TDS Rates and Thresholds for FY 2025-26 (AY 2026-27): Full Chart

Tax Deducted at Source (TDS) is the tax a payer cuts from payments such as salary, rent, interest, commission and professional fees before crediting you. Several thresholds changed from 1 April 2025, so here is the full section-wise chart for FY 2025-26 (AY 2026-27).

New law note: From 1 April 2026, the Income-tax Act, 2025 replaces the Income-tax Act, 1961. Returns for FY 2025-26 (AY 2026-27) are still filed under the 1961 Act with ITR-1 to ITR-7, so the section numbers used in this guide remain the ones for that filing. From tax year 2026-27, provisions carry new numbers (for example, Section 80C becomes Section 123 and Section 87A becomes Section 156) and key forms change (Form 16 becomes Form 130 and Form 26AS becomes Form 168), while proceedings for earlier years continue under the 1961 Act. See the complete mapping in our Income-tax Act 2025 section and form mapping guide.

What Budget 2025 changed for TDS

The Finance Act, 2025 lifted many long-stuck thresholds. Changes effective from 1 April 2025 (FY 2025-26) include:

• Bank interest TDS under Section 194A (non-salary TDS sections are consolidated as Section 393 of the 2025 Act) for the general public rose from ₹40,000 to ₹50,000, and for senior citizens from ₹50,000 to ₹1,00,000.
• Dividend TDS under Section 194 rose from ₹5,000 to ₹10,000.
• Commission and brokerage TDS under Section 194H rose from ₹15,000 to ₹20,000.
• Insurance commission TDS under Section 194D rose from ₹15,000 to ₹20,000, and its rate was cut from 5% to 2% with effect from 1 April 2025.
• Rent by individuals/HUFs under Section 194-IB saw the rate cut from 5% to 2%, effective from 1 October 2024.

TDS rate chart for FY 2025-26 (AY 2026-27)

Section-wise notes you should know

Section 194A — interest other than securities

Banks and post offices deduct 10% TDS once aggregate interest crosses the threshold. The senior citizen limit of ₹1,00,000 for FY 2025-26 is double the general limit. If your income is below the taxable limit, submit Form 15G (15G/15H are merged as Form 121 from tax year 2026-27) or 15H to avoid deduction.

Section 194C — contracts

TDS applies when a single contract payment exceeds ₹30,000 or aggregate payments cross ₹1,00,000 for the year. Individual and HUF payers are covered only where their turnover requires books of account, and their annual threshold from FY 2025-26 is ₹2,00,000. The rate is 1% for individual/HUF payees and 2% for others.

Section 194-I and 194-IB — rent

Regular payers deduct 10% on land and building rent (₹50,000 per month threshold) and 2% on plant and machinery (₹2,40,000 a year). Tenants under 194-IB deduct 2% once a year when monthly rent exceeds ₹50,000, typically in the last month of the tenancy or the year.

Section 194J — professional and technical fees

Fees to doctors, lawyers, CAs and architects attract 10% TDS above ₹50,000 a year, while technical services and royalty attract 2%. Directors’ remuneration above the same threshold also falls under 194J at 10%.

Crypto and bulk purchases: 194S and 194Q

Every transfer of a virtual digital asset — crypto, NFTs and similar assets — attracts 1% TDS under Section 194S, with thresholds of ₹10,000 for most buyers and ₹50,000 for specified persons. Purchases of goods exceeding ₹50 lakh from a single seller in a year attract 0.1% TDS under Section 194Q. Where the seller is liable to collect tax on the same transaction under Section 206C(1H), the buyer need not deduct 194Q separately — confirm who covers the transaction so tax is not deducted twice.

No PAN? TDS jumps to 20%

Under Section 206AA (Section 397(2) of the Income-tax Act, 2025), a payee without a PAN suffers 20% TDS — the higher of the normal rate and 20%. Quote your PAN on every invoice, and confirm the deductions in your Form 26AS (Form 168 from tax year 2026-27) or AIS before filing.

Section numbers change from 1 April 2026

From 1 April 2026, the Income-tax Act, 2025 replaces the 1961 Act and renumbers the TDS provisions — the old Sections 192 to 194Q now appear in the 390s series of the new Act. The rates and thresholds continue unchanged; only the section numbers on challans, certificates and returns shift. Cross-reference the new numbers against the old sections you know.

Key takeaways

• Budget 2025 raised the 194A limits to ₹50,000 (general) and ₹1,00,000 (senior citizens) for FY 2025-26.
• 194D and 194-IB rates dropped to 2%, while 194H rose to a ₹20,000 threshold.
• Crypto transfers attract 1% TDS under 194S; goods purchases above ₹50 lakh attract 0.1% under 194Q.
• Missing PAN means 20% TDS under Section 206AA — always share your PAN.
• TDS section numbers change under the Income-tax Act, 2025 from 1 April 2026, but rates continue.

Frequently asked questions

What is the TDS limit on FD interest for senior citizens in FY 2025-26?

For FY 2025-26 (AY 2026-27), banks deduct TDS under Section 194A only when a senior citizen’s aggregate interest crosses ₹1,00,000 in the financial year. The limit for other taxpayers is ₹50,000.

What happens if I do not provide my PAN to the payer?

Under Section 206AA, TDS is deducted at 20% — the higher of the normal rate and 20%. Provide your PAN in writing and obtain the certificate so the credit reflects in your Form 26AS.

Is TDS deducted on lottery winnings?

Yes. Under Section 194B, winnings from lottery, crossword puzzles and game shows attract 30% TDS once a single transaction exceeds ₹10,000. No basic exemption applies to such winnings.

How do I check the TDS deducted against my PAN?

Log in to the e-filing portal and view Form 26AS or your Annual Information Statement (AIS). Compare the figures with your certificates and raise a correction with the deductor if there is a mismatch.

Where can I compute TDS quickly?

The TDS calculator on taxgst.in works out the deduction for common payments. For complex contracts or recurring rent, an income tax consultant can set up a compliant TDS calendar, and the income tax calculator helps you check whether the deductions match your final liability.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.