Find the applicable TDS rate for any payment type — salary, interest, rent, professional fees, contractor payments, e-commerce, and virtual digital assets. All sections 192–194S, updated for Finance Act 2025. Click any row for full details including statutory citation and special conditions.
HR
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 019027S · Updated July 2026
Payment nature
Payer type
Payee type
Payment amount (₹)
Aggregate same payee/section this FY (₹)
PAN furnished
Form 15G/15H submitted
Lower deduction certificate
Decision Result
Applicable section
Section 194A — Interest (other than on securities)
Threshold check
Deduction required: No
Aggregate payment ₹0 does not exceed threshold ₹40,000.
Applicable rate
10% — Standard rate
Amount of TDS to deduct
₹0
Due date for deposit
7 December 2026
Return form
26Q
Wrong TDS rate means a short-deduction notice.
TRACES cross-references every deduction. We confirm the right rate, deduct correctly, and file your TDS returns.
AY 2026-27 cross-reference. Every rate and threshold below is quoted from the on-disk consolidated Act text named in each source note; the copy is secondary (ClearTax mirror of the FA-2025 consolidation), so figures still verify against the gazette before reliance.
Section 194C
Operative text: “194C. (1) Any person responsible for paying any sum to any resident”
₹30,000 per contract or ₹1,00,000 aggregate in the financial year — "No deduction shall be made … if such sum does not exceed thirty thousand rupees : Provided that where the aggregate … exceeds one lakh rupees … the person responsible for paying such sums … shall be liable to deduct income-tax under this section" (s.194C(5) + proviso)
Rate
1% to an individual/HUF; 2% to another person — "deduct an amount equal to— (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family" (s.194C(1)(i)-(ii))
2025 section
393 + 402
Last change
Finance Act 2025: no operative 194C rate or threshold change located in the gazette clauses; the consolidated text (FA-2025 copy) carries the figures above as at 2026-09-19
Section 194J
Operative text: “194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to”
₹50,000 per financial year for each class of sum — "where the amount of such sum or … the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year … does not exceed— (i) [fifty] thousand rupees, in the case of fees for professional services … (ii) [fifty] thousand rupees, in the case of fees for technical services … (iii) [fifty] thousand rupees, in the case of royalty … (iv) [fifty] thousand rupees, in the case of sum referred to in clause (d)" (s.194J(1) first proviso; "fifty" inserted by the Finance Act marked at superscript 91)
Rate
2% for fees for technical services (not being professional services) and for royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; 10% in other cases (professional services, director remuneration, clause-(d) sums) — "deduct an amount equal to two per cent of such sum in case of fees for technical services … and ten per cent of such sum in other cases" (s.194J(1))
2025 section
393 + 402
Last change
Threshold corrected from the earlier ₹30,000 to ₹50,000 on disk evidence: the consolidated text (FA-2025 copy) reads fifty thousand rupees for all four classes; no operative 194J rate change located in the FA-2025 gazette clauses
Section 194Q
Operative text: “194Q. (1) Any person, being a buyer who is responsible for paying any sum to any resident”
Purchases exceeding ₹50,00,000 from a resident seller in the previous year — "for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year"; buyer defined as a person whose total sales, gross receipts or turnover exceeded ten crore rupees in the preceding financial year (s.194Q(1) Explanation)
Rate
0.1% on the amount exceeding ₹50,00,000 — "deduct an amount equal to 0.1 per cent of such sum exceeding fifty lakh rupees" (s.194Q(1))
2025 section
393 + 400 + 402
Last change
Finance Act 2025, clause 69: the 194Q exception for a transaction to which section 206C(1H) applies was omitted (see s.194Q(5) in the consolidated text)
Statutory Basis
Tax Deducted at Source (TDS) is governed by Chapter XVII-B of the Income Tax Act, 1961. The rates shown are effective from 1 April 2025 as amended by the Finance Act 2025.
All thresholds are on a per-financial-year basis unless specified otherwise.
If PAN is not furnished by the deductee, TDS applies at the higher of: the specified rate, or 20% (Section 206AA).
Non-resident payments (Section 195, ITA 1961 (Section 393(2), ITA 2025 from 1 Apr 2026)) are subject to relevant Double Taxation Avoidance Agreements (DTAA). Always verify the applicable DTAA and obtain a Tax Residency Certificate before applying reduced rates.
Lower deduction certificate under Section 197 may be obtained by the deductee from the Assessing Officer.
Form 15G (residents below 60) and Form 15H (senior citizens) can be filed to avoid TDS on eligible income.
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What happens if PAN is not provided by the deductee?+
If the deductee does not furnish PAN, TDS must be deducted at the higher of: the applicable rate, the rate in force, or 20%. Source: Section 206AA, Income Tax Act, 1961.
What is the threshold for TDS on professional fees under Section 194J?+
TDS under Section 194J applies when professional/technical fee payments to a single person exceed ₹30,000 in a financial year. The rate is 10% for professional fees and 2% for technical services. Source: Section 194J, Income Tax Act.
When is TDS not required to be deducted?+
TDS is not required if the payee furnishes Form 15G (individuals below 60 with income below taxable limit) or Form 15H (senior citizens). Also, the deductee can apply for a lower/nil deduction certificate under Section 197. Source: Sections 197, 197A.
What is the due date for TDS payment to the government?+
TDS deducted must be deposited by the 7th of the following month. Exception: TDS deducted in March must be deposited by April 30. Source: Rule 30, Income Tax Rules read with Section 200, IT Act 1961 (≡ §397, IT Act 2025).
What is the penalty for non-deduction or late deposit of TDS?+
Interest at 1% per month for non-deduction and 1.5% per month for late deposit. Additionally, expenses are disallowed under Section 40(a)(ia) at 30% of the amount paid if TDS was not deducted. Penalty under Section 271C can equal the TDS amount. Source: Sections 201, 271C, 40(a)(ia).
