Complete TDS Rate Chart (FY 2024–25 & FY 2025–26)
A complete section-wise directory of direct tax deduction rates, revised thresholds, and compliance forms under the Income Tax Act, 1961.
Tax Deducted at Source (TDS) is India's primary direct-tax collection framework. Whether you are an individual purchasing a flat, a company engaging external software consultants, or a tenant paying high rent, understanding the exact statutory percentage and threshold is mandatory to avoid punitive interest and disallowance of expenses.
The Finance Acts of recent years have rationalized several deduction brackets, reducing rates on sections such as 194H (commission) and 194-IB (rent by individuals) from 5% to 2% to ease corporate liquidity while stiffening the penal rates for non-furnishing of PAN.
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Master TDS Rate & Threshold Reference Table
| Section | Nature of Payment | Resident Payee Type | TDS Rate | Annual Exemption Threshold | Quarterly / Challan Form |
|---|---|---|---|---|---|
| 194C | Contractors & Sub-contractors | Individual / HUF | 1% | ₹30k single / ₹1 Lakh aggregate | Form 26Q (Challan 281) |
| 194C | Contractors & Sub-contractors | Company / Firm / Others | 2% | ₹30k single / ₹1 Lakh aggregate | Form 26Q (Challan 281) |
| 194J | Professional Services (CA, Legal, Medical) | Resident Professional | 10% | ₹30,000 | Form 26Q (Challan 281) |
| 194J | Technical Services (FTS) & Call Centers | Resident Entity | 2% | ₹30,000 | Form 26Q (Challan 281) |
| 194I | Rent on Land, Building or Furniture | Landlord / Lessor | 10% | ₹2,40,000 | Form 26Q (Challan 281) |
| 194I | Rent on Plant, Machinery, Equipment | Lessor | 2% | ₹2,40,000 | Form 26Q (Challan 281) |
| 194-IA | Transfer of Immovable Property | Resident Seller | 1% | ₹50,00,000 (Transaction) | Form 26QB |
| 194-IB | Rent by Individual / HUF (Non-Audit) | Resident Landlord | 2% | ₹50,000 per month | Form 26QC |
| 194A | Interest other than Securities (FDs) | Resident Depositor | 10% | ₹40k (₹50k for Seniors) | Form 26Q (Challan 281) |
| 194H | Commission or Brokerage | Resident Agent / Broker | 2% | ₹15,000 | Form 26Q (Challan 281) |
| 194M | Payments by Individual/HUF to Contractors | Resident Payee | 2% | ₹50,00,000 | Form 26QD |
| 206AA | Failure to furnish valid PAN | Any Payee | 20% (or double) | No threshold | Respective Form |
Rates quoted above apply to payments made to resident payees. Non-resident payments fall under Section 195, where withholding rates are governed by either domestic tax rates or applicable Double Tax Avoidance Agreements (DTAA).
Ensure that the payee's PAN is verified on the Income Tax portal prior to deduction to confirm it is operative and linked with Aadhaar. Inoperative PANs are deemed missing, triggering the 20% flat penal rate under Section 206AA.
Crucial Rule: TDS on GST Invoices
A frequent question among accounts teams is whether TDS should be deducted on the gross invoice amount including Goods and Services Tax (GST) or only on the base value.
CBDT Circular No. 23/2017 clarified beyond ambiguity: if GST on services or goods is indicated separately in the invoice, TDS is to be deducted ONLY on the taxable component (excluding the CGST, SGST, IGST, or UTGST elements).
If the supplier fails to segregate the GST amount and issues a composite single-line invoice, the deductor must deduct TDS on the entire total bill value.
Key takeaways
- 01Technical services under 194J attract 2% TDS, while pure professional services attract 10%.
- 02Finance Act 2024 reduced Section 194H (commission) and Section 194-IB (rent by individuals) to 2%.
- 03Always deduct TDS on the net amount excluding separately stated GST.
- 04If the payee fails to furnish a valid PAN, the deduction rate jumps immediately to 20% under Section 206AA.
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Written & Verified By
Tax Research & Computational Lead
Specializing in direct taxation under the Indian Income Tax Act 1961, withholding compliance, and corporate accounting. All rates and formulas are cross-verified against official Union Budget Finance Acts and CBDT notifications.