TDS Rate Chart FY 2025-26: Complete Section-Wise List
Every April, the same questions start coming in. “My salary slip shows TDS deducted – is it the right amount?” “The bank cut 10% from my FD interest – should it be less?” “I am a freelancer and my client deducted TDS – which section applies to me?”
The answer to all of these is in the TDS rate chart. This is the reference document that tells every deductor – your employer, your bank, your client exactly how much tax to cut, from which payment, and above what threshold. Understanding this chart helps you verify whether the right amount was deducted, plan your tax liability for the year, and avoid surprises when you go to file your ITR.
This is the complete section-wise TDS rate chart for FY 2025-26 (Assessment Year 2026-27), with the sections most relevant to salaried professionals and individuals covered in detail.
What Is TDS and Why Does the Rate Chart Matter?
Tax Deducted at Source (TDS) is a system where the person making a payment – your employer, bank, or client deducts tax at the time of payment itself and deposits it with the government on your behalf. You get credit for this deducted tax when you file your ITR, and it reduces your final tax liability.
The TDS rate chart matters for two reasons. First, if the deductor uses the wrong rate or wrong section, it can create a mismatch in your Form 26AS that results in a demand notice during ITR processing. Second, knowing the thresholds helps you plan – for example, keeping fixed deposits below the threshold limit if you want to avoid TDS on interest, or submitting Form 15G/15H in time if you are eligible.
Key Changes in TDS Rates from April 2025
Most TDS rates for FY 2025-26 remain unchanged from the previous year. However, there are three important updates you should know:
- Section 194T – New section for partner payments:Â From FY 2025-26, firms are required to deduct TDS at 10% on payments to partners including salary, remuneration, bonus, commission, and interest on capital – if the aggregate exceeds Rs. 20,000 per partner per financial year. Share of profit is excluded. This is a brand new compliance requirement for partnership firms and LLPs.
- Senior citizen threshold for bank interest increased:Â The threshold for TDS on interest income from banks for senior citizens has been raised to Rs. 1,00,000 from the earlier Rs. 50,000. This means senior citizens can earn up to Rs. 1 lakh in bank interest without TDS being deducted.
- LRS education loan TDS removed:Â TDS on Liberalised Remittance Scheme payments for education loans from financial institutions has been removed from 1 April 2025.
TDS Rate Chart FY 2025-26: Section-Wise Table
The table below covers all major sections applicable to resident individuals. The rates shown are for taxpayers with a valid PAN. Without PAN, TDS is deducted at 20% or twice the applicable rate, whichever is higher.
| Section | Nature of Payment | Threshold Limit | TDS Rate (Individual/HUF) | TDS Rate (Others) |
|---|---|---|---|---|
| 192 | Salary | Basic exemption limit | As per slab rate | As per slab rate |
| 192A | Premature EPF withdrawal | Rs. 50,000 | 10% | — |
| 193 | Interest on securities/debentures | Rs. 10,000 | 10% | 10% |
| 194 | Dividend | Rs. 10,000 | 10% | 10% |
| 194A | Interest from banks (others) | Rs. 50,000 | 10% | 10% |
| 194A | Interest from banks (senior citizens) | Rs. 1,00,000 | 10% | — |
| 194A | Interest from non-banking sources | Rs. 10,000 | 10% | 10% |
| 194B | Lottery/crossword/card game winnings (single transaction) | Rs. 10,000 | 30% | 30% |
| 194BA | Winnings from online games | No threshold | 30% | 30% |
| 194BB | Horse race winnings (single transaction) | Rs. 10,000 | 30% | 30% |
| 194C | Contractor payment – single transaction | Rs. 30,000 | 1% | 2% |
| 194C | Contractor payment – aggregate in FY | Rs. 1,00,000 | 1% | 2% |
| 194D | Insurance commission | Rs. 20,000 | 5% | 10% |
| 194DA | Life insurance policy maturity proceeds | Rs. 1,00,000 | 5% | 5% |
| 194H | Commission or brokerage | Rs. 15,000 | 5% | 5% |
| 194I | Rent – land, building, furniture | Rs. 2,40,000 per year | 10% | 10% |
| 194I | Rent – plant and machinery | Rs. 6,00,000 per year | 2% | 2% |
| 194IA | Purchase of immovable property | Rs. 50,00,000 | 1% | 1% |
| 194IB | Rent paid by individual/HUF (not liable for tax audit) | Rs. 50,000 per month | 2% | — |
| 194J | Professional fees / royalty / technical services | Rs. 30,000 | 10% | 10% |
| 194J | Call centre / technical services (specific) | Rs. 30,000 | 2% | 2% |
| 194K | Mutual fund dividend/income | Rs. 10,000 | 10% | 10% |
| 194M | Payments by individual/HUF to contractors/professionals (not liable for tax audit) | Rs. 50,00,000 | 2% | — |
| 194N | Cash withdrawal from bank | Rs. 1 crore (Rs. 20 lakh if ITR not filed for 3 years) | 2% | 2% |
| 194O | E-commerce operator payments to participants | Rs. 5,00,000 | 0.1% | 0.1% |
| 194Q | Purchase of goods exceeding threshold | Rs. 50,00,000 | 0.1% | 0.1% |
| 194T | Payments to partners by firm/LLP (new from FY 2025-26) | Rs. 20,000 per partner | 10% | 10% |
| 194S | Payment for Virtual Digital Assets (crypto/NFT) | Rs. 10,000 | 1% | 1% |
TDS on Salary Under Section 192: How It Works
Section 192 is the section that affects every salaried professional. Unlike other TDS sections where a fixed rate applies, salary TDS has no fixed percentage. Your employer calculates your estimated annual income, applies the applicable income tax slabs, accounts for your declared deductions and exemptions, and then deducts tax evenly across your monthly salary.
From FY 2025-26, the default regime for salary TDS is the new tax regime unless you explicitly opt out in writing. If you want TDS to be calculated under the old regime because you have significant Section 80C investments, HRA claims, or home loan interest deductions – you need to submit a declaration to your employer at the beginning of the financial year.
This is one area where I see a lot of salaried professionals make a costly mistake. They invest in PPF, ELSS, and pay home loan EMIs throughout the year but forget to inform their employer in time. The employer deducts TDS under the new regime, the taxpayer claims deductions while filing ITR, gets a refund but that refund takes months to process. A simple declaration at the start of April saves all of this.
Sections Most Relevant to Salaried Individuals
Section 194A – TDS on FD and Savings Interest
If you have fixed deposits, the bank will deduct TDS at 10% once your interest income in a financial year crosses Rs. 50,000 (for non-senior citizens) or Rs. 1,00,000 (for senior citizens from FY 2025-26). This applies across all branches of the same bank combined – not per FD.
If your total income is below the taxable limit, you can submit Form 15G (below 60 years) or Form 15H (60 years and above) to your bank at the beginning of the financial year to request nil TDS deduction. This must be submitted every year – it does not carry forward automatically.
Section 194C – TDS for Freelancers and Contractors
If you do freelance or contract work and your client is a company or firm, they will deduct TDS at 1% on payments to you as an individual. The threshold is Rs. 30,000 per single payment or Rs. 1,00,000 in aggregate during the financial year whichever is crossed first.
This TDS will reflect in your Form 26AS. When you file your ITR, you declare this income and claim the TDS credit, which reduces your final tax payable. Make sure to reconcile your Form 26AS, AIS, and Form 16 before filing to ensure all TDS credits are correctly reflected.
Section 194J – TDS on Professional Fees
Consultants, doctors, lawyers, architects, and other professionals receiving fees from companies or firms will have TDS deducted at 10% under Section 194J once the aggregate payment crosses Rs. 30,000 in the year. Technical services and call centre work attracts a lower rate of 2%.
Section 194IB – TDS on House Rent
If you pay rent of more than Rs. 50,000 per month, you are required to deduct TDS at 2% from your rent payment and deposit it with the government. This applies to individuals and HUFs who are not required to get their accounts audited. Many salaried professionals in metro cities paying high rent are unaware of this obligation and it can result in a notice if skipped.
When Is TDS Not Deducted: Nil TDS Conditions
TDS is not deducted in the following situations:
- Payment is below the threshold limit for that section – for example, FD interest below Rs. 50,000 in a year for non-senior citizens.
- Form 15G or 15H submitted – if your total income is below the taxable limit and you submit a valid self-declaration, the deductor is not required to deduct TDS.
- Lower deduction certificate obtained – you can apply to the income tax department under Section 197 for a certificate authorising the deductor to deduct TDS at a lower rate or nil rate. This is useful for taxpayers whose final tax liability is significantly lower than the TDS that would otherwise be deducted.
- Payment type is exempt – certain payments such as share of profit from a partnership firm are outside the scope of TDS entirely.
What Happens If TDS Is Deducted at Wrong Rate
If TDS is deducted at a higher rate than applicable, you will get a refund when you file your ITR provided the TDS is correctly reflected in your Form 26AS. The refund is processed by CPC after ITR verification.
If TDS is deducted at a lower rate than applicable, the shortfall is your responsibility as the taxpayer. You need to pay the balance as self-assessment tax before filing your ITR. The deductor may also face interest and penalties for short deduction.
If TDS is deducted but not deposited by the deductor, it will not appear in your Form 26AS. In this case, you cannot claim credit for it – even if the amount was deducted from your payment. This is a situation that requires following up directly with the deductor to file a correction in their TDS return.
Interest and Penalties for TDS Non-Compliance
If you are a deductor – meaning you are required to deduct TDS from payments you make non-compliance attracts the following consequences:
- Interest for late deduction:Â 1% per month from the date TDS was due to be deducted to the date it was actually deducted.
- Interest for late deposit:Â 1.5% per month from the date of deduction to the date of deposit.
- Late filing fee under Section 234E:Â Rs. 200 per day for delay in filing TDS returns, subject to a maximum of the TDS amount.
- Penalty under Section 271C:Â Up to the amount of TDS not deducted, in cases of wilful non-compliance.
Frequently Asked Questions
What is the TDS rate on salary for FY 2025-26?
Salary TDS has no fixed rate. It is deducted based on your estimated annual income and the applicable income tax slab rates either under the new regime (default from FY 2025-26) or the old regime if you have opted for it in writing with your employer. Your employer recalculates the TDS every month based on updated income and declarations and distributes it evenly across the remaining months of the year.
My bank deducted TDS on my FD interest. Can I get it back?
Yes, if your total income for the year is below the taxable limit or if the TDS deducted is more than your actual tax liability, you will get a refund when you file your ITR. The refund is credited to your pre-validated bank account. To avoid TDS deduction on FD interest in the first place, submit Form 15G or 15H to your bank at the beginning of every financial year if you are eligible. Use your Section 80C deductions to keep your net taxable income below the threshold.
My client deducted TDS from my freelance payment. Where does it show up?
It shows up in Form 26AS and your Annual Information Statement (AIS) within 7 to 10 days of your client filing their quarterly TDS return. You can check it by logging into incometax.gov.in. When you file your ITR, this TDS is automatically pre-filled and you claim it as a tax credit. If it is not reflecting, your client may not have filed their TDS return yet – follow up with them before the ITR filing deadline.
What is the TDS rate if I do not provide my PAN?
If you do not provide PAN to the deductor, TDS will be deducted at 20% or twice the applicable rate, whichever is higher. This is called TDS at a higher rate under Section 206AA. Always ensure your PAN is correctly registered with every deductor – your bank, employer, and clients to avoid excess deduction.
Does TDS apply on rent I pay for my house?
Yes, if your monthly rent exceeds Rs. 50,000. Under Section 194IB, you are required to deduct TDS at 2% from the rent and deposit it with the government. This is a compliance obligation on the tenant, not just the landlord. Many salaried individuals in cities like Bengaluru, Mumbai, and Delhi paying high rents are unaware of this and it can result in a notice if not done. Please check your rent amount and comply accordingly.
The Bottom Line
The TDS rate chart is not just a compliance tool for accountants. As a salaried professional or individual taxpayer, knowing the key sections and thresholds helps you verify that the right amount is being deducted, plan your investments to minimise unnecessary TDS, and act quickly if something looks wrong in your Form 26AS.
Check your Form 26AS every quarter not just at the time of ITR filing. Mismatches caught early are much easier to fix than those discovered after CPC raises a demand. For a step-by-step guide on how to check and match your TDS credits, read the guide on how to reconcile your Form 26AS, AIS, and Form 16. And if you need a reminder on the ITR filing deadline for this year, the linked article has all the dates.
Questions about a specific TDS deduction on your income? Drop them in the comments below.
