TDS Rate Chart FY 2025-2026(Proposed)
| Section | Nature of Payment | Existing Threshold Limit (₹) | Proposed Threshold Limit (₹) | Existing TDS Rate | Proposed TDS Rate | Remarks |
| 192 | Salary Income | As per Income Tax Slabs | As per Income Tax Slabs | As per tax slab | As per tax slab | TDS is deducted based on the employee’s applicable income tax slab rates. |
| 192A | Premature Withdrawal from EPF | ₹50,000 | ₹50,000 | 10% | 10% | Applicable if PAN is provided; if not, TDS is deducted at the maximum marginal rate. |
| 193 | Interest on Securities | ₹5,000 | ₹10,000 | 10% | 10% | Applicable on interest from securities like debentures. |
| 194 | Dividend Income | ₹5,000 | ₹10,000 | 10% | 10% | TDS is applicable if the dividend payment exceeds the threshold limit. |
| 194A | Interest (Other than on Securities) | ₹40,000 (General) / ₹50,000 (Senior Citizens) | ₹50,000 (General) / ₹1,00,000 (Senior Citizens) | 10% | 10% | Applicable on interest from banks, post offices, etc. |
| 194B | Winnings from Lotteries, Crossword Puzzles, etc. | ₹10,000 | ₹10,000 | 30% | 30% | TDS is deducted on the entire amount if winnings exceed the threshold. |
| 194BB | Winnings from Horse Races | ₹10,000 | ₹10,000 | 30% | 30% | Applicable on winnings from horse races. |
| 194C | Payment to Contractors/Sub-contractors | ₹30,000 (Single Payment) / ₹1,00,000 (Aggregate in FY) | ₹30,000 (Single Payment) / ₹1,00,000 (Aggregate in FY) | 1% (Individual/HUF) / 2% (Others) | 1% (Individual/HUF) / 2% (Others) | TDS is deducted if payment exceeds the specified limits. |
| 194D | Insurance Commission | ₹15,000 | ₹20,000 | 5% | 5% | Applicable on commission paid to insurance agents. |
| 194DA | Payment in respect of Life Insurance Policy | ₹1,00,000 | ₹1,00,000 | 5% on income component | 5% on income component | TDS is deducted on the income portion of the policy payout. |
| 194EE | Payments from National Savings Scheme | ₹2,500 | ₹2,500 | 10% | 10% | Applicable on withdrawals from NSS. |
| 194F | Payments on account of Repurchase of Units by Mutual Fund or UTI | No Threshold | No Threshold | 20% | 20% | Applicable on repurchase of units. |
| 194G | Commission on Sale of Lottery Tickets | ₹15,000 | ₹20,000 | 5% | 5% | Applicable on commission earned from selling lottery tickets. |
| 194H | Commission or Brokerage | ₹15,000 | ₹20,000 | 5% | 5% | TDS is deducted if the commission or brokerage exceeds the threshold. |
| 194I | Rent | ₹2,40,000 | ₹ 50,000 Per Month | 2% (Plant & Machinery) / 10% (Land, Building, Furniture) | 2% (Plant & Machinery) / 10% (Land, Building, Furniture) | Applicable on rental payments exceeding the threshold. |
| 194IA | Payment on Transfer of Certain Immovable Property other than Agricultural Land | ₹50,00,000 | ₹50,00,000 | 1% | 1% | TDS is deducted on the sale of immovable property exceeding the threshold. |
| 194IB | Payment of Rent by Certain Individuals or HUF | ₹50,000 per month | ₹50,000 per month | 5% | 5% | Applicable when rent exceeds ₹50,000 per month. |
| 194IC | Payment under Joint Development Agreements | No Threshold | No Threshold | 10% | 10% | Applicable on monetary consideration under JDA. |
| 194J | Fees for Professional or Technical Services | ₹30,000 | ₹50,000 | 10% | 10% | Applicable on professional or technical service fees exceeding the threshold. |
| 194K | Income in respect of Units | ₹5,000 | ₹10,000 | 10% | 10% | Applicable on income from mutual fund units. |
| 194LA | Payment of Compensation on Acquisition of Certain Immovable Property | ₹2,50,000 | ₹500,000 | 10% | 10% | Applicable on compensation for compulsory acquisition. |
| 194LB | Income by way of Interest from Infrastructure Debt Fund | No Threshold | No Threshold | 5% | 5% | Applicable on interest from infrastructure debt funds to non-residents. |
| 194LBA | Certain Income from Units of a Business Trust | No Threshold | No Threshold | 10% (Resident) / 5% (Non-Resident) | 10% (Resident) / 5% (Non-Resident) | Applicable on income from units of business trusts. |
| 194LBB | Income in respect of Units of Investment Fund | No Threshold | No Threshold | 10% | 10% | Applicable on income from units of investment funds. |
| 194LBC | Income in respect of Investment in Securitization Trust | No Threshold | No Threshold | 25% (Individual/HUF) / 30% (Others) | 10% | Proposed reduction in TDS rate to 10% for all categories. |
| 194LC | Income by way of Interest from Indian Company | No Threshold | No Threshold | 5% | 5% | Applicable on interest from Indian companies to non-residents. |
| 194LD | Interest on Certain Bonds and Government Securities | No Threshold | No Threshold | 5% | 5% | Applicable on interest from specified bonds and securities. |
| 194M | Payment of Commission, Brokerage, Contract Fees by Individual/HUF not liable to TDS under 194C, 194H, 194J | ₹50,00,000 | ₹50,00,000 | 5% | 5% | Applicable when aggregate payments exceed the threshold. |
A comprehensive explanation of all these amendments is provided below.
Under Section 193, tax must be deducted at source on interest payments made to residents on securities. At present, there is no threshold limit for TDS deduction. However, the proposed amendment introduces a threshold limit of ₹10,000 per financial year.
Existing Rule: There is no threshold limit for TDS deduction on interest from securities.
Proposed Change: TDS will be applicable only if the interest exceeds ₹10,000 in a financial year.
Tax Deduction on Dividend Payments – Section 194
As per Section 194, a 10% TDS must be deducted on dividend payments to resident shareholders if the amount exceeds ₹5,000.
Existing Rule: No TDS is deducted if the dividend paid to an individual does not exceed ₹5,000 in a financial year.
Proposed Change: The threshold limit for TDS deduction has been increased to ₹10,000 per financial year.
Tax Deduction on Interest (Excluding Interest on Securities) – Section 194A
Section 194A regulates TDS on interest payments, excluding those on securities. The proposed amendment raises the threshold limits for various categories of payees.
| Payer | Current TDS Threshold | Proposed TDS Threshold | Current TDS Threshold (Senior Citizens) | Proposed TDS Threshold (Senior Citizens) |
|---|---|---|---|---|
| Banks | ₹40,000 | ₹50,000 | ₹50,000 | ₹1,00,000 |
| Cooperative Banks | ₹40,000 | ₹50,000 | ₹50,000 | ₹1,00,000 |
| Post Office Deposits | ₹40,000 | ₹50,000 | ₹50,000 | ₹1,00,000 |
| Other cases | ₹5,000 | ₹10,000 | ₹5,000 | ₹10,000 |
Tax Deduction on Winnings from Lottery, Gambling, and Horse Races – Sections 194B & 194BB
At present, TDS is deducted if the total winnings exceed ₹10,000 in a financial year. The proposed amendment changes this by applying TDS on winnings for each individual transaction, rather than on the annual total.
| Section | Current Provision | Proposed Amendment |
|---|---|---|
| 194B (Lottery, Crossword Puzzles, Gambling, Betting) | TDS is applicable if total winnings exceed ₹10,000 in a financial year. | TDS will be applicable on winnings exceeding ₹10,000 in a single transaction. |
| 194BB (Horse Race Winnings) | TDS is applicable if total winnings exceed ₹10,000 in a financial year. | TDS will be applicable on winnings exceeding ₹10,000 in a single transaction. |
Tax Deduction on Commissions and Brokerage – Sections 194D, 194G, and 194H
The threshold limits for TDS on insurance commission, lottery commission, and brokerage have been raised.
| Section | Nature of Payment | Current Threshold | Proposed Threshold |
| 194D | Insurance Commission | ₹15,000 | ₹20,000 |
| 194G | Lottery Commission | ₹15,000 | ₹20,000 |
| 194H | Brokerage/Commission (excluding insurance) | ₹15,000 | ₹20,000 |
Tax Deduction on Rent Payments – Section 194-I
At present, TDS is applicable if the total annual rent exceeds ₹2,40,000. The proposed amendment revises the threshold to ₹50,000 per month or part of the month.
| Current Provision | Proposed Amendment |
|---|---|
| TDS is applicable if the total annual rent exceeds ₹2,40,000. | TDS will be applicable if the monthly rent exceeds ₹50,000, or part thereof. |
Professional & Technical Fees – Section 194J
The proposed amendment raises the threshold for payments related to various professional and technical services.
| Nature of Payment | Current Threshold | Proposed Threshold |
| Professional Fees | ₹30,000 | ₹50,000 |
| Technical Services | ₹30,000 | ₹50,000 |
| Royalty | ₹30,000 | ₹50,000 |
| Non-compete Fees under Section 28(va) | ₹30,000 | ₹50,000 |
Tax Deduction on Mutual Fund and Specified Company Income – Section 194K
TDS is applicable on mutual fund or unit income payments exceeding ₹5,000. The proposed amendment raises the threshold to ₹10,000.
| Current Provision | Proposed Amendment |
| TDS is applicable if mutual fund/unit income exceeds ₹5,000. | TDS will apply if mutual fund/unit income exceeds ₹10,000. |
Tax Deduction on Compensation for Acquisition of Immovable Property – Section 194LA
The threshold for TDS on compensation arising from the compulsory acquisition of immovable property (excluding agricultural land) has been raised.
| Current Provision | Proposed Amendment |
| TDS is applicable if the compensation exceeds ₹2,50,000 | TDS will apply if the compensation exceeds ₹5,00,000. |
Source-Finance Bill 2025
