The Finance Bill 2025 introduces significant changes to TDS rates and thresholds, aiming to simplify compliance and reduce the tax burden on individuals and businesses.
Below is the updated TDS rate chart for FY 2025-26, incorporating the proposed amendments:
1. TDS/TCSRates for Resident Individuals and Entities
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate (%) |
| 192 | Payment of salary | Basic exemption limit | Normal Slab Rate |
| 192A | Premature EPF withdrawal | 50,000 | 10% |
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Dividend | 10,000 | 10% |
| 194A | Interest other than securities | Senior Citizens: 1,00,000;
Others: 50,000 (Bank/PO/Co-op society); 10,000 (other cases) |
10% |
| 194B | Lottery winnings, crossword puzzles, etc. | 10,000 (per transaction) | 30% |
| 194BA | Winnings from online games | No threshold | 30% |
| 194BB | Winnings from horse races | 10,000 (per transaction) | 30% |
| 194C | Payment to contractors | Single: 30,000; Aggregate:
1,00,000 |
1% (HUF/Individuals);
2% (Others) |
| 194D | Insurance commission | 20,000 | 5% (till 30-09-2024); 2%
(w.e.f 01-10-2024) |
| 194DA | Life insurance pay-out | 1,00,000 | 5% (till 30-09-2024); 2%
(w.e.f 01-10-2024) |
| 194G | Commission on lottery tickets | 20,000 | 5% (till 30-09-2024); 2%
(w.e.f 01-10-2024) |
| 194H | Commission or brokerage | 20,000 | 5% (till 30-09-2024); 2%
(w.e.f 01-10-2024) |
| 194-I | Rent | 50,000 per month | 2% (Plant & Machinery); 10% (Land/Building) |
| 194J | Professional/technical fees | 50,000 | 10% |
| 194LA | Compensation on immovable property acquisition | 5,00,000 | 10% |
| 194N | Cash withdrawal | 1 crore (3 crore for co-op societies) | 2% (20 lakhs-1 crore);
5% (>1 crore) / (>3 crore for co-op societies) |
| 194-O | E-commerce transactions | 5,00,000 | 1% (till 30-09-2024);
0.1% (w.e.f 01-10-2024) |
| 194Q | Purchase of goods | 50,00,000 | 0.1% |
| 194S | Transfer of virtual digital assets | 10,000 (non-specified persons);
50,000 (specified persons) |
1% |
| 206C(1) | TCS on Scrap Sale | No threshold | 1% |
| 206C(1G) | TCS on remittance out of India under Liberalized Remittance Scheme (LRS) for educational and
medical purpose |
10,00,000 | 5% |
| 206C(1G) | TCS on remittance for purchase of
overseas tour program package |
No threshold | 5% up to 10,00,000
20% above 10,00,000 |
| 206C(1G) | Section 206C(1G) – TCS on remittance out of India under Liberalized Remittance Scheme
(LRS) for any other purpose |
10,00,000 | 20% |
| 206C(1G) | Remittance for education purpose, where source of Fund is Educational Loan from Financial
Institutions u/s 80E |
No limit | 0% |
2. TDSRates for Non-Residents
| Section | Nature of Payment | Threshold Limit(₹) | TDS Rate (%) |
| 194E | Payment to non-resident sportsmen/sports associations | No threshold | 20% |
| 194LB | Interest on infrastructure debt fund | No threshold | 5% |
| 194LC | Interest on foreign currency loans | No threshold | 5% (4% for IFSC-listed bonds) |
| 195 | Other payments to non-residents | No threshold | 20% (royalty, technical fees); 10% (LTCG) |
3. KeyChanges in TDS Thresholds and Rates
i]. Section193 (Interest on securities): Threshold increased from ₹5,000 to ₹10,000.
ii]. Section194A (Interest other than securities): Threshold for senior citizens doubled to ₹1,00,000; for others, increased to ₹50,000 (bank/PO/co-op society) and ₹10,000 (other cases).
iii]. Section194B (Lottery winnings): TDS now applicable on single transactions exceeding ₹10,000, instead of aggregate amounts.
iv]. Section 194-I(Rent): Threshold increased to ₹50,000 per month from ₹2,40,000
v]. Section194J (Professional fees): Threshold increased from ₹30,000 to ₹50,000.
4. ReducedTDS Rates (Effective from October 01, 2024)
i]. Section194G (Lottery commission): Reduced from 5% to 2%.
ii]. Section194H (Brokerage): Reduced from 5% to 2%.
iii]. Section194-O (E-commerce): Reduced from 1% to 10% .
5. Removalof TCS on Sale of Goods Under Section 206C(1H): TCS was collected at 1% on the sale of goods exceeding ₹50 lakhs. TCS on such transactions has been completely removed from April 1, 2025.
6. Removalof Higher TDS/TCS Under 206AB/206CC for Non-Filers or ITR: Higher TDS rates applicable under Section 206AB/206CCA for non-filers of income tax returns has been removed from April 1, 2025.
This chart summarizes the key TDS rates and thresholds for FY 2025-26 as per the Finance Bill 2025. For detailed provisions, refer to the official documents or consult a tax professional.