TDS Rate Chart 2025-26: Complete List of All TDS Sections
Updated TDS rates for FY 2025-26 with October 2024 amendments
- Section 192: Salary - As per tax slab rates
- Section 194C: Contractors - 1% (Individual), 2% (Others)
- Section 194J: Professional fees - 10%, Technical services - 2%
- Section 194Q: Purchase of goods (above Rs 50L) - 0.1%
- Section 194S: Crypto/VDA - 1% (separate from 30% capital gains)
This is the most comprehensive TDS rate chart for FY 2025-26 (AY 2026-27) covering all sections, rates, and thresholds. For basic TDS concepts, see our TDS Explained Guide.
Most Common TDS Sections
Quick reference guide to the most frequently used TDS sections with rates and thresholds
common_sections.fy25-26
| Section | Nature of Payment | TDS Rate | Threshold |
|---|---|---|---|
| 192 | Salary | As per slab | If tax payable |
| 194C | Contract/Sub-contract | 1% (Individual/HUF) 2% (Others) | ₹30,000 (single) ₹1L (annual) |
| 194H | Commission/Brokerage | 5% | ₹15,000 |
| 194I | Rent | 2% (Plant/Machinery) 10% (Land/Building) | ₹2,40,000 |
| 194J | Professional/Technical Services | 10% (Professional) 2% (Technical) | ₹30,000 |
| 194Q | Purchase of Goods | 0.1% | ₹50 lakh (annual) |
| 194S | Crypto/VDA Transfer | 1% | ₹50,000 (annual) |
Section 194C: Contractor Payments (Most Used)
Most frequently applied TDS section for payments to contractors and sub-contractors
Detailed rules & rates · TDS on contract payments
TDS Rate:
Threshold Limits:
Section 194J: Professional Services
TDS on payments for professional or technical services
Services covered · professional & technical
Professional Services
CA, lawyer, architect, doctor, engineer, consultant
Technical Services
IT consulting, software development, technical support
Royalty & Non-compete
Royalty payments and non-compete agreements
If you are a freelancer or professional, Section 194J TDS at 10% is your primary concern. Clients must deduct TDS if payment exceeds Rs 30,000 per transaction. You can claim this TDS credit when filing ITR. Use Section 44ADA to minimize your actual tax liability.
Section 194Q: TDS on Purchase of Goods (New!)
New provision from FY 2021-22 for buyers purchasing goods
Applies to buyers · TDS on bulk purchases
If you're a business buying goods worth ₹50 lakh+ per year from a supplier, deduct 0.1% TDS.
Deduct proportionately from each invoice throughout the year
Section 194S: Crypto/VDA TDS
TDS on transfer of Virtual Digital Assets (cryptocurrency, NFTs). For detailed crypto taxation, see our Crypto Tax Masterclass.
Cryptocurrency transactions · effective July 1, 2022
Crypto exchanges must deduct 1% TDS on every sale/transfer of Virtual Digital Assets (VDA) above ₹50,000 annual threshold.
TDS on Salary (Section 192)
Most common TDS section for salaried employees - deducted monthly by employer
salary_slabs.new_regime.fy25-26
Employer deducts TDS on salary based on employee's total income and chosen tax regime
| Income Slab (New Regime) | Tax Rate |
|---|---|
| Up to ₹3 lakh | 0% |
| ₹3L - ₹7L | 5% |
| ₹7L - ₹10L | 10% |
| ₹10L - ₹12L | 15% |
| ₹12L - ₹15L | 20% |
| Above ₹15L | 30% |
Common TDS Errors to Avoid
Critical mistakes that can result in penalties and interest charges
Using PAN instead of TAN while deducting TDS results in ₹10,000 penalty under Section 272BB
If cumulative payments exceed threshold during the year, TDS must be deducted from first rupee. Many businesses miss this!
TDS must be deposited by 7th of next month. Late deposit attracts:
- Interest @ 1.5% per month under Section 201(1A)
- Penalty under Section 221
- Disallowance of expense under Section 40(a)(ia)
Applying Section 194C (contract) instead of 194J (professional) or vice versa leads to wrong rate deduction and compliance issues
TDS Compliance Calendar
Important deadlines you must never miss
Deposit TDS to government via challan 281. This is the most critical deadline!
File TDS returns in Form 24Q, 26Q, 27Q for Q1, Q2, Q3
File Q4 TDS return for March quarter deductions (extended deadline)
Issue Form 16 (salary) / Form 16A (non-salary) to all deductees
Set up automatic reminders 3 days before each deadline. Late filing attracts ₹200/day penalty under Section 234E!
Conclusion
TDS compliance is critical for every business. Wrong rate, late deposit, or missing return = penalties, interest, and intense scrutiny from the Income Tax Department.
Use this chart as a quick reference, but always consult a qualified CA for complex scenarios or when in doubt.
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