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Rates for tax deduction at source*
[For Assessment year 2026-27]
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 10
which is taxable 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 10
local authority or a corporation established by a Central, State or
Provincial Act;
b) any debentures issued by a company where such debentures are 10
listed on a 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 10
securities"
Section 194B: Income by way of winnings from lotteries, crossword 30
puzzles, card 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 5
Section 194DA: Payment in respect of life insurance policy 2
Section 194EE: Payment in respect of deposit under National Savings 10
scheme
Section 194F: Payment on account of repurchase of unit by Mutual 20
Fund or Unit 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 2
Section 194H: Commission or brokerage 2
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 1
other than agricultural land
Section 194-IB: Payment of rent by individual or HUF not liable to tax 2
audit
Section 194-IC: Payment of monetary consideration under Joint 10
Development 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 10
immovable property
Section 194LBA(1): Business trust shall deduct tax while distributing, 10
any interest 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 10
[other than income which is exempt under Section 10(23FBB)]
Section 194LBC: Income in respect of investment made in a 10
securitisation trust (specified in Explanation of section 115TCA)
Section 194M: Payment of commission (not being insurance 2
commission), brokerage, contractual fee, professional fee to a resident
person by an Individual or a HUF who are not liable to deduct TDS
under section 194C, 194H, or 194J.
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 0.1
operator to e-commerce participant
Section 194P: Deduction of tax by specified bank in case of senior Tax on total
citizen having age of 75 or more income as per
rate in force
Section 194Q: Payment 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 10
provided and 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.
Section 194T: Payments of any sum in the nature of salary, 10
remuneration, 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 10
which is taxable in the hands of an employee.
Section 194B: Income by way of winnings from lotteries, crossword 30
puzzles, card 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 10
Scheme
Section 194F: Payment on account of repurchase of unit by Mutual 20
Fund or Unit 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 2
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
10(23FC)(b)
Section 194LBA(3): Payment of the nature referred to in section 30
10(23FCA) by business trust to unit holders
Section 194LBB: Investment fund paying an income to a unit holder 30
[other than income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a 30
securitisation trust (specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business 5 or 4* or 9**
trust in respect of money borrowed in foreign currency under a loan
agreement or by way of issue of long-term bonds (including long-term * In case where
infrastructure bond) 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 5
Indian Company or Government securities to a Foreign Institutional
Investor or a Qualified Foreign Investor
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.
Section 194T: Payments of any sum in the nature of salary, 10
remuneration, 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.
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian 20
Citizen
b) Income by way of long-term capital gains referred to in Section 115E 12.5
in case of a Non-resident Indian Citizen,
c) Income by way of long-term capital gains referred to in sub-clause (iii) 12.5
of clause (c) of sub-Section (1) of Section 112
d) Income by way of long-term capital gains as referred to in Section 12.5
112A exceeding Rs. 1,25,000
e) Income by way of short-term capital gains referred to in Section 111A 20
f) Any other income by way of long-term capital gains [not being long- 12.5
term capital gains referred to in sections 10(33), 10(36)]:
g) Income by way of dividend from a unit in International Financial 10
Services Centre
h) Income by way of dividend [Other than (g)] 20
i) Income by way of interest payable by Government or an Indian 20
concern on 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)
j) Income by way of royalty payable by Government or an Indian 20
concern in 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
k) Income by way of royalty [not being royalty of the nature referred to 20
point h) 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
l) Income by way of fees for technical services payable by Government 20
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
m) Any other income 30
Section 196A: Income in respect of units of non-resident 20
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 12.5
section 115AB,
Section 196C: Income by way of interest or dividends in respect of 10
bonds or GDR referred to in section 115AC
Section 196C: Long-term capital gain arising from transfer of bonds or 12.5
GDR referred to in section 115AC
Section 196D: Income of foreign Institutional Investors from securities 20
(not 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%.
Section 196D(1A): Income in respect of securities referred to in section 10
115AD(1)(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
a) any debentures or securities for money issued by or on behalf of any 10
local authority or a corporation established by a Central, State or
Provincial Act;
b) any debentures issued by a company where such debentures are 10
listed on a 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 10
securities"
Section 194B: Income by way of winnings from lotteries, crossword 30
puzzles, card 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 2
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income
comprised in insurance pay-out
Section 194EE: Payment in respect of deposit under National Savings 10
scheme
Section 194F: Payment on account of repurchase of unit by Mutual 20
Fund or Unit 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 2
Section 194H: Commission or brokerage 2
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 1
other than agricultural land
Section 194-IC:Payment of monetary consideration under Joint 10
Development Agreements
Section 194J: Fees for professional or technical services: 2
iv) sum paid or payable towards fees for technical services
2
v) sum paid or payable towards royalty in the nature of consideration
for sale, 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 10
immovable property
Section 194LBA(1): Business trust shall deduct tax while distributing, 10
any interest 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 10
[other than income which is exempt under Section 10(23FBB)] .
Section 194LBC: Income in respect of investment made in a 10
securitisation trust (specified in Explanation of section115TCA)
Section 194M: Payment of commission (not being insurance 2
commission), brokerage, contractual fee, professional fee to a resident
person by an Individual or a HUF who are not liable to deduct TDS
under section 194C, 194H, or 194J.
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 2
more account 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 0.1
operator to e-commerce participant
Section 194P: Deduction of tax by specified bank in case of senior Tax on total
citizen having age of 75 or more income as per
rate in force
Section 194Q: Payment to resident for purchase of goods of the 0.1
aggregate value 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 10
provided and 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 30
puzzles, card 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 2
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): - Payment of the nature referred to in Section 5
10(23FC)(a)
Section 194LBA(2): Payment of the nature referred to in Section 10
10(23FC)(b)
Section 194LBA(3): Business trust shall deduct tax while distributing 35
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 35
[other than income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a 35
securitisation trust (specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business 5 or 4* or 9**
trust in respect of money borrowed in foreign currency under a loan
agreement or by way of issue of long-term bonds (including long-term * In case where
infrastructure bond) 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 5
Indian 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) 12.5
of clause (c) of sub-Section (1) of Section 112
b) Income by way of long-term capital gains as referred to in Section 12.5
112A exceeding Rs. 1,25,000
c) Income by way of short-term capital gains referred to in Section 111A 20
f) Any other income by way of long-term capital gains [not being long- 12.5
term capital gains referred to in sections 10(33), 10(36) and 112A]
d) Income by way of dividend from a unit in International Financial 10
Services Centre
e) Income by way of dividend [Other than (d)] 20
f) Income by way of interest payable by Government or an Indian 20
concern on 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)
g) Income by way of royalty payable by Government or an Indian 20
concern in 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
h) 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 50
before the 1st day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
i) 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 50
before the 1st day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
j) Any other income 35
Section 196A: Income in respect of units of non-resident 20
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 12.5
section 115AB
Section 196C: Income by way of interest or dividends in respect of 10
bonds or GDR referred to in section 115AC
Section 196C: Long-term capital gain arising from transfer of bonds or 12.5
GDR referred to in section 115AC
Section 196D(1): Income of foreign Institutional Investors from 20
securities (not 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%.
Section 196D(1A): Income in respect of securities referred to in section 10
115AD(1)(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 Act, 2025]