All 30+ TDS sections, thresholds, rates and applicability — in one practical chart with notes on the recent rate cuts and Section 194T.
The Finance (No. 2) Act, 2024 simplified the TDS regime by cutting rates on several common sections and rationalising thresholds. Here is the consolidated chart for FY 2025–26 — the sections every Indian business needs to operate. Once you have deducted correctly, our TDS and TCS return filing service handles the quarterly returns.
| Section | Nature | Threshold | Rate |
|---|---|---|---|
| 192 | Salary | Slab-based | As per slab |
| 192A | EPF premature withdrawal | ₹50,000 | 10% |
| 193 | Interest on securities | ₹10,000 (₹5K listed debentures) | 10% |
| 194 | Dividend | ₹10,000 | 10% |
| 194A | Interest other than securities | ₹50,000 (banks) / ₹10,000 (others) | 10% |
| 194B | Lottery, crossword winnings | ₹10,000 per transaction | 30% |
| 194C | Contractor | ₹30,000 single / ₹1L aggregate | 1% (individual) / 2% (others) |
| 194D | Insurance commission | ₹20,000 | 2% |
| 194DA | Life insurance proceeds | ₹1L | 2% |
| 194G | Lottery ticket commission | ₹20,000 | 2% |
| 194H | Commission / brokerage | ₹20,000 | 2% |
| 194-I | Rent — plant & machinery | ₹50,000/month | 2% |
| 194-I | Rent — land, building | ₹50,000/month | 10% |
| 194-IA | Sale of immovable property | ₹50L | 1% |
| 194-IB | Rent paid by individuals | ₹50,000/month | 2% |
| 194J | Professional / technical fees | ₹50,000 | 10% (2% for technical) |
| 194LA | Compensation on compulsory acquisition | ₹5L | 10% |
| 194M | Personal payments to contractors / professionals | ₹50L | 2% |
| 194N | Cash withdrawal | ₹1 Cr (₹20L for non-filers) | 2% / 5% |
| 194O | E-commerce operator | ₹5L (individual) | 0.1% |
| 194Q | Purchase of goods | ₹50L | 0.1% |
| 194R | Benefits / perquisites in business | ₹20,000 | 10% |
| 194S | Virtual digital assets | ₹50K (individual) / ₹10K (others) | 1% |
| 194T | Partner remuneration / interest | ₹20,000 | 10% |
Section 194T was inserted by Finance Act 2024 — w.e.f. 1 April 2025, partnerships and LLPs must deduct TDS on remuneration, commission, bonus and interest paid to partners above ₹20,000 per year per partner.
| Section | Nature | Rate (subject to DTAA) |
|---|---|---|
| 195 | Any sum chargeable to tax | Rate in force (often 20%) |
| 194E | Sports payments to non-resident | 20% |
| 194LB | Interest on infra debt fund | 5% |
| 194LC | Interest from Indian company (ECB) | 5% |
| 194LD | Interest on rupee bonds | 5% |
| 195 (royalty / FTS) | Royalty, fees for technical services | 10% (most DTAAs) / 20% (default) |
For payments to non-residents, always check the DTAA between India and the recipient country. A Form 10F + Tax Residency Certificate + No PE declaration is required to claim the lower DTAA rate.
If the deductee has not filed ITR for the immediately preceding year AND TDS+TCS in that year was ₹50,000 or more, the rate is doubled (or 5%, whichever is higher). Use the 'compliance check' utility on the income-tax portal before deducting.
The deductee can apply via Form 13 for a certificate specifying a lower rate. Common in startup, NRI property sale, contractor low-margin scenarios. Share the certificate with every deductor.
Aggregation across the year — once the ₹1L annual threshold trips, deduct on past payments too. Single payments above ₹30K trigger immediately.
Technical services (call centre, support, IT-enabled) attract 2% from FY 2020–21 onwards — distinct from the 10% on professional fees. Categorise correctly to avoid both over- and under-deduction.
If both apply (buyer turnover > ₹10 Cr and seller turnover > ₹10 Cr), 194Q (buyer-deducts) prevails. Seller stops collecting TCS once 194Q is operational on a transaction.
Print this chart, share it with your finance team, and reconcile against it every time you book a vendor payment. Section 194T alone has caught hundreds of partnerships off guard since FY 2025–26 — don't be next.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 15 January 2026 · Updated on 15 January 2026.
TDS & TCS — done for you by Taxpex
Prefer a CA to handle this end to end? TDS & TCS Return Filing is our dedicated, fixed-fee service — this guide explains the process, that page gets it filed.
Go to TDS & TCS Return FilingDeduct, deposit and report TDS on time. We file 24Q (salary), 26Q (non-salary), 27Q (NRI) and 27EQ (TCS), reconcile with TRACES and issue Form 16 / 16A to your deductees.
Every TDS due date for payments, deposits and returns — laid out month by month with the penalty for missing each one.
1 September 2026 · 7 minThe difference between Form 16 and Form 16A in one place: Form 16 is the salary TDS certificate, Form 16A covers non-salary TDS. Who issues each, due dates, Part A vs Part B, and how to match both against Form 26AS and AIS before filing your ITR.
28 November 2025 · 10 minForeign software, royalty, professional fees, capital gains — when to deduct, what rate to apply, and how to file 15CA/CB without errors.
When a supplier gives you a GST-inclusive price and you need to break it into base + GST for invoicing or ITC reconciliation.
via Reverse GST CalculatorYes — monthly TDS, quarterly 24Q/26Q returns and Form 16 generation.
via Compliance ServicesYes — every state where you have a place of business requires a separate registration.
via GST RegistrationForm 16 is for salary TDS (annual); Form 16A is for non-salary TDS (quarterly).
via TDS Return Filing