TDS Rate Finder (FY 2025-26)

⚡ In shortTax Deducted at Source (TDS) requires the payer to withhold tax on certain payments — rent, contractor bills, professional fees, commission, interest and more — and each type of payment has its own section, rate and exemption threshold.

Open the free TDS Rate Finder (FY 2025-26) →

How it is calculated

Every TDS section sets a rate and a threshold: no TDS is deducted until the payment (single or aggregate for the year) crosses that threshold. For example, 194C on contractor payments is 1% for individuals/HUF and 2% for others above ₹30,000 per contract or ₹1,00,000 a year; 194J on professional or technical fees is 10% (2% for technical services) above ₹50,000; 194-I on rent of land or buildings is 10% above ₹6,00,000 a year; 194H on commission is 2% above ₹20,000. If the payee does not give a PAN, section 206AA forces a higher rate — usually 20%. This finder lets you search by section number or type of payment and shows the current FY 2025-26 rate and threshold; always confirm on the income-tax portal before deducting, as thresholds were revised in Budget 2025.

Rate and threshold are two separate questions

Each TDS section carries both a rate and a threshold below which no deduction is required, and the threshold is usually tested against payments in the financial year rather than a single transaction. Deducting on the first payment because a later one may cross the limit, or failing to deduct because one payment was small, are both common errors. Check the section's own threshold and the basis on which it is measured.

No PAN means a much higher rate

Under section 206AA, where the payee does not furnish a valid PAN, tax must be deducted at the higher of the specified rate or 20% — and higher still for certain payments. Collect and verify the PAN before making the payment rather than afterwards, because once the payment has gone the leverage to obtain it disappears while the liability remains with you as deductor.

The deduction trigger is earlier than payment

For most sections the obligation arises on credit to the payee's account or on payment, whichever is earlier. An amount merely booked as a payable at year end therefore triggers deduction even though no money has moved. Salary under section 192 is the exception, being deducted on payment against an estimate of annual liability. Misreading this produces late-deduction interest on amounts you believed were not yet due.

Ordinary individuals have TDS duties too

This is no longer only a corporate concern. A buyer of immovable property above ₹50 lakh must deduct 1% under section 194-IA and deposit it with Form 26QB, and the liability rests on the buyer. High rent paid by individuals attracts deduction under its own section. These are one-off transactions, which is precisely why they are missed — and the interest and fee follow the deductor, not the recipient.

Deposit, then file, then check

Deposit by the 7th of the following month, with March allowed until 30 April. Then file the quarterly return — 24Q for salary, 26Q for most other resident payments — because until that is filed with correct PANs, your payee cannot see the credit and cannot claim it. Late deposit attracts 1.5% per month and a late return attracts ₹200 per day under section 234E. The TDS interest calculator quantifies a delay.

Frequently asked questions

What is the TDS rate on professional fees?

Under section 194J, TDS is 10% on professional fees and 2% on technical services or call-centre payments, deducted once the amount exceeds ₹50,000 in the year.

What is the TDS threshold on rent?

Under 194-I, rent of land/building attracts 10% and plant/machinery 2%, above ₹6,00,000 a year (revised from FY 2025-26). An individual or HUF not liable to audit deducts 2% under 194-IB above ₹50,000 a month.

What happens if the payee has no PAN?

Section 206AA applies a higher TDS rate — generally 20%, or the normal rate if higher — when the payee does not furnish a valid PAN.

Are these TDS rates final?

TDS rates and thresholds change with each Finance Act and were revised in Budget 2025. This chart reflects FY 2025-26; always confirm the current rate on incometax.gov.in before deducting.