CBDT releases Revised TDS Rate Chart for AY 2025-26 [Download Rate Chart PDF]

The Central Board of Direct Taxes (CBDT) has released the revised Income Tax TDS (Tax Deducted at Source) rate chart for the Assessment Year 2025-26, applicable to the Financial Year 2024-25.

The TDS rates are amended for various sections of the Income Tax Act for both residents and non-residents in the latest Budget. Below are the sections along with their corresponding TDS rates:

Here is a brief explanation of the various sections under the revised TDS (Tax Deducted at Source) rate chart for the Assessment Year 2025-26:

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TDS Rates for Residents in India:

1.   Section 192: Payment of Salary   

   - TDS on salary is deducted based on the individual’s applicable income tax slab rates.

2.   Section 192A: Payment of Accumulated Provident Fund   

   - TDS is deducted at 10% on taxable withdrawals from provident funds if the employee has not completed five years of service.

3.   Section 193: Interest on Securities   

   - TDS applies at 10% on interest income from various securities, such as debentures, bonds, and government securities.

4.   Section 194: Dividend Income   

   - TDS at 10% is deducted on dividends paid to residents if the amount exceeds ₹5,000 in a financial year.

5.   Section 194A: Interest Other than Securities   

   - TDS at 10% is applicable to interest income, except interest on securities, such as bank deposits, fixed deposits, etc.

6.   Section 194B: Winnings from Lotteries, Crossword Puzzles, etc.   

   - TDS at 30% is deducted on winnings from lotteries, card games, gambling, or betting.

7.   Section 194BA: Winnings from Online Games   

   - A 30% TDS rate is imposed on winnings from any online game, regardless of the amount won.

8.   Section 194BB: Winnings from Horse Races   

   - TDS at 30% applies to winnings from horse races, with no minimum threshold.

9.   Section 194C: Payments to Contractors/Sub-contractors   

   - TDS is 1% for payments to individuals/HUF and 2% for others for work done under a contract.

10.   Section 194D: Insurance Commission   

    - TDS applies to insurance commission payments, reduced from 5% to 2% from October 1, 2024.

11.   Section 194DA: Payment in Respect of Life Insurance Policy   

    - TDS on life insurance proceeds is deducted at 5%, reducing to 2% from October 1, 2024, on the income portion of the payout.

12.   Section 194EE: Payment in Respect of National Savings Scheme   

    - TDS at 10% is deducted on withdrawals from the National Savings Scheme.

13.   Section 194F: Repurchase of Mutual Fund/UTI Units   

    - TDS at 20% is deducted on the amount received from the repurchase of mutual funds or UTI units, though this section will be discontinued from October 1, 2024.

14.   Section 194G: Commission on Sale of Lottery Tickets   

    - TDS at 5% applies until September 30, 2024, reducing to 2% after that.

15.   Section 194H: Commission or Brokerage   

    - TDS at 5%, reducing to 2% from October 1, 2024, applies to income from commission or brokerage.

16.   Section 194-I: Rent   

    - TDS on rent payments is 2% for plant and machinery and 10% for land, building, or furniture.

17.   Section 194-IA: Transfer of Immovable Property (other than Agricultural Land)   

    - TDS at 1% is applicable on the transfer of immovable property worth over ₹50 lakh.

18.   Section 194-IB: Rent by Individual/HUF Not Subject to Tax Audit   

    - TDS is 5% (reduced to 2% from October 1, 2024) for rent paid by individuals or HUFs who are not required to undergo a tax audit.

19.   Section 194-IC: Payment under Joint Development Agreement   

    - TDS at 10% applies to monetary consideration paid under a joint development agreement.

20.   Section 194J: Fees for Professional or Technical Services   

    - TDS at 2% for technical services and call centers, 10% for other professional services, including royalty payments (except royalty for cinematographic films).

21.   Section 194K: Income from Units   

    - TDS at 10% is deducted on income from mutual fund units or UTI units payable to residents.

22.   Section 194LA: Compensation on Acquisition of Immovable Property   

    - TDS at 10% is applicable to compensation payments on the compulsory acquisition of immovable property, excluding agricultural land.

23.   Section 194LBA(1): Distribution by Business Trust   

    - TDS at 10% is applied to income distributed by business trusts to unit holders from interest or rental income.

24.   Section 194LBB: Income from Investment Fund   

    - TDS at 10% is deducted on income distributed by investment funds to unit holders, excluding exempt income.

25.   Section 194LBC: Income from Securitisation Trust   

    - TDS is 25% for individuals or HUFs and 30% for others on income from securitisation trusts.

26.   Section 194M: Payment of Commission, Brokerage, Contractual/Professional Fees   

    - TDS at 5%, reducing to 2% from October 1, 2024, applies to commissions or professional fees exceeding ₹50 lakh in a financial year.

27.   Section 194N: Cash Withdrawals   

    - TDS at 2% applies to cash withdrawals exceeding ₹1 crore, while a higher rate (2-5%) is applicable to those not filing tax returns for three years.

28.   Section 194O: Payment by E-commerce Operators   

    - TDS at 1% (reducing to 0.1% from October 1, 2024) applies to payments by e-commerce operators to participants on their platforms.

29.   Section 194P: Tax Deduction for Senior Citizens (75 Years or Above)   

    - Senior citizens aged 75 or above are subject to TDS based on their total income tax liability according to the applicable slab rates.

30.   Section 194Q: Payment for Purchase of Goods   

    - TDS at 0.1% applies to the purchase of goods when the value exceeds ₹50 lakh in a financial year.

31.   Section 194R: Benefit or Perquisite Provided in Business/Profession   

    - TDS at 10% is applicable to any benefit or perquisite provided in connection with business or profession if the total exceeds ₹20,000.

32.   Section 194S: Payment for Transfer of Virtual Digital Assets (VDA)   

    - TDS at 1% applies to payments for the transfer of VDAs such as cryptocurrency, with specific thresholds based on the payer.

33.   Section 194T: Payment to Partners of a Firm   

    - Effective from April 1, 2025, TDS at 10% will apply to payments of salary, remuneration, commission, or interest exceeding ₹20,000 to partners.

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TDS Rates for Non-Residents:

1.   Section 192: Payment of Salary to Non-Residents   

   - TDS on salary is deducted based on the applicable income tax slab rates.

2.   Section 192A: Provident Fund Withdrawals for Non-Residents   

   - TDS at 10% is applicable on provident fund withdrawals that are taxable.

3.   Section 194B: Winnings from Lotteries and Gambling   

   - TDS at 30% is applicable to winnings from lotteries, gambling, and other games of chance.

4.   Section 194BA: Winnings from Online Games   

   - TDS at 30% applies to online game winnings for non-residents.

5.   Section 194BB: Winnings from Horse Races   

   - TDS at 30% applies to horse race winnings.

6.   Section 194E: Payment to Non-resident Sportsmen/Sports Associations   

   - TDS at 20% applies to payments made to non-resident sportsmen or sports associations.

7.   Section 194EE: Payment under National Savings Scheme   

   - TDS at 10% applies to withdrawals from the National Savings Scheme.

8.   Section 194F: Repurchase of Mutual Fund/UTI Units   

   - TDS at 20% is deducted on repurchase proceeds from mutual funds or UTI units.

9.   Section 194G: Commission on Sale of Lottery Tickets   

    - TDS at 5%, reducing to 2% from October 1, 2024, applies to commission income from the sale of lottery tickets.

10.   Section 194LB: Interest from Infrastructure Debt Funds   

    - TDS at 5% is applicable to interest paid by infrastructure debt funds to non-residents.

11.   Section 194LBA(2): Interest Distributed by Business Trusts   

    - TDS at 5% or 10% applies to interest income distributed by business trusts.

12.   Section 194LBA(3): Income from Leasing/Renting by Business Trusts   

    - TDS at 30% applies to income distributed by business trusts from renting or leasing.

13.   Section 194LBB: Income from Investment Fund   

    - TDS at 30% applies to income paid by investment funds to non-residents.

14.   Section 194LBC: Income from Securitisation Trust   

    - TDS at 30% applies to income from securitisation trusts distributed to non-residents.

15.   Section 194LC: Interest on Foreign Currency Loans   

    - TDS at 5% or 4% applies to interest paid on foreign currency loans or bonds, with a special rate of 9% for certain IFSC bonds.

16.   Section 194LD: Interest on Government Securities or Rupee-denominated Bonds   

    - TDS at 5% applies to interest payments made to Foreign Institutional Investors (FIIs) or Qualified Foreign Investors (QFIs).

17.   Section 195: Payment of Any Other Sum to Non-residents   

    - TDS rates vary for different incomes, such as:

      - 20% on NRI investment income.

      - 10-20% on capital gains.

      - 20% on royalties and technical fees.

      - 30% on other income.

18.   Section 196B: Income from Units (Offshore Funds)   

    - TDS at 10% applies to income from units of offshore funds.

19.   Section 196C: Income from Bonds or Global Depository Receipts (GDRs)   

    - TDS at 10% applies to interest or dividend payments on bonds or GDRs.

20.   Section 196D: Income of Foreign Institutional Investors from Securities   

    - TDS at 20% applies to income from securities held by Foreign Institutional Investors (FIIs), subject to applicable DTAA provisions.

Taxpayers must stay informed of these changes to ensure proper adherence to tax regulations.

To Read the full text of the Order CLICK HERE

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