TDS Rates and Sections 2025-26: Complete Guide for Taxpayers

What is TDS?

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at the time of making payment and deposits it with the government. This ensures regular tax collection throughout the year.

Key TDS Sections and Rates for FY 2025-26

Section 192: Salary Income

• Threshold: No threshold (TDS on all taxable salary)
• Frequency: Monthly
• Form 16: Issued by 15th June

Section 194A: Interest (Other than Securities)

Applicable on: Bank FD interest, recurring deposit interest, interest on loans

Section 194C: Contractor Payments

Section 194H: Commission/Brokerage

Section 194I: Rent

Section 194J: Professional/Technical Fees

Section 194Q: Purchase of Goods

Applicable to: Buyers with turnover above Rs 10 crore

Section 194R: Benefits/Perquisites in Business

Section 194S: Virtual Digital Assets

TDS Due Dates

Payment Due Dates

Return Filing Due Dates

Form 16/16A Issue Dates

No TDS/Lower TDS Situations

Form 15G/15H

Form 15G: For individuals below 60 years (estimated income below taxable limit)

Form 15H: For senior citizens (estimated tax nil)

Submit to deductor to avoid TDS on interest

Lower TDS Certificate

Apply to Assessing Officer under Section 197

Valid for the specified financial year

Useful when regular TDS rate is higher than actual tax liability

PAN Not Available

TDS rate: 20% or applicable rate (whichever is higher)

Always provide PAN to avoid higher TDS

TDS Interest and Penalties

Interest

Penalties

Income Slab	TDS Rate
As per applicable tax slab	Average rate of tax
Payee	TDS Rate	Threshold
Resident	10%	Rs 40,000 (Rs 50,000 for senior citizens)
Non-resident	30% + surcharge	No threshold
Payee	TDS Rate	Threshold
Individual/HUF	1%	Rs 30,000 (single) / Rs 1,00,000 (aggregate)
Others	2%	Rs 30,000 (single) / Rs 1,00,000 (aggregate)
Payment	TDS Rate	Threshold
Commission	5%	Rs 15,000
Type	TDS Rate	Threshold
Plant & Machinery	2%	Rs 2,40,000 p.a.
Land, Building, Furniture	10%	Rs 2,40,000 p.a.
Payment	TDS Rate	Threshold
Technical Services	2%	Rs 30,000
Professional Services	10%	Rs 30,000
Royalty (non-compete)	10%	Rs 30,000
Payment	TDS Rate	Threshold
Purchase of goods	0.1%	Rs 50 lakh
Payment	TDS Rate	Threshold
Benefits/Perquisites	10%	Rs 20,000
Payment	TDS Rate	Threshold
Crypto/NFT transfer	1%	Rs 50,000 (specified persons) / Rs 10,000 (others)
Month	Due Date
April to February	7th of next month
March	30th April
Quarter	Period	Due Date
Q1	April - June	31st July
Q2	July - September	31st October
Q3	October - December	31st January
Q4	January - March	31st May
Form	Purpose	Due Date
Form 16	Salary TDS	15th June
Form 16A	Non-salary TDS	15 days from quarter end
Default	Interest Rate
Late deduction	1% per month
Late payment after deduction	1.5% per month
Default	Penalty
Late filing of TDS return	Rs 200 per day (max: TDS amount)
Failure to issue TDS certificate	Rs 100 per day per certificate
Failure to file return	Rs 10,000 to Rs 1,00,000

TDS Compliance Checklist

Verify PAN of all payees

Calculate TDS correctly using applicable rates

Deposit TDS by 7th of next month

File quarterly returns (24Q, 26Q, 27Q)

Issue TDS certificates within due date

Revise returns if any errors found

Respond to notices from TRACES/CPC

Conclusion

Proper TDS compliance is crucial to avoid interest and penalties. Use our TDS Calculator to calculate TDS for various sections.

Check our Compliance Calendar for all TDS due dates.