TDS Rate Chart: All the Information You Need for FY 2025–26 (AY 2026-27)
This blog includes a thorough TDS rate chart for the fiscal year 2025-26 (assessment year 2026-27). It includes TDS rates for a variety of payments such as wages, interest, rent, professional fees, and more. The site also discusses critical TDS compliance considerations such as PAN requirements, quarterly installments, and penalties for noncompliance. Stay up to speed on the newest TDS rates to guarantee a smooth tax filing experience.
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TDS Rate Chart for FY 2025-26 (AY 2026-27): Everything You Need to Know
Tax Deducted at Source (TDS) is a mechanism implemented by the Indian Income Tax Department to collect tax at the source of income itself. TDS is deducted by the payer and deposited with the government. Every financial year, the government releases updated TDS rates applicable to various types of payments. This blog provides a detailed TDS rate chart for the Financial Year (FY) 2025-26, which corresponds to the Assessment Year (AY) 2026-27.
TDS Rate Chart for FY 2025-26 (AY 2026-27)
Below is the updated TDS rate chart applicable for different types of payments:
1. TDS on Salary (Section 192)
- TDS is deducted based on the income tax slab rates applicable to the employee.
- Employers must consider deductions and exemptions before deducting TDS.
- TDS is applicable only if the employee’s total taxable income exceeds the basic exemption limit.
2. TDS on Interest (Section 193 & 194A)
| Nature of Payment | Threshold Limit (Rs.) | TDS Rate (Resident) | TDS Rate (Non-Resident) |
|---|---|---|---|
| Interest on securities (Section 193) | 10,000 | 10% | 20% |
| Interest other than securities (Section 194A) | 40,000 (50,000 for Senior Citizens) | 10% | 20% |
3. TDS on Dividend (Section 194)
- Threshold Limit: Rs. 5,000
- TDS Rate:
- 10% for Resident Individuals
- 20% for Non-Residents (plus applicable surcharge and cess)
4. TDS on Contractor Payments (Section 194C)
| Nature of Payment | Threshold Limit (Rs.) | TDS Rate (Resident) | TDS Rate (Non-Resident) |
|---|---|---|---|
| Payment to Individuals/HUF | 30,000 (Single) / 1,00,000 (Annual) | 1% | 20% |
| Payment to Others (Firms/Companies) | 30,000 (Single) / 1,00,000 (Annual) | 2% | 20% |
5. TDS on Rent (Section 194I)
| Type of Asset | Threshold Limit (Rs.) | TDS Rate (Resident) | TDS Rate (Non-Resident) |
|---|---|---|---|
| Plant & Machinery | 2,40,000 | 2% | 20% |
| Land & Building | 2,40,000 | 10% | 20% |
6. TDS on Professional Fees (Section 194J)
| Nature of Payment | Threshold Limit (Rs.) | TDS Rate (Resident) | TDS Rate (Non-Resident) |
|---|---|---|---|
| Professional Fees, Technical Services, Royalty, etc. | 30,000 | 10% | 20% |
| Call Centre Payments | 30,000 | 2% | 20% |
7. TDS on Commission and Brokerage (Section 194H)
- Threshold Limit: Rs. 15,000
- TDS Rate: 5% for Residents; 20% for Non-Residents
8. TDS on Purchase of Immovable Property (Section 194IA & 194IB)
| Nature of Transaction | Threshold Limit (Rs.) | TDS Rate (Resident) | TDS Rate (Non-Resident) |
|---|---|---|---|
| Purchase of Property (Section 194IA) | 50,00,000 | 1% | 20% |
| Rent Payment by Individuals (Section 194IB) | 50,000 per month | 5% | 20% |
9. TDS on E-commerce Transactions (Section 194O)
- Threshold Limit: Rs. 5,00,000 (for Individuals/HUF)
- TDS Rate: 1% for Residents, 20% for Non-Residents
10. TDS on Crypto Transactions (Section 194S)
- Threshold Limit: Rs. 50,000 (Individuals/HUF) & Rs. 10,000 (Others)
- TDS Rate: 1%
Key Points to Remember
- PAN Requirement: If the deductee fails to provide PAN, TDS is deducted at the highest rate of 20%.
- Quarterly Deposits: TDS must be deposited on or before the 7th of the following month except for March (due date: 30th April).
- TDS Returns: Deductors must file TDS returns quarterly in Form 24Q, 26Q, 27Q, or 27EQ.
- Lower/Nil TDS: Deductees can apply for a lower or nil TDS deduction by submitting Form 13 under Section 197.
- Penalty for Non-Compliance: Failure to deduct/deposit TDS attracts interest and penalties under the Income Tax Act.
Conclusion
Understanding TDS rates for FY 2025-26 (AY 2026-27) is crucial for taxpayers, businesses, and professionals to ensure compliance with the Income Tax Act. By adhering to the prescribed rates and timely depositing TDS, one can avoid penalties and interest charges.
For hassle-free TDS compliance and ITR filing, consult tax experts at myITRonline. Stay compliant, file on time, and save your tax efficiently!
If you need any assistance with TDS compliance, visit myITRonline for expert support and seamless tax filing solutions.
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Note-All the aforementioned information in the article is taken from authentic resources and has been published after moderation. Any change in the information other than fact must be believed as a human error. For queries mail us at marketing@myitronline.com
Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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