NRI Income Tax & Compliance

TDS Rate Chart for FY 2025-26 (AY 2026-27) - Complete List

  • April 2, 2026
  • 8 mins
  • 11.2K Views
TDS Rate Chart

Following is the complete list of popular rates for tax deduction at source* applicable with effect from the financial year 2025-26. It includes the TDS rates for residents and non-residents, as well as TDS rate changes for FY 2025-26, as per the Income Tax Department. 

Key Takeaways
  • The TDS charts in this blog provide TDS rates and threshold limits for various payments and incomes (e.g., salary, dividends, interest, rent, professional fees, contractor payments), helping taxpayers understand when and at what rate TDS must be deducted. 
  • TDS rates differ depending on the taxpayer's residential status: resident or non-resident. 
  • Interest at the rate of 1% per month is applicable if TDS is not deducted on time, and the higher rate of 20% applies if the payee does not have a PAN card. 

TDS Rate For Residents 

Following is the TDS rate chart for FY 2025-26 for residents:

 Section   Nature Of Transaction   Threshold Limit  TDS Rate (%)
 192  Payment of Salary  The basic exemption limit  As per the slab rates
192A  Premature withdrawal from EPF (Employee Provident Fund)  Rs 50,000  10%
 193  Interest on securities  Rs 10,000  10%
 194  Income by way of Dividends  Rs 10,000  10%
 194A  On post office or bank deposits  Rs 50,000  10%
 Interest on post office or bank deposits ( Senior Citizen)  Rs 1,00,000  10%
 Interest ( Others )  Rs 10,000  10%
 194K   Payment of dividends by mutual funds  Rs 10,000  30%
 194B  Lottery, game shows, and winnings from gambling  Rs 10,000  30%
 194BA  Winnings from online games  -  30%
 194BB  Horse race winnings  Rs 10,000 (Aggregate winning value during the entire FY and not one single transaction)  30%
 194C  Payments made to contractors or subcontractors  Rs 30,000 (Single Transaction) or Rs 1 Lakh in a FY.  1% for individuals and HUFs; others, 2%. 
 194D  Insurance Commission  Rs 20,000  2% for HUF and individuals; 10% for others. 
 194DA  Payment received for the life insurance policy  Rs 1 lakh  2%
 194EE  Payment received from National Savings Scheme (NSS)  Rs 2,500  10%
 194G  Lottery Commission   Rs 20,000  2%
 194H  Brokerage or commission.   Rs 20,000  2%
 194J(a)  The fees: call center, technical service, royalty, distribution/exhibition of cinematographic films, etc.   Rs 50,000  2%
 194J(b)  Fees- All other professional services  Rs 50,000  10%
 194l(a)  Rent for machinery and plant  Rs 50,000  2%
 194l(b)  Rent for land, building, and furniture  Rs 50,000  10%
 1941A  Transfers from an immovable property other than agricultural land.   Rs 50 Lakh  1%
 194IB  Rent payment made by HUF or an individual not covered under section 194l.   Rs 50,00 per month  2%
 194IC Payment made under a specified Joint Development Agreement.   -  10%
 194LA  Compensation for certain immovable property transfer other than agricultural land.   Rs 5 Lakh  10%
 194LBB  Income with regard to investment in an investment fund.   -  10%
 194LBC  Income with regard to investment in a securitization trust.   -  10%
 194M   Payments made for contracts, professional fees, or brokerage, etc., by a HUF or an individual.   Rs 50 Lakh  2%
194N  Cash withdrawals of more than 1 crore during the previous years from 1 or more accounts with a bank or a co-operative society.   Rs 1 crore ( 3 Cr if the withdrawal is made by a co-operative society)  2%
 Rs 20 Lakh ( if the ITR for the last three years is not filed)  2% ( Rs. 20 Lakh - 1 Crore )  
 5% (Rs 1 Crore and beyond).     
 194O  TDS on e-commerce participants.   Rs 5 Lakh  0.10%
 194P  TDS in case of a senior citizen who is above the age of 75, having a salary and interest ( ITR filing is not required)  -  Slab rates
 194Q  TDS on the purchase of goods above Rs 50 lakh.  Rs 50 Lakh  0.10%
 194R  Benefits or perquisites of the profession or the business.   Rs 20,000  10%
194S  Payment of consideration from the transfer of the Virtual digital asset ( VDA ) by persons other than a certain person.   Rs 10,000  1%
 Payment of consideration for the transfer of a virtual digital asset by a certain person.   Rs 50,000  1%
 194T  Payments made by the partnership firms to their partners.   Rs 20,000  10%
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TDS Rate Chart For Non-Resident Indians For FY 2025-26

FY 2025-26 TDS rate chart for non-resident Indians is as follows:

 Section  Payment Type   The TDS Rate ( % )
 Section 192  Payment of the salary  Normal slab rate.
 Section 192A Payment of the accumulated PF balance, which is taxable in the hands of the employee.   10%
 Section 194B  Income via winning crossword puzzles, lotteries, card games, and other games of any sort or from gambling or betting of any form or nature whatsoever.   30%
 Section 194BA  Income from online game winnings.  30%
 Section 194BB  Income from horse race winnings  30%
 Section 194E  Payment to a non-resident sportsmen/sports association.   20%
 Section 194EE  Payment made with respect to the deposit under the national savings scheme.  10%
 Section 194F  Payments made on the repurchase of a unit by the mutual fund or unit trust of India*  20%
 Section 194G  Commission, etc., maybe on the sale of lottery tickets.   2%
 Section 194LB  Payment of interest on the infrastructure debt fund  5%
 Section 194LBA (2)  Payments of the nature referred to in section 10(23FC)(b)  10%
 Section 194LBA(3)  The payments of the nature referred to section 10(23FCA) by the business trust to the unit holders.   30%
 Section 194LLB   Investment funds paying an income to the unit holder apart from the income that is exempted under section 10 (23FBB)  30%
 Section 194LBC  Income with regard to the investment made in a securitisation trust specified in the explanation of section 115TCA.   30%
 Section 194LC When an Indian company pays the interest in a foreign currency  
 1: Interest paid for a long-term bond or the RDB listed on the IFSC  4%
 2: Bonds specified in (1) are issued after 01-04-2023  9%
 Section 194LD  Interest payment of a rupee-denominated bond of a company of India or the government securities to a foreign institutional investor or a qualified foreign investor.   
 Section 194N  Cash withdrawals made in excess of Rs 1 Cr  2%
 If the ITR is not filed for the upcoming 3 years:   
 in excess of 20 lakhs*  2%
 in excess of 1 cr  5%
 Section 194T  Payments of any sum which is in the nature of salary, commission, bonus, remuneration, or interest to a partner of the firm. From 01-04-2025, when the payment exceeds Rs 20,000.   10%
Section 195  Payment of any other sum to the non-resident.   
 a) Income with regard to the investment made by a non-resident Indian  
 b) Income with respect to long-term capital gains referred to in section 115E in case of a non-resident Indian citizen.   20%
 c) Income with respect to the long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112.   12.50%
 d) Income by way of long-term capital gains as referred to in section 112A exceeding Rs. 1,25,000  12.50%
 e) Income with respect to the short-term capital gains referred to in section 111A.   12.50%
 f) Any other income with respect to the long-term capital gain [ not being the LTCG referred to in section 10(33), and section 10(36)].   20%
 g) Income by way of dividend from a unit in the International Financial Services Centre  12.50%
 h) Income of the dividend other than the one mentioned in point ( g )  10%
 i) Interest on a foreign-currency borrowing is payable by the government, or an Indian concern; however, this excludes the section 194LB and Section 194LC.   20%
 j) Royalty paid by the government or an Indian concern for the transfer or the licensing of the specified book copyright or the computer software under section 115A.   20%
 k) Royalty income apart from the one mentioned in point (j), payable by the government or Indian concern under the central government-approved agreement or in accordance with the industrial policy.   20%
 l) Fees for the technical services in accordance with the government-approved agreement or incorporated in the industrial policy in force.   20%
 m) any other income   20%
 Section 196A  Income with regard to the unit of the non-resident  30%
 Section 196B  Income from the units referred to in section 115AB(1)(i)  20%
 Section 196C  Income with regard to the interest or the dividend in respect of the bond or GDR referred to in section 115AC.   12.50%
 Section 196D  Income of the foreign institutional investors from the securities ( not being capital gains or dividend arise from such securities ) 20%
 Please note: Tax must be deducted at the rate specified in the DTAA if the same is lower than the existing TDS rate of 20%. 
 Section 196D(1A)

 Income with regard to the securities mentioned in section 115AD(1). 

 a) payable to the specified fund [ referred to in clause(c) of the explanation to section 10 (4D)].

 10%
 Please note: now, since the recipient of the income is a specified fund, the surcharge, health, and education cess must be nil. 
Also Check: TDS Calculator Online: Calculate TDS Easily & Accurately

TDS Rate Changes FY 2025-26

The following are some of the changes made in the TDS provisions that are in effect from April 1 2025. 

The government of India has changed the threshold limit for TDS deductions under different sections. The relaxed TDS threshold limit is in the TDS Rate Chart for FY 2025-26. 

 Section  Previous Threshold Limits  Modified Threshold Limits
 Section 193 - Interest on the securities  NIL  Rs 10,000
 Section 194A- Interest other than the interest on securities.   i) Rs 50,000 for a senior citizen. 
 ii) Rs 40,000/- in case of others, when the payer is the bank, cooperative society, or the post office. 
 iii) Rs 5,000 in other cases. 		  i) Rs 1,00,000 for the senior citizen. 
 ii) Rs 50,000 in case of others when the payer is a bank, cooperative society, or the post office. 
 iii) Rs 10,000/- in other cases.
 Section 194- Dividend for an individual shareholder   Rs 5,000  Rs 10,000
 Section 194K - Income in respect of units of a mutual fund.  Rs 5,000  Rs 10,000
 Section 194B - Winning from a lottery, crossword puzzle etc. & 
 Section 194BB - Winning from the horse race. 		  Aggregated of amounts exceeding Rs 10,000 during a financial year.  Rs 10,000 per transaction. 
 Section 194D Insurance Commission   Rs 15,000  Rs 20,000
 Section 194G - Income with regard to commission, prize money   Rs 15,000  Rs 20,000
 Section 194H - Commission, or brokerage   Rs 15,000  Rs 20,000
 Section 194l - Rent   Rs 2,40,000 ( in A FY )  Rs 6,00,000 ( in a FY )
 Section 194J - Fees for technical or professional services.   Rs 30,000  Rs 50,000
 Section 194LA - income with respect to enhanced compensation   Rs 2,50,000  Rs 5,00,000
 Section 206C(1G) - Remittances under the LRS or the abroad tour program package  Rs 7,00,000   Rs 10,00,000
  • The compliance burden for the TDS deductor under section 206AB has been removed. 
  • The TDS rate for section 194LBC, i.e., income received from investments in any securitization trust for Indian residents, has been lowered to 10%. 
  • Effective from April 1, 2025, a new section 194T has been added, requiring TDS to be deducted at a rate of 10% on the partner's remuneration. 
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The Bottom Line

Dear NRI and Indian resident, knowing the latest TDS rate chart for FY 2025-26 is essential to ensure the TDS deducted in your case is calculated correctly.

Furthermore, since the Government of India has revised the TDS deduction threshold for many sections in the 2025 Budget, it is more important than ever that we stay updated, as there are changes that allow us to deduct TDS on transactions that now fall below the TDS limit. 

These lists tell you everything that you need to know for better tax planning and bigger tax savings. 

Stay informed and stay tax-smart. For any further NRI tax assistance, Savetaxs is the name to trust. We have been NRIs from 90+ countries with their ITR filing compliance. 

The rate of the TDS shall be increased by the applicable surcharge and health and education cess.

Note: Viewers are advised to verify the content against the government acts/rules/notifications, etc.

Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

Pankaj Shaw
Pankaj Shaw(Tax Expert)

Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.

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Frequently Asked Questions

For the specific types of payment, TDS deduction is mandatory.

For a 30,000 salary, no TDS is deducted under the new tax regime.

The value of TDS credit can be checked under Form 26AS.

The interest at the rate of 1% per month must be paid if TDS is not duly deducted.

When the PAN is not provided accurately by the payee, a higher TDS rate shall be deducted. In cases where the higher TDS rate for non-providing of PAN is specifically mentioned in the Income Tax Section, the amount specified in the Section must be considered.