Here is the TDS and TCS Rate Chart for Financial Year 2025–26 (Assessment Year 2026–27) under the Income Tax Act, 1961, incorporating the latest updates from the Finance Act 2025.
Tax Deducted at Source (TDS) – FY 2025–26
| Section | Nature of Payment | Threshold (₹) | TDS Rate (%) | Remarks |
| 192 | Salary | – | Slab Rates | As per applicable income tax slab rates |
| 192A | Premature withdrawal from EPF | 50,000 | 10 | Applicable if withdrawal before 5 years of service |
| 193 | Interest on securities | 10,000 | 10 | Applies to interest on debentures, securities, etc. |
| 194 | Dividends | 10,000 | 10 | Applies to dividend income from domestic companies |
| 194A | Interest other than on securities (Banks) | 50,000 (Senior Citizens)10,000 (Others) | 10 | Applies to interest from bank deposits |
| 194C | Payment to contractors/sub-contractors | 30,000 (Single Payment)1,00,000 (Aggregate) | 1 (Individual/HUF)2 (Others) | Applicable to payments for work contracts |
| 194H | Commission or brokerage | 15,000 | 5 | Applies to commission or brokerage payments |
| 194I | Rent | 2,40,000 | 2 (Plant/Machinery)10 (Land/Building) | Applicable to rent payments |
| 194J | Fees for professional or technical services | 30,000 | 10 | Applies to professional or technical service fees |
| 194T | Partner’s remuneration (New) | 20,000 | 10 | Introduced effective April 1, 2025 |
| 194Q | Purchase of goods | 50,00,000 | 0.1 | Buyer liable to deduct TDS on purchases exceeding threshold |
| 194R | Benefits or perquisites in business/profession | 20,000 | 10 | Applicable to non-cash benefits or perquisites |
| 194S | Transfer of virtual digital assets | 10,000 | 1 | Applies to transfer of cryptocurrencies and similar assets |
| 195 | Payment to non-residents | – | Rates as per DTAA or Income Tax Act | TDS rates vary based on nature of payment and applicable DTAA provisions |
| 196A | Income to non-resident unit holders in mutual funds | – | 20 | Applicable to non-resident investors in mutual funds |
| 196D | Income of Foreign Institutional Investors (FIIs) from securities | – | 20 | Applies to income from securities for FIIs |
Note: If the deductee does not furnish PAN, TDS is deductible at 20% or the applicable rate, whichever is higher
Tax Collected at Source (TCS) – FY 2025–26
| Section | Nature of Transaction | Threshold (₹) | TCS Rate (%) | Remarks |
| 206C(1) | Sale of alcoholic liquor for human consumption | – | 1 | Applicable to sellers of alcoholic liquor |
| 206C(1) | Sale of tendu leaves | – | 5 | Applicable to sellers of tendu leaves |
| 206C(1) | Sale of timber obtained under a forest lease | – | 2 | Applicable to sellers of timber under forest lease |
| 206C(1) | Sale of timber obtained by any other mode | – | 2 | Applicable to sellers of timber by other modes |
| 206C(1) | Sale of any other forest produce (not being timber or tendu leaves) | – | 2 | Applicable to sellers of other forest produce |
| 206C(1) | Sale of scrap | – | 1 | Applicable to sellers of scrap material |
| 206C(1F) | Sale of motor vehicle exceeding ₹10 lakh | 10,00,000 | 1 | Applicable to sellers of high-value motor vehicles |
| 206C(1G) | Remittance under Liberalised Remittance Scheme (LRS) for education/medical purposes | 7,00,000 | 5 | Applicable to remittances for specified purposes |
| 206C(1G) | Remittance under LRS for other purposes | 7,00,000 | 20 | Applicable to other foreign remittances |
| 206C(1H) | Sale of goods by seller whose turnover exceeds ₹10 crore | 50,00,000 | 0.1 | Applicable to sales exceeding threshold to a buyer |
Note: If the collectee does not furnish PAN, TCS is collectible at 5% or twice the applicable rate, whichever is higher.
If you need assistance in determining the applicability of TDS/TCS for specific transactions or require further details, feel free to ask.