Rate of Tax Deduction at Source (TDS Chart) with Threshold Limit for the Financial Year 2025-26 - Income Tax - Ready Reckoner - Income Tax

Rates of TDS for the Financial Year 2025-26 Section Particulars TDS Rates Threshold Limit [ For SC Cess See Note Below ] 192 Salary Normal Slab Rate As per normal computation of income (+ Surcharge + Health and Education Cess) see: Rate of tax 192A Payment of accumulated balance due of Employee s Provident fund scheme to employees (Premature withdrawal of EPF) 10% Rs. 50,000 No TDS if aggregate amount is less than Rs.50,000 TDS to be deduct at MMR, if employee does not furnish PAN. 193 Interest on Specified Securities 10% Threshold Limit - Aggregate of amounts exceeding Rs. 10,000/- during the financial year [ w.e.f. 01.04.2025 ] 194 Dividends 10% Threshold Limit - Rs. 10,000/- [ w.e.f. 01.04.2025 ] No TDS if payment made to Individual by any mode other than cash payment is upto Rs. 10,000. No TDS if dividend is to LIC, GIC or any other insurer provided shares are owned by them, or they have full beneficial interest in such shares No TDS if Dividend is paid/credited by SPV to Business Trust 194A Interest (Other Interest on Securities) 10% Threshold Limit For other than Senior Citizen, w.e.f. 01.04.2025 (a) Rs. 50,000/- where the payer is a banking company. (b) Rs. 50,000/- where the payer is a co-operative society engaged in carrying on the business of banking referred to in clause (v) and clause (viia) of section 194A(3); (c) Rs. 50,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and (d) Rs. 10,000/- in any other case Threshold Limit For Senior Citizen, w.e.f. 01.04.2025 (a) Rs. 1,00,000/- where the payer is a banking company. (b) Rs. 1,00,000/- where the payer is a co-operative society engaged in carrying on the business of banking referred to in clause (v) and clause (viia) of section 194A(3) ; (c) Rs. 1,00,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and (d) Rs. 10,000/- in any other case 194B Winnings from lottery or crossword puzzle, etc. 30% The threshold limit applying on in respect of single transaction exceeding Rs. 10,000/- [ From 01.04.2025 ] This section shall not apply to winnings from any online game on or after the 01-04-2023 . 194BA Winnings from online games 30% On net winnings at the time of withdrawal from user account [w.e.f., 01-04-2023] 194BB Winning for horse race 30% The threshold limit applying on in respect of single transaction exceeding Rs. 10,000/- [ From 01.04.2025 ] 194C Payment to Individuals and HUF 1% Rs. 30,000/- per single contract or Rs. 1,00,000/- in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA. manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer or associate of such customer. [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] any sum referred to in section 194(J)(1). [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person does not fall under any of the preceding sub-clauses (i.e. any firm ) ; and has total sales, gross receipts or turnover from business or profession carried on by him exceeding one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year 194C Payment to a person other than an individual or a Hindu undivided family 2% Rs. 30,000/- per single contract or Rs. 1,00,000/- in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA. manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer or associate of such customer. [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] any sum referred to in section 194(J)(1). [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person does not fall under any of the preceding sub-clauses (i.e. any firm ) ; and has total sales, gross receipts or turnover from business or profession carried on by him exceeding one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year 194D Insurance Commission 2% [ w.e.f. 01.04.2025 ] Aggregate of the amounts exceeds Rs. 20,000/- if recipient is a resident other than a company. [ w.e.f. 01.04.2025 ] 10% Aggregate of the amounts exceeds Rs. 20,000/- if recipient is a domestic company [ w.e.f. 01.04.2025 ] 194DA Payment of Life Insurance Policy including bonus 5% - [From 01.09.2019 to 30.09.2024 ] 2% - [From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] The aggregate amount of payments to the payee during the financial year exceeds Rs. 1,00,000/- No TDS if maturity amount exempt U/s 10(10D) TDS to be deducted at the time of payment. 194E Payment to a non-resident foreign citizen sportsman / entertainer or non - resident sports association 20% 1) Income received by NR Sportsmen (who is not citizen of India) by way of: Participation in any game or sport in India. Advertisement Contribution of article in newspapers, magazines, journals relating to game or sports in India 2) Income received for performing in India by NR Entertainer (who is not a citizen of India) 194EE Payment for National Saving Scheme, 1987 10% The aggregate amount of payments to the payee during the financial year exceeds Rs. 2500/- 194F Payment for repurchase of units 20% W.e.f. 01.10.2024 Omitted vide Finance (No. 2) Act, 2024 194G Commission, remuneration or prize on sale of lottery ticket 5% - [ Upto 30.09.2024 ] 2% - [ From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] Any income by way of commission, remuneration or prize (by whatever name called) on such tickets in an amount exceeding Rs. 20,000/- [ From 01.04.2025 ] 194H Commission or Brokerage (Other) 5% - [ Upto 30.09.2024 ] 2% - [ From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed Rs. 20,000/- [ From 01.04.2025 ] 194I Rent on land, building or furniture 10% Rs. 50,000/- in a month or part of a month [ From 01.04.2025 ] 194I Rent on plant, machinery or equipment 2% Rs. 50,000/- in a month or part of a month [ From 01.04.2025 ] 194IA Payment / credit of consideration to a resident transferor for transfer of immovable property (other than rural agricultural land) [w.e.f. 1.6.2013] 1% Consideration for the transfer of an immovable property and the stamp duty value of such property, are both , less than Rs. 50 lakh. From 01.10.2024 - where there is more than one transferor or transferee in respect of any immovable property, then the consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. [ Inserted vide Finance (No. 2) Act, 2024 ] 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% - [ Upto 30.09.2024 ] 2% - [ From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] Exceeding Rs. 50,000/- for a month or part of a month during the previous year. 194IC Payment under specified agreement [Joint Development agreement u/s 45(5A) ] [w.e.f. 1.6.2017] 10% 194J (i) Payment for Professional Fees / Royalty other than specified in (iii) of Section 194J / Non-Competent Fee 10% -Rs. 50,000 /-for each services [From 01.04.2025 ] (ii)Technical services (w.e.f. 01.04.20) 2% (iii) Royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic films (w.e.f. 01.04.20) 2% (iv) In case of a payee, engaged only in the business of operation of call centre (w.e.f. 01.06.17) 2% (v) Any remuneration, Fees or Commission to a director [w.e.f. 1.7.2012] 10% 194K Payment of any income in respect of (a) units of a mutual fund as per section 10(23D); or (b) the units from the administrator; or (c) units from specified company (w.e.f. 01.04.2020) 10% Rs. 10,000/- [From 01.04.2025 ] 194LA Compensation to a resident on acquisition of certain immovable property other than agricultural land. (TDS exempted if Compensation is covered under RFCTLARR Act w.e.f. 01.04.2017) 10% Rs. 5,00,000/- [From 01.04.2025 ] 194LB Interest payable to non-resident by an infrastructure debt fund referred to in clause (47) of section 10 [Rate+ SC+HEC] 5% - 194LBA Any income referred in section 10(23FC) or section 10(23FCA) distributed by a business trust to resident unit holders 10% Any income referred in section 10(23FC)(a) (i.e. Interest income received from SPV) distributed by a business trust to Non-resident (other than company) or a foreign company unit holders . 5% Any income referred in section 10(23FC)(b) (i.e. Dividend income received from SPV) distributed by a business trust to Non-resident (other than company) or a foreign company unit holders . 10% Any income referred in section 10(23FCA) (i.e. rental income received by a real estate investment trust) distributed by a business trust to Non-resident (other than company) or a foreign company unit holders . if recipient is a non-resident (Other than company) - 30% (+HEC+SC ) if recipient is a foreign company - 40% (+HEC+SC ) Note:- As per Part II of Schedule First of Finance Act, 2025 194LBB Any income, other than that proportion of income which is of the same nature as income referred to in clause (23FBB) of section 10, is payable to a unit holder in respect of units of an investment fund specified in clause (a) of the Explanation 1 to section 115UB where the payee is a resident 10% where the payee is a non-resident (not being a company) or foreign company In Case non-resident (Other than company) - 30% (+HEC +SC ) In case foreign company - 40% (+HEC +SC ) Note:- As per Part II of Schedule First of Finance Act, 2025 194LBC Where any income is payable to an investor (i.e. Payee), being a resident , in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA 10% Where any income is payable to an investor (i.e. Payee), being a non-resident (not being a company) or foreign company , in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA In Case non-resident (Other than company) - 30% (+HEC +SC ) In case foreign company - 35% (+HEC +SC ) Note:- As per Part II of Schedule First of Finance Act, 2025 194LC Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) [Rate+ SC+HEC] 5%* / 4%** /9%*** Income by way of interest payable by the specified company or the business trust * In respect of monies borrowed by it in foreign currency from a source outside India,- (a) under a loan agreement at any time on or after the 1st day of July, 2012 but before the 1st day of July, 2023; or (b) by way of issue of long-term infrastructure bonds at any time on or after the 1st day of July, 2012 but before the 1st day of October, 2014; or (c) by way of issue of any long-term bond including long-term infrastructure bond at any time on or after the 1st day of October, 2014 but before the 1st day of July, 2023, as approved by the Central Government in this behalf; or (d) in respect of monies borrowed by it from a source outside India by way of issue of rupee denominated bond before the 1st day of July, 2023,. ** in respect of monies borrowed by it from a source outside India by way of issue of any long-term bond or rupee denominated bond on or after the 1st day of April, 2020 but before the 1st day of July, 2023, which is listed only on a recognised stock exchange located in any International Financial Services Centre. *** in respect of money borrowed by it from a source outside India by way of issuance of any long-term bond or rupee denominated bond on or after the 1st day of July, 2023, which is listed only on a recognised stock exchange located in an International Financial Services Centre. w.e.f., 01-07-2023 194LD Interest on Bonds / Government Securities payable to a foreign institution investor or a qualified foreign investor [Rate+ SC+HEC] 5% Income by way of interest shall be interest payable on or after 1/6/2013 but before 1/7/2020 in respect of investment made by the payee in a rupee denominated bond of Indian Company/Government security. 194M Certain payments by Individual/HUF 5% - [ Upto 30.09.2024 ] 2% - [From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] Rs. 50,00,000 194N Payment of certain amount in cash Amount is more than Rs.20 lakh but up to Rs. 1 crore Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) 2% 5% According to section 194N of the Act, TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular FY exceeds : -Rs. 20 lakh (if no ITR has been filed for all the three previous AYs), or -Rs. 1 crore (if ITRs have been filed for all or any one of three previous AYs). where the recipient is a co-operative society the threshold limit of this section has been increase by Rs. 1 crore to Rs. 3 crore. [ w.e.f. 01.04.2023 ] 194O Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020) 1% - [ Upto 30.09.2024 ] 0.1% - [ From 01.10.2024 Amended vide Finance (No. 2) Act, 2024 ] gross amount of such sales or services or both. If No PAN quoted by deductee than rate of TDS will be 5% 194P TDS in case of specified senior citizen staff pensioners Slab rate An Individual having age of 75 years or more. Such person has staff pension income and no other income except interest received or receivable by such person in the same specified bank (SBI) in which he/she is receiving pension income .i.e. such pensioner is not getting any type of income from any other bank. Such person has furnished a declaration in the prescribed form to bank. 194Q Purchase of Goods (w.e.f.01/07/2021, if purchases are above Rs. 50 Lakhs) 0.1% of sum in excess of Rs. 50 Lakhs Any Buyer whose T/o in last year was more than Rs.10 Crore will deduct TDS of Resident seller. In case of a transaction to which both section 206C and 194Q applies, TCS to be collected u/s 206C. In case of transaction which both 194O 194Q applies, TDS to be deducted u/s 194O If PAN of payee is not available, tax will be deducted at the rate of 5%. 194R Perquisite or benefit to a business or profession 10% Rs.20,000 - TDS should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident including Individual/HUF for carrying out any business or profession by such resident. [Explanation inserted by FA, 2023 - provisions of section 194R(1) shall apply to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind. ] 194S TDS on the transfer of virtual digital assets (i.e Crypto currency trading Income) 1% -Specified Person Rs. 50,000 if any individual or HUF - Does not have income from business or profession. If they earn income from business or profession, but the income does not exceed Rs. 1 crore or Rs. 50 lakh, respectively. -others Rs. 10,000 194T Payments to partners of firms [ Inserted by Finance (No. 2) Act, 2024 w.e.f. 01.04.2025] 10% Any person, being a firm, responsible for paying aggregate of more than Rs. 20,000/- during the financial year in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. 196A Income in respect - of units of a Mutual Fund specified u/s 10(23D); or - from the specified company referred to in the Explanation to section 10(35)` 20% [Proviso Inserted by FA, 2023, - where an agreement referred to in section 90(1) or section 90A(1) applies to the payee and if the payee has furnished a certificate referred to in section 90(4) or section 90A(4), as the case may be, then, income-tax thereon shall be deducted at the rate of 20% or at the rate or rates provided in such agreement, whichever is lower. ] 196B Income from units to an offshore fund 10% [ Upto 22/07/2024 ] 12.5% - [ From 23/07/2024 Amended vide Finance (No. 2) Act, 2024 ] 196C Income from foreign currency bonds or GDR of an Indian company 10% - [ Upto 22/07/2024 ] 12.5% - [ From 23/07/2024 Amended vide Finance (No. 2) Act, 2024 ] 196D Income of foreign Institutional Investors from securities (not being dividend or capital gain) 20% or at the rate or rates of income-tax provided in such agreement for such income, whichever is lower 196D(1A) Income in respect of securities referred to in section 115AD(1)(a) payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)] Note: Since recipient of income is a specified fund, surcharge health and education cess shall be nil. 10% 1. Surcharge: 1.1 No Surcharge on TDS in case of payment is made to Resident or Domestic Company [Other than salary] 1.2 Applicable surcharge Rate :- In cases in which tax has to be deducted under sections 192A, 194, 194C, 194DA, 194E, 194EE, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194K, 194M, 194N, 194-O, 194Q, 194R, 194S, 194T, 196A, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge. Particulars Threshold limit Rate of Surcharge In the case of the following person mentioned below, being a non-resident, Except in case of deduction on income by way of dividend under section 196D of the Income-tax Act individual or Hindu undivided family or association of persons, except in case of an association of persons consisting of only companies as its members, or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 , where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 50 lakh but does not exceed Rs. 1 crore 10% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore but does not exceed Rs. 2 crore 15% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 2 crore but does not exceed Rs. 5 crore 25% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceed Rs. 5 crore 37% where the income of such person is chargeable to tax under section 115BAC(1A) 25% In the case of the following person mentioned below, being a non-resident, in case of deduction on income by way of dividend under section 196D individual or Hindu undivided family or association of persons, except in case of an association of persons consisting of only companies as its members, or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 , where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 50 lakh but does not exceed Rs. 1 crore 10% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore 15% I n the case of an association of persons being a non-resident, and consisting of only companies as its members where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 50 lakh but does not exceed Rs. 1 crore 10% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore 15% In the case of every co-operative society, being a non-resident where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore but does not exceed Rs. 10 crore 7% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10 crore 12% In the case of every firm, being a non-resident where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore 12% in the case of every company other than a domestic company where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 1 crore but does not exceed Rs. 10 crore 2% where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10 crore 5% 2. Cess No Cess on TDS in case of payment is made to Resident or Domestic Company [Other than Salary] Health and Education Cess - @4% of Income Tax Further Notes: Self Declaration - Tax (TDS) is not deductible under section 192A , 193 , 194 , 194A , 194D , 194DA , 194-I, or 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A . But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010. Certificate for deduction at lower rate from AO - U/s 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections 192 , 193 , 194 , 194A , 194C , 194D , 194G , 194H , 194-I , 194J , 194K , 194LA , 194LBA [Inserted by FA, 2023] 194LBB , 194LBC 194M , 194O , 194Q and 195 . In case PAN of the deductee is not available than TDS rate will be charged at normal rate or 20% whichever is higher. No TDS on Service Tax / GST - As per Circular 01/2014 dated 13-1-2014 , TDS is not applicable on service tax part if service tax part shown separately.