TDS Rates Chart FY 2025-26 India: Complete Guide
Tax Deducted at Source or TDS (Tax deducted source) affects almost every Indian taxpayer, whether you earn a salary, interest, rent, or deal in property, goods, or crypto. For FY 2025-26 (AY 2026-27), understanding TDS rates, applicable sections, due dates, and refund process is essential to avoid penalties and manage cash flow efficiently. This comprehensive guide explains the TDS rates chart FY 2025-26 India, calculation methods, latest rules, and practical examples, all aligned with current Indian tax laws.
What is TDS (Tax Deducted at Source) in India?
Bottom line: TDS is a mechanism under the Income-tax Act, 1961, where tax is deducted at the time of income payment and deposited with the Government.
TDS ensures:
- Regular inflow of revenue to the Government
- Reduced tax evasion
- Advance tax payment for taxpayers
The deductor (employer, bank, buyer) deducts tax and deposits it with the Central Government. The deductee (taxpayer) gets credit for this tax in Form 26AS and can claim it while filing the income tax return.
Authoritative reference: Income Tax Department – TDS Overview
TDS Rates Chart FY 2025-26 India (Latest)
Bottom line: TDS rates for FY 2025-26 largely continue from FY 2024-25 unless notified otherwise by CBDT.
Key TDS Rates for Common Transactions
| Nature of Payment | Section | Threshold | TDS Rate |
|---|---|---|---|
| Salary | 192 | Basic exemption | As per slab |
| Interest other than securities | 194A | ₹40,000 (₹50,000 for senior citizens) | 10% |
| Rent by individuals/HUF | 194IB | ₹50,000 per month | 5% |
| Sale of property | 194IA | ₹50,00,000 | 1% |
| Purchase of goods | 194Q | ₹50,00,000 | 0.1% |
| Crypto / VDA transactions | 194S | ₹10,000 (₹50,000 for specified persons) | 1% |
If PAN is not provided, TDS is deducted at 20% or higher applicable rate under section 206AA.
Source: CBDT TDS Provisions
TDS on Salary Calculation Under New Tax Regime
Bottom line: Employers calculate TDS on salary based on slab rates chosen by the employee.
New Tax Regime Slabs FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
A standard deduction of ₹50,000 is available even under the new tax regime.
Example: Salary TDS Calculation
- Gross salary: ₹12,00,000
- Standard deduction: ₹50,000
- Taxable income: ₹11,50,000
Tax is calculated slab-wise and deducted monthly as TDS under section 192.
Reference: Income Tax Slabs – incometax.gov.in
TDS on Interest Income Section 194A India
Bottom line: Banks deduct TDS on interest from fixed deposits and savings accounts beyond the threshold.
Key points:
- Threshold: ₹40,000 (₹50,000 for senior citizens)
- TDS rate: 10%
- Applies to FD, RD, and other interest except savings interest up to limits
Senior citizens can submit Form 15H to avoid TDS if total income is below the exemption limit.
TDS on Rent Section 194IB Latest Rules
Bottom line: Individuals and HUFs paying high rent must deduct TDS even if not under tax audit.
Highlights:
- Applicable if monthly rent exceeds ₹50,000
- TDS rate: 5%
- Deduct once in the last month of FY or tenancy
- Payment through Form 26QC
No TAN is required for section 194IB.
Official guidance: TDS on Rent – Income Tax Dept
TDS Return Due Dates FY 2025-26 India
Bottom line: Timely filing of TDS returns avoids late fees of ₹200 per day under section 234E.
Quarterly TDS Return Due Dates
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Apr–Jun 2025 | 31 July 2025 |
| Q2 | Jul–Sep 2025 | 31 October 2025 |
| Q3 | Oct–Dec 2025 | 31 January 2026 |
| Q4 | Jan–Mar 2026 | 31 May 2026 |
Forms used:
- Form 24Q – Salary
- Form 26Q – Non-salary
- Form 27Q – Non-residents
TDS Refund Process Online India
Bottom line: Excess TDS can be claimed as a refund while filing your income tax return.
Steps to Claim TDS Refund
- Check TDS credit in Form 26AS
- File income tax return accurately
- Verify return using Aadhaar OTP or net banking
- Track refund status on the income tax portal
Refunds are generally credited directly to the bank account.
Track status: Income Tax Refund Status
TDS on Sale of Property Section 194IA
Bottom line: Buyers must deduct TDS on property transactions exceeding ₹50,00,000.
Key rules:
- TDS rate: 1% of sale value
- Deduct at time of payment
- Deposit using Form 26QB
- Seller receives Form 16B
This applies to residential and commercial property.
TDS on Crypto Transactions Section 194S India
Bottom line: Every crypto trade attracts TDS at 1%.
Covered assets:
- Cryptocurrency
- NFTs
- Other Virtual Digital Assets (VDAs)
Exchanges and buyers deduct TDS at the time of transaction. Loss set-off against other income is not allowed.
CBDT clarification: Taxation of Virtual Digital Assets
TDS on Purchase of Goods Section 194Q
Bottom line: Large buyers must deduct TDS on goods purchases.
Conditions:
- Buyer turnover exceeds ₹10 crore in previous FY
- Purchase value exceeds ₹50,00,000 from a seller
- TDS rate: 0.1%
Section 194Q overrides section 206C(1H) in most cases.
TDS Certificate Form 16 and Form 16A India
Bottom line: TDS certificates are proof of tax deducted and deposited.
- Form 16: Issued by employer for salary TDS
- Form 16A: Issued for non-salary TDS
These certificates help in filing returns and claiming refunds.
Download from TRACES: TRACES Portal
Key Takeaways and Next Steps
TDS compliance is critical for both taxpayers and deductors in India. For FY 2025-26, staying updated on TDS rates chart FY 2025-26 India, understanding TDS on salary calculation under new tax regime, and tracking deductions through Form 16 and Form 16A can save time, money, and penalties. Review your Form 26AS regularly, file TDS returns on time, and use the online TDS refund process in India to recover excess tax deducted.
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