TDS Rate Chart for FY 2025-26 (AY 2026-27)
✅ TDS Rate Chart for FY 2025-26 (AY 2026-27) – Full List with New Updates
Last Updated: August 1, 2025 | Author: MR Altaf
๐ข What is TDS?
TDS (Tax Deducted at Source) is the tax deducted by a payer at the time of making certain payments such as salary, interest, rent, etc. The Finance Act 2025 has brought key changes for FY 2025-26, effective from April 1, 2025.
๐ Key Changes in FY 2025-26
- ๐ผ Rent threshold increased to ₹6 lakh/year (from ₹2.4 lakh)
- ๐ด Senior citizen interest exemption raised to ₹1 lakh/year
- ๐ Section 194T introduced: 10% TDS on partner payments (above ₹20,000/year)
- ⚠️ No PAN = Flat 20% or higher TDS rate
๐งพ TDS Rate Chart for Residents
| Section | Nature of Payment | Threshold (₹) | TDS Rate |
|---|---|---|---|
| 192 | Salary | As per slab | As per slab |
| 192A | PF Withdrawal | ₹50,000 | 10% |
| 193 | Interest on Securities | - | 10% |
| 194A | Bank/Post Office Interest | ₹50,000 (Sr. Citizens ₹1L) | 10% |
| 194C | Contractor Payment | ₹30,000 (Single) / ₹1L (Annual) | 1% / 2% |
| 194H | Commission / Brokerage | ₹15,000 | 5% |
| 194I | Rent (Land/Building) | ₹6,00,000/year | 10% |
| 194IA | Transfer of Property | ₹50,00,000 | 1% |
| 194M | Ind./HUF Professional Payments | ₹50,00,000 | 5% |
| 194T | Partner Payments (NEW) | ₹20,000/year | 10% |
| 194B/BB | Lottery / Betting | - | 30% |
๐ TDS Rates for Non-Residents
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 195 | Technical / Professional Services | 10% - 30% |
| 194E | Sportspeople/Associations | 20% |
| 194LB | Infrastructure Bonds Interest | 5% |
| 194LC | Foreign Currency Loan Interest | 4% - 5% |
| 194LBA | Business Trust Distributions | 10% - 30% |
| 194LBB | Income from AIF (Cat II) | 10% - 30% |
⚠️ PAN Not Furnished?
If PAN is not submitted by the payee, TDS is deducted at 20% flat or higher as per the section, whichever is more. Always collect PAN to avoid excess deductions.
๐ก Tips to Stay Compliant
- ๐ Deposit TDS by 7th of the next month.
- ๐ Submit TDS returns quarterly.
- ๐ Use Form 26AS to verify deductions.
- ๐ Submit Form 15G/15H (if eligible) to avoid TDS.
๐ Conclusion
The revised TDS chart for FY 2025-26 (AY 2026-27) has made compliance simpler and smarter. Keep track of the thresholds, new sections like 194T, and avoid high deduction rates by ensuring PAN is updated.
For any TDS-related queries, feel free to comment below or consult a tax expert.
Tags: TDS Rate FY 2025-26, AY 2026-27 Income Tax Chart, PAN Deduction Rules, Section 194T India
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