TDS rate finder.
Section-wise. FY 2025-26.
Search by section, payment type, or keyword. Thresholds and rates per the Income Tax Act, current for assessment year 2026-27.
| Section | Nature of payment | Threshold | Individual / HUF | Company / firm |
|---|---|---|---|---|
| 192 | Salary Computed on average rate of tax. | Basic exemption limit | Slab rate | — |
| 192A | Premature EPF withdrawal 20% if PAN not furnished. | ₹50,000 | 10% | — |
| 193 | Interest on securities | ₹10,000 | 10% | 10% |
| 194 | Dividend | ₹5,000 | 10% | 10% |
| 194A | Interest other than securities (bank) | ₹40,000 (₹50,000 sr. citizens) | 10% | 10% |
| 194A | Interest other than securities (other) | ₹5,000 | 10% | 10% |
| 194B | Lottery / gambling / online gaming winnings | ₹10,000 | 30% | 30% |
| 194BA | Online gaming net winnings FY 2023-24 onwards, applied on net winnings. | — | 30% | 30% |
| 194C | Contractor / subcontractor (single payment) | ₹30,000 | 1% | 2% |
| 194C | Contractor / subcontractor (aggregate) | ₹1,00,000 | 1% | 2% |
| 194D | Insurance commission | ₹15,000 | 2% | 10% |
| 194DA | Life insurance maturity (taxable portion) | ₹1,00,000 | 2% | 2% |
| 194G | Lottery ticket commission | ₹15,000 | 2% | 2% |
| 194H | Commission or brokerage | ₹15,000 | 2% | 2% |
| 194-I(a) | Rent — plant & machinery | ₹2,40,000 | 2% | 2% |
| 194-I(b) | Rent — land / building / furniture | ₹2,40,000 | 10% | 10% |
| 194-IA | Sale of immovable property | ₹50,00,000 | 1% | 1% |
| 194-IB | Rent by individual / HUF (not under audit) | ₹50,000/month | 2% | — |
| 194J | Professional / technical fees 2% for technical services + call-centres. | ₹30,000 | 10% | 10% |
| 194J | Technical fees / call-centres / royalty for film | ₹30,000 | 2% | 2% |
| 194K | Income from units of mutual fund | ₹5,000 | 10% | 10% |
| 194LA | Compensation on acquisition of immovable property | ₹2,50,000 | 10% | 10% |
| 194M | Payment to contractor / professional by individual / HUF (not under audit) | ₹50,00,000 | 2% | — |
| 194N | Cash withdrawal from bank Higher rates for non-filers. | ₹1 crore | 2% | 2% |
| 194O | E-commerce participant payments | ₹5,00,000 | 0.1% | 0.1% |
| 194Q | Purchase of goods (buyer's turnover > ₹10 cr) | ₹50,00,000 | 0.1% | 0.1% |
| 194R | Benefits / perquisites in business or profession | ₹20,000 | 10% | 10% |
| 194S | Transfer of virtual digital assets (VDA / crypto) | ₹50,000 (specified) / ₹10,000 (others) | 1% | 1% |
| 195 | Payment to non-resident (general) Apply DTAA if beneficial; furnish Form 15CA/CB. | — | Applicable rate + surcharge + cess | Applicable rate + surcharge + cess |
| 196D | Income of FIIs from securities | — | 20% | 20% |
| 206AA | Higher rate — PAN not furnished | — | Higher of 20% or applicable rate | Higher of 20% or applicable rate |
| 206AB | Higher rate — non-filer of return | — | Higher of 2× rate or 5% | Higher of 2× rate or 5% |
Important:Add applicable surcharge and 4% health & education cess for non-residents and certain residents. If the payee has not furnished a PAN, §206AA applies — the higher of 20% or the rate above. If the payee has not filed returns for both of the past two years, §206AB applies — the higher of 2× rate or 5%. LexVio's Tax AI applies these automatically and produces TDS challans + 26Q / 27Q workings.
Understanding TDS in India
TDS (Tax Deducted at Source) is India's pay-as-you-earn machinery for income tax. The payer withholds a fixed percentage of certain payments and deposits it with the government on the payee's behalf — so the recipient pre-pays a chunk of their tax bill across the year, and the department gets a steady cash flow plus a paper trail.
Get the deduction wrong and you pay twice: interest at 1% per month, plus a Section 40(a)(ia) disallowance that grosses up your taxable income. This finder gives you the section, threshold, and rate for FY 2025-26 — but always verify against the Income Tax portal before filing.
Common sections you'll deal with
- Section 192 — salary, deducted at the average rate applicable to the employee's slab.
- Section 194A — interest other than on securities. Threshold ₹40,000 (₹50,000 for senior citizens) per bank per year.
- Section 194C — contractor payments. 1% to individuals/HUF, 2% to others. Threshold ₹30,000 per contract or ₹1,00,000 aggregate.
- Section 194I — rent. 10% for land/building, 2% for plant & machinery. Threshold ₹2,40,000 per year.
- Section 194J — professional/technical fees, royalties. 10% standard, 2% for call-centre operators. Threshold ₹30,000.
- Section 194Q — purchase of goods (buyer turnover > ₹10 cr). 0.1% on amount exceeding ₹50 lakh from a seller in a year.
What this tool does not handle
- Section 195 (NRI payments) — needs DTAA analysis. Use a CA.
- Section 206AB higher TDS for non-filers — must check payee status on the IT portal.
- Section 197 lower-deduction certificates — payee gives you a certificate, you apply the certified rate.
- TCS under Section 206C — different forms (27EQ), different rates.
Frequently asked
What is the difference between TDS and TCS?
TDS (Tax Deducted at Source) is deducted by the payer when making certain payments — salary, rent, interest, professional fees. TCS (Tax Collected at Source) is collected by the seller from the buyer on specified goods like scrap, timber, motor vehicles above ₹10 lakh, or foreign remittances. TDS is the more common one for most businesses.
When do I need a TAN to deduct TDS?
Any person (other than an individual or HUF not subject to tax audit) deducting TDS must have a TAN (Tax Deduction Account Number). Apply via NSDL. Quoting PAN instead of TAN attracts a ₹10,000 penalty under Section 272BB. The TAN must appear on every TDS challan, certificate, and return.
What happens if I forget to deduct TDS?
Two consequences. First, the expense is disallowed under Section 40(a)(ia) — typically 30% of the payment (100% for non-residents) is added back to your income, inflating your tax. Second, interest at 1% per month accrues from the date TDS was due. Deducting late but paying on time means only 1% interest; not deducting at all triggers both.
Which form do I use — 24Q, 26Q, 27Q?
Form 24Q is for TDS on salary (Section 192). Form 26Q is for all other resident payments (rent, interest, contractor, professional). Form 27Q is for payments to non-residents. Form 27EQ is for TCS. Each is filed quarterly; due dates are 31 July, 31 October, 31 January, and 31 May for Q4.
When do I issue Form 16 / 16A?
Form 16 (salary TDS) must be issued by 15 June following the financial year. Form 16A (non-salary TDS) is quarterly — within 15 days of the TDS-return due date. Both are downloaded from TRACES after filing the return; don't issue manual certificates.
What is Section 206AB / higher TDS for non-filers?
If your payee hasn't filed their income-tax return for the previous year and aggregate TDS/TCS in that year was ₹50,000 or more, you must deduct TDS at twice the normal rate (or 5%, whichever is higher). Check the payee's status on the Income Tax portal's Compliance Check tool before each payment.
Do these rates apply to NRIs?
No — NRI payments are governed by Section 195 with different rates and the surcharge/cess structure of DTAA between India and the recipient's country. Always check the relevant DTAA; a wrong deduction triggers refund hassles for the NRI and a notice for you. Use a separate workflow for non-resident TDS.