TDS Rate Chart for Resident Indians FY 2025-26 (AY 2026-27)
Welcome to the most updated and complete TDS (Tax Deducted at Source) Rate Chart for Resident Individuals and other resident entities for the Financial Year 2025-26. This comprehensive guide, effective from 1st April 2025, incorporates all changes and provisions introduced by the Finance Act 2025 (Budget 2025).
Important: The rates mentioned below are applicable when the payee is a resident of India. For Non-Resident Indians (NRIs), separate rates and rules apply, which are detailed in a dedicated section.
🔹 Complete TDS Rate Table for Residents FY 2025-26
| Section | Nature of Payment | Threshold Limit (₹) | Applicable TDS Rate |
|---|---|---|---|
| 192 | Salary | As per income slab | Slab Rate |
| 192A | EPF Withdrawal (before 5 years of service) | > ₹50,000 | 10% |
| 193 | Interest on Securities | > ₹10,000 | 10% |
| 194 | Dividend Income (other than those referred in 115-O) | > ₹10,000 | 10% |
| 194A | Interest (Bank, Post Office, Co-operative Society) (For Senior Citizens) | > ₹1,00,000 | 10% |
| 194A | Interest (Bank, Post Office, Co-operative Society) (For Others) | > ₹50,000 | 10% |
| 194A | Interest (Others, e.g., loan interest, fixed deposits not from specified entities) | > ₹10,000 | 10% |
| 194B | Winnings from Lottery, Crossword Puzzle, Card Games, etc. | > ₹10,000 (per transaction) | 30% |
| 194BA | Net Winnings from Online Games | No Threshold (on net winnings at year-end) | 30% |
| 194BB | Winnings from Horse Races | > ₹10,000 (per transaction) | 30% |
| 194C | Payments to Contractors / Sub-Contractors (Single transaction) | > ₹30,000 | 1% (Individual/HUF), 2% (Others) |
| 194C | Payments to Contractors / Sub-Contractors (Aggregate in FY) | > ₹1,00,000 | 1% (Individual/HUF), 2% (Others) |
| 194D | Insurance Commission | > ₹20,000 | 5% (Individual/HUF), 10% (Company) |
| 194DA | Payment in respect of Life Insurance Policy Maturity | > ₹1,00,000 | 2% |
| 194EE | Withdrawal from National Savings Scheme (NSS) | > ₹2,500 | 10% |
| 194G | Commission on Sale of Lottery Tickets | > ₹20,000 | 5% |
| 194H | Commission or Brokerage | > ₹20,000 | 5% |
| 194I | Rent (Land, Building, Furniture, Fittings) | > ₹6,00,000 (₹50,000 per month) | 10% |
| 194I | Rent (Plant & Machinery) | > ₹6,00,000 (₹50,000 per month) | 2% |
| 194IA | Purchase of Immovable Property (other than agricultural land) | > ₹50,00,000 | 1% |
| 194IB | Rent paid by certain Individuals/HUFs (not covered by 194-I) | > ₹50,000 per month | 5% |
| 194IC | Payments under Joint Development Agreement (JDA) | No threshold | 10% |
| 194J | Fees for Professional Services | > ₹50,000 | 10% |
| 194J | Fees for Technical Services, Royalty (other than cinematographic films), Remuneration to Directors (not salary) | > ₹50,000 | 2% |
| 194J | Royalty for sale/distribution/exhibition of cinematographic films | > ₹50,000 | 2% |
| 194K | Income from Units of a Mutual Fund or specified company/undertaking (dividend) | > ₹10,000 | 10% |
| 194LA | Compensation on acquisition of immovable property (other than agricultural land) | > ₹5,00,000 | 10% |
| 194M | Payments for Contract, Commission, Brokerage, Professional Services by certain Individuals/HUFs (not covered by 194C, 194H, 194J) | > ₹50,00,000 | 5% |
| 194N | Cash Withdrawals (if ITR filed for last 3 years) | > ₹1,00,00,000 | 2% |
| 194N | Cash Withdrawals (if ITR NOT filed for last 3 years) | > ₹20,00,000 to ₹1,00,00,000 | 2% |
| 194N | Cash Withdrawals (if ITR NOT filed for last 3 years) | > ₹1,00,00,000 | 5% |
| 194O | Payments by E-commerce Operator to E-commerce Participant | > ₹5,00,000 (for individuals/HUFs) | 0.1% |
| 194P | Specified Senior Citizens (age 75+) with only pension & interest income | As per income slab | Slab Rate (Bank to deduct) |
| 194Q | Purchase of Goods | > ₹50,00,000 (buyer’s annual purchases) | 0.1% |
| 194R | Benefit or Perquisite in respect of Business or Profession | > ₹20,000 | 10% |
| 194S | Transfer of Virtual Digital Assets (VDAs) / Crypto | > ₹50,000 (Specified Person), > ₹10,000 (Others) | 1% |
| 194T | Remuneration to Partners (Interest, Salary, Bonus, Commission) | > ₹20,000 | 10% |
📌 Important Notes for Resident Taxpayers
- PAN Mandatory: If the payee’s PAN is not provided, TDS will be deducted at a higher rate (minimum 20% or twice the specified rate, whichever is higher) as per Section 206AA.
- No Higher TDS for Non-Filers: Sections 206AB and 206CCA (for higher TDS/TCS on non-filers of income tax returns) have been removed/rationalized from FY 2025-26 to simplify compliance.
- Surcharge and Cess: The TDS rates mentioned generally do not include Surcharge and Health & Education Cess, which may be applicable over and above the income tax rates, especially for higher income slabs.
- Exemptions for Small Amounts: TDS is not deducted if the payment amount does not exceed the specified threshold limit for a particular section.
🆕 Key Changes and Highlights from Budget 2025 (FY 2025-26)
- Interest Income (Section 194A):
- Increased threshold for senior citizens to ₹1,00,000 (from ₹50,000) for interest from banks, post offices, and co-operative societies.
- Increased threshold for others to ₹50,000 (from ₹40,000) for interest from banks, post offices, and co-operative societies.
- Increased threshold for other interest income to ₹10,000 (from ₹5,000).
- Dividend Income (Section 194 & 194K): Threshold increased to ₹10,000 (from ₹5,000).
- Winnings from Lottery/Horse Races (Section 194B & 194BB): TDS will now be deducted on a per-transaction basis if it exceeds ₹10,000, simplifying compliance compared to the previous aggregate threshold.
- Online Gaming Winnings (Section 194BA): Continues to be 30% on net winnings, with no threshold.
- Rent (Section 194I): Threshold for Land/Building/Furniture/Fittings rent increased significantly to ₹6,00,000 annually (₹50,000 per month) (from ₹2,40,000 annually).
- Professional/Technical Fees & Commission/Brokerage (Section 194J, 194D, 194G, 194H): Increased thresholds for various professional fees and commissions to ₹50,000 (for 194J) and ₹20,000 (for 194D, 194G, 194H) to reduce compliance burden.
- New Section 194T: Introduced for TDS on Remuneration to Partners (salary, interest, bonus, commission) at 10% if exceeding ₹20,000 in a financial year. This aims to bring parity and ensure proper taxation of partner’s income.
For complex transactions or large business queries, it is always advisable to consult a Qualified Chartered Accountant or a Tax Expert.
Disclaimer: This TDS Rate Chart is prepared for informational purposes only and is based on publicly available information and current understanding of the Finance Act 2025. While every effort has been made to ensure accuracy, please refer to the official notifications, circulars, and the Income Tax Act, 1961 (as amended by Finance Act 2025) for complete and definitive legal provisions. The publisher is not responsible for any errors or omissions, or for any action taken based on the information provided herein.
NRI TDS Rate Chart for FY 2025-26 (AY 2026-27)
This is the updated and detailed TDS Rate Chart for Non-Resident Indians (NRIs) for the Financial Year 2025-26, effective from 1st April 2025. These rates are crucial for various income categories including salary, interest, dividends, capital gains, royalties, and fees for technical services under the Income Tax Act, 1961, as amended by the Finance Act 2025.
Important: The rates mentioned below are as per the Income Tax Act. However, NRIs may be eligible for lower rates as per the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence. Always check the DTAA provisions.
🔹 Complete NRI TDS Rate Table FY 2025-26
| Section | Nature of Payment | Threshold Limit (₹) | Applicable TDS Rate (+ Surcharge & Cess) |
|---|---|---|---|
| 192 | Salary (if earned in India) | As per income slab | Slab Rate |
| 192A | EPF Withdrawal (before 5 years of service) | > ₹50,000 | 10% |
| 193 | Interest on Securities | > ₹10,000 | 20% (or DTAA rate) |
| 194 | Dividend Income (from domestic company) | > ₹10,000 | 20% (or DTAA rate) |
| 194A | Interest (other than “interest on securities”, e.g., bank interest from NRO A/c) | No specific threshold for NRI, or as per resident rules if applicable | 20% (or DTAA rate) |
| 194B | Winnings from Lottery, Crossword Puzzle, Card Games, etc. | > ₹10,000 (per transaction) | 30% |
| 194BA | Net Winnings from Online Games | No Threshold (on net winnings at year-end) | 30% |
| 194BB | Winnings from Horse Races | > ₹10,000 (per transaction) | 30% |
| 194C | Payments to Contractors / Sub-Contractors (for work done in India) | ₹30,000 (single), ₹1,00,000 (annual) | 1% (Individual/HUF), 2% (Others) (if permanent establishment in India) |
| 194DA | Payment in respect of Life Insurance Policy Maturity | > ₹1,00,000 | 2% |
| 194EE | Withdrawal from National Savings Scheme (NSS) | > ₹2,500 | 10% |
| 194IA | Purchase of Immovable Property (other than agricultural land) | > ₹50,00,000 | 1% |
| 194IB | Rent paid by certain Individuals/HUFs (not covered by 194-I) | > ₹50,000 per month | 5% |
| 194IC | Payments under Joint Development Agreement (JDA) | No threshold | 10% |
| 194J | Fees for Professional Services, Technical Services, Royalty (if taxable in India and no DTAA benefit) | > ₹50,000 | 10% (or DTAA rate) |
| 194LA | Compensation on acquisition of immovable property (other than agricultural land) | > ₹5,00,000 | 10% |
| 194LB | Interest from Infrastructure Debt Fund | No threshold | 5% |
| 194LBA(1) | Distribution of certain income by a business trust to unit holders | No threshold | 10% |
| 194LBB | Income from Units of Investment Fund (AIFs) | No threshold | 10% |
| 194LBC | Income from Securitisation Trust | No threshold | 30% (for companies), 25% (for individuals/HUF) |
| 194LC | Interest from Indian Company/Business Trust (on foreign currency loan/bonds) | No threshold | 5% (or 4% for IFSC listed bonds) |
| 194LD | Interest on certain specified bonds/Government securities | No threshold | 5% |
| 194O | Payments by E-commerce Operator to E-commerce Participant | > ₹5,00,000 (for individuals/HUFs) | 0.1% |
| 194Q | Purchase of Goods | > ₹50,00,000 (buyer’s annual purchases) | 0.1% |
| 194S | Transfer of Virtual Digital Assets (VDAs) / Crypto | > ₹50,000 (Specified Person), > ₹10,000 (Others) | 1% |
| 195 | Any other income payable to Non-Residents (e.g., Royalty, FTS if not covered above, Capital Gains) | No specific threshold (generally) | Rates vary based on income nature, DTAA, and type of capital gain (see notes below) |
| 196A | Income from Units of Mutual Fund U/S 10(23D) or specified company/undertaking to non-resident | No threshold | 20% (without PAN), 10% (with PAN, if applicable and not covered by 194K) |
| 196B | Income from Offshore Fund Units (including LTCG) | No threshold | 10% |
| 196C | Income from Foreign Currency Bonds or GDRs of Indian Companies | No threshold | 10% |
| 196D | Income (excluding dividends & capital gains) of Foreign Institutional Investors (FIIs) | No threshold | 20% |
Rates for Capital Gains for NRIs (under Section 195, typically)
These rates are often subject to DTAA provisions. The payer must deduct TDS at the rates in force or DTAA rates, whichever is more beneficial to the NRI.
| Nature of Capital Gain | TDS Rate (+ Surcharge & Cess) |
|---|---|
| Short-Term Capital Gains (STCG) on Equity Shares/Units of Equity Oriented Mutual Funds (u/s 111A) | 15% |
| Long-Term Capital Gains (LTCG) on Listed Equity Shares/Units of Equity Oriented Mutual Funds where STT is paid (u/s 112A) | 10% (on gains exceeding ₹1,00,000) |
| Long-Term Capital Gains (LTCG) on unlisted shares or other assets (u/s 112) | 20% (with indexation benefit) OR 10% (without indexation benefit, for unlisted shares only) |
| Short-Term Capital Gains (STCG) on other assets (not u/s 111A) | As per applicable slab rates (if no DTAA), typically 30% for companies |
📌 Important Notes for NRI Taxpayers
- Double Taxation Avoidance Agreement (DTAA): NRIs can claim benefits under DTAA if their country of residence has such an agreement with India. This may result in a lower TDS rate than specified in the Income Tax Act. To avail DTAA benefits, the NRI must provide a Tax Residency Certificate (TRC) from their country of residence and Form 10F.
- PAN Mandatory: If the NRI does not provide a PAN, TDS will be deducted at a higher rate (generally 20% or the rate specified, whichever is higher, as per Section 206AA). Even with DTAA, higher rates may apply without PAN.
- Surcharge and Health & Education Cess: These are applicable over and above the basic TDS rates for NRIs, especially for higher income slabs or for foreign companies.
- Surcharge on income tax:
- For individuals/HUF/AOP/BOI/Artificial Juridical Person:
- Income > ₹50 Lakhs to ₹1 Crore: 10%
- Income > ₹1 Crore to ₹2 Crore: 15%
- Income > ₹2 Crore to ₹5 Crore: 25%
- Income > ₹5 Crore: 37%
- For foreign companies:
- Income > ₹1 Crore to ₹10 Crore: 2%
- Income > ₹10 Crore: 5%
- For individuals/HUF/AOP/BOI/Artificial Juridical Person:
- Health & Education Cess: 4% on income tax plus surcharge.
- Surcharge on income tax:
- No Higher TDS for Non-Filers: As mentioned for residents, Sections 206AB and 206CCA (for higher TDS/TCS on non-filers of income tax returns) have been removed/rationalized from FY 2025-26.
- Source Rule: Income earned or accrued in India is generally taxable in India for NRIs, regardless of where they receive the payment.
NRI taxation can be complex. It is highly recommended to consult a tax professional specializing in international taxation for personalized advice and to ensure full compliance with the Indian Income Tax Act and DTAA provisions.
Disclaimer: This NRI TDS Rate Chart is for general informational purposes only and is based on our current understanding of the Income Tax Act, 1961, and Finance Act 2025. Tax laws are subject to change, and specific situations may vary. This information should not be considered legal or tax advice. Please consult with a qualified tax advisor for advice tailored to your specific circumstances. The publisher is not liable for any loss or damage arising from the use of this information.
