TDS Rate Chart FY 2025-26: Complete Guide with Threshold Limits and Exemptions
Comprehensive reference covering all TDS sections (192 to 194S), applicable rates, threshold limits, and common errors to avoid
Written by
CA Ashama Rajawat
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Most Common TDS Sections
Quick reference guide to the most frequently used TDS sections with rates and thresholds
| 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
TDS Rate:
Threshold Limits:
Single payment
₹30,000
Aggregate per year
₹1,00,000
Calculation Example
Section 194J: Professional Services
TDS on payments for professional or technical services
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
Threshold
Section 194Q: TDS on Purchase of Goods (New!)
New provision from FY 2021-22 for buyers purchasing goods
If you're a business buying goods worth ₹50 lakh+ per year from a supplier, deduct 0.1% TDS.
Who Deducts
Buyer with turnover > ₹10 crore
Rate
0.1%
(one-tenth of 1%)
Threshold
₹50 lakh
per supplier/year
Example
Deduct proportionately from each invoice throughout the year
Section 194S: Crypto/VDA TDS
TDS on transfer of Virtual Digital Assets (cryptocurrency, NFTs)
Crypto exchanges must deduct 1% TDS on every sale/transfer of Virtual Digital Assets (VDA) above ₹50,000 annual threshold.
Who Deducts
Crypto exchanges (WazirX, CoinDCX, etc.)
Rate
1%
Threshold
₹50,000
cumulative per FY
Important Note
TDS on Salary (Section 192)
Most common TDS section for salaried employees - deducted monthly by employer
| 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
Wrong TAN Used
Using PAN instead of TAN while deducting TDS results in ₹10,000 penalty under Section 272BB
Not Deducting TDS Below Threshold
If cumulative payments exceed threshold during the year, TDS must be deducted from first rupee. Many businesses miss this!
Late Deposit
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)
Wrong Section Applied
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
By 7th of Next Month
Deposit TDS to government via challan 281. This is the most critical deadline!
By 31st of Next Month
File TDS returns in Form 24Q, 26Q, 27Q for Q1, Q2, Q3
By 31st May
File Q4 TDS return for March quarter deductions (extended deadline)
By 31st May
Issue Form 16 (salary) / Form 16A (non-salary) to all deductees
Pro Tip
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.