TDS Rate Chart for FY 2025-26
- Post By TaxTutoria
- Apr 2
- 8 min read
Updated: Apr 3
In our previous article Tax Deducted at Source (TDS) under the Income Tax Act, we explored how TDS functions as a mechanism where tax is deducted at the time of making specified payments. The deducted tax is then deposited with the Central Government on behalf of the recipient.
The Income Tax Act prescribes different TDS rates for various types of payments, including salaries, interest, professional fees, rent, and commissions. These rates may be revised periodically based on changes in tax laws.
This article provides a concise summary of the TDS rates applicable for the Financial Year 2025-26, ensuring that taxpayers, businesses, and professionals can understand and comply with tax deduction provisions effectively.
TDS Rate Chart
Particulars | TDS Rates (in %) |
192 - Payment of salary | Normal Slab Rate |
10 | |
10 | |
194 – dividend | 10 |
194A - interest other than "Interest on securities" | 10 |
194B - Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort, or from gambling or betting of any form or nature whatsoever. | 30 |
194BA - Income by way of winnings from any online game | 30 |
194BB - Income by way of winnings from horse races | 30 |
194C - Payment to contractor/sub-contractor |
|
194D - Insurance commission | 5 |
194DA - Payment in respect of life insurance policy | 2 |
194EE - Payment in respect of deposit under National Savings scheme | 10 |
194F - Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India [Omitted by the Finance (No. 2) Act, 2024, w.e.f. 1-10-2024.] | 20 |
194G - Commission, etc., on sale of lottery tickets | 5 |
194H - Commission or brokerage | 2 |
194I – Rent |
|
194IA - Payment on transfer of certain immovable property other than agricultural land | 1 |
194IB - Payment of rent by individual or HUF not liable to tax audit | 2 |
194IC - Payment of monetary consideration under Joint Development Agreements | 10 |
194J - Fees for professional or technical services |
|
sum paid or payable towards fees for technical services | 2 |
sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films | 2 |
sum paid or payable business of operation of call centre. | 2 |
Any other sum | 10 |
194K - Income in respect of units payable to resident person | 10 |
194LA - Payment of compensation on acquisition of certain immovable property | 10 |
194LBA (1) - Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | 10 |
194LBB - Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | 10 |
194M - Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh. | 2 |
194N - Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: | 2 |
For those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of: *2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; or | 2 |
*5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year. | 5 |
194O - Payment or credit of amount by the e-commerce operator to e-commerce participant | 0.1 |
194P - Deduction of tax by specified bank in case of senior citizen having age of 75 or more (Exemption For ITR) | Tax on total income as per rate in force |
194Q - Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs | 0.1 |
194R - Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. | 10 |
194S - Payment on transfer of Virtual Digital Asset | 1 |
194T - Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm, and any Other Income paid from firm. | 10 |
194LBC - Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) |
|
in case of Individual or HUF | 25 |
in case of other person | 30 |
Person is not resident in India | 30 |
Company is a domestic company | 10 |
Company is not a domestic company | 40 |
194E - Payment to non-resident sportsmen/sports association |
|
Person is not resident in India | 10 |
Company is not a domestic company | 20 |
194LB - Payment of interest on infrastructure debt fund | 5 |
194LBA (2) - Payment of the nature referred to in Section 10(23FC)(a) | 5 |
194LBA(2) - Payment of the nature referred to in Section 10(23FC)(b) | 10 |
194LBA(3) - Payment of the nature referred to in section 10(23FCA) by business trust to unit holders |
|
Person is not resident in India | 30 |
Company is not a domestic company | 40 |
194LC - Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) | 5 |
In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC | 4 |
Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC | 9 |
194LD - Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | 5 |
195 - Payment of any other sum to a Non-resident |
|
Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112, in respect of transfer which takes place |
|
Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 1,25,000 in respect of transfer which takes place: |
|
Income by way of short-term capital gains referred to in Section 111A in respect of transfer which takes place: |
|
Any other income by way of long-term capital gains [not being long-term capital gains referred to in sections 10(33), 10(36) and 112A], in respect of transfer which takes place: |
|
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 Section 194LC) | 20 |
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 after the 31st day of March, 1976 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 Income-tax 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 |
Income by way of royalty [not being royalty of the nature referred to in point f) above] 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— |
|
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 | 50 |
B. where the agreement is made after the 31st day of March, 1976 | 20 |
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— |
|
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 | 50 |
B. where the agreement is made after the 31st day of March, 1976 | 20 |
Any other income | 35 |
Section 196B: Income from units referred to in section 115AB(1)(i) | 10 |
Section 196B: Long-term capital gain on transfer of units referred to in section 115AB, in respect of transfer which takes place: |
|
196C - Income by way of interest or dividends in respect of bonds or GDR referred to in section 115AC. | 10 |
196C - Long-term capital gain arising from transfer of bonds or GDR referred to in section 115AC, in respect of transfer which takes place: |
|
196D - Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%. | 20 |
196D (1) - Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%. | 20 |
196D (1A) - Income in respect of securities referred to in section 115AD(1)(a) payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)] Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil. | 10 |
Note: The rate of TDS shall be increased by applicable surcharge and Health & Education cess in case of person is not resident in India and company is not a domestic company.
In our upcoming article series, we provide a section-wise detailed explanation of Income Tax TDS provisions, covering their applicability and transaction limits. Read our next insightful article on Section 192A – TDS on EPF Premature Withdrawals to understand its impact in detail.
Disclaimer: While we strive to present accurate and up-to-date information on TDS rates based on available sources, readers are strongly advised to verify the details from official Government Acts, Rules, Notifications, or consult tax professionals for precise compliance.