TDS Rate Chart
Every TDS section in one searchable table. Updated for Budget 2025 amendments. Search by section number, payment type, or filter by category.
| Section | Nature of Payment | Threshold (₹) | Rate (Resident) | Rate (Non-resident) |
|---|
Understanding TDS
TDS (Tax Deducted at Source) is income tax that the payer deducts from the recipient before paying. The deductor deposits it with the government and gives the deductee a credit (Form 16/16A) which they claim while filing ITR.
What is TDS?
Under Income-tax Act, certain payments (salary, rent, professional fees, contracts, interest etc.) are subject to TDS. The payer is the “deductor”, the recipient is the “deductee”. The deductor must obtain a TAN, deduct tax at the prescribed rate, deposit it monthly, and file quarterly TDS returns (24Q/26Q/27Q).
When does TDS apply?
TDS applies the moment a threshold is breached — either at credit (booking the expense) or payment, whichever is earlier. Each section has its own threshold (e.g. ₹30,000 for 194J professional fees, ₹2,40,000 p.a. for 194I rent post-Budget 2024). Once threshold breaches, TDS applies on the full amount, not just the excess.
TDS vs TCS
TDS is deducted by the payer from amount paid to the seller/service-provider. TCS (Tax Collected at Source) is collected by the seller from the buyer (e.g. on sale of motor vehicles >₹10L, foreign remittance under LRS, scrap, timber). Both end up as advance tax credit for the recipient.
How to claim TDS refund
If TDS deducted exceeds your actual tax liability, the excess is refundable. File your ITR with Form 26AS / AIS reconciled (TDS amount auto-populates from the deductor’s return). Refund is processed via direct credit to your bank within 20-45 days typically. Track via the “Refund Status” section on the income-tax portal.
Penalty for late TDS deposit
Interest @ 1% per month for delay in deduction, 1.5% per month for delay in deposit (Section 201). Late filing of TDS return attracts ₹200/day fee (Section 234E) capped at TDS amount, plus penalty 10K-1L (Section 271H). Non-deduction also disallows the expense up to 30% under Section 40(a)(ia).
Higher TDS for non-filers (206AB)
If a deductee hasn’t filed ITR for the previous year and aggregate TDS/TCS ≥ ₹50,000, TDS rate is twice the specified rate or 5%, whichever higher. Verify deductee’s status via the compliance check utility on the I-T portal before deducting.
No PAN = 20% TDS (206AA)
If the deductee doesn’t furnish PAN, TDS is deducted at the higher of: (a) rate specified in the Act, (b) rate in force, or (c) 20%. For some sections like 194O, 194Q the higher rate is 5%. Always collect PAN before first payment.
Form 15G / 15H
If your total income is below the basic exemption limit, you can submit Form 15G (under 60) or Form 15H (60+) to the bank/payer to avoid TDS on interest. Submit fresh forms every financial year. Misuse attracts penalty under Section 277.