TDS Rates & Thresholds FY 2025-26: Complete Section-Wise TDS Chart
As businesses evolve and digital transactions grow, the need for a more streamlined approach has become evident. The latest budget introduces changes aimed at reducing complexities, easing compliance, and providing relief to taxpayers. By increasing deduction thresholds and refining procedural requirements, these updates make tax deductions more practical and less burdensome. Instead of imposing rigid rules, the focus is on expanding the tax base and simplifying processes. These revisions are expected to improve transparency, lower administrative hassles, and enhance adherence to tax laws. A well-structured TDS system not only supports revenue collection but also contributes to economic growth and ease of doing business.
We are pleased to present a meticulously crafted TDS chart for FY 2025-2026, reflecting the latest budget updates and changes made in Finance Act 2025 with precision and clarity. Explore the chart to stay informed and confident in your TDS calculations for the financial year ahead.
|
SECTION |
NATURE OF PAYMENT |
THRESHOLD LIMIT |
TDS RATE (%) |
|
192 |
Salary |
Basic Exemption Limit |
As Per Slab Rate |
|
194T |
TDS On Payments Made by Firms to Their Partners |
20,000 |
10 |
|
194C |
Payment To Contractors |
Single Payment:30,000 Aggregate:1,00,000 |
HUF/Individual: 1 Others :2 |
|
194J |
Professional/Technical Fees |
50,000 |
Fees For Technical Service : 2 Professional Service: 10
|
|
194H |
Brokerage/Commission |
20,000 |
2 |
|
194I |
Rent |
50,000 Per Month or Part of a Month |
Plant & Machinery: 2 Land/Building: 10 |
|
194K |
Income of Units of Mutual Fund |
10,000 |
10 |
|
194A |
Interest Other Than Security |
Senior Citizens:1,00,000 Bank, Co-Op, Post Office:50,000 Other Cases:10,000 |
10 |
|
194Q |
Purchase Of Goods |
50,00,000 |
0.1 |
|
192A |
Premature Withdrawal from EPF |
50,000 |
10 |
|
193 |
Interest On Security |
10,000 |
10
|
|
194 |
Dividend |
10,000 |
10 |
|
194B |
Lottery, Crossword Winning
|
10,000 Per Transaction |
30 |
|
194BA |
Online Gaming Winning |
Na |
30
|
|
194BB |
Horse Race Winning |
10,000 Per Transaction |
30 |
|
194D |
Insurance Commission |
20,000 |
2 |
|
194DA |
Life Insurance Pay out |
1,00,000 |
2 |
|
194EE |
Payment In Respect of Deposit Under National Saving Scheme |
2500 |
10 |
|
194G |
Lottery Commission |
20,000 |
2 |
|
194IA |
Payment On Transfer of Immovable Property |
50,00,000 |
1 |
|
194IB |
Payment Of Rent By HUF/Individual Not Required for Tax Audit |
50,000 |
2 |
|
194IC |
Payment Under Joint Development Agreement |
Na |
10 |
|
194LA |
Compensation On Property acquisition |
5,00,000 |
10 |
|
194M |
Payments Made to Contracts, Brokerage, Commission or Professional Fees excluding 194c,194h,194j Individual/HUF |
50,00,000 |
2 |
|
194N |
Cash Withdrawal |
Co-Op Soc:3,00,00,000 Others: 1,00,00,000
|
2,00,000-1,00,00,000 :2 Above 1,00,00,000: 5 |
|
194O |
E-Commerce Transaction |
5,00,000 |
0.1 |
|
194P |
Senior Citizen Above 75 Yrs of Age Having Salary and Interest Income, ITR Not Required |
NA |
Slab Rates |
|
194R |
Perquisite Provided |
20,000 |
10 |
|
194S |
Virtual Digital Asset Transfer |
Specified: 50,000 Non-Specified: 10,000 |
1 |
TDS CHART FOR NON-RESIDENT FOR FY 2025-2026
|
SECTION |
NATURE OF PAYMENT |
THRESHOLD LIMIT |
TDS RATE (%) |
|
194E |
Payment To Non-Resident Sportsmen/Associations |
NA |
20 |
|
194LB |
Interest on Infrastructure Debt Funds |
NA |
5 |
|
194LC |
Interest On Foreign Currency Loans |
NA |
IFSC Listed Bond: 4 Others: 5 |
|
195 |
Other Payments to Non-Residents |
NA |
Royalty, Technical Fees: 20 LTCG: 10 |
Note : If any assessee not providing PAN then tax will be deducted @20%
TDS has long been a necessary but complex element of taxation, often straining cash flow and compliance efforts. The latest reforms aim to simplify procedures and reduce tax burdens, making compliance smoother for businesses. While these changes are a step forward, a more uniform threshold and rationalized rates could further enhance efficiency. A balanced TDS regime should ensure compliance without disrupting financial stability.
"Taxation is the price we pay for a civilized society, but fairness must be part of the deal."
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
