Below is the updated TDS rate chart for key sections applicable for FY 2025-26, ensuring you deduct tax at the correct rates to avoid penalties. Includes comparison with FY 2024-25 for key changes.
| Section | Nature of Payment | Threshold Limit (₹) FY 2025-26 | TDS Rate FY 2025-26 | Threshold Limit (₹) FY 2024-25 | TDS Rate FY 2024-25 | Key Changes |
|---|---|---|---|---|---|---|
| 192 | Salary | As per slab rates | As per slab rates | As per slab rates | As per slab rates | No change in rates; slab rates apply under old/new tax regimes. |
| 192A | PF Withdrawal | ₹50,000 | 10% (20% without PAN) | ₹50,000 | 10% (20% without PAN) | No change; PAN-less rate fixed at 20% since FY 2023-24. |
| 193 | Interest on Securities | ₹2,500 | 10% | ₹2,500 | 10% | No change; applies to listed debentures. |
| 194 | Dividends | ₹5,000 | 10% | ₹5,000 | 10% | No change; applies to dividends exceeding threshold. |
| 194A | Interest (Other than Securities) | ₹50,000 (non-senior citizens), ₹1,00,000 (senior citizens) | 10% | ₹40,000 (non-senior citizens), ₹50,000 (senior citizens) | 10% | Threshold for non-senior citizens increased to ₹50,000; for senior citizens to ₹1,00,000. |
| 194B | Lottery/Game Winnings | No threshold | 30% | No threshold | 30% | No change. |
| 194BA | Online Gaming Winnings | No threshold | 30% | No threshold | 30% | No change; effective since April 1, 2023. |
| 194C | Contractor Payments | ₹30,000 (single), ₹1,00,000 (aggregate) | 1% (Individual/HUF), 2% (Others) | ₹30,000 (single), ₹1,00,000 (aggregate) | 1% (Individual/HUF), 2% (Others) | No change in rates or thresholds. |
| 194D | Insurance Commission | ₹20,000 | 2% | ₹15,000 | 5% | Threshold increased to ₹20,000; rate reduced to 2%. |
| 194G | Commission on Lottery Tickets | ₹20,000 | 5% | ₹15,000 | 5% | Threshold increased to ₹20,000. |
| 194H | Commission/Brokerage | ₹20,000 | 5% | ₹15,000 | 5% | Threshold increased to ₹20,000. |
| 194I | Rent (Land/Building) | ₹6,00,000 | 10% | ₹2,40,000 | 10% | Threshold increased to ₹6,00,000. |
| 194I | Rent (Plant/Machinery) | ₹6,00,000 | 2% | ₹2,40,000 | 2% | Threshold increased to ₹6,00,000. |
| 194IA | Sale of Immovable Property | ₹50,00,000 | 1% | ₹50,00,000 | 1% | No change. |
| 194IB | Rent by Individual/HUF | ₹6,00,000 | 2% (from Oct 1, 2024) | ₹2,40,000 | 5% | Threshold increased to ₹6,00,000; rate reduced to 2% from Oct 1, 2024. |
| 194J | Professional/Technical Fees | ₹50,000 | 10% (Professional Services), 2% (Technical Services, Call Centers) | ₹30,000 | 10% (Professional Services), 2% (Technical Services, Call Centers) | Threshold increased from ₹30,000 to ₹50,000; no change in rates. |
| 194K | Income from Mutual Funds | ₹5,000 | 10% | ₹5,000 | 10% | No change. |
| 194LBC | Income from Securitization Trust | No threshold | 10% (resident) | No threshold | 25% (Individual/HUF), 30% (Others) | Rate reduced to 10% for all residents. |
| 194M | Certain Payments by Individual/HUF | ₹50,00,000 | 5% | ₹50,00,000 | 5% | No change. |
| 194N | Cash Withdrawals (Co-operative Societies) | ₹3,00,00,000 | 2% | ₹3,00,00,000 | 2% | Threshold increased to ₹3 crore since April 1, 2023; no further change. |
| 194O | E-commerce Payments | ₹5,00,000 | 0.1% (from Oct 1, 2024) | ₹5,00,000 | 1% | Rate reduced to 0.1% from Oct 1, 2024. |
| 194S | Virtual Digital Assets | ₹50,000 (specified person), ₹10,000 (others) | 1% | ₹50,000 (specified person), ₹10,000 (others) | 1% | No change. |
| 194T | Partner’s Remuneration (Salary, Bonus, Commission, Interest) | ₹20,000 | 10% | Not applicable | Not applicable | New section introduced from April 1, 2025, for partnership firms/LLPs. |
| 206AB | Higher TDS for Non-filers | Not applicable | Omitted | Applicable | Higher rates | Section 206AB omitted from April 1, 2025. |
Note: Rates and thresholds are subject to change based on Budget 2025 announcements. Verify with CBDT notifications or consult our experts for compliance. PAN absence results in higher TDS rates under Section 206AA (typically 20%). Form 15G/15H can be used for exemption if income is below taxable limits.
Our TDS professionals ensure accurate filings and compliance with the latest Income Tax rules.
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Regular TDS returns (e.g., Form 24Q, 26Q) are filed quarterly to report TDS deducted and deposited. Correction returns fix errors in previously filed returns, like incorrect PAN or challan details, using TRACES. We handle both to keep you compliant.
Form 24Q: For TDS on salary payments, filed quarterly with employee details.
Form 26Q: For TDS on non-salary payments (e.g., rent, professional fees) to residents.
Form 27EQ: For Tax Collected at Source (TCS) details. We ensure accurate filing for all forms.
If you buy property worth over ₹50 lakh, you must deduct 1% TDS under Section 194-IA and file Form 26QB within 30 days from the end of the month of deduction. We handle the entire process, including Form 16B issuance.
Introduced for FY 2025-26, Section 194T requires 10% TDS on payments like partner remuneration or interest exceeding ₹20,000 in a firm. Confusion arises as it’s new, and firms may miss deducting it. We ensure compliance with this section.
Section 194J applies to professional/technical services, with 2% TDS for technical services and 10% for professional fees. Confusion occurs due to unclear classification of services or threshold miscalculations. We clarify and handle deductions accurately.
Late filing incurs a ₹200/day penalty under Section 234E (up to TDS amount) and possible ₹10,000-₹1,00,000 under Section 271H. Late deposits attract 1.5% monthly interest. We ensure timely filings to avoid these penalties.