Explore the complete TDS rate chart for FY 2025–26, including updated thresholds, section-wise rates, examples, compliance deadlines, forms, and tools to help you stay on track with your tax deductions and payments.
Navigating India’s tax system can often feel overwhelming, especially with the frequent changes introduced through the annual Union Budget. For the financial year 2025–26, several new updates have been introduced that affect Tax Deducted at Source (TDS) across income types.
Whether you're a salaried individual, freelancer, landlord, or business entity, understanding the FY 2025–26 TDS rate chart is critical for compliance and smart financial planning.
In this detailed guide, you’ll find not only the complete TDS rate chart but also explanations, practical examples, and updated threshold limits. Let’s start by understanding what’s changed this year and how it impacts different types of taxpayers.
What’s New in TDS for FY 2025–26?
The Union Budget 2025, tabled earlier this year, brought with it a number of noteworthy updates in the TDS landscape. These are especially relevant to sectors involving high-volume transactions, digital assets, and gig economy professionals.
Key Highlights of TDS Changes
| Update Category | Description |
|---|---|
| New Thresholds Introduced | Raised TDS exemption limits for interest and rental income in some cases |
| Digital Asset Taxation | Continued applicability of Section 194S for Virtual Digital Assets (VDAs) |
| Senior Citizens | Slightly revised thresholds under Section 194P for those above 75 |
| PAN-Aadhaar Non-linking | Higher TDS continues to apply as per Section 206AA/206AB |
These updates are based on official finance announcements published by the Income Tax Department and the Union Budget 2025 highlights.
Complete TDS Rate Table for FY 2025–26
Here’s a comprehensive chart detailing the TDS rates applicable to resident individuals and HUFs for the financial year 2025–26 (Assessment Year 2026–27). This table covers popular income types and sections frequently encountered by both individuals and businesses.
TDS Rates – Resident Individuals & HUFs
| Section | Nature of Payment | Threshold Limit | TDS Rate |
|---|---|---|---|
| 192 | Salary | As per income tax slab | Slab-based |
| 194A | Interest (Bank/Post Office/Others) | ₹40,000 (₹50,000 for seniors) | 10% |
| 194C | Contractor Payment (Single/Annual) | ₹30,000 / ₹1,00,000 | 1% (Ind) / 2% (Others) |
| 194H | Commission or Brokerage | ₹15,000 | 5% |
| 194I | Rent – Land/Building/Furniture | ₹2,40,000 | 10% |
| 194IA | Transfer of Immovable Property | ₹50,00,000 | 1% |
| 194S | Virtual Digital Assets (Crypto) | No threshold | 1% |
Note: PAN must be provided to avoid higher deduction rates under Section 206AA.
Budget 2025: Impact on TDS Compliance
The Finance Minister’s speech in 2025 emphasized digitization and simplification of tax compliance. While no new TDS sections were introduced, more focus has been placed on the enforcement of existing provisions.
Implications for Common Taxpayers
- Salaried Employees: Deductions under Section 192 remain slab-based. Employers must adjust tax according to new HRA and standard deduction limits.
- Landlords: If rental income exceeds ₹2.4 lakh annually, tenants (if liable) must deduct TDS.
- Crypto Traders: Continued 1% TDS under Section 194S, regardless of income level.
- Senior Citizens: Section 194P benefits applicable for those above 75, provided pension and interest are the only sources of income.
Download the Official TDS Chart & Use Our Calculator
For those looking to quickly verify the applicable rate, a ready-to-download PDF format of the complete chart is available along with a TDS calculator that can compute deduction amounts based on section, amount, and resident status. Download available here → TDS Chart & Calculator.
How to Use the FY 2025–26 TDS Rate Chart: Real-World Examples
Understanding TDS provisions becomes much easier when seen through everyday scenarios. Below are practical examples to help you apply the FY 2025–26 TDS rate chart in different income situations. Whether you're receiving income or responsible for deducting TDS, these examples will clarify your obligations.
Example 1: TDS on Bank Interest (Section 194A)
Scenario:
Rohit, aged 38, earns ₹45,000 in interest from a fixed deposit with a scheduled bank in FY 2025–26.
TDS Application:
- Since the interest exceeds ₹40,000 (threshold for non-senior citizens), the bank must deduct TDS.
- Applicable rate under Section 194A: 10%
- TDS Deducted = ₹45,000 × 10% = ₹4,500
Note: Had Rohit submitted Form 15G, TDS may have been avoided if his total taxable income was below the exemption limit.
Example 2: TDS on Rent Payment (Section 194I)
Scenario:
Meera pays ₹30,000/month (₹3,60,000/year) for her shop's premises.
TDS Application:
- Threshold for rent under Section 194I: ₹2,40,000
- Annual payment exceeds limit, so TDS applies
- Applicable rate: 10%
- Annual TDS = ₹3,60,000 × 10% = ₹36,000
Meera must deposit the TDS with the government and provide the landlord with Form 16A as proof of deduction.
Example 3: TDS on Sale of Property (Section 194IA)
Scenario:
A buyer purchases a flat in Delhi worth ₹65,00,000 in June 2025.
TDS Application:
- Sale amount exceeds ₹50 lakh, so buyer must deduct TDS under Section 194IA
- Applicable rate: 1%
- TDS Deducted = ₹65,00,000 × 1% = ₹65,000
- The buyer is also required to submit Form 26QB online and issue Form 16B to the seller
For detailed instructions on this, you can refer to the Form 26QB payment portal.
Example 4: TDS on Freelance Payment (Section 194J)
Scenario:
A startup hires a freelance designer and pays ₹60,000 for a one-time assignment.
TDS Application:
- Under Section 194J, payments exceeding ₹30,000 attract TDS
- Applicable rate: 10%
- TDS Deducted = ₹60,000 × 10% = ₹6,000
The company must file the deduction via the TDS portal and issue Form 16A to the freelancer. For compliance, businesses can follow updates through the TRACES portal.
Example 5: TDS on Crypto Transactions (Section 194S)
Scenario:
Karan sells crypto assets worth ₹2,00,000 on an exchange platform.
TDS Application:
- No threshold exemption under Section 194S
- Applicable rate: 1%
- TDS Deducted = ₹2,00,000 × 1% = ₹2,000
This TDS is usually deducted and deposited directly by the exchange if it facilitates the transaction.
These examples show how the TDS rate chart for FY 2025–26 applies across common financial transactions. The chart is not just a regulatory reference—it’s a practical tool for day-to-day financial clarity.
TDS Compliance Workflow for FY 2025–26
For every person or entity responsible for deducting tax at source, understanding the end-to-end TDS compliance process is crucial. Non-compliance can lead to penalties, interest charges, and disallowance of expenses under the Income Tax Act. The steps below outline the complete workflow for TDS deduction, deposit, and reporting in FY 2025–26.
Step-by-Step Compliance Flow
| Step | Action | Description |
|---|---|---|
| 1 | TDS Deduction | Deduct tax at the applicable rate while making payment |
| 2 | TAN Registration | Ensure the deductor has a valid TAN (Tax Deduction and Collection Account Number) |
| 3 | Deposit with Government | Deposit TDS by the 7th of the following month using Challan 281 |
| 4 | TDS Return Filing | File quarterly TDS returns using Form 24Q/26Q/27Q depending on nature |
| 5 | Issue of TDS Certificates | Provide Form 16 or Form 16A to deductees as proof of deduction |
This compliance structure is applicable across all sections outlined in the TDS rate chart for FY 2025–26 and must be followed by deductors without exception.
Important Forms & Deadlines
| Form | Purpose | Frequency | Due Date |
|---|---|---|---|
| Form 16 | Certificate for TDS on salary | Annual | 15th June after FY end |
| Form 16A | Certificate for non-salary payments | Quarterly | Within 15 days from return due date |
| Form 24Q | TDS return for salary payments | Quarterly | End of next month after quarter |
| Form 26Q | TDS return for other payments | Quarterly | Same as Form 24Q |
| Challan 281 | Payment of TDS to government | Monthly | 7th of next month |
To make online TDS payments, you can use the TIN NSDL e-Payment portal.
Due Dates for TDS Return Filing – FY 2025–26
| Quarter | Period Covered | Return Filing Due Date |
|---|---|---|
| Q1 | April – June | 31st July 2025 |
| Q2 | July – September | 31st October 2025 |
| Q3 | October – December | 31st January 2026 |
| Q4 | January – March | 31st May 2026 |
Failure to adhere to the above deadlines can attract late filing fees under Section 234E and potential penalties under Section 271H.
Common Mistakes to Avoid
- Incorrect PAN or TAN entries while filing returns
- Missed TDS deduction or deposit
- Late issuance of TDS certificates
- Wrong section selection during challan payment
- Non-linking of PAN with Aadhaar — may lead to higher TDS under Section 206AA
All deductors must ensure accuracy in the TDS workflow to maintain smooth compliance. The TRACES portal serves as the central hub for downloading Form 16A, filing correction statements, and verifying PAN.
Questions on TDS for FY 2025–26
Even with a detailed TDS rate chart and examples in place, many taxpayers—especially those new to compliance—still have specific concerns. Below are the most frequently asked questions for FY 2025–26 along with precise and updated answers to help eliminate ambiguity.
What is the minimum amount for which TDS is deducted?
TDS is deducted only if the payment amount exceeds the specified threshold for the relevant section. For example, under Section 194A, TDS on interest income is applicable only if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Each section has its own defined threshold. Refer to the official CBDT circulars for updates on thresholds.
What happens if TDS is not deducted or deposited?
If the deductor fails to deduct TDS or does not deposit it on time:
- Interest under Section 201(1A) is charged at:
- 1% per month from the date on which TDS was deductible to the date it is actually deducted.
- 1.5% per month from the date of deduction to the date of deposit.
- Penalty under Section 271C may apply for failure to deduct TDS.
- Expense disallowance under Section 40(a)(ia) may also occur for businesses.
Can individuals be required to deduct TDS?
Yes, under certain circumstances. For instance:
- An individual paying rent exceeding ₹50,000 per month must deduct TDS at 5% under Section 194IB, even if they are not liable to audit.
- Similarly, individuals purchasing property worth more than ₹50 lakh must deduct 1% TDS under Section 194IA.
You can validate applicable conditions via the Income Tax Act sections published by the Ministry of Law and Justice.
Is there any exemption for senior citizens from TDS?
Yes. Senior citizens (aged 60 and above) get:
- Higher exemption limit under Section 194A for interest income – ₹50,000 instead of ₹40,000
- Exemption from filing ITR if eligible under Section 194P and meeting all prescribed conditions:
- Only pension and bank interest income
- Declaration submitted to a specified bank
In such cases, TDS is computed by the bank after considering deductions and rebates.
Can TDS be adjusted later if deducted in excess?
Yes. If excess TDS has been deducted:
- The deductee can claim a refund while filing the income tax return for that financial year.
- Alternatively, the deductor can revise the TDS return and correct the mistake, subject to approval.
The refund, if applicable, is credited directly to the taxpayer’s linked bank account after ITR processing by CPC Bengaluru.
These questions reflect common pain points for Indian taxpayers under the current FY 2025–26 TDS framework. Addressing them clearly can help avoid unnecessary penalties and streamline financial planning.
Useful Tools and Resources for TDS Management in FY 2025–26
While knowing the TDS rate chart is important, being equipped with the right tools can make deduction, payment, and compliance far more efficient. From automated calculators to government utilities, several trusted resources can help taxpayers manage TDS obligations with accuracy and ease in FY 2025–26.
TDS Calculator
An online TDS calculator is a valuable utility that enables individuals and businesses to estimate the exact tax deduction required under different sections.
Key Inputs Usually Required:
- Nature of payment (e.g., rent, salary, professional fees)
- Amount paid or payable
- PAN availability
- Residential status of payee
Several banks and portals offer reliable calculators, such as the one on the HDFC Bank website. These tools help eliminate manual errors and improve compliance for recurring transactions.
Form 26AS – View TDS Credit History
Form 26AS is a consolidated tax statement that reflects all TDS deducted on your behalf across financial institutions, employers, and other entities. It is updated periodically by the Centralized Processing Cell (TRACES).
Steps to View:
- Log in to your account on the Income Tax e-Filing Portal
- Go to e-File > Income Tax Returns > View Form 26AS
- Select assessment year and download/view as PDF
This form acts as the primary reference for taxpayers when reconciling the TDS details during income tax return filing.
TRACES Portal for Deductors
The TDS Reconciliation Analysis and Correction Enabling System (TRACES) is an essential portal for all deductors. It allows:
- Downloading Form 16/16A
- Viewing challan status
- Filing correction statements
- Tracking defaults and resolution
Employers, banks, and corporates can log in at the TRACES official portal using their TAN credentials.
Annual TDS Certificate Formats
To maintain proper documentation, ensure that the following formats are correctly used and issued to deductees:
| Form | Applicable Section | Issuer | Frequency |
|---|---|---|---|
| Form 16 | Section 192 (Salaries) | Employer | Annual |
| Form 16A | All other sections | Deductor (non-salary) | Quarterly |
| Form 16B | Section 194IA (Property) | Property Buyer | Per Transaction |
| Form 16C | Section 194IB (Rent) | Individual Tenant | Annual |
Each of these forms must be digitally signed and issued within the timelines specified under the Income Tax Rules. Updated formats and instructions are available on the TIN NSDL documentation portal.
By leveraging these tools, you can handle all aspects of TDS for FY 2025–26—from deduction and filing to validation and reconciliation—with greater accuracy and convenience.
Final Summary and Action Points for FY 2025–26 TDS Management
With all essential rates, thresholds, examples, processes, and resources now clearly laid out, taxpayers and deductors should find it easier to handle TDS for FY 2025–26 with greater confidence. This guide has provided an end-to-end view that integrates regulatory requirements with actionable steps.
Let’s recap the most critical takeaways.
Key Takeaways
| Area | Summary |
|---|---|
| TDS Applicability | Depends on nature of income and threshold limits set by Income Tax Act |
| Rate Chart | Varies by section (e.g., 10% on interest, 1% on property sales, etc.) |
| Compliance Steps | Deduct → Deposit → File Returns → Issue Certificate |
| Important Forms | Form 16, 16A, 24Q, 26Q, 26AS, 26QB, TAN, Challan 281 |
| New Updates FY 2025–26 | Higher limits, stricter rules for non-PAN holders, VDA rules continue |
Every business and individual dealing with high-value financial transactions or salary processing must keep this framework in mind while meeting their obligations. You can also refer to detailed compliance documentation published on India Code to ensure statutory alignment.
Suggested Next Steps for Readers
- Review your transactions: Identify any payments or receipts that may attract TDS in this financial year.
- Download TDS calculator: Use tools from recognized institutions to estimate liabilities in advance.
- Track Form 26AS regularly: To ensure all deductions by third parties reflect accurately.
- Avoid late filings: Stick to return deadlines to avoid interest and penalties.
If you’re a new deductor or confused about the process, consider visiting the official help section of the Income Tax portal which provides up-to-date guidance across TDS-related topics.
- Explore Detailed Guide on Budget 2025 Tax Proposals
- Use Our Online TDS Calculator for FY 2025–26
- Step-by-Step Guide to Filing Income Tax Return
In today’s dynamic regulatory environment, staying informed is as important as staying compliant. Whether you're a salaried employee, business owner, or freelancer, mastering TDS rules can reduce your financial friction and support long-term tax efficiency.
FAQ
Who needs to deduct TDS in FY 2025–26?
If you're paying salary, rent, interest, or any professional fee beyond a certain limit, you're likely required to deduct TDS—even as an individual in some cases, like while paying high rent or buying property.
How do I know the applicable TDS rate for my income?
The TDS rate depends on the nature of income and is defined under specific sections like 192 (salary), 194A (interest), or 194I (rent). Always refer to the latest official chart for accuracy.
Can I avoid TDS on my fixed deposit interest?
Yes, if your total income is below the taxable limit, you can submit Form 15G or 15H (for seniors) to the bank to avoid unnecessary deductions.
What happens if I skip deducting TDS?
Skipping deduction or late deposit can lead to interest charges and penalties. It also affects expense claims for businesses and may delay processing of ITRs.
Is crypto still taxable under TDS in 2025–26?
Yes, all virtual digital assets like crypto are still taxed at 1% TDS under Section 194S. This applies even to small transactions unless specifically exempted.
How do I check all the TDS deducted on my behalf?
Form 26AS on the Income Tax portal will show every TDS deduction made against your PAN. It’s important to match this before filing your return.
Do freelancers also get TDS deducted?
Yes, if a client pays more than ₹30,000 in a financial year, they must deduct TDS at 10% under Section 194J before paying you. It shows up in your Form 26AS.
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