TDS Rate Chart FY 2025-26 (AY 2026-27): All Sections
Complete TDS rate chart for FY 2025-26 — every major section, updated threshold limits from Budget 2025, the higher rate when PAN is missing, and how to verify TDS in Form 26AS and AIS.
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TDS rate chart FY 2025-26 (AY 2026-27): all sections
TDS trips up a lot of people — not because the concept is hard, but because the rate table changes every year, quietly, through the Finance Act. Budget 2025 revised thresholds across at least eight sections from 1 April 2025. Budget 2024 (effective 1 October 2024) cut several rates. A new section, 194T, came in for partnership firms. Section 206AB — the higher-rate provision for non-filers — was removed.
This page has all of that: rates, thresholds, what changed, and what to do when your deductor gets the PAN rule wrong.
Disclaimer: TDS rates are governed by the Income Tax Act and the Finance Acts. This table reflects the position as of 1 April 2025 (FY 2025-26 / AY 2026-27). Verify any figure on the Income Tax India portal before filing or paying. This is not professional tax advice.
How TDS works
When you receive certain payments — salary, rent, interest, professional fees — the payer is required to deduct a percentage before handing over the money. That amount goes to the government. You get credit for it when you file your ITR, and if your actual tax liability is lower than what was deducted, you get a refund.
Three things determine whether TDS applies:
- Section — the type of payment (salary, rent, commission, etc.)
- Threshold — TDS only kicks in once the payment crosses a limit
- Rate — the percentage deducted once it does
The chart below covers residents. Non-resident payments fall primarily under Section 195 and are covered at the end.
TDS rate chart for FY 2025-26 — all major sections
| Section | Nature of payment | Threshold | TDS rate | Rate without PAN |
|---|---|---|---|---|
| 192 | Salary | Basic exemption limit (₹3L new regime / ₹2.5L old regime) | As per applicable slab rate | 20% (or slab, whichever higher) |
| 192A | Premature EPF withdrawal | ₹50,000 | 10% | 20% |
| 193 | Interest on securities (debentures, bonds) | ₹10,000 | 10% | 20% |
| 194 | Dividend from domestic company | ₹10,000 | 10% | 20% |
| 194A | Interest — bank, co-operative bank, post office (general) | ₹50,000 | 10% | 20% |
| 194A | Interest — bank, co-operative bank, post office (senior citizens, 60+) | ₹1,00,000 | 10% | 20% |
| 194A | Interest — all other payers | ₹10,000 | 10% | 20% |
| 194C | Payment to contractor / sub-contractor — Individual or HUF | Single payment ₹30,000 or aggregate ₹1,00,000 in FY | 1% | 20% |
| 194C | Payment to contractor / sub-contractor — Others (companies, firms) | Single payment ₹30,000 or aggregate ₹1,00,000 in FY | 2% | 20% |
| 194D | Insurance commission | ₹15,000 | 5% (individual); 10% (company) | 20% |
| 194G | Commission on sale of lottery tickets | ₹15,000 | 2% | 20% |
| 194H | Commission or brokerage (not insurance) | ₹20,000 | 2% | 20% |
| 194I(a) | Rent — plant, machinery, or equipment | ₹6,00,000 per year (₹50,000/month) | 2% | 20% |
| 194I(b) | Rent — land, building, or furniture | ₹6,00,000 per year (₹50,000/month) | 10% | 20% |
| 194IB | Rent paid by individual/HUF not liable to tax audit | ₹50,000 per month | 2% | 20% |
| 194IA | Transfer of immovable property (buyer deducts) | ₹50,00,000 (₹50 lakh) | 1% | 1% (no higher rate relief here) |
| 194J | Professional services fees (doctors, lawyers, architects, CAs, etc.) | ₹50,000 | 10% | 20% |
| 194J | Technical services fees (call centres, technical consulting) | ₹50,000 | 2% | 20% |
| 194J | Director fees (non-salary) | No threshold | 10% | 20% |
| 194O | E-commerce — payment to resident participants by operator | ₹5,00,000 (individual/HUF only); no threshold for others | 0.1% | 5% |
| 194Q | Purchase of goods (buyer's turnover >₹10 cr in preceding FY) | ₹50,00,000 per seller per FY | 0.1% | 5% |
| 194T | Payments by firm/LLP to partners (salary, remuneration, bonus, commission, interest) | ₹20,000 per partner per FY | 10% | 20% |
| 195 | Any income paid to non-resident (NRI) | No threshold | Rates vary — typically 20–30% (DTAA may apply) | Not applicable |
Rates above are basic rates. Surcharge and health & education cess apply for company deductees and NRI payments. The 206AA rate shown is what applies when a valid PAN is not furnished.
What changed in FY 2025-26
Budget 2025 raised thresholds across several sections from 1 April 2025.
Under Section 194A, the general bank and post office threshold went from ₹40,000 to ₹50,000. Senior citizens (60+) got a bigger jump: from ₹50,000 to ₹1,00,000. For interest from non-bank payers, the old ₹5,000 limit went up to ₹10,000.
Under Section 194I, the annual rent threshold for companies and audit-liable entities went from ₹2,40,000 (₹20,000/month) to ₹6,00,000 (₹50,000/month). A lot of smaller commercial arrangements below that mark now fall outside TDS entirely.
Under Section 194J, the threshold went from ₹30,000 to ₹50,000 per year. Rates stayed the same: 2% for technical services, 10% for professional services. Director fees have no threshold.
Section 194H (commission and brokerage) threshold moved from ₹15,000 to ₹20,000. The rate had already been cut from 5% to 2% from 1 October 2024 under Budget 2024.
Under Section 194 (dividends), the threshold went from ₹5,000 to ₹10,000.
Section 194T is new, effective 1 April 2025. Partnership firms and LLPs now deduct TDS at 10% on salary, remuneration, bonus, commission, and interest paid to partners, once cumulative payments to that partner cross ₹20,000 in a financial year. Profit share stays outside TDS under Section 10(2A). This is the biggest change for professional partnerships this year.
Section 206AB was removed. That provision had required higher TDS on non-filers of ITR, adding a compliance check that most deductors found difficult to administer. It's gone.
Under Section 194O (e-commerce), the rate was cut from 1% to 0.1%, effective 1 October 2024. That applies for the full FY 2025-26.
Higher rate when PAN is not furnished
Under Section 206AA, if you don't give a valid PAN (or Aadhaar linked to PAN) to your deductor, they must use whichever is higher: the rate in the relevant section, the rate in the Finance Act, or 20%.
In practice, most non-salary payments become 20% TDS without a PAN. Sections 194Q and 194O are exceptions — the non-PAN rate there is 5%, not 20%.
For salary, it works differently. Without PAN, the employer deducts at the higher of the normal rate or 20%.
Link your PAN to Aadhaar if you haven't already, and share your PAN with banks, employers, tenants, and anyone paying you above the threshold.
How to check your TDS in Form 26AS and AIS
Log in at incometax.gov.in. For Form 26AS: Services → View Form 26AS → select the financial year. Part A shows TDS deducted at source — deductor name, section, and amount deposited to the government.
For the Annual Information Statement (AIS): Services → AIS. It pulls from banks, registrars, mutual fund houses, and employers. If you see TDS in AIS but not in 26AS, the deductor either filed their TDS return late or used the wrong PAN. Ask them to file a correction through TRACES.
Reconcile Form 26AS against Form 16 (salary TDS from your employer), Form 16A (non-salary TDS — bank interest, rent, professional fees), and your bank statements. A mismatch between Form 16A and 26AS is common when a deductor files late. You can still claim the credit in your ITR; it shows up once the deductor's return is processed.
TDS payment and return due dates
For most non-government deductors:
| Period | TDS payment due | TDS return (quarterly) due |
|---|---|---|
| April–June (Q1) | 7th of next month | 31 July |
| July–September (Q2) | 7th of next month | 31 October |
| October–December (Q3) | 7th of next month | 31 January |
| January–March (Q4) | 7th of next month; March deductions by 30 April | 31 May |
TDS deducted in March gets the longest window: 30 April to deposit, 31 May to file the return. Missing either triggers interest under Section 201(1A) — 1% per month for late deduction, 1.5% per month for late deposit.
For the full compliance calendar — advance tax instalments, ITR deadlines — see the income tax due dates guide for FY 2026-27.
Why your TDS credit sometimes doesn't match
A few things come up repeatedly.
Your deductor used the wrong PAN. Your TDS is sitting in someone else's 26AS. Contact the deductor and ask them to file a correction statement through TRACES.
The deduction was made but not deposited on time. You can still declare the income in your ITR; the credit arrives once the deductor pays up and files.
Banks apply the threshold across all branches, not per branch. If you have FDs at three branches of the same bank, TDS kicks in when combined annual interest from all three exceeds ₹50,000 (or ₹1,00,000 for senior citizens). Not ₹50,000 per branch.
You submitted Form 15G or 15H but the bank still deducted. Either the form wasn't processed in time or your estimated total income exceeded the limit for nil deduction. Once deducted, claim the credit when you file your ITR — it doesn't disappear, it just requires you to file.
Where TDS fits in your overall tax picture
TDS is advance tax. If your employer deducts correctly and that's your only income source, your year-end liability is usually small.
Problems appear when you have salary plus FD interest plus rental income — each deductor deducts at their own rate, and the combined total may not match your actual slab. Or you switch tax regimes mid-year and inform your employer, but your bank continues deducting at the flat 10% rate under 194A regardless. Or you take a home loan mid-year: the deduction changes your slab, but TDS already deducted in the first half doesn't reverse until your ITR refund.
For where TDS fits in annual planning, see the income tax planning guide for India 2026. To estimate your liability under old vs. new regime, use the tax calculator.
Frequently asked questions
What is the TDS rate on bank FD interest for FY 2025-26?
10% under Section 194A, once interest from a bank (across all branches) exceeds ₹50,000 in a financial year for general taxpayers, or ₹1,00,000 for senior citizens aged 60 or above. Without PAN, the rate is 20%. Submit Form 15G (below 60) or Form 15H (60+) to request nil deduction — but only if your total income falls below the taxable threshold.
What changed in TDS thresholds in Budget 2025?
Budget 2025, effective 1 April 2025, raised thresholds for Sections 194A (bank interest), 194H (commission), 194I (rent), 194J (professional and technical fees), and 194 (dividends). The most significant were the rent threshold jumping from ₹2.4 lakh to ₹6 lakh per year, and the senior citizen interest threshold doubling from ₹50,000 to ₹1 lakh.
What is the TDS rate under Section 194C for contractors?
1% if the payment goes to an individual or HUF, 2% for a company or firm. TDS applies when a single contract payment exceeds ₹30,000, or when total payments to that contractor in the financial year exceed ₹1,00,000.
What is the TDS rate under Section 194J for professional fees?
10% for professional services — lawyers, doctors, architects, CAs. Also 10% for director fees, with no threshold. For technical services and call centre work, the rate is 2%. Both categories share the ₹50,000 annual threshold, raised from ₹30,000 in Budget 2025.
What is Section 194T and who does it affect?
Section 194T, effective 1 April 2025, requires partnership firms and LLPs to deduct TDS at 10% on salary, remuneration, bonus, commission, and interest paid to partners. The threshold is ₹20,000 per partner per financial year. Profit share stays outside TDS, exempt under Section 10(2A).
What happens if TDS is deducted but not shown in Form 26AS?
Usually the deductor filed their return late or used the wrong PAN. Check the AIS on the IT portal first — TDS sometimes appears there before 26AS updates. If still missing, contact the deductor and ask them to verify the PAN and file a correction. You can claim the credit in your ITR regardless; it reflects once TRACES processes the correction.