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Published on 18 August 2025
TDS and TCS Rates for Financial Year 2025-26 Explained
TDS & TCS Rates – Financial Year 2025-26 (AY 2026-27)
A handy guide to the tax deduction (TDS) and collection (TCS) rates applicable this year. Always double-check with the latest CBDT circulars or your tax advisor for updates.
TDS Rates at a Glance (FY 2025-26)
| Payment Type | Section | Threshold | Rate |
|---|---|---|---|
| Salary | 192 | NA | Slab rate (based on chosen regime) |
| EPF withdrawal (premature) | 192A | > ₹50,000 | 10% |
| Interest on securities | 193 | > ₹10,000 | 10% |
| Dividend | 194 | > ₹10,000 | 10% |
| Bank/Post Office/Co-op Interest | 194A | > ₹50,000 (₹1 lakh for seniors), else ₹10,000 | 10% |
| Lottery/Crosswords/Card Games | 194B | > ₹10,000 | 30% |
| Online Games | 194BA | No limit | 30% |
| Horse race winnings | 194BB | > ₹10,000 | 30% |
| Contractor payments | 194C | > ₹30,000 (single) / ₹1 lakh (annual) | 1% (Ind/HUF), 2% (others) |
| Insurance commission | 194D | > ₹20,000 | 5% (Ind), 10% (Co) |
| Life insurance maturity | 194DA | > ₹1 lakh | 5% |
| NSS payments | 194EE | > ₹2,500 | 10% |
| Lottery commission | 194G | > ₹20,000 | 5% |
| Commission/Brokerage | 194H | > ₹20,000 | 5% |
| Rent – Plant/Machinery | 194I(a) | > ₹50,000/month | 2% |
| Rent – Land/Building | 194I(b) | > ₹50,000/month | 10% |
| Property transfer | 194IA | > ₹50 lakh | 1% |
| Rent paid by Ind/HUF | 194IB | > ₹50,000/month | 5% |
| JDA payments | 194IC | NA | 10% |
| Professional/Technical Fees | 194J | > ₹50,000 | 2% (tech/royalty), 10% (others) |
| Mutual fund income | 194K | > ₹10,000 | 10% |
| Land/property compensation | 194LA | > ₹5 lakh | 10% |
| Infra Debt Fund (non-resident) | 194LB | NA | 5% |
| Business Trust Income | 194LBA | NA | 10% |
| Investment Fund Income | 194LBB | NA | 10% (residents), 30% (non-residents) |
| Securitisation Trust Income | 194LBC | NA | 25% (Ind/HUF), 30% (others) |
| Cash withdrawal | 194N | > ₹20 lakh / ₹1 crore | 2% / 5% |
| E-commerce transactions | 194O | > ₹5 lakh | 1% |
| Purchase of goods | 194Q | > ₹50 lakh/year | 0.1% |
| Business perquisites/benefits | 194R | > ₹20,000 | 10% |
| Virtual Digital Assets | 194S | > ₹10,000 (₹50,000 for specified cases) | 1% |
| Payment to partner by firm | 194T | > ₹20,000 | 10% |
TCS Rates (FY 2025-26)
| Payment Type | Threshold | Rate |
|---|---|---|
| Alcoholic liquor | NA | 1% |
| Timber / Forest produce | NA | 2% |
| Scrap | NA | 1% |
| Parking / Toll plaza / Mining lease | NA | 2% |
| Tendu leaves | NA | 5% |
| Minerals | NA | 1% |
| Sale of motor vehicle | > ₹10 lakh | 1% |
| Sale of art/antiques/luxury goods | > ₹10 lakh | 1% |
Key Provisions to Note
- Section 206AB (Higher TDS/TCS for non-filers): Deduct at twice the rate or 5%, whichever is higher.
- Section 206AA (No PAN cases): Deduct at 20% or the applicable higher rate.
- Surcharge & Cess: Health & Education Cess @ 4% and surcharge apply as per income/tax rules for high-value payments.