TDS: Section-wise Short Summary for the FY 2025-26
Here’s a detailed breakdown of TDS sections, rates, and thresholds:
1. Salary (Sec 192)
– TDS rate: As per income tax slab
– Threshold limit: No threshold limit; deducted monthly by employer
2. Accumulated Provident Fund (Sec 192A)
– TDS rate: 10% if withdrawal > ₹50,000 and PAN is furnished; 30% if PAN not furnished
3. Interest on Securities (Sec 193)
– TDS rate: 10%
– Exemptions:
– Interest on demat securities
– Paid to LIC, GIC, or other insurers
4. Dividend (Sec 194)
– TDS rate: 10%
– Exempt if aggregate < ₹5,000/year and paid via account payee cheque
5. Bank Interest (Sec 194A)
– TDS rate: 10% (not applicable to firms, HUFs if T.O. < ₹1 Cr/₹50 L)
– Exemptions:
– Interest ≤ ₹40,000 (₹50,000 for senior citizens)
– Paid by cooperative banks (with conditions)
6. Lottery & Puzzle Winnings (Sec 194B)
– TDS rate: Flat 30% (no threshold)
7. Online Games (Sec 194BA)
– TDS rate: Flat 30% on net winnings
– Applicable from July 1, 2023
8. Contractor Payments (Sec 194C)
– TDS rate: 1% for Individuals/HUF; 2% for others
– Thresholds:
– ₹30,000 single payment
– ₹1,00,000 aggregate/year
9. Commission & Brokerage (Sec 194H)
– TDS rate: 5%
– Exempt if aggregate ≤ ₹15,000
– New rule (from Oct 1, 2024): 2% for individuals/HUF
10. Rent (Sec 194I)
– TDS rate: 2% for plant/machinery; 10% for building/furniture
– Exempt if aggregate rent ≤ ₹2.4 lakh/year (₹6 lakh/year from FY 25-26)
11. Property Purchase (Sec 194IA)
– TDS rate: 1% on property > ₹50 lakh
– Deducted on higher of stamp duty or actual value
12. Professional Fees (Sec 194J)
– TDS rate: 10%
– ₹30,000 limit per category (tech, royalty, etc.)
– No TDS on personal payments
13. Cash Withdrawal (Sec 194N)
– TDS rate: 2% if withdrawal > ₹1 crore/year; 5% in special cases (e.g., non-filers)
14. Goods Purchase (Sec 194Q)
– TDS rate: 0.1% if purchases exceed ₹50 lakh/year
– Applies only if buyer’s turnover > ₹10 Cr in previous year
15. TDS on UPI, Contracts, and Digital Payments (Sec 194M/194O)
– TDS rate:
– 5% for individuals/HUFs (if not liable under 194C/194J)
– 1% TDS by E-Commerce Operators (Sec 194-O)
– New rules (from Oct 1, 2024): 2% for individuals/HUF in 194M; 0.10% for individuals/HUF in 194O
16. Insurance Commission (Sec 194D)
– TDS rate: 5% (up to Mar 31, 2025); 2% for individuals/HUF (from Apr 1, 2024)
– Exempt if amount ≤ ₹15,000
17. Life Insurance Maturity (Sec 194DA)
– TDS rate: 5% on maturity proceeds (excluding premium); 2% for individuals/HUF (from Oct 1, 2024)
– Exempt if total < ₹1 lakh
18. Transfer of Virtual Digital Assets (Sec 194S)
– TDS rate: 1%
– Threshold: ₹50,000/year (others); ₹10,000/year (specific persons)
Changes from April 1, 2025
– Increased threshold limits for senior citizens (₹1 lakh) and others (₹50,000) for TDS on interest income
– Reduced TDS rate on income from securitization trusts for residents (10%)
– Omission of Section 206AB (higher TDS for non-filers) and Section 206CCA (higher TCS for non-filers) .
