Updated TDS Rates Effective from 01 April 2025 (FY 2025-26): Key Changes & Threshold Limits
- tax comply
- Mar 17
- 5 min read
Several changes to TDS provisions have been introduced in the Finance Act (No. 2) and the Finance Act, 2025, leading to significant confusion regarding TDS threshold limits and rates. To clarify these updates, we have compiled the applicable TDS rates effective from April 1, 2025, for the financial year 2025-26.
Section | Nature of Payment | Deductor | Deductee | Threshold Limits | TDS Rate |
192 | Salary | Any person | Employee (R/NR) | NA | Slab Rates |
192A | Accumulated balances of PF | Any person | Employee (R/NR) | No TDS if payment is less than INR 50,000 | 10% |
193 | Interest on securities | Any person | Resident Person | INR 10,000 | 10% |
194A | Interest other than Interest on securities | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Resident Person | No TDS if(i) INR 50,000 in case of others when payer is bank, cooperative society, and post office (INR 1,00,000 for senior citizen) (ii) Rs. 10,000 in other cases | 10% |
194 | Dividend | Domestic Company | Resident Person | No TDS if payment made to individual upto INR 10,000 in FY | 10% |
194K | Income in respect of units of a mutual fund or specified company or undertaking | Any Person (UTI/MF) | Resident Person | No TDS if payment made to individual upto INR 10,000 in FY | 10% |
194B | Winnings from lottery, crossword puzzle, etc. | Any Person | Any Person | No TDS if winnings is INR 10,000 in respect of a single transaction | 30% |
194BB | Winnings from horse race | Any Person | Any Person | No TDS if winnings is INR 10,000 in respect of a single transaction | 30% |
194BA | Winnings from online games | Any Person | Any Person | - | 30% |
194C | Contracts & Subcontracts (carrying out any work related to contract) | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Any Person | No TDS if- Single contract is upto INR 30,000 or- Aggregate of contract in FY is upto INR 1,00,000 | If payee is Ind/HUF - 1%Others - 2% |
194D | Insurance Commission | Any Person | Resident Person | No TDS upto INR 20,000 | 2% (10% in case payee is Dom co) |
194G | Commission on sale of lottery tickets | Any Person | Any Person | No TDS upto INR 20,000 | 2% |
194H | Commission and Brokerage | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Any Person | No TDS upto INR 20,000 | 2% |
194DA | Maturity of Life Insurance Policy | Any Person | Resident Person | No TDS if maturity amount is less than INR 1,00,000 | 2% |
194I | Rent of P&M, Equipment’s, Buildings, Furniture and Land | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Resident Person | No TDS if rent is INR 50,000 per month or part of month | P&M, Equipment - 2%, Land, Building & furniture - 10% |
194IB | Rent of Immovable Property | Individual or HUF not covered under 194I | Resident Person | No TDS if rent is INR 50,000 per month or part of month | 2% |
194IA | Transfer of Immovable Property (Other than rural agriculture land) | Any Person (Buyer) | Resident Person (Seller) | No TDS if aggregate of consideration or SDV is INR 50,00,000 or more irrespective of no of buyers or sellers | 1% of consideration or SDV whichever is higher |
194IC | Consideration under Joint Development Agreement (JDA) | Any Person | Resident Person | - | 10% |
194J | a) Fees for Professional Services (FPS)b) Fees for Technical Services (FTS)c) Remuneration to directorsd) Royaltye) non-compete fees (NCF) | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Resident Person | No TDS if amount is upto INR 30,000 p.a. Limit of INR 30,000 p.a. is applicable separately for each nature of payment | 10% (2% in case of FTS) |
194LA | Compensation on compulsory acquisition of Immovable Property | Any Person | Resident Person | No TDS if payment is upto INR 5,00,000 p. a | 10% |
194M | Work pursuance contract, Commission/Brokerage, fees for professional services | Individual/HUF (other than required to deduct TDS u/s 19C, 194H, 194J | Resident Person | No TDS if amount is upto INR 50,00,000 | 2% |
194N | Cash withdraw from banks, cooperative bank or Post office | Bank, Co-operative Bank, post office | Any Person | No TDS if cash withdrawn is upto INR 1 crore in a FY. If cash withdraw more than INR 1 cr than TDS is applicable only on excess amount over INR 1 cr | 2% |
194O | E- Commerce (Sale of Goods/Services) | Any Person (E-commerce operator who owns, operate or manage E- Facility or Platform) | Resident Person (E-commerce participant who is selling goods or services through E-commerce operator facility or platform) | No TDS if ALL the below conditions are satisfied:a) The E-com participant is an Ind/HUFb) The gross amount of such sale or services or both during FY upto INR 5 lakhc) PAN/Aadhar is furnished | 1% (Gross amount of sale i.e., price collected from customer by E-com operator) |
194Q | Purchase of Goods more than INR 50 lakh in a FY | Any Person (Buyer) whose last year turnover more than INR 10 cr | Resident Person (seller) | TDS is required to be deducted only on excess amount over INR 50 Lakhs | 0.1% of sum in excess of INR 50 lakhs |
194R | Any benefit or perquisite, whether converted into money or not, arising from business or profession | Any person other than Individual and HUF (However, Individual/HUF is required to deduct if last year Turnover> INR 1 Cr in case of business or Gross Receipt > INR 50 Cr in case of profession) | Resident Person | No TDS if amount of benefit or perquisite provided to a person is upto INR 20,000 in FY | 10% |
194S | Consideration for Transfer of Virtual Digital asset (Crypto currency) | Any Person | Resident Person | Consideration more than INR 10,000 | 1% of Consideration |
194T | Payment in nature of Salary or Remuneration or Commission or Bonus or Interest to the partners of firm | Firm | Partners | No TDS upto INR 20,000 | 10% |
195 | Any sum payable to NR/Foreign co | Any Person | NR/Foreign company | - | Rates in force or DTAA rate |
195 | Long Term Capital Gain in excess of INR 1,25,000 from transfer of listed equity shares, units of equity-oriented MF etc… chargeable under section 112A by any person to NRs | Any person | NR | - | 12.50% |
195 | Long Term Capital Gain on transfer of unlisted shares of closely or specified assets or any other capital asset to NR | Any person | NR | - | 12.50% |
195 | Short Term Capital Gain from transfer of listed equity shares, units of equity-oriented MF etc… in which STT is paid by any person to NR person or foreign company | Any person | NR/Foreign co | - | 20% |
Comments