11/5/24, 8:35 AM Income Tax Department

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The contents of this document are for information purposes only. This aims to enable public to have a
quick and an easy access to information and do not purport to be legal documents.

Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.

Rates for tax deduction at source*

[For Assessment year 2025-26]

Particulars TDS Rates (in %)
1. In the case of a person other than a company
1.1 where the person is resident in India-
Section 192: Payment of salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund which is taxable 10

in the hands of an employee.
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local 10
authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a 10
recognised stock exchange in accordance with the Securities Contracts
(Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018,
Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security]
d) interest on any other security 10
Section 194: Income by way of dividend 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort, or from gambling or betting of any form or
nature whatsoever.

Section 194BA: Income by way of winnings from any online game 30

Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2

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Section 194D: Insurance commission 5

Section 194DA: Payment in respect of life insurance policy 5
(till 30-09-2024)
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in 2
insurance pay-out (w.e.f 01-10-2024)
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194H: Commission or brokerage 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194-IA: Payment on transfer of certain immovable property other than 1
agricultural land
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194-IC: Payment of monetary consideration under Joint Development 10
Agreements
Section 194J: Fees for professional or technical services: 2
i) sum paid or payable towards fees for technical services
2
ii) sum paid or payable towards royalty in the nature of consideration for sale,
distribution or exhibition of cinematographic films;
10
iii) Any other sum
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee
engaged in business of operation of call center.
Section 194K: Income in respect of units payable to resident person 10
Section 194LA: Payment of compensation on acquisition of certain immovable 10
property
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest 10
received or receivable by it from a SPV or any income received from renting or
leasing or letting out any real estate asset owned directly by it, to its unit holders.

Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)]

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Section 194LBC: Income in respect of investment made in a securitisation trust 25 in case of

(specified in Explanation of section 115TCA) Individual or HUF

30 in case of other
person
Section 194M: Payment of commission (not being insurance commission), 5
brokerage, contractual fee, professional fee to a resident person by an Individual or (till 30-09-2024)
a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. 2
(w.e.f 01-10-2024)
Tax shall be deducted under Section 194M with effect from 1/09/2019 when
aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.
Section 194N: Cash withdrawal during the previous year from one or more account
maintained by a person with a banking company, co-operative society engaged in
business of banking or a post office: 2
i) in excess of Rs. 1 crore#
2/5
ii) in excess of Rs. 20 lakhs*

* for those persons who have not filed return of income (ITR) for three previous
years immediately preceding the previous year in which cash is withdrawn, and the
due date for filing ITR under section 139(1) has expired. The deduction of tax
under this situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the amount of

withdrawal exceeds Rs. 20 lakhs during the previous year; or
b) 5% from the amount withdrawn in cash if the aggregate of the amount of
withdrawal exceeds Rs. 1 crore during the previous year.
# The threshold limit of Rs. 1 crore is increased to Rs. 3 croresif the withdrawal
of cash is made by co-operative society.

Section 194-O: Payment or credit of amount by the e-commerce operator to e- 1

commerce participant (till 30-09-2024)
0.1
(w.e.f 01-10-2024)
Section 194P: Deduction of tax by specified bank in case of senior citizen having Tax on total income
age of 75 or more as per rate in force

Section 194Q: Payment for purchase of goods of the aggregate value exceeding 0.1
Rs. 50 lakhs

Note: TDS is deductible on sum exceeding Rs. 50 lakhs

Section 194R: Deduction of tax in case any benefit or perquisite is provided and 10
aggregate value of such benefit/perquisite exceeds Rs. 20,000

Note: Benefit or perquisite should be arising from business or the exercise of a

profession by such resident.
Section 194S: Payment on transfer of Virtual Digital Asset 1

Note: No tax shall be deducted under this provision in the following circumstance:

• If the consideration is payable by any person (other than a specified person) and
its aggregate value does not exceed Rs. 10,000 during the financial year.

• if the consideration is payable by a specified person and its aggregate value does
not exceed Rs. 50,000 during the financial year.

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Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or turnover does not
exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession,
during the financial year immediately preceding the financial year in which virtual
digital asset is transferred;

(b) An individual or a HUF who does not have any income under the head profits
and gains of business or profession.
Section 194T: Payments of any sum in the nature of salary, remuneration, 10
commission, bonus or interest to a partner of the firm.
Note:
(1) This provision is effective from 01-04-2025
(2) No deduction if aggregate of such sum paid/payable does not exceed Rs. 20,000
during the financial year.
Any Other Income 10
1.2 where the person is not resident in India*-
Section 192: Payment of Salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund which is taxable 10

in the hands of an employee.
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort or from gambling or betting of any form or
nature whatsoever.

Section 194BA: Income by way of winnings from any online game 30

Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sportsmen/sports association 20
Section 194EE: Payment in respect of deposits under National Savings Scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194LB: Payment of interest on infrastructure debt fund 5
Sec. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a) 5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) 10
Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by 30
business trust to unit holders
Section 194LBB: Investment fund paying an income to a unit holder [other than 30
income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a securitisation trust 30
(specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business trust in 5 or 4* or 9**
respect of money borrowed in foreign currency under a loan agreement or by way
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of issue of long-term bonds (including long-term infrastructure bond) * In case where

interest is payable
in respect of Long-
term Bond or
Rupee
Denominated Bond
listed on
recognised stock
exchange located in
IFSC

** Where money
borrowed from a
source outside
India by issuing a
long-term bond or
rupee-denominated
bond on or after
01-04-2023, which
is listed only on a
recognised stock
exchange located in
an IFSC
Section 194LD: Payment of interest on rupee denominated bond of an Indian 5
Company or Government securities to a Foreign Institutional Investor or a
Qualified Foreign Investor
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of 10
a Non-resident Indian Citizen, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause 10
(c) of sub-Section (1) of Section 112, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
d) Income by way of long-term capital gains as referred to in Section 112A 10
exceeding Rs. 1,25,000 in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
e) Income by way of short-term capital gains referred to in Section 111A in respect 15
of transfer which takes place: 20
• Before 23-07-2024
• On or after 23-07-2024
f) Any other income by way of long-term capital gains [not being long-term capital 20
gains referred to in sections 10(33), 10(36)], in respect of transfer which takes 12.5
place:
• Before 23-07-2024
• On or after 23-07-2024

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g) Income by way of interest payable by Government or an Indian concern on 20

moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in Section 194LB or
Section 194LC)
h) Income by way of royalty payable by Government or an Indian concern in 20
pursuance of an agreement made by it with the Government or the Indian concern
where such royalty is in consideration for the transfer of all or any rights (including
the granting of a licence) in respect of copyright in any book on a subject referred
to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to
the Indian concern, or in respect of any computer software referred to in the second
proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person
resident in India
i) Income by way of royalty [not being royalty of the nature referred to point h) 20
above] payable by Government or an Indian concern in pursuance of an agreement
made by it with the Government or the Indian concern and where such agreement
is with an Indian concern, the agreement is approved by the Central Government or
where it relates to a matter included in the industrial policy, for the time being in
force, of the Government of India, the agreement is in accordance with that policy
j) Income by way of fees for technical services payable by Government or an 20
Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern and where such agreement is with an Indian concern, the
agreement is approved by the Central Government or where it relates to a matter
included in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy
k) Any other income 30
Section 196B: Income from units referred to in section 115AB(1)(i) 10
Section 196B: Long-term capital gain on transfer of units referred to in section 10
115AB, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196C: Income by way of interest or dividends in respect of bonds or GDR 10
referred to in section 115AC

Section 196C: Long-term capital gain arising from transfer of bonds or GDR 10
referred to in section 115AC, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196D: Income of foreign Institutional Investors from securities (not being 20
dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than
the existing TDS rate of 20%.
Section 196D(1A): Income in respect of securities referred to in section 115AD(1) 10
(a) payable to specified fund [referred to in clause (c) of Explanation to section
10(4D)]
Note: Since recipient of income is a specified fund, surcharge & health and
education cess shall be nil.
2. In the case of a company-
2.1 where the company is a domestic company-
Section 193: Interest on securities
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a) any debentures or securities for money issued by or on behalf of any local 10

authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a 10
recognised stock exchange in accordance with the Securities Contracts
(Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018,
Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security]
d) interest on any other security 10
Section 194: Dividend 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort or from gambling or betting of any form or
nature whatsoever.
Section 194BA: Income by way of winnings from any online game 30
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 5
(till 30-09-2024)
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in
insurance pay-out 2
(w.e.f 01-10-2024)
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194H: Commission or brokerage 5
(till 30-09-2024)

2
(w.e.f 01-10-2024)
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10

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Section 194-IA:Payment on transfer of certain immovable property other than 1

agricultural land

Section 194-IC:Payment of monetary consideration under Joint Development 10

Agreements
Section 194J: Fees for professional or technical services: 2
iv) sum paid or payable towards fees for technical services
v) sum paid or payable towards royalty in the nature of consideration for sale, 2
distribution or exhibition of cinematographic films; 10
vi) Any other sum
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee
engaged in business of operation of call center.
Section 194K : Income in respect of units payable to resident person 10
Section 194LA: Payment of compensation on acquisition of certain immovable 10
property

Section 194LBA(1): Business trust shall deduct tax while distributing, any interest 10
received or receivable by it from a SPV or any income received from renting or
leasing or letting out any real estate asset owned directly by it, to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)] .
Section 194LBC: Income in respect of investment made in a securitisation trust 10
(specified in Explanation of section115TCA)
Section 194M: Payment of commission (not being insurance commission), 5
brokerage, contractual fee, professional fee to a resident person by an Individual or (till 30-09-2024)
a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
2
Tax shall be deducted under Section 194M with effect from 1/09/2019 when (w.e.f 01-10-2024)
aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.
Section 194N: Cash withdrawal during the previous year from one or more account 2
maintained by a person with a banking company, co-operative society engaged in
business of banking or a post office: 2/5
iii) in excess of Rs. 1 crore
iv) in excess of Rs. 20 lakhs*

* for those persons who have not filed return of income (ITR) for three previous
years immediately preceding the previous year in which cash is withdrawn, and the
due date for filing ITR under section 139(1) has expired. The deduction of tax
under this situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the amount of

withdrawal exceeds Rs. 20 lakhs but not exceeding Rs. 1 crore during the
previous year; or
b) 5% from the amount withdrawn in cash if the aggregate of the amount of
withdrawal exceeds Rs. 1 crore during the previous year.
Section 194-O: Payment or credit of amount by the e-commerce operator to e- 1
commerce participant (till 30-09-2024)

0.1
(w.e.f 01-10-2024)

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Section 194P: Deduction of tax by specified bank in case of senior citizen having Tax on total income
age of 75 or more as per rate in force

Section 194Q: Payment to resident for purchase of goods of the aggregate value 0.1
exceeding Rs. 50 lakhs

Note: TDS is deductible on sum exceeding Rs. 50 lakhs

Section 194R: Deduction of tax in case any benefit or perquisite is provided and 10
aggregate value of such benefit/perquisite exceeds Rs. 20,000

Note: Benefit or perquisite should be arising from business or the exercise of a

profession by such resident.
Section 194S: Payment on transfer of Virtual Digital Asset 1

Note: No tax shall be deducted under this provision in the following circumstance:

• If the consideration is payable by any person (other than a specified person) and
its aggregate value does not exceed Rs. 10,000 during the financial year.

• if the consideration is payable by a specified person and its aggregate value does
not exceed Rs. 50,000 during the financial year.

Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or turnover does not
exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession,
during the financial year immediately preceding the financial year in which virtual
digital asset is transferred;

(b) An individual or a HUF who does not have any income under the head profits
and gains of business or profession.
Any Other Income 10
2.2 where the company is not a domestic company*-
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort or from gambling or betting of any form or
nature whatsoever.

Section 194BA: Income by way of winnings from any online game 30

Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sports association 20
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)

2
(w.e.f 01-10-2024)
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): - Payment of the nature referred to in Section 10(23FC)(a) 5

Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) 10

Section 194LBA(3): Business trust shall deduct tax while distributing any income 40
received from renting or leasing or letting out any real estate asset owned directly
by it to its unit holders.

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Section 194LBB: Investment fund paying an income to a unit holder [other than 40
income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a securitisation trust 40
(specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business trust in 5 or 4* or 9**
respect of money borrowed in foreign currency under a loan agreement or by way
of issue of long-term bonds (including long-term infrastructure bond) * In case where
interest is payable
in respect of Long-
term Bond or
Rupee
Denominated Bond
listed on
recognised stock
exchange located in
IFSC

** Where money
borrowed from a
source outside
India by issuing a
long-term bond or
rupee-denominated
bond on or after
01-04-2023, which
is listed only on a
recognised stock
exchange located in
an IFSC;
Section 194LD:Payment of interest on rupee denominated bond of an Indian 5
Company or Government securities to a Foreign Institutional Investor or a
Qualified Foreign Investor
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause 10
(c) of sub-Section (1) of Section 112, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
b) Income by way of long-term capital gains as referred to in Section 112A 10
exceeding Rs. 1,25,000 in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
e) Income by way of short-term capital gains referred to in Section 111A in respect 15
of transfer which takes place: 20
• Before 23-07-2024
• On or after 23-07-2024
f) Any other income by way of long-term capital gains [not being long-term capital 20
gains referred to in sections 10(33), 10(36) and 112A], in respect of transfer which 12.5
takes place:
• Before 23-07-2024
• On or after 23-07-2024

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e) Income by way of interest payable by Government or an Indian concern on 20

moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in Section 194LB or
Section 194LC)
f) Income by way of royalty payable by Government or an Indian concern in 20
pursuance of an agreement made by it with the Government or the Indian concern
after the 31st day of March, 1976 where such royalty is in consideration for the
transfer of all or any rights (including the granting of a licence) in respect of
copyright in any book on a subject referred to in the first proviso to sub-section
(1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of
any computer software referred to in the second proviso to sub-section (1A) of
Section 115A of the Income-tax Act, to a person resident in India
g) Income by way of royalty [not being royalty of the nature referred to in point f)
above] payable by Government or an Indian concern in pursuance of an agreement
made by it with the Government or the Indian concern and where such agreement
is with an Indian concern, the agreement is approved by the Central Government or
where it relates to a matter included in the industrial policy, for the time being in
force, of the Government of India, the agreement is in accordance with that policy
—
A. where the agreement is made after the 31st day of March, 1961 but before the 50
1st day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
h) Income by way of fees for technical services payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern and where such agreement is with an Indian concern, the
agreement is approved by the Central Government or where it relates to a matter
included in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 50
1st day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
i) Any other income 35
Section 196B: Income from units referred to in section 115AB(1)(i) 10
Section 196B: Long-term capital gain on transfer of units referred to in section 10
115AB, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196C: Income by way of interest or dividends in respect of bonds or GDR 10
referred to in section 115AC
Section 196C: Long-term capital gain arising from transfer of bonds or GDR 10
referred to in section 115AC, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196D(1): Income of foreign Institutional Investors from securities (not 20
being dividend or capital gain arising from such securities)

Note: Tax shall be deducted at the rate provided under DTAA if same is lower than
the existing TDS rate of 20%.
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Section 196D(1A): Income in respect of securities referred to in section 115AD(1) 10

(a) payable to specified fund [referred to in clause (c) of Explanation to section
10(4D)]
Note: Since recipient of income is a specified fund, surcharge & health and
education cess shall be nil.

__________________________
* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

[As amended by Finance (No. 2) Act, 2024]

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