end of the Financial Year. However, in case of withdrawal during the Financial Year from the user account, TDS will be deductible at the time of withdrawal.Section 194 N – Payments of certain amounts in cash (i.e. cash withdrawals) –
The TDS limit, in case if the recipient is co-operative society, will be INR 3 Crores instead of INR 1 Crore.Conclusion
In conclusion, the TDS tax rate chart is an important reference for understanding tax deduction rates across various income types, like TDS on salary slab, ensuring accurate compliance with tax regulations. By providing clarity on applicable rates and thresholds, this current TDS rate chartsimplifies tax planning for both individuals and businesses. Staying updated with the latest TDS tax slab rates is essential to avoid penalties and maintain smooth financial operations.
FAQs
1. What is Tax Deducted at Source (TDS)?
Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department of India, where the payer deducts a certain percentage of tax before making specific payments like salary, rent, or interest. This deducted amount is then deposited with the government on behalf of the payee.
2. What are the significant changes in TDS rates as per the Budget 2024?
The Budget 2024 introduced reductions in TDS rates for specific payments to foster business operations and improve compliance among taxpayers. These changes are set to take effect on either October 1, 2024, or April 1, 2025. For instance, the TDS rate for payments under Section 194H (commission or brokerage) in the TDS percentage chart has been reduced from 5% to 2%, effective October 1, 2024.
3. How does the TDS on salary work for the Financial Year 2024-2025?
For the Financial Year 2024-2025, TDS on salary is deducted based on the tax slab rates applicable to the individual's taxable income. Employees can opt for either the normal slab rate or the new tax regime TDS slab rates, and the employer will deduct TDS accordingly as per the applicable TDS percentage chart.
4. What are the TDS rates for interest on securities and dividends?
As per the TDS section chart, TDS rates for FY 2024 25 for interest on securities under Section 193, if the interest amount exceeds INR 2,500, the TDS rate is 10%. For dividends under Section 194, if the dividend amount exceeds INR 5,000, the TDS rate is also 10%.
5. Are there any changes in TDS rates for FY 2024 25 for online gaming winnings?
Yes, with effect from April 1, 2023, Section 194BA was introduced, which mandates a 30% TDS on net winnings from online games. This TDS is deductible on the net winnings in the user account at the end of the financial year or at the time of withdrawal as mentioned in the TDS section chart during the financial year, whichever is earlier.
6. How has the TDS rate for rent payments changed?
Under Section 194-IB, applicable to rent payments by certain individuals or Hindu Undivided Families (HUF), the TDS rate has been reduced from 5% to 2%, effective October 1, 2024.
7. What is the TDS rates for FY 2024 25 for payments made by e-commerce operators to participants?
As per Section 194-O, the TDS slab rates on payments made by e-commerce operators to e-commerce participants has been reduced from 1% to 0.1%, effective October 1, 2024.
8. Are there any penalties for not furnishing a Permanent Account Number (PAN) to the deductor?
Yes, under Section 206AA, if the deductee fails to furnish their PAN to the deductor, TDS is deducted at the higher of the following rates:
- The rate specified in the relevant section of the Income Tax Act.
- The rate or rates in force.
- 20%.
9. What is the TDS rate for winnings from lotteries or crossword puzzles?
Under Section 194B, if the winnings from lotteries or crossword puzzles exceed INR 10,000, the TDS rate is 30%.
10. How does the new tax regime affect TDS deductions?
The new tax regime, introduced in the Union Budget 2020–21 and revised in subsequent budgets, offers reduced tax rates without exemptions and deductions. Taxpayers can choose between the old and new tax regimes, and TDS on salary will be deducted based on the regime opted by the employee.
11. What is the latest TDS rate chart for FY 2025?
The latest TDS rate chart for FY 2025 is a detailed document that outlines the tax deduction at source (TDS) rates for various types of income, applicable for the financial year 2025. It helps individuals and businesses ensure that they are deducting the correct amount of tax from payments made.
12. Why is the latest TDS rate chart for FY 2025 important?
The TDS rate chart for FY 2025 is crucial for understanding the revised tax rates on various payments like salaries, interest, and professional fees, helping individuals and businesses remain compliant with tax regulations.
13. Where can I find the TDS new rate chart 2025?
The TDS new rate chart 2025 is available on government tax portals and can be referred to for the most recent modifications in TDS rates for the year 2025 or else you can refer to the TDS section chart article by IndiaFilings.
14. How do I know if the TDS chart 2025 applies to me?
The TDS new rate chart 2025 applies to anyone receiving income on which TDS is applicable. You can compare it with your sources of income (such as salary, rent, or interest) to see if the new rates affect you.
About the Author
IndiaFilingsPost By IndiaFilings.
Updated on: April 16th, 2025
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