TDS (Tax Deducted at Source) rate chart is a comprehensive table that outlines the applicable tax deduction rates for various types of payments under the Income Tax Act, 1961. This TDS percentage chart specifies the percentage of tax to be deducted by the payer before making payments such as salaries, interest, rent, professional fees, and commissions. The TDS slab rates varies based on the nature of the transaction and the recipient’s category, such as individuals, companies, or non-residents. Updated annually in the Union Budget, the TDS rate chart helps taxpayers and deductors comply with tax regulations and avoid penalties for non-compliance.
Current TDS Rate Chart for FY 2025-26
The TDS rates for as applicable in the Financial Year 2025-2026 (Assessment Year 2026-2027) are highlighted in the TDS chart 2025 table below including TDS on salary slab, fund, etc. Below, we have given the comprehensive TDS section chart,
| Section | Nature of payment | Threshold limit (INR) | Rate of TDS |
| 192 | Salary | Taxable income liable to income tax | Any of the following rate as opted by the employee – · Normal slab rate; or · New tax regime slab rate. |
| 192A | Premature withdrawal from Employees’ Provident Fund | INR 50,000 | 10% |
| 193 | Interest on securities | INR 10,000 | 10% |
| 194 | Dividend | INR 10,000 | 10% |
| 194A | Interest (other than interest on securities) | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases | 10% |
| 194B | Winning from lottery/ crossword puzzle | ₹10,000 per transaction | 30% |
| 194BA | Winning from online games | – | 30% |
| 194BB | Winning a horse race | ₹10,000 per transaction | 30% |
| 194C | Payments to contractors | Single transaction – INR 30,000; and Aggregate of transactions – INR 1,00,000 | In case of individuals/ HUF – 1% Any other case – 2% |
| 194D | Insurance commission | INR 20,000 | In the case of individuals – 5% In case of company – 10% |
| 194DA | Payment relating to life insurance policy | INR 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/ sports association | – | 20% |
| 194EE | Payments relating to deposits under NSS (National Savings Scheme) | INR 2,500 | 10% |
| 194F | Payment towards repurchase of the unit by Unit Trust of India/ Mutual Fund | – | 20% |
| 194G | Commission/ prize, etc. on sale of the lottery tickets | INR 20,000 | 5% |
| 194H | Commission/ Brokerage | INR 20,000 | 5% |
| 194-I | Rent | INR 50,000 per month | In the case of plant and machinery – 2% In the case of land/ building/ factory/ furniture/ fittings – 10% |
| 194-IA | Payment towards transfer of certain immovable property (other than agricultural land) | INR 50 Lakhs | 1% |
| 194-IB | Payment of rent by HUF/ individual (not liable to tax audit) | INR 50,000 per month | 5% |
| 194-IC | Payment under JDA (Joint Development Agreement) | NIL | 10% |
| 194J | FTS (Fees for Professional or Technical Services) | INR 50,000 | In the case of fees for technical services/ specified royalties – 2% In any other case – 10% |
| 194K | Income relating to specified units | INR 10,000 | 10% |
| 194LA | Payment towards compensation for acquisition of certain specified immovable property [land (other than agricultural land)/ building or part thereof] | INR 5,00,000 | 10% |
| 194LB | Income relating to interest from infrastructure debt fund | NIL | 5% |
| 194LBA | Income from the units of business trust | NIL | 10% |
| 194LBB | Income from units of investment funds | NIL | 10% |
| 194LBC | Income relating to investment in securitization trust | NIL | In case the payee is individual/ HUF – 25% In any other case – 30% |
| 194LC | Income relating to interest from Indian Company/ business trust | NIL | 5% |
| 194LD | Income relating to interest on certain specified bonds/ government securities | NIL | 5% |
| 194M | Payment of certain sums (i.e. commission/ brokerage/ fees for professional | INR 50 Lakhs | 5% |
| 194N | Payment of certain amounts in cash, i.e. cash withdrawals | INR 20 Lakhs in case the recipient has not furnished income tax return for three previous years (immediately preceding the previous year in which cash is withdrawn) INR 1 crore in any other case | In case amount/ aggregate amounts exceed INR 20 Lakhs – 2% In case amount/ aggregate amounts exceed INR 1 crore – 5% |
| 194-O | Payment of sum by an e-commerce operator to participant | INR 5 Lakhs | 1% |
| 194P | Tax deduction in case of senior citizen of 75 or more years age | Taxable income which is liable to tax | As per rates in force |
| 194Q | Payment towards purchase of goods | INR 50 Lakhs | 0.10% |
| 194R | Benefit/ perquisite in respect of business/ profession | INR 20,000 | 10% |
| 194S | Payment relating to transfer of virtual digital asset | Payment done by specified person – INR 50,000 Payment done by any other person – INR 10,000 | 1% |
| 195 | Payment of any other amount/ sum to a non-resident | ||
| Income relating to investment done by a non-resident Indian Citizen | NIL | 20% | |
| Income relating to LTCG referred in section 115E of the Income Tax Act with regard to a non-resident Indian Citizen | NIL | 10% | |
| Income relating to LTCG referred in section 112(1)(iii) of the Income Tax Act | NIL | 10% | |
| Income relating to LTCG referred in section 112A of the Income Tax Act | NIL | 10% | |
| Income relating to STCG referred in section 111A of the Income Tax Act | NIL | 15% | |
| Any other income relating to LTCG | NIL | 20% | |
| Income relating to interest payable by the Government/ Indian concerns on money borrowed/ debt incurred in foreign currency | NIL | 20% | |
| Any other income | NIL | 30% | |
| 206AA | TDS deduction in case Permanent Account Number (PAN) of deductee is not furnished to deductor | NIL | Higher of the following – 1. At rates specified in relevant section; 2. At rate/ rates in force; or 3. At 20%. |
| 206AB | TDS deduction in case of non-filers of income tax return | NIL | Higher of the following – 1. At twice the rates specified in relevant section; 2. At twice the rate/ rates in force; or 3. At 5%. |
This TDS chart 2025 details the sections, nature of payment, threshold limit, and the corresponding TDS limit as per the TDS tax slab 2025.
Budget 2025: Key TDS Changes Effective from April 1, 2025
The Budget 2025 has revised threshold limits for TDS, ensuring that smaller transactions remain exempt from tax deduction, thereby reducing the compliance burden. These revised limits, effective from April 1, 2025, apply to various sections of the Income Tax Act, 1961.
| Section | Before April 1, 2025 | From April 1, 2025 |
| 193 – Interest on Securities | NIL | ₹10,000 |
| 194A – Interest other than interest on securities | (i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases |
| 194 – Dividend for an individual shareholder | ₹5,000 | ₹10,000 |
| 194K – Income from mutual fund units | ₹5,000 | ₹10,000 |
| 194B – Lottery, crossword puzzle winnings | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194BB – Winnings from a horse race | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194D – Insurance commission | ₹15,000 | ₹20,000 |
| 194G – Commission, prize, etc. on lottery tickets | ₹15,000 | ₹20,000 |
| 194H – Commission or brokerage | ₹15,000 | ₹20,000 |
| 194-I – Rent | ₹2,40,000 per financial year | ₹50,000 per month |
| 194J – Professional/technical fees | ₹30,000 | ₹50,000 |
| 194LA – Enhanced compensation income | ₹2,50,000 | ₹5,00,000 |
For a detailed understanding of these TDS changes, please refer to our comprehensive article on TDS Rule Changes from April 2025!
TDS Rule Changes from 1st April 2025
The Budget 2025 has brought significant reforms to the Tax Deduction at Source (TDS) provisions under the Income Tax Act, 1961, aiming to simplify compliance for businesses and individuals. These amendments primarily focus on raising threshold limits and introducing new provisions to enhance efficiency and ease the taxation process. This article provides a clear and concise overview of the key TDS changes, making it easier to understand.
Key TDS Changes Effective from April 1, 2025
The Budget 2025 has introduced enhanced threshold limits for TDS, ensuring that smaller transactions remain exempt from tax deduction, thereby reducing the compliance burden. These revised limits, effective from April 1, 2025, apply to various sections of the Income Tax Act, 1961.
Here’s a summary of the updated TDS threshold limits:
| Section | Before April 1, 2025 | From April 1, 2025 |
| 193 – Interest on Securities | NIL | ₹10,000 |
| 194A – Interest other than interest on securities | (i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases |
| 194 – Dividend for an individual shareholder | ₹5,000 | ₹10,000 |
| 194K – Income from mutual fund units | ₹5,000 | ₹10,000 |
| 194B – Lottery, crossword puzzle winnings | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194BB – Winnings from a horse race | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194D – Insurance commission | ₹15,000 | ₹20,000 |
| 194G – Commission, prize, etc. on lottery tickets | ₹15,000 | ₹20,000 |
| 194H – Commission or brokerage | ₹15,000 | ₹20,000 |
| 194-I – Rent | ₹2,40,000 per financial year | ₹50,000 per month |
| 194J – Professional/technical fees | ₹30,000 | ₹50,000 |
| 194LA – Enhanced compensation income | ₹2,50,000 | ₹5,00,000 |
Major Highlights of the TDS Amendments
Here are the key changes in the TDS rules effective from April 1, 2025.
Higher TDS Exemption for Senior Citizens
Senior citizens will benefit from an increased TDS exemption limit on interest earned from fixed deposits (FDs) and recurring deposits (RDs). The threshold has been raised from Rs 50,000 to Rs 1 lakh per financial year. This means that banks will deduct TDS only if the total interest earnings exceed Rs 1 lakh. Those earning below this limit will be exempt from TDS deductions, allowing them to retain more of their income.
Revised TDS Limits for Regular Depositors
For non-senior citizens, the government has increased the TDS threshold on interest income from Rs 40,000 to Rs 50,000 per financial year.
This change will benefit individuals who rely on interest earnings from bank deposits, as TDS will only be deducted when annual interest earnings surpass Rs 50,000.
Simplified TDS Rules for Gaming Winnings
The government has restructured TDS regulations on lottery winnings, crossword puzzles, and horse racing. Previously, TDS was deducted when total winnings exceeded Rs 10,000 in a financial year. Under the new rules, effective from April 1, 2025, TDS will only be applicable on individual winnings exceeding Rs 10,000.
For example, if a person wins Rs 8,000 three times, totaling Rs 24,000, no TDS will be deducted as each winning is below the Rs 10,000 threshold. This change simplifies tax deductions for gaming earnings.
Increased Exemption for Insurance and Brokerage Commissions
Insurance agents and brokers will benefit from a higher exemption limit on commission earnings. The TDS threshold has been increased from Rs 15,000 to Rs 20,000 per financial year. This revision aims to improve cash flow for agents and reduce their compliance burden.
Changes in TDS on Investment Income
Investors will see an increase in the TDS exemption threshold for dividend and mutual fund (MF) income. Starting April 2025, TDS will only be deducted if the total dividend or MF earnings exceed Rs 10,000 per financial year, up from the previous threshold of Rs 5,000.
Revised TDS Limits for Rental Income
Landlords will benefit from a significant increase in the TDS threshold for rental income. Earlier, TDS was applicable if annual rental earnings exceeded Rs 2.4 lakh. Under the new rule, the exemption limit has been revised to ₹50,000 per month , providing significant relief to property owners and helping them manage their cash flow more efficiently.
TDS on Partner’s Remuneration – Section 194T
Section 194T was introduced in Budget 2024 to broaden the tax base and enhance compliance among partnership firms and LLPs. This section mandates that TDS be deducted at a rate of 10% on payments made to partners if the total amount exceeds ₹20,000 in a financial year. This provision applies to all forms of payments made to partners, including:
- Remuneration
- Interest on capital
- Commission
- Bonuses
- Salary payments
TDS Applicability Under Section 194T
| Payment Type | TDS Rate | Threshold Limit |
| Remuneration, Interest, and Commission paid to partners | 10% | Exceeds ₹20,000 in a financial year |
Key Takeaways
- Ensures tax deduction at source for partner payments, bringing LLPs and firms under stricter tax compliance.
- Applies only if total payments exceed ₹20,000 in a financial year – smaller transactions remain exempt.
- Firms and LLPs must deduct TDS before making payments to partners and deposit it with the tax authorities.
No More Higher TDS for Non-Filers – Section 206AB Removed
Before April 1, 2025:
- Section 206AB mandated a higher TDS rate for individuals who had not filed their Income Tax Returns (ITR) for the past two assessment years and where the total TDS deducted exceeded ₹50,000 in each year.
- This increased compliance burden for businesses, requiring them to verify whether the deductee was a non-filer before applying the correct TDS rate.
From April 1, 2025:
- Section 206AB has been removed, meaning businesses no longer need to check whether the payee has filed their ITR before deducting TDS.
- Standard TDS rates will apply to all transactions without requiring verification of tax return filing status.
With this change, businesses can focus on regular TDS compliance without additional verification steps, making tax deduction processes more efficient.
Budget 2024: Rationalization of TDS Rates
Budget 2024 introduces reductions in the rate chart of TDS for specific payments to foster business operations and improve compliance among taxpayers. These changes of TDS tax rate chart are set to take effect on either October 1, 2024 or April 1, 2025. Below is a TDS tax rate chart table capturing the TDS slab rates detailing the affected payments, the corresponding changes in TDS rates and the New TDS rates,SectionCurrent RateNew RatesEffective DateSection 194H – Payment of commission or brokerage5%2%October 1, 2024Section 194-IB – Payment of rent by certain individuals or HUF5%2%October 1, 2024Section 194M – Payment of certain sums by certain individuals or Hindu undivided family5%2%October 1, 2024Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant1%0.1%October 1, 2024Section 194F – Payments on account of repurchase of units by Mutual Fund or Unit Trust of IndiaProposed to be omitted—October 1, 2024
Important amendments introduced on TDS rate chart vide the Finance Act, 2023
Below, we have provided the important amendment introduced on the TDS percentage chart as per Finance Act, 2023,
Section 193 – Interest on Securities –
With effect from 1st April 2023, provisions of section 193 of the Income Tax Act will be applicable to payments relating to interest on listed debentures to any resident. Notably, earlier the said payment was exempted from TDS.
Section 194B – Winning from lottery/ crossword puzzle –
- Threshold TDS limit of INR 10,000 will be applicable aggregate amount from winning from lottery/ crossword puzzle/ card game or any other game/ gambling/ betting.
- With effect from 1st April 2023, provisions of section 194B of the Income Tax Act will not apply to winning from any online game.
Section 194BA – Winning from online games (newly inserted provisions effective from 1st April 2023) –
Any person responsible for paying, income by way of winning from any online games, to any person is required to deduct TDS u/s 194BA. TDS is deductible on net winning in the user account at the end of the Financial Year. However, in case of withdrawal during the Financial Year from the user account, TDS will be deductible at the time of withdrawal.
Section 194 N – Payments of certain amounts in cash (i.e. cash withdrawals) –
The TDS limit, in case if the recipient is co-operative society, will be INR 3 Crores instead of INR 1 Crore.