income tax
Published on 22 May 2025
TDS Rate Chart FY 2025-26: Latest Slabs & Thresholds
TDS Rate Chart for Financial Year 2025-26
This article presents the updated Tax Deducted at Source (TDS) rates for the Financial Year 2025-26. The information aligns with amendments from the Union Budget 2025 and the latest Finance Acts, clarifying key sections, nature of payments, applicable thresholds, and TDS rates for both resident and non-resident taxpayers.
TDS Rates Overview
TDS Rate Chart for Financial Year 2025-26
| Section | Nature of Payment | Threshold Limit (INR) | TDS Rate |
|---|---|---|---|
| 192 | Salary | Taxable income liable to tax | As per slab (old or new regime, as opted) |
| 192A | Premature withdrawal from EPF | 50,000 | 10% |
| 193 | Interest on securities (including listed debentures) | 10,000 | 10% |
| 194 | Dividend | 10,000 | 10% |
| 194A | Interest (other than securities) | (i) Senior citizens: 1,00,000 <br> (ii) Others (banks/co-ops/post offices): 50,000 <br> (iii) Others: 10,000 | 10% |
| 194B | Lottery/crossword puzzle winnings | 10,000 per transaction | 30% |
| 194BA | Net winnings from online games | Nil | 30% |
| 194BB | Winnings from horse races | 10,000 per transaction | 30% |
| 194C | Contractor payments (individual/HUF) | 30,000 (single); 1,00,000 (annual) | 1% (Ind/HUF), 2% (Others) |
| 194D | Insurance commission | 20,000 | 5% (Individual), 10% (Company) |
| 194DA | Life insurance policy (not exempt u/s 10(10D)) | 1,00,000 | 2% |
| 194E | Payment to non-resident sportsmen/association | Nil | 20% |
| 194EE | Payments under NSS | 2,500 | 10% |
| 194F | Repurchase of units by UTI/Mutual Fund | Nil | 20% |
| 194G | Commission/prize on lottery tickets | 20,000 | 5% |
| 194H | Commission or brokerage | 20,000 | 5% |
| 194I | Rent (plant/machinery) | 50,000 per month | 2% |
| Rent (land/building/factory/furniture/fittings) | 50,000 per month | 10% | |
| 194IA | Transfer of immovable property (other than agricultural land) | 50,00,000 | 1% |
| 194IB | Rent by individual/HUF (not liable to tax audit) | 50,000 per month | 5% |
| 194IC | Payment under Joint Development Agreement | Nil | 10% |
| 194J | Professional services | 50,000 | 10% |
| Technical services/call centres/specified royalties | 50,000 | 2% | |
| Director’s remuneration (other than 192) | Nil | 10% | |
| Royalty (other than specified) | 50,000 | 10% | |
| Non-compete fees | 50,000 | 10% | |
| 194K | Income from mutual fund units | 10,000 | 10% |
| 194LA | Compensation for compulsory acquisition of immovable property | 5,00,000 | 10% |
| 194LB | Interest from infrastructure debt fund | Nil | 5% |
| 194LBA | Income from business trust (resident) | Nil | 10% |
| Income from business trust (non-resident) | Nil | 5%/30% | |
| 194LBB | Income from investment funds | Nil | 10% (Resident), 30% (Non-resident) |
| 194LBC | Securitization trust income | Nil | 25% (Individual/HUF), 30% (Others) |
| 194LC | Interest from Indian company/business trust (foreign currency loan) | Nil | 5% |
| 194LD | Interest on specified bonds/securities | Nil | 5% |
| 194M | Payment by Individual/HUF for contract, commission, or professional fees (not covered under 194C, 194D, 194J) | 50,00,000 | 2% |
| 194N | Cash withdrawals (ITR not filed for 3 years) | 20,00,000 | 2% |
| Cash withdrawals (exceeding 1 crore/3 crore for co-operative societies) | 1,00,00,000/3,00,00,000 | 5% | |
| 194O | Payment by e-commerce operator to participant | 5,00,000 | 1% |
| 194P | TDS for senior citizens (75+ years) | Taxable income | As per slab |
| 194Q | Payment for purchase of goods by specified buyer | 50,00,000 | 0.1% |
| 194R | Benefit/perquisite in respect of business/profession | 20,000 | 10% |
| 194S | Payment for transfer of virtual digital asset | 50,000 (specified person), 10,000 (others) | 1% |
| 194T | Payment to partners (salary, remuneration, commission, bonus, interest) | 20,000 | 10% |
| 195 | Payments to non-residents (various income types) | Nil | 10%-30% (see notes) |
| 206AA | No PAN furnished | Nil | 20% or higher applicable rate |
| 206AB | Non-filers of ITR | Nil | Higher of: 2x rate or 5% |
Key Amendments for FY 2025-26
The Union Budget 2025 raised the senior citizen interest threshold to ₹1 lakh from ₹50,000. This change benefits approximately 3.5 million taxpayers, based on Reserve Bank of India data. Additionally, TDS on rent now applies to ₹50,000 per month, effective for annual limits of ₹6 lakh, thereby incorporating smaller leases into the tax framework.
Moreover, the TDS thresholds for professional services have been standardized at ₹50,000, which aligns with fee structures in advisory and audit engagements. Both dividends and mutual fund payouts now incur a 10% TDS for amounts exceeding ₹10,000, effectively doubling from the previous year’s threshold.
New sections are introduced, such as Section 194T, which enforces a 10% TDS on partner distributions exceeding ₹20,000, while Section 194BA mandates a 30% deduction on online gaming winnings at the payout stage. For substantial cash withdrawals, Section 194N reduces the 2% trigger limit to ₹20 lakh for individuals who have not filed ITRs for the preceding three years, with larger amounts facing a 5% rate.
These updates signify a trend toward stricter withholding on non-salary incomes and digital transactions. It is imperative for institutions and practitioners to adjust payroll, audit, and accounting practices accordingly, ensuring all system configurations are verified for seamless year-end reporting.