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What is TDS (Tax Deducted at Source)?

What is TDS in Income Tax?

Who Can Deduct TDS?

When Should TDS be Deducted?

TDS Rate Chart for FY 2025-26 (AY 2026-27)

As per the revisions made by TDS new rules in Budget 2025, here is the updated TDS rate chart, which varies according to various sections. The changes in the TDS rates in specified payments, effective April 1, 2025, are as follows:

Section and Nature of Payment Payer TDS Limit from 1 April 2025 (in ₹) Applicable TDS Rate
Section 192, Salary  Salaried individual  Income Tax Slab  Applicable Income Tax slab 
Section 192A, Premature withdrawal of EPF  Individual  50,000  10% of the total sum (20% if no PAN) 
Section 193, Interest amount on securities  Individual  10,000  10% 
Section 194, Dividends  Domestic companies  10,000  10% 
Section 194A, Interest on assets & securities  Individuals, except for taxpayers and HUF liable for audit  1 lakh for senior citizens, 50,000 for others, when the payer is a bank, cooperative society, or post office

10,000 in other cases
10% 
Section 194B, Applicable on money earned through any competition or lottery  Individual  10,000 for a single transaction  30% 
Section 194BB, Prize amount on winning horse race  Any individual  10,000 for a single transaction  30% 
Section 194C, Contractors  Individuals, except for taxpayers and HUF liable for audit  30,000 per transaction or 1 lakh annually 1% for individuals and HUF, 2% for other taxpayers 
Section 194D, Insurance commission  Insurance aggregator  20,000  2% (persons other than a company)
10% (companies)
Section 194DA, Life insurance policy  Individual  1 lakh  2%  
Section 194E, Payments to a non-residential sportsperson  Individual  No threshold limit  20% 
Section 194EE, Deposit under NSS  Individual  2,500   10% 
Section 194G, Commission from the sale of a lottery ticket  Individual  20,000  2% 
Section 194H, TDS on commission or brokerage earned  Individuals, except for taxpayers and HUF liable for audit  20,000  2%  
Section 194I, TDS on rent  Individuals, except for taxpayers and HUF liable for audit  50,000 per month  2% (from machines or equipment)
10% (from land, buildings, and furniture)
Section 194IA, TDS on funds earned for transfer of immovable assets (except agricultural land)  Individual  50 lakh   1% 
Section 194IB, Rent by individuals & HUF  Individuals except for taxpayers and HUF liable for audit  50,000 per month  2% (effective from 1st October 2024) 
Section 194IC, Payment on agreement  Individual  No threshold limit  10% 
Section 194J, Sum paid for professional services  Individuals, except for taxpayers and HUF liable for audit  50,000  10% 
Section 194J, Fee paid for technical services, royalty  Individuals, except for taxpayers and HUF liable for audit  50,000  2% 
Section 194K, Payment for mutual funds  Individuals, except for taxpayers and HUF liable for audit  10,000  10% 
Section 194LA, Compensation for acquisition of an immovable asset  Individual  5 lakh  10% 
Section 194LB, Income from infrastructure debt fund interest  Infrastructure debt funds  No threshold limit  5% 
Section 194LBA, Income from units of a business trust  Business trusts  No threshold limit  10% for resident individuals and 5% for NRI 
Section 194LBB, Income from units of investment funds  Investment funds  No threshold limit  10% for resident individuals 
30% for NRIs 
40% for foreign companies 
Section 194LBC, TDS on income earned from investments of securitization trusts  Securitization trusts  No threshold limit  25% for individuals and HUF, and 30% for investors 
Section 194LC, Income from an Indian company  Indian companies and business trusts  No threshold limit  5% 
Section 194LD, TDS on income earned from certain Government securities and bonds  Individual  No threshold limit  5% 
Section 194M - Payment of certain sums  Individual or HUF  50,000 per month  2% (effective from 1st October 2024) 
Section 194-O - Payment of a certain sum to e-commerce participants  E-commerce Operators  No threshold limit  0.1% (effective from 1st October 2024) 
Section 194F - Payment for repurchase of units by mutual funds or UTI  Individual  No threshold limit  Proposed to be omitted (effective from 1st October 2024) 
Section 196B, Income from the offshore funds  Individual  No threshold limit  10% 
Section 196C, Income from foreign current bonds  Individual  No threshold limit  10% 
Section 196D, Income from foreign institutional investors  Individual  No threshold limit  20% 

However, if you cannot submit a PAN card, it will be deducted at 20%.

How to Deposit TDS?

What is TDS Return?

When to File TDS Return?

You can do TDS filing within the specified date for separate transactions every quarter of the year. TAN, PAN of the deductee, payment type, and the amount deducted need to be furnished during filing.

The following are the TDS return due dates:

Form No. TDS Deducted on Transaction Type Due Dates of Return Filing
24Q/26Q  Salary  Q1 – 31st July, Q2 – 31st October, Q3 – 31st January, Q4 – 31st May 
27Q  Any payment to non-residents (not salary)  Q1 – 31st July, Q2 – 31st October, Q3 – 31st January, Q4 – 31st May 
26QB  Sale of property 30 days from the end of the month of TDS deduction 
26QC  Rent 30 days from the end of the month of TDS deduction 

How to File TDS Return?

What is the Due Date to Deposit TDS?

What is a TDS Certificate?

By knowing the answer to the question of what a TDS certificate is, you can get the solution of all problems related to the deduction of TDS at different sources of income. It is a type of certificate issued by the entity deducting TDS to the person from whom TDS is deducted or the assessee. It serves as proof that the TDS deducted from you is deposited into the Government account.

TDS certificate is also useful to a deductee as it ensures that the amount deducted from your end is not forfeited and deposited with the Government. Therefore, you can claim a TDS return on time exhibiting this relevant document.

Another most important thing to know is what TDS certificate type is and what are the various types of TDS certificates you should ask for.

Form Certificate for Type of Payment Frequency & Due Date
Form 16  Salary payment  Yearly, 31st May 
Form 16 A  Non-salary payments  Quarterly, 15 days from the TDS filing date of the return
Form 16 B  Sale of property  Every transaction, 15 days from the due date of filing the return 
Form 16 C  Rent  Every transaction, 15 days from the due date of filing the return 

How to View TDS Certificate?

What is the Penalty for Late or Non-Filing of TDS?

When Can Taxpayers Claim Refund or Reduction of Applicable TDS?

FAQs about TDS