Reviewed for current filing season: 10 June 2026

Applicable TDS Rates for FY 2025-26 (AY 2026-27)

Tax Deducted at Source (TDS) is collected by the payer at the time of payment or credit and adjusted against your final tax liability. This guide gives the current TDS rate chart for FY 2025-26 (AY 2026-27), the thresholds revised by Budget 2025 and the deposit and reporting deadlines deductors must follow.

Note: This page replaces our archived FY 2017-18 and FY 2016-17 TDS rate chart, which is no longer valid. Rates below apply to FY 2025-26: several rates were reduced to 2% from 1 October 2024 and many thresholds were raised from 1 April 2025.

TDS rate chart for FY 2025-26 (resident payees)

Section	Nature of payment	Threshold (FY 2025-26)	TDS rate
192	Salary	Basic exemption as per chosen regime	Slab rate on estimated income
192A	Premature EPF withdrawal	Rs. 50,000	10%
193	Interest on securities	Rs. 10,000	10%
194	Dividend	Rs. 10,000	10%
194A	Interest from banks, post office, co-operative society	Rs. 50,000 (Rs. 1,00,000 for senior citizens); Rs. 10,000 for other payers	10%
194B / 194BB	Lottery, game winnings / horse-race winnings	Rs. 10,000 per single transaction	30%
194C	Payments to contractors	Rs. 30,000 single / Rs. 1,00,000 aggregate	1% (individual/HUF payee), 2% (others)
194D	Insurance commission	Rs. 20,000	2% (non-company payees)
194DA	Taxable life insurance payout	Rs. 1,00,000	2% (on income portion)
194G / 194H	Lottery-ticket commission / commission and brokerage	Rs. 20,000	2%
194-I	Rent	Rs. 50,000 per month	2% (plant and machinery), 10% (land or building)
194-IA	Purchase of immovable property (other than agricultural land)	Rs. 50 lakh consideration	1%
194-IB	Rent paid by individuals/HUFs not covered by 194-I	Rs. 50,000 per month	2%
194J	Professional fees / technical services	Rs. 50,000	10% (professional), 2% (technical services, call centres)
194K	Income from mutual fund units	Rs. 10,000	10%
194M	Contract/professional payments by non-TAN individuals	Rs. 50 lakh	2%
194N	Cash withdrawals	Rs. 1 crore (lower for non-filers)	2%
194O	E-commerce operator payments to sellers	Rs. 5 lakh (individual/HUF sellers)	0.1%
194Q	Purchase of goods	Rs. 50 lakh	0.1%
194S	Transfer of virtual digital assets (crypto)	Rs. 50,000 (specified persons) / Rs. 10,000 (others)	1%
194T	Salary, remuneration, commission or interest to partners (new from FY 2025-26)	Rs. 20,000	10%

Without PAN, TDS applies at higher rates under section 206AA (generally 20%). Section 194F (mutual fund repurchase) was omitted from 1 October 2024, and the higher non-filer TDS under section 206AB was removed from 1 April 2025. Salary TDS under section 192 follows the regime you indicate to your employer; the new regime with the enhanced 87A rebate is the default.

TDS on salary under section 192 for FY 2025-26

Salary TDS is not a flat rate: the employer estimates your annual income, applies the slab rates of the regime you have indicated and deducts proportionate tax every month. Under the default new regime for FY 2025-26, income up to Rs. 4 lakh is nil, then 5% up to Rs. 8 lakh, 10% up to Rs. 12 lakh, 15% up to Rs. 16 lakh, 20% up to Rs. 20 lakh, 25% up to Rs. 24 lakh and 30% above that, with a Rs. 75,000 standard deduction and the enhanced section 87A rebate making income up to about Rs. 12 lakh effectively tax-free for many salaried residents. Employees who prefer the old regime must inform the employer, or the new-regime slabs apply by default. Declare other income and deductions to the employer early so monthly TDS stays accurate.

Avoiding TDS legitimately: Form 15G and 15H

If your total income is below the taxable limit, you can submit Form 15G (or 15H for senior citizens) to banks and other payers so that no TDS is deducted on interest. The declaration must be genuine; submitting it while having taxable income can attract penalties. Where income is taxable but at a lower effective rate than the TDS rate, a lower or nil deduction certificate under section 197 can be obtained from the Assessing Officer instead.

TDS deposit and return due dates

Deposit TDS by the 7th of the month following deduction; March deductions by 30 April.
File quarterly TDS statements (Form 24Q/26Q) by 31 July, 31 October, 31 January and 31 May.
Issue Form 16 (salary) by 15 June after the financial year; Form 16A within 15 days of each statement due date.
For 194-IA/194-IB, file challan-cum-statement Form 26QB/26QC within 30 days from the end of the month of deduction; no TAN is needed.
Late statement filing attracts a Rs. 200 per day fee under section 234E and possible penalty under section 271H.

See the full tax calendar for FY 2025-26 (AY 2026-27) for all dates.

Examples

Senior citizen with FD interest

A 65-year-old earns Rs. 95,000 bank FD interest in FY 2025-26. No TDS applies because the section 194A senior-citizen threshold is Rs. 1,00,000; Form 15H can prevent deduction in marginal cases.

Tenant paying Rs. 60,000 rent

A salaried tenant pays Rs. 60,000 monthly rent. Section 194-IB applies: 2% TDS, deposited with Form 26QC, with the landlord given Form 16C.

Flat bought for Rs. 80 lakh

The buyer deducts 1% (Rs. 80,000) under section 194-IA, pays the seller the balance and files Form 26QB within 30 days from the month-end of deduction.

Common mistakes to avoid

Using pre-October 2024 rates: 194H, 194-IB, 194DA and 194G are now 2%, not 5%.
Applying old thresholds: 194A, 194J, 194-I and others were raised from 1 April 2025.
Tenants and property buyers forgetting Form 26QC/26QB, which carries late fees.
Not collecting PAN of the payee, triggering 20% TDS under section 206AA.
Treating TDS as final tax; the actual liability is settled in the ITR, where excess TDS becomes a refund.
Interest income below the threshold still being taxable; submit Form 15G/15H only when genuinely eligible.

Claim your TDS refund: file your ITR now

Related current ITR guides

File ITR Online AY 2026-27 filing steps and examples Old vs New Regime Compare slabs, deductions and examples Tax & Refund Calculator Estimate tax, refund or extra payable AIS/Form 26AS Mismatch Fix TDS, income and refund mismatches Belated, Revised & ITR-U Know which correction route applies Which ITR Form? ITR-1, ITR-2, ITR-3 or ITR-4 Rs 12 Lakh Tax-Free Section 87A rebate rules and examples Income Tax Act 2025 What changes from 1 April 2026

More AY 2026-27 tax guides

Save tax: Home loan benefits · NPS (80CCD) · Donations (80G) · Education loan (80E) · Interest income (80TTA/80TTB) · Form 15G/15H · Capital gains exemptions (54/54F/54EC)

Investors and traders: F&O and intraday tax · ESOP and RSU tax · Share buyback tax · Foreign income and Schedule FA · Gift tax (56(2)(x)) · HUF taxation

Calculators and tools: Income tax calculator · Advance tax calculator · 80C tax-saving calculator · NPS calculator · Gratuity calculator · EPF calculator · Crypto tax calculator · HRA calculator

Filing and compliance: Section 87A rebate · Marginal relief · Form 10-IEA · PAN-Aadhaar link · AIS and TIS · ITR-U updated return · Discard ITR and condonation · TDS on rent and property · Income Tax Act 2025

Frequently asked questions

Q. What is the TDS rate on bank interest for FY 2025-26?

Under section 194A, banks deduct 10 percent TDS once interest crosses Rs. 50,000 in a year for general depositors and Rs. 1,00,000 for resident senior citizens, thresholds raised by Budget 2025 from 1 April 2025.

Q. What is the TDS rate on rent in FY 2025-26?

Under section 194-I, TDS is 2 percent for plant and machinery and 10 percent for land or building, where rent exceeds Rs. 50,000 per month. Individuals and HUFs not covered by 194-I deduct 2 percent under section 194-IB when monthly rent exceeds Rs. 50,000.

Q. What is the TDS rate on property purchase?

Under section 194-IA, the buyer deducts 1 percent of the consideration when an immovable property (other than agricultural land) is bought for Rs. 50 lakh or more, and deposits it with Form 26QB within 30 days from the end of the month of deduction.

Q. Did TDS rates change recently?

Yes. From 1 October 2024 several rates were cut to 2 percent, including 194H commission, 194-IB rent and 194DA insurance payouts, and section 194F was omitted. Budget 2025 then raised many thresholds from 1 April 2025, such as 194A interest, 194J professional fees and 194-I rent, and introduced section 194T for partner payments.

Q. How do I check the TDS deducted against my PAN?

Download Form 26AS and AIS from the e-filing portal. Match every entry with your Form 16/16A before filing; mismatches should be corrected by the deductor.

Q. Is TDS on rent paid to an NRI landlord also 2%?

No. Payments to non-residents fall under section 195 at the rates in force (plus surcharge and cess), regardless of rent amount. Take expert help before paying an NRI.

Q. What TDS applies when I sell crypto or other VDAs?

The buyer or exchange deducts 1% under section 194S beyond the threshold. This is separate from the 30% tax on VDA gains payable in your return.

Q. Will these rates change under the Income Tax Act, 2025?

For FY 2025-26 the Income Tax Act, 1961 applies. The Income Tax Department FAQ confirms the new Act retains the same TDS rates and thresholds from 1 April 2026, with renumbered sections.

Sources reviewed

This chart summarises common TDS provisions for FY 2025-26 as on 10 June 2026 and is not exhaustive; special cases (non-residents, exempt institutions, lower-deduction certificates under section 197) have separate rules. Verify section-specific conditions before deducting.