This TDS rate chart lists every common section with its rate and threshold for FY 2025-26: from 0.1% on purchase of goods to 30% on lottery winnings, with most business payments at 1%, 2% or 10%. The thresholds were raised for FY 2025-26, so older charts often show the wrong limit.
For tax year 2026-27, the same payments sit in the Income-tax Act, 2025. Salary is in section 392, almost every other deduction is in the tables of section 393, and collection at source is in section 394. Most rates and thresholds were kept as they were, but the reference you quote in challans and returns is new. The second table maps one to the other.
Quick facts
Lowest rate
0.1% (194O, 194Q)Most business payments
1%, 2% or 10%Highest rate
30% on winningsNo PAN
20% or the normal rate, if higherNon-filer rule
206AB and 206CCA removed from 1 April 2025Tax year 2026-27
Sections 392, 393 and 394 of the 2025 ActDeposit
7th of next month; 30 April for March
TDS rate chart for FY 2025-26
| Section | Payment | Rate | TDS limit |
|---|---|---|---|
| 192 | Salary | Slab rates | Basic exemption limit |
| 192A | EPF withdrawal before 5 years | 10% | ₹50,000 |
| 194 | Dividend | 10% | ₹10,000 a year |
| 194A | Interest (bank, post office, cooperative) | 10% | ₹50,000; ₹1,00,000 for seniors |
| 194A | Interest (others) | 10% | ₹10,000 |
| 194B / 194BB | Lottery, game show, horse race winnings | 30% | ₹10,000 a transaction |
| 194BA | Online game winnings | 30% | No threshold |
| 194C | Contract work, advertising, transport | 1% individual or HUF; 2% others | ₹30,000 a bill; ₹1,00,000 a year |
| 194D | Insurance commission | 2% (non company); 10% (company) | ₹20,000 |
| 194G | Commission on lottery tickets | 2% | ₹20,000 |
| 194H | Commission or brokerage | 2% | ₹20,000 |
| 194I | Rent: plant and machinery | 2% | ₹50,000 a month |
| 194I | Rent: land, building, furniture | 10% | ₹50,000 a month |
| 194IA | Purchase of immovable property | 1% | ₹50 lakh or more |
| 194IB | Rent paid by individuals or HUFs not under audit | 2% | Above ₹50,000 a month |
| 194J | Technical services, call centres | 2% | ₹50,000 |
| 194J | Professional fees, royalty | 10% | ₹50,000 |
| 194K | Mutual fund units income | 10% | ₹10,000 |
| 194LA | Compensation on compulsory acquisition | 10% | ₹5,00,000 |
| 194M | Contract, commission or fees paid by individuals not under 194C, 194H, 194J | 2% | Above ₹50 lakh |
| 194N | Cash withdrawal | 2% | Above ₹1 crore (₹3 crore for cooperatives) |
| 194O | E-commerce sales | 0.1% | ₹5 lakh for individual or HUF sellers |
| 194Q | Purchase of goods | 0.1% | Above ₹50 lakh; buyer turnover above ₹10 crore |
| 194R | Business perks and benefits | 10% | Above ₹20,000 |
| 194S | Virtual digital assets | 1% | ₹50,000 specified persons; ₹10,000 others |
| 194T | Partner salary, commission, interest | 10% | Above ₹20,000 |
| 195 | Payments to non-residents | Rates in force or tax treaty | No threshold |
The TDS percentage shown applies where the payee gives a valid PAN. Without one, the rate is 20% or the table rate, whichever is higher. TDS on resident payments carries no surcharge or cess; salary TDS includes cess because it follows your yearly tax.
New TDS section references for tax year 2026-27
| Old section (1961 Act) | Under the 2025 Act | Applies to |
|---|---|---|
| 192 | Section 392 | Salary paid from 1 April 2026 |
| 193 to 194T (payments to residents) | Section 393(1) table | Each old section is a row with its own serial number |
| 195 (payments to non-residents) | Section 393(2) table | Interest, royalty, fees and other sums |
| 206AA (no PAN) | Higher rate rule carried into the new Act | 20% or the normal rate |
| 206C (TCS) | Section 394 | Collection by sellers |
Under the new Act, section 393(1) of income tax act is therefore the reference most businesses will use. Only quote a serial number from the official table; payment codes in the e-filing utility follow that table.
How to read the TDS limit
A limit is the point from which deduction begins, and it works differently by section.
- Per bill and yearly: 194C uses both, ₹30,000 a bill and ₹1,00,000 in the year to one payee.
- Yearly only: 194J, 194H, 194A and most others look at the total paid in the year.
- Monthly: 194I and 194IB use ₹50,000 a month.
- Per transaction: lottery and race winnings, and 194IA on the value of each property.
- Above, not at: 194Q and 194N deduct only on the amount above the limit.
Professional charges, the most searched limit, start TDS once fees to one person cross ₹50,000 in the year.
Worked TDS cases
| Payment | Section and rate | TDS | Net paid |
|---|---|---|---|
| Ad agency (a company) billed ₹2,40,000 for a campaign | 194C, 2% | ₹4,800 | ₹2,35,200 |
| Chartered accountant's audit fee ₹75,000 | 194J, 10% | ₹7,500 | ₹67,500 |
| Office rent ₹65,000 a month to an individual landlord | 194I, 10% | ₹6,500 a month | ₹58,500 a month |
Check the advertisement case. Advertising is work under 194C, not a professional service, so the advertisement TDS rate is 1% or 2% depending on the payee. The agency is a company, so 2% of ₹2,40,000 = ₹4,800. When the invoice puts GST on its own line, deduct on the pre-GST value.
TDS slab: is there one?
People ask for a TDS slab as if TDS worked like income tax slabs. It does not, except for salary. Section 192 uses your income tax slabs because the employer estimates your full year's tax. Every other section is a flat rate on the payment, once the limit is crossed. A ₹60,000 professional fee and a ₹60 lakh fee both carry 10% under 194J.
Rules behind every section
- Time of deduction: at credit or payment, whichever happens earlier.
- Deposit: within 7 days after the month ends; March deductions by 30 April. Use Challan 281.
- Statements: Form 24Q for salary, 26Q for residents, 27Q for non-residents, filed quarterly.
- Interest: 1% a month for not deducting, 1.5% a month for not depositing.
- Late statement fee: ₹200 a day under 234E, up to the TDS amount.
- Lower deduction: a payee can apply for a lower or nil certificate if their tax will be low.
All TDS guides
| Guide | Covers |
|---|---|
| What is TDS | Start here: the idea, the parties and the credit |
| TDS payment, Challan 281 | Portal steps to deposit what you deducted |
| TDS payment and return due dates | Deadlines month by month and quarter by quarter |
| How to file a TDS return | Uploading Forms 24Q, 26Q and 27Q |
| TDS late payment interest | Counting months of interest on a delay |
| TDS calculator | Enter a payment and see the deduction |
| TDS certificate, Form 16A | Issuing and downloading quarterly certificates |
| TRACES guide | Registering, defaults and justification reports |
| TDS refund | When more was cut than you owe |
| TDS on salary (192) | Employer deduction from pay under either regime |
| 194A TDS on interest | Bank, cooperative and other interest limits |
| TDS on FD interest | Deposits, seniors and avoiding excess deduction |
| Form 121 (15G/15H) | The no deduction declaration under the new rules |
| 194C TDS on contractors | Works contracts, advertising and transport |
| 194J professional fees | Fees, royalty and director sitting fees |
| 194H TDS on commission | Commission and brokerage other than on securities |
| 194I TDS on rent | Rent for land, buildings, furniture and equipment |
| TDS on property purchase | Form 26QB for buyers of a house or plot |
| TDS on property from NRI | Higher deduction on the gain of a non-resident seller |
| 194Q purchase of goods | Buyers with turnover above ₹10 crore |
| 194N cash withdrawal TDS | Cash drawn above ₹1 crore in a year |
| 194O e-commerce TDS | Operators paying sellers on their platform |
| 194R business benefits | Perks, free samples and sponsored trips |
| 194S TDS on crypto | 1% when crypto or other digital tokens are sold |
| 194T partner payments | The partner payout rule introduced for FY 2025-26 |
| Other TDS sections | Lottery, insurance, dividends, EPF and more |
| Higher TDS for non-filers (206AB) | Why the non-filer surcharge rate no longer applies |
| TDS vs TCS | Two ways the law collects tax early |
| TDS under GST | Government buyers deducting under GST, not income tax |
Rate chart mistakes
| Error | Correct approach |
|---|---|
| Using the old ₹30,000 limit for 194J | For FY 2025-26 the yearly limit is ₹50,000 |
| Using the old ₹40,000 bank interest limit | ₹50,000, or ₹1,00,000 for senior citizens, for FY 2025-26 |
| Applying 206AB higher rates to non-filers | Removed from 1 April 2025; only the no PAN rule remains |
| Quoting 194C on a tax year 2026-27 challan | Use the section 393 entry for that year |
The chart is a summary for general reference, and rates and limits change through each Finance Act. Check the current position on the department's website or with a chartered accountant before deducting.
Sources we checked
- Income-tax Act, 1961, Chapter XVII-B
- Finance Act, 2025 (TDS thresholds)
- Income-tax Act, 2025, sections 392, 393 and 394
- Income-tax Act, 1961, section 206AA
Frequently asked questions
What is the TDS rate chart for FY 2025-26?
It is the list of TDS sections with rates and limits for payments from 1 April 2025 to the end of FY 2025-26. Key rates: 1% or 2% for contracts, 2% for commission, 10% for professional fees and rent of buildings, 0.1% for purchase of goods.
What is the TDS rate chart for tax year 2026-27?
The same payments now sit in section 392 (salary) and section 393 (other payments) of the Income-tax Act, 2025, with most rates unchanged. Quote the new section in challans and statements for that year.
What does section 393 cover in the income tax act?
Under the Income-tax Act, 2025, this one TDS section handles payments other than salary. Its sub-section (1) table covers payments to residents and sub-section (2) covers non-residents.
What is the TDS limit for professional charges?
Under 194J, TDS starts once fees paid to one person exceed ₹50,000 in FY 2025-26. The rate is 10%, or 2% for technical services.
What is the TDS rate on advertisement?
Advertising contracts fall under 194C: 1% if the payee is an individual or HUF, 2% for a company or firm, once the 194C limits are crossed.
Is there a TDS rate chart pdf?
This page can be printed or saved from your browser. The official tables are in the Acts published on the department's website.