TDS TCS Rate Chart for FY 2024–25 and FY 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
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