The TDS (Tax Deducted at Source) rates for FY 2025-26 outline the tax deductions applicable to various transactions, ensuring compliance with the latest tax regulations. The revised rates impact salary payments, EPF withdrawals, interest on securities, dividends, rent thresholds, and several other financial transactions. Below is a structured summary of the updated TDS rates and their applicability.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
| Section | Nature of Transaction | Threshold Limit (₹) | TDS Rate |
|---|---|---|---|
| 192 | Salary Income | Based on Tax Slabs | As per slab rates |
| 192A | EPF - Premature Withdrawal | 50,000 | 10% (20% if no PAN) |
| 193 | Interest on Securities | 10,000 | 10% |
| 193 | Interest on Debenture | 10,000 | 10% |
| 194 | Dividend (Other than Listed Companies) | 10,000 | 10% |
| 194A | Interest (Bank/Post Office) | 50,000/100,000 | 10% |
| 194A | Interest (Other than Securities) | 10,000 | 10% |
| 194B | Winnings from Lotteries, Puzzles, Games | 10,000 (Single Transaction) | 30% |
| 194BA | Winnings from Online Games | NIL | 30% |
| 194BB | Winnings from Horse Race | 10,000 (Single Transaction) | 30% |
| 194C | Payment to Contractor/Sub-Contractor | 30,000/100,000 | 1% (Individuals/HUF), 2% (Others) |
| 194D | Payment of Insurance Commission | 20,000 | 5%/10% |
| 194DA | Payment under LIC Policy | 100,000 | 2% |
| 194E | Payment to NR Sportsmen/Sports Association | NA | 20% |
| 194EE | NSS Deposit Payments | 2,500 | 10% |
| 194F | Repurchase of Units by UTI/Mutual Fund | NIL | 20% |
| 194G | Commission on Lottery Ticket Sales | 20,000 | 2% |
| 194H | Commission or Brokerage | 20,000 | 2% |
| 194I | Rent (Land & Building/Furniture) | 50,000 (Per Month) | 10% |
| 194I | Rent (Plant & Machinery) | 50,000 (Per Month) | 2% |
| 194IA | Transfer of Immovable Property (Excluding Agri. Land) | 50 Lakh | 1% |
| 194IB | Rent (Individuals not under Tax Audit) | 50,000 (Monthly) | 2% |
| 194IC | Payment under Joint Development Agreement | NA | 10% |
| 194J | Professional/Technical Fees | 50,000 | 2% (Tech/Royalty), 10% (Other Prof. Services) |
| 194K | Income from Units (Resident) | 10,000 | 10% |
| 194LA | Compensation on Immovable Property Acquisition | 500,000 | 10% |
| 194LB | Interest from Infrastructure Bonds (NRI) | NA | 5% |
| 194LBA(1) | Income Distributed by Business Trust | NA | 10% |
| 194LBB | Income from Investment Fund | NA | 10% |
| 194LBC | Income from Securitization Trust | NA | 10% |
| 194LD | Interest on Certain Bonds/Govt. Securities | NA | 5% |
| 194M | Payment to Resident for Contract/Commission | 50 Lakh | 2% |
| 194N | Cash Withdrawal | 1 Cr/3 Cr/20 Lakh | 2%/5% |
| 194O | Payments via E-commerce Operator | 5 Lakh | 0.1% |
| 194P | Senior Citizens Above 75 Years (Non-Filers) | NA | As per slab rates |
| 194Q | Purchase of Goods | 50 Lakh | 0.10% |
| 194R | Perquisites/Benefits (Aggregate > ₹20,000) | 20,000 | 10% |
| 194S | Payment for Virtual Digital Assets | 50,000 (SPP)/10,000 (Others) | 1% |
| 206AA | TDS without PAN | NA | Higher of 1) As per Act 2) Twice the rate 3) 20% |
| 206AB | TDS on Non-Filers | NA | Higher of 1) 5% 2) Twice the rate 3) Twice the rate in force |
Key Takeaways
Higher TDS for Non-Filers & Missing PAN: Individuals without PAN or non-filers of ITR will be subject to higher TDS rates.
New Digital Economy Provisions: Virtual digital assets, e-commerce transactions, and online gaming winnings have specific tax implications.
Senior Citizen Relief: Individuals above 75 years are taxed as per slab rates.
Revised Rent & Dividend Thresholds: Rent payments and dividend incomes have revised limits affecting TDS applicability.
