TDS Rate Chart India FY 2025-26 - TDS Calculator, Sections & Threshold Limits
TL;DR
TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making a payment and deposits it with the government on behalf of the payee. For FY 2025-26, key TDS rates include 10% on FD interest above Rs 40,000, 10% on rent above Rs 2,40,000 per year, 10% on professional fees above Rs 30,000, and 2% on contractor payments above Rs 30,000 (single) or Rs 1,00,000 (aggregate). If PAN is not furnished, TDS is deducted at 20% or the applicable rate, whichever is higher. Key Facts:
- TDS applies to salary, interest, rent, professional fees, commissions, and more
- No-PAN penalty: TDS at 20% or twice the applicable rate (Section 206AA)
- Form 26AS shows all TDS deducted against your PAN
- TDS return due dates: Q1 (July 31), Q2 (Oct 31), Q3 (Jan 31), Q4 (May 31)
- Lower deduction certificate under Section 197 can reduce TDS rate
- Budget 2025 increased several threshold limits
Complete TDS Rate Chart FY 2025-26
TDS on Common Payment Types
| Section | Nature of Payment | Threshold Limit | TDS Rate (with PAN) | TDS Rate (no PAN) |
|---|---|---|---|---|
| 192 | Salary | As per slab | Slab rates | N/A |
| 194A | Interest (banks) | Rs 40,000/year (Rs 50,000 for seniors) | 10% | 20% |
| 194A | Interest (others) | Rs 5,000/year | 10% | 20% |
| 194B | Lottery/game winnings | Rs 10,000 | 30% | 30% |
| 194C | Contractor (individual/HUF) | Rs 30,000 single / Rs 1,00,000 aggregate | 1% | 20% |
| 194C | Contractor (others) | Rs 30,000 single / Rs 1,00,000 aggregate | 2% | 20% |
| 194H | Commission/brokerage | Rs 15,000/year | 5% | 20% |
| 194I | Rent (land/building) | Rs 2,40,000/year | 10% | 20% |
| 194I | Rent (plant/machinery) | Rs 2,40,000/year | 2% | 20% |
| 194J | Professional/technical fees | Rs 30,000/year | 10% | 20% |
| 194J | Technical fees (to company) | Rs 30,000/year | 2% | 20% |
| 194Q | Purchase of goods | Rs 50,00,000/year | 0.1% | 5% |
TDS on Property and Capital Gains
| Section | Nature of Payment | Threshold | TDS Rate |
|---|---|---|---|
| 194-IA | Property purchase | Rs 50,00,000 | 1% |
| 194-IB | Rent by individual/HUF (non-audit) | Rs 50,000/month | 5% |
| 194S | Virtual digital assets (crypto) | Rs 50,000 (exchange) / Rs 10,000 (others) | 1% |
| 194DA | Life insurance maturity | Rs 1,00,000 | 5% |
TDS on Salary (Section 192)
TDS on salary is unique because it is deducted at the average rate of tax applicable to the employee's estimated annual income. Your employer calculates this based on:
- Your declared investments (80C, 80D, HRA, etc.)
- Chosen tax regime (old vs new)
- Other income you disclose (Form 12BB)
Example: Rs 12,00,000 Annual Salary (New Regime)
Gross Salary: Rs 12,00,000
Standard Deduction: Rs 75,000
Taxable Income: Rs 11,25,000Tax Calculation:
Up to Rs 3,00,000: Nil
Rs 3-7 lakh: Rs 4,00,000 x 5% = Rs 20,000
Rs 7-10 lakh: Rs 3,00,000 x 10% = Rs 30,000
Rs 10-11.25 lakh: Rs 1,25,000 x 15% = Rs 18,750
Total Tax: Rs 68,750
Cess (4%): Rs 2,750
Total: Rs 71,500
Monthly TDS = Rs 71,500 / 12 = Rs 5,958
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TDS on Fixed Deposit Interest (Section 194A)
Banks deduct TDS at 10% when your total interest income from all FDs with that bank exceeds Rs 40,000 in a financial year (Rs 50,000 for senior citizens aged 60+).
How to Avoid TDS on FD Interest
- Form 15G: If you are below 60 and your total income is below the taxable limit, submit Form 15G to the bank
- Form 15H: If you are a senior citizen (60+) with total tax liability of nil, submit Form 15H
- Split FDs across banks: Keep interest under Rs 40,000 per bank (legal but impractical for large deposits)
- Tax-saver FD: 5-year lock-in FDs qualify for 80C deduction, but interest is still taxable
TDS on Rent (Section 194-I and 194-IB)
For Businesses (Section 194-I)
If your business pays rent exceeding Rs 2,40,000 per year, you must deduct TDS at 10% for land/building or 2% for plant/machinery. You need a TAN (Tax Deduction Account Number) to deposit TDS.For Individuals/HUFs (Section 194-IB)
If you are an individual or HUF (not subject to tax audit) paying rent exceeding Rs 50,000 per month, you must deduct TDS at 5%. You do not need a TAN -- use your PAN to deposit TDS via Form 26QC.---
Section 197: Lower Deduction Certificate
If TDS is being deducted at a rate higher than your actual tax liability, you can apply for a Lower Deduction Certificate from the Assessing Officer. Common scenarios:
- Freelancer with business expenses reducing net income significantly
- Senior citizen with total income below taxable limit but receiving large interest payments
- Contractor with thin profit margins where 2% TDS exceeds actual tax
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TDS Return Due Dates FY 2025-26
| Quarter | Period | Due Date | Form |
|---|---|---|---|
| Q1 | April - June 2025 | 31 July 2025 | 24Q (salary) / 26Q (non-salary) |
| Q2 | July - September 2025 | 31 October 2025 | 24Q / 26Q |
| Q3 | October - December 2025 | 31 January 2026 | 24Q / 26Q |
| Q4 | January - March 2026 | 31 May 2026 | 24Q / 26Q |
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Verifying TDS: Form 26AS and AIS
Always verify TDS credits before filing your ITR:
- Form 26AS: Shows all TDS deducted against your PAN, advance tax paid, and high-value transactions. Access via TRACES or income tax portal.
- Annual Information Statement (AIS): More comprehensive, includes mutual fund transactions, property purchases, and interest income from all sources.
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Frequently Asked Questions
Q: What happens if TDS is deducted but not deposited by the deductor?
You can still claim credit for TDS deducted from your income, provided it reflects in Form 26AS. If the deductor has deducted TDS but failed to deposit it with the government, the deductor faces penalties under Sections 201 and 276B (prosecution). You should follow up with the deductor and, if needed, file a complaint with the income tax department.
Q: Can I claim TDS refund if my total income is below the taxable limit?
Yes. File your Income Tax Return (even if your income is below the taxable limit) to claim a refund of TDS deducted. The refund is processed within 4-6 weeks of ITR processing and credited directly to your bank account linked with your PAN.
Q: Is TDS applicable on savings account interest?
No TDS is deducted on savings account interest. However, the interest is taxable as "Income from Other Sources." You can claim deduction up to Rs 10,000 under Section 80TTA (Rs 50,000 for senior citizens under 80TTB) on savings account interest.
Q: What is the penalty for not deducting TDS?
If you fail to deduct TDS, you are liable to pay the TDS amount plus interest at 1% per month (from the date TDS was deductible to the date of actual deduction) under Section 201(1A). Additionally, the expense may be disallowed as a deduction under Section 40(a)(ia) for business income.
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