| TDS Rate Chart for FY 2024-25 (AY 2025-26) & FY 2025-26 (AY 2026-27) | By CA Mohan Patel |
| | | | | | |
| TDS Rates & Threshold Limits for Domestic Payments | | | | |
| | | | | | |
| Section | Nature of Payment | Existing Threshold Limit (₹) | Existing TDS Rate (%) | Amended Threshold Limit (₹) | Amended TDS Rate (%) | Effective Date |
| 192 | Salary Income | As per income tax slabs | As per income tax slabs | No change | No change | N/A |
| 192A | Premature withdrawal of EPF | 50,000 | 10 | No change | No change | N/A |
| 193 | Interest on securities | 10,000 | 10 | No change | No change | N/A |
| 194 | Dividend income | 5,000 | 10 | 10,000 | No change | April 1, 2025 |
| 194A | Interest other than on securities- Senior Citizens- Others | 50000/40000 | 10,10 | 100000/ 50000 | No change | April 1, 2025 |
| 194B | Winnings from lottery or crossword puzzle | 10,000 per annum | 30 | 10,000 per transaction | No change | April 1, 2025 |
| 194BB | Winnings from horse race | 10,000 per annum | 30 | 10,000 per transaction | No change | April 1, 2025 |
| 194C | Payment to contractors- Single transaction- Aggregate during the year | 30000/100000 | 1 (Individual/HUF)2 (Others) | No change | No change | N/A |
| 194D | Insurance commission | 15,000 | 5 | 20,000 | 2 | April 1, 2025 |
| 194DA | Payment in respect of life insurance policy | 1,00,000 | 5 | No change | 2 | October 1, 2024 |
| 194H | Commission or brokerage | 15,000 | 5 | 20,000 | 2 | April 1, 2025 |
| 194I | Rent- Land, building, furniture, etc.- Plant and machinery | 2,40,000 per annum | 10,2 | 50,000 per month | No change | April 1, 2025 |
| 194J | Fees for professional or technical services | 30,000 | 10 | 50,000 | No change | April 1, 2025 |
| 194K | Income from mutual fund units | 5,000 | 10 | 10,000 | No change | April 1, 2025 |
| 194LB | Income by way of interest from infrastructure debt fund | No threshold | 5 | No change | No change | N/A |
| 194LC | Income by way of interest from Indian company | No threshold | 5 | No change | No change | N/A |
| 194LD | Interest on certain bonds and government securities | No threshold | 5 | No change | No change | N/A |
| 194M | Payment to resident contractors or professionals by individual/HUF not liable to TDS deduction under other sections | 50,00,000 | 5 | No change | No change | N/A |
| 194N | Cash withdrawal exceeding specified limits- With filed ITR- Without filed ITR | 10000000, 10000000 | 2,2 | No change20,00,000 | No change2% up to 1 crore; 5% beyond 1 crore | N/A |
| 194O | TDS on e-commerce participants | 5,00,000 | 1 | No change | 0.1 | April 1, 2025 |
| 194P | TDS on specified senior citizens | As per income tax slabs | As per income tax slabs | No change | No change | N/A |
| 194Q | TDS on purchase of goods | 50,00,000 | 0.1 | No change | No change | N/A |
| 194R | TDS on benefit or perquisite to business or profession | 20,000 | 10 | No change | No change | N/A |
| 194S | TDS on payment for transfer of virtual digital assets- Specified persons- Others | 5,00,00,10,000 | 1,1 | No change | No change | N/A |
| 194T | Payments by firms to partners (salary, remuneration, commission, bonus, interest) | N/A | N/A | 20,000 | 10 | April 1, 2025 |
| | | | | | |
| *Note: The above rates are subject to applicable surcharge and cess. In cases where the Permanent Account Number (PAN) is not furnished, TDS may be deducted at higher rates as per Section 206AA.* |
| | | | | | |
| TDS Rates Under Section 195 (Payments to Non-Residents) | | | | |
| | | | | | |
| Section | Nature of Payment | Threshold Limit (₹) FY 2024-25 | TDS Rate (%) FY 2024-25 | Threshold Limit (₹) FY 2025-26 | TDS Rate (%) FY 2025-26 | Remarks/Changes |
| 195(a) | Interest on foreign currency loans | No threshold | 5% | No threshold | 5% | Under section 194LC |
| 195(b) | Interest payable by an Indian company/Government on foreign loans | No threshold | 20% | No threshold | 20% | Subject to DTAA benefits |
| 195(c) | Royalty payable to a non-resident | No threshold | 10% | No threshold | 10% | If agreement is approved by the Government |
| 195(d) | Royalty (other cases) | No threshold | 20% | No threshold | 20% | Standard rate |
| 195(e) | Fees for technical services | No threshold | 10% | No threshold | 10% | If agreement is approved by the Government |
| 195(f) | Fees for technical services (other cases) | No threshold | 20% | No threshold | 20% | Standard rate |
| 195(g) | Dividend to non-residents | No threshold | 20% | No threshold | 20% | Subject to DTAA |
| 195(h) | Capital gains on sale of equity shares (STT paid) | No threshold | 10% | No threshold | 10% | On long-term capital gains (LTCG) above ₹1 lakh |
| 195(i) | Capital gains on listed securities (other than equity) | No threshold | 10% | No threshold | 10% | If held for more than 12 months |
| 195(j) | Capital gains on unlisted securities/immovable property | No threshold | 20% | No threshold | 20% | If held for more than 24 months |
| 195(k) | Short-term capital gains (STT paid) | No threshold | 15% | No threshold | 15% | On listed shares and equity-oriented mutual funds |
| 195(l) | Short-term capital gains (other cases) | No threshold | 30% | No threshold | 30% | If non-resident individual |
| 195(m) | Other income (not covered specifically) | No threshold | 30% | No threshold | 30% | Standard rate |
| | | | | | |
| Key Amendments Introduced in the Finance Bills: | | | | |
| 1. Introduction of Section 194T: | | | | | |
| Effective from April 1, 2025, Section 194T mandates a 10% TDS on payments made by firms to their partners, including salary, remuneration, commission, bonus, or interest, if the aggregate payment exceeds ₹20,000 in a financial year. |
| 2. Increase in Threshold Limits: | | | | | |
| Section 194: The threshold limit for dividend income has been increased from ₹5,000 to ₹10,000, effective April 1, 2025. | |
| Section 194A: For senior citizens, the threshold for interest other than on securities has been raised from ₹50,000 to ₹1,00,000. For others, it has been increased from ₹40,000 to ₹50,000, effective April 1, 2025. |
| Section 194H: The threshold limit for commission or brokerage has been increased from ₹15,000 to ₹20,000, effective April 1, 2025. |
| Section 194I: The threshold limit for rent has been revised from ₹2,40,000 per annum to ₹50,000 per month, effective April 1, | |
| 3. DTAA Benefit for Non-Residents: If a recipient is eligible under DTAA, the lower DTAA rate will apply for Section 195. | |
| 4. Surcharge & Cess: These rates are subject to surcharge and health & education cess (4%), where applicable. | | |
| 5. Lower/NIL Deduction: Payees can apply for a lower or nil deduction certificate under Section 197. | | |