TDS TCS Rate Chart for FY 2024–25,2025–26, 2025-26
Table of Contents
TDS TCS Rate Chart for FY 2024–25 and FY 2025–26
TDS Deduction (FY 2024–25)
- Interest on Deposits (194A): 10%
- Commission (194H): 5%
- Rent (194I):
- 10% (for land/building)
- 2% (for plant/machinery)
- Professional/Technical Fees (194J): 10%
- Job work, labor contract, advertisement, etc. (194C):
- 1% for Individual/HUF
- 2% for others
- Salary (192B): Slab rates applicable
- Purchase of Goods (194Q): 0.1% (only if turnover > ₹10 Cr)
Important Cut-offs: (Applicable till 31-03-2025)
- Commission: ₹15,000
- Rent: ₹2,40,000
- Professional Fees: ₹30,000
- Job Work: ₹30,000 per single bill or ₹1 lakh aggregate
TCS Collection (FY 2024–25)
- On Scrap Sales (206C): 1%
- On Sale of Goods (> ₹10 Cr turnover) (206C(1H)): 0.1%
- Note: TCS on sale of goods is removed from 01-04-2025.
Payment Due Date:
- TDS/TCS to be deposited by 7th of the next month
- For March, deposit by 30th April.
TDS Deduction (FY 2025–26)
- Rates are same as FY 24-25 except a few changes in limits:
- Commission: ₹20,000
- Professional Fees/Technical Charges: ₹50,000 (each)
- New Addition:
- Partner Interest and Remuneration (194O): 10% (for Firms/LLPs)
TCS Collection (FY 2025–26)
- On Scrap Sales (206C): 1% (no change)
- On Sale of Goods (206C(1H)): Removed from 01-04-2025.
Section 194J – TDS on Professional & Technical Payments
Nature of Payments Covered under section 194J
- Professional fees (legal, medical, engineering, accounting, consultancy, etc.)
- Fees for technical services (other than professional services)
- Royalty
- Director’s fees/remuneration
- Non-compete fees
TDS Rates under section 194J
| Nature of Payment | Rate |
|---|---|
| Professional fees | 10% |
| Director’s fees/remuneration | 10% |
| Non-compete fees | 10% |
| Fees for technical services (other than professional) | 2% |
| Royalty (other than cinematographic film royalty) | 10% |
| Royalty for sale/distribution/exhibition of films | 2% |
| PAN not furnished (Sec 206AA) | 20% |
Threshold under section 194J
- ₹50,000 per financial year per payee
- Not applicable to Director’s fees (TDS from first rupee)
Who Must Deduct section 194J?
- Company / Firm / LLP / Trust / Business Entity
- Individual / HUF only if:
- Business turnover > ₹1 crore, or
- Professional receipts > ₹50 lakh (preceding FY – Sec 44AB)
Timing of section 194J
- Deduct at earlier of credit or payment, including year-end provisions.
Deposit & Reporting under section 194J
- Deposit: By 7th of next month
- Return: Form 26Q
- Certificate: Form 16A
- Credit reflected in Form 26AS / AIS
- Review agreements to classify professional vs technical services correctly.
- Director’s sitting fees & commission always attract TDS.
- Year-end provisions without TDS → high risk of notices & disallowance
Consequences of Non-Compliance under section 194J
- Interest u/s 201(1A):
- 1% per month—for non-deduction
- 1.5% per month – for non-payment after deduction
- Expense Disallowance u/s 40(a)(ia):
- 30% of expenditure disallowed if TDS not deducted/deposited
TDS Rate Chart for FY 2025-26
Key TDS Sections Updates – Effective April 2026 – Section 392 & Section 393(1) Summary
Section 392 – Salary
| New Section | Code | Nature of Payment | Old Section | Rate | Threshold |
| 392 | 1001 | Salary – State/Local Government Employees | 192 | As per slab | Basic Exemption |
| 392 | 1002 | Salary – Private/Other Employees | 192 | As per slab | Basic Exemption |
| 392 | 1003 | Salary – Central Government Employees | 192 | As per slab | Basic Exemption |
| 392(7) | 1004 | PF Withdrawal (Accumulated Balance) | 192A | 10% | INR 50,000 |
Section 393(1) – Interest & Dividends
| TDS Code | Code | Nature of Payment | Old Section | Rate | Threshold |
| 393(1) [TSI.5(i)] | 1005 | Interest on Securities | 193 | 10% | INR 5,000 p.a. |
| 393(1) [TSI.5(i)] | 1020 | Interest – Bank/PO (Senior Citizens) | 194A | 10% | INR 75,000 p.a. |
| 393(1) [TSI.5(i)] | 1021 | Interest – Bank/PO (Others) | 194A | 10% | INR 40,000 p.a. |
| 393(1) [TSI.5(i)] | 1022 | Interest – Other Payers (Non-Bank) | 194A | 10% | INR 5,000 p.a. |
| 393(1) [TSI.7(i)] | 1049 | Dividends (Non-Mutual Funds) | 194 | 10% | INR 2,500 p.a. |
| 393(1) [TSI.7(i)] | 1043 | Dividends from Mutual Funds | 194K | 10% | INR 5,000 p.a. |
Section 393(1) – Rent, Property & Commission
| TDS Code | Code | Nature of Payment | Old Section | Rate | Threshold |
| 393(1) [TSI.6(i)] | 1005 | Insurance Commission | 194D | 2% / 5% | INR 15,000 / INR 11 p.a. |
| 393(1) [TSI.5(ii)] | 1006 | Commission/Brokerage (Non-Insurance) | 194H | 5% | INR 15,000 |
| 393(1) [TSI.5(ii)] | 1009 | Rent – Plant, Machinery or Furniture | 194I(a) | 10% | INR 50,000 p.a. |
| 393(1) [TSI.5(ii)] | 1010 | Rent by Land or Building | 194I(b) | 10% | INR 2,40,000 / INR 20,000 |
| 393(1) [TSI.5(ii)] | 1007F | Rent by Individual/HUF (Non-Audit) | 194IBA | 5% | INR 50,000 p.m. |
| 393(6) | 1041 | Monetary Consideration – Joint Development | 194IC | Nil | Not Applicable |
Section 393(1) – Contracts, Professional Fees & E-Commerce
| TDS Code | Code | Nature of Payment | Old Section | Rate | Threshold |
| 1023/1024 | 1005 | Contract Payments – Individual/HUF | 194C | 1% / 2% | INR 30,000 / INR 1 lakh p.a. |
| 1030 | 1030 | Contract Payments – Company / Non-Individual | 194JA(a) | 2% | INR 30,000 p.a. |
| 1031 [TSI.028] | 1031 | Technical Services, Royalty & Call Centre | 194J(b) | 10% | INR 30,000 p.a. |
| 1032 | 1032 | Professional Service Fees / Director Fees | 194J | 10% | INR 50,000 p.a. |
| 1033 | 1033 | Commission on Lottery, Sum | 194G | 5% | INR 15,000 p.a. |
| 1034 | 1034 | Sale/Purchase of Goods | 194Q | 0.1% | INR 50 Lakh |
| 1034 | 1034 | Crypto / NFT Transactions | 194S | 1% | As Prescribed |
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