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  7. TDS Rate Chart for FY 2024-25 (AY 2025-26)

TDS Rate Chart for FY 2025-26 (AY 2026-27)

Updated on: 27 Feb, 2025 05:59 PM

TDS (Tax Deducted at Source) means collection of taxes by the Indian government at the source of income. TDS is applicable to various incomes like salary, rent, dividend, asset sales, etc. TDS (Tax Deducted at Source) is an important part of Income Tax compliance. TDS has to be deducted at the rates prescribed by the tax department. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Budget 2025 Update

  • The threshold for TDS on rent has been increased from Rs.2.4 lakhs per year to Rs.6 lakhs per year.
  • The threshold for TDS on senior citizen interest income has been increased from Rs.50,000 to Rs.1,00,000.

Contents

What is TDS?

TDS, or Tax Deducted at Source, is a taxation system in which the tax is deducted at the source of the income at the time of making the payment. The Indian government introduced it to prevent tax evasion. The TDS deducted is then submitted to the government. TDS is applicable on incomes such as rent, interest, salaries, and commission. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deducted.

TDS on Payment to Partners by Firm under Section 194T

Starting from April 1, 2025, if a firm makes any payments to its partners, it must deduct TDS at 10% if the payment amount exceeds the threshold limit of 20,000. These payments include salary, remuneration, bonus, commission, and interest.

Note: TDS is not applicable to the drawings and the capital repayment to the partners. But TDS applies to the interest on capital or borrowings from partners.

What is TDS Chart?

A TDS (Tax Deducted at Source) chart is a document or chart that outlines the rates at which tax is to be deducted at the source from various types of income as per the Income Tax Act. TDS chart provides information on the rates at which tax is to be deducted from the source for different types of payments such as salaries, interest, rent, professional fees, etc. These rates can vary depending on the nature of the payment, the amount, and the status of the recipient (whether they are an individual, a company, etc.).

TDS Rate Chart for FY 2025-26

TDS Section List Nature of Payment Threshold Individual or HUF Others
192 Payment in form of salary ₹ 2,50,000 Slab Rates Slab Rates
192A (Note 1) Employee Provident Fund withdrawal prematurely/early ₹ 50,000 10% 10%
193 Interest earned on securities including listed debentures and other securities ₹ 10,000 10% 10%
194 Payment of dividends by domestic Co. ₹ 10,000 10% 10%
194A Interest on deposits from banks or post offices ₹ 50,000₹ 1,00,000(senior citizens) 10% 10%
Interest income other than securities ₹ 10,000 10% 10%
194B Winnings of lotteries, puzzles, or games (Casual income) 10,000 in a single transaction 30% 30%
194BA Winnings from online Games - 30% 30%
194BB Winnings from Horse races 10,000 in a single transaction 30% 30%
194C Payments made to contractors or sub-contractors (one time) ₹ 30,000 1% 2%
Payments made to contractors or sub-contractors on an aggregate basis ₹ 1,00,000 1% 2%
194D Commission paid on insurance sales to domestic companies ₹ 20,000 Not Applicable 10%
Commission paid on insurance sales to non-domestic companies ₹ 20,000 5% Not Applicable
194DA Maturity of life insurance policy ₹ 1,00,000 2% 2%
194EE Payment received from the National Savings Scheme by individuals ₹ 2,500 10% 10%
194G Payments or commission made from the sale of lottery tickets ₹ 20,000 2% 2%
194H Commission or brokerage fees ₹ 20,000 2% 2%
194I Rent paid for land, building, or furniture ₹ 50,000 per month i.e. 6,00,000 in a financial year 10% 10%
Rent paid for plant and machinery 2% 2%
194IA Payment for the transfer of immovable property excluding agricultural land ₹ 50,00,000 1% 1%
194IB Rent payment made by an individual or HUF not covered under section 194I ₹ 50,000 (per month) 2% Not Applicable
194IC Payments made under a Joint Development Agreement to I / HUF No Limit 10% 10%
194J Fees paid for professional and technical services (doctor/CA etc) ₹ 50,000 10% 10%
Royalty paid for the sale, distribution, or exhibition of cinematographic films ₹ 50,000 2% 2%
194K Income received from units of a mutual fund, such as dividends ₹ 10,000 10% 10%
194LA Compensation for acquiring certain immovable property ₹ 5,00,000 10% 10%
194LB Interest on infrastructure bonds to Non-Resident Indians Not Applicable 5% 5%
194LBA(1) Distribution of certain income by a business trust to its unit holders Not Applicable 10% 10%
194LD Interest payment on rupee-denominated bonds, municipal debt security, and government securities Not Applicable 5% 5%
194M (Note 2) Payments made for contracts, brokerage, commission, or professional fees excluding sections 194C, 194H, 194J- Individual/HUF ₹ 50,00,000 2% 2%
194N (Note 3) Cash withdrawal exceeding a specified amount from the bank, with filed ITR ₹ 1,00,00,000 2% 2%
When ITR is not filed ₹ 20,00,000 2% then 5% after 1cr on slab basis 2% then 5% after 1cr on slab basis
194O Amount received for the sale of products/services by e-commerce service providers through digital platforms ₹ 5,00,000 0.1% 0.1%
194P Senior citizen above 75 yr of age having salary and interest Income, ITR not required Not Applicable Slab rates Not Applicable
194Q Payments made for the purchase of goods ₹ 50,00,000 0.10% 0.10%
194R Perquisite provided ₹ 20,000 10% 10%
194S TDS on the payment of cryptocurrencies or other virtual assets ₹ 50,000
(specified person)
₹ 10,000 (others)		 1% 1%
194T TDS on payments made by firms to their partners ₹ 20,000 Not applicable 10%
206AA TDS applicable in case of non-availability of PAN Not Applicable At a higher rate than:-2X the rate specified by the act-20%-The currently applicable rate At a higher rate than:-2X the rate specified by the act-20%-The currently applicable rate

Are you looking for TDS calculation and want to pay TDS error-free? Get in touch with our experts.

TDS Rates Applicable on Non-Resident Indian (Other than a Company) for FY 2024-25

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 30%
Section 194LBB: Payment by investment fund to unitholder 30%
Section 194LBC: Income from investment in securitization fund 30%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum to NRI 10% / 20% / 30%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

TDS Rates Applicable for a Domestic Company for FY 2024-25

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 193: Interest on securities 10%
Section 194: Payment of any dividend 10%
Section 194A: Interest income (excluding securities) 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194C: Payment to contractor/sub-contractor 1% / 2%
Section 194D: Insurance commission 10%
Section 194DA: Income portion of life insurance payout 5%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194H: Commission or brokerage 5%
Section 194-I: Rent on plant/machinery or land/building/furniture 2% / 10%
Section 194-IA: Transfer of immovable property 1%
Section 194-IC: Payment under Joint Development Agreements (JDA) 10%
Section 194J: Payment for professional/technical services, etc. 2% / 10%
Section 194K: Income from units of mutual funds 10%
Section 194LA: Compensation on acquisition of immovable property 10%
Section 194LBA(1): Income distributed by a business trust 10%
Section 194LBB: Income paid by investment fund to unitholder 10%
Section 194LBC: Income from investment in securitization fund 10%
Section 194M: Payments by Individual/HUF exceeding ₹50 Lakhs 5%
Section 194N: Cash withdrawals exceeding ₹1 Crore 2% / 5%
Section 194O: Sale of goods/services via e-commerce platforms 1%
Section 194Q: Purchase of goods exceeding ₹50 Lakhs 0.1%
Any Other Income 10%

TDS Rates Applicable for a company other than Domestic Company for FY 2024-25

Particulars TDS Rate
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 40%
Section 194LBB: Payment by investment fund to unitholder 40%
Section 194LBC: Income from investment in securitization fund 40%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum, including capital gains 10% / 20% / 40%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

FAQ on TDS Rate Chart

Q- What is the TDS Rate for Rent in FY 2023-24?

If the annual rent paid is more than 2,40,000, TDS is applicable.

Q- Who is eligible to pay TDS?

Any person whose total income exceeds the basic exemption limit and falls under the taxable bracket is eligible to pay TDS.

Q- Can I get a TDS refund?

Any tax paid in excess is refunded by the Income Tax Department. Once you file your ITR and your refund gets processed, the government refunds the excess income tax.

Q- What are the components of the TDS?

The TDS components are TDS, surcharge, PE-Cess, and SHE Cess.

Q- What are the changes in TDS rates for FY 2023 24?

Effective from July 1, 2023, the Tax Collected at Source (TCS) rate shall not exceed 20% if the collectee fails to furnish their PAN to the collector or if they are non-filers. Furthermore, concerning Tax Deducted at Source (TDS) under Section 192A for EPF withdrawals, the rate shall be fixed at 20% instead of the maximum marginal rate, even if the recipient does not provide their PAN.

Q- What is the threshold limit for TCS and TDS?

For TDS:

  • The tax deduction rate is 0.1% of the sum exceeding Rs. 50 lacs. This means if the transaction amount is over Rs. 50 lacs, the TDS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the transaction amount is Rs. 60 lacs, the TDS would be calculated as follows:

TDS = 0.1% of (Rs. 60,00,000 - Rs. 50,00,000) = 0.1% of Rs. 10,00,000 = Rs. 1,000.

For TCS:

  • The tax collection rate is also 0.1% of the sale sum exceeding Rs. 50 lacs. Similar to TDS, if the sale amount is over Rs. 50 lacs, the TCS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the sale amount is Rs. 70 lacs, the TCS would be calculated as follows:

TCS = 0.1% of (Rs. 70,00,000 - Rs. 50,00,000) = 0.1% of Rs. 20,00,000 = Rs. 2,000.

These rates and thresholds are subject to change, so it's essential to verify with the tax expert for accurate information.

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CA Abhishek Soni

CA Abhishek Soni
Founder & CEO at Tax2win

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Abhishek Soni is a Chartered Accountant by profession and an entrepreneur by passion. He has wide industry experience in telecom, retail, manufacturing, and entertainment and has handled various national and international assignments. He is the co-founder and CEO of Tax2win.in. Tax2win, an online tax filing platform, provides the easiest way to e-file your Income Tax Return in India. Through Tax2win.in, Abhishek endeavors to revolutionize how individuals file their income tax returns, offering a seamless and user-friendly experience.