Direct Tax Directorate · CBDT
Complete TDS Rate Chart (FY 2024–25 & FY 2025–26)
Section-wise withholding rates, revised exemption thresholds, payee classifications, and statutory quarterly return forms under the Indian Income Tax Act, 1961.
| Section | Nature of Payment | Payee Details | TDS Rate (with PAN) | Annual Exemption Threshold | Quarterly Return Form |
|---|---|---|---|---|---|
| Sec 194C | Payment to Contractors / Sub-contractors | Individual / HUF: 1% | Others: 2% | 1% / 2% | ₹30,000 single bill / ₹1,00,000 aggregate | Form 26Q |
| Sec 194J | Fees for Professional Services | Resident Professional | 10% | ₹30,000 per financial year | Form 26Q |
| Sec 194J | Fees for Technical Services (FTS) / Call Center | Resident Entity / Person | 2% | ₹30,000 per financial year | Form 26Q |
| Sec 194I(a) | Rent on Plant, Machinery or Equipment | Resident Landlord / Lessor | 2% | ₹2,40,000 per financial year | Form 26Q |
| Sec 194I(b) | Rent on Land, Building or Furniture | Resident Landlord / Lessor | 10% | ₹2,40,000 per financial year | Form 26Q |
| Sec 194-IA | Payment for Immovable Property (Purchase) | Resident Property Seller | 1% | ₹50,00,000 (₹50 Lakh) property value | Form 26QB |
| Sec 194-IB | Rent paid by Individual / HUF (Non-Audit) | Resident Landlord | 2% | Rent > ₹50,000 per month | Form 26QC |
| Sec 194A | Interest on Bank FDs / Co-op Banks | Resident Depositor | 10% | ₹40,000 (₹50,000 for Senior Citizens) | Form 26Q |
| Sec 194H | Commission or Brokerage | Resident Agent / Broker | 2% | ₹15,000 per financial year | Form 26Q |
| Sec 194M | Personal Payments to Contractors / Professionals | Resident Payee | 2% | ₹50,00,000 aggregate in a year | Form 26QD |
| Sec 194Q | Purchase of Goods (Buyer Turnover > ₹10 Cr) | Resident Seller | 0.1% | ₹50,00,000 aggregate value | Form 26Q |
| Sec 206AA | Higher Rate if Payee has NO PAN / Inoperative PAN | Any Non-Furnisher of PAN | 20% (or twice the rate) | Applies whenever PAN is absent | Respective Form |
TDS section comparison matrix
Withholding rates based on the latest Finance Act notifications. Ensure deductee PAN status is verified to avoid the 20% Section 206AA penalty.
| Section | Rate | Nature | Threshold | Compliance Rules | Challan & Form | Deposit Due Date |
|---|---|---|---|---|---|---|
| Section 194C (Contractors) | 1% Ind/HUF | 2% Others | Works contract | ₹1,000 / ₹30k single / ₹1L aggregate | TDS deducted on bill value excluding separate GST. Deposited via ITNS 281. | Due by 7th of next month (30th April for March). | Quarterly Return Form 26Q |
| Section 194J (Professional & Tech) | 10% Professional | 2% Tech | Service fees | ₹1,000 / ₹30,000 annual limit | 10% for CA, doctors, legal, architects. 2% for software & BPO call centers. | Director remuneration has ₹0 threshold (TDS from ₹1). | Quarterly Return Form 26Q |
| Section 194I (Rent) | 10% Building | 2% Machinery | Rental lease | ₹1,000 / ₹2,40,000 annual limit | Applies to entities subject to tax audit. Excludes refundable security deposits. | TDS deducted at time of credit or payment. | Quarterly Return Form 26Q |
| Section 194-IA (Property Purchase) | 1.0% on sale price | Sale deed | ₹50,00,000 / No upper limit | Buyer deducts 1% if price or stamp duty >= ₹50 Lakh. No TAN required. | Deposited via Challan 26QB within 30 days of month-end. | Challan-Return Form 26QB |
| Section 194-IB (Tenant Rent > 50k) | 2.0% (Reduced in 2024) | Tenancy period | ₹50,000/mo / No upper limit | Deducted once a year in March by non-audit individuals using PAN. | Deposited via Challan 26QC within 30 days of month-end. | Challan-Return Form 26QC |
| Section 194A (Interest on FDs) | 10.0% p.a. | Deposit tenure | ₹1,000 / ₹40k (₹50k Seniors) | Banks and post offices deduct 10% on interest exceeding ₹40k. | Form 15G / 15H can be submitted for nil deduction. | Quarterly Return Form 26Q |
Recent TDS rate rationalizations
Key direct tax rate revisions enacted under recent Union Budgets to ease business compliance and corporate liquidity.
| Finance Act / Year | Amendment Description |
|---|---|
| Finance Act 2020 | 194J split: 2% Technical / 10% Professional |
| Finance Act 2021 | Section 194Q introduced: 0.1% on goods > ₹50L |
| Finance Act 2022 | Section 194R introduced: 10% on business perks |
| Finance Act 2023 | Section 194BA introduced: 30% on online gaming |
| Finance (No. 2) Act, 2024Current Law | 194H, 194M & 194-IB reduced to 2%, 194-O to 0.1% (w.e.f. 1 Oct 2024) |