TDS Rates & Sections FY 2025-26: Quick Reference for Deductors

Key sections at a glance

• Section 192 - Salary and pension: normal slab rates
• Section 194A - Interest other than securities: 10% (banks 10% above Rs. 40,000; senior citizens Rs. 50,000)
• Section 194C - Contract payments: 1% (individual/HUF) or 2% (others); exemptions up to thresholds
• Section 194H - Commission/brokerage: 1-2% depending on type
• Section 194I - Rent: 10% on land/building, 2% on plant and machinery
• Section 194J - Professional/technical fees: 10% (2% on many e-commerce type fees)

When TDS is not required

• Payments below the statutory thresholds for each section
• Payments to government bodies in many cases
• Persons with valid Section 197 lower deduction certificates
• Payments to the supplier of exempt income classes as specified

Returns and due dates

• Form 24Q (TDS on salary): quarterly, due 31st of the month following the quarter
• Form 26Q (TDS on non-salary payments): quarterly, same due dates
• Form 27Q (TDS on payment to non-residents): quarterly
• Form 27EQ (TCS): quarterly
• Deposit TDS by the 7th of the following month

Impact on businesses

TDS mismatches are the top ITR notice trigger. Deductors must issue Form 16 / 16A certificates; recipients reconcile them with Form 26AS and AIS before filing. A single missed deposit or wrong PAN causes demand, interest and disputes for both parties.

What you should do

• Maintain a TDS register with PANs, amounts and payment dates
• Deposit by the 7th and file quarterly returns on time (31st after quarter)
• Download Form 16 / 16A certificates and verify your 26AS at least quarterly
• Before paying invoices, check the deductee PAN and lower-deduction certificate status
• For payer-buyer double TDS confusion, classify the payment correctly (contract vs professional fee)