TDS Rate Chart: Latest Rates and Amendments for FY 2024-25 (AY 2025-26)
How much tax is deducted before your income arrives?”- That’s the question most of us ask. Navigating through the tax deductions can be overwhelming, but the answer to this is TDS rate chart.
The TDS chart is updated every year by the Indian government which decides rates applied on salaries, rent, interest, and other payments. The blog shares a new TDS rate chart updated by the government for FY 2024-25 (AY 2025-26).
Let’s scroll below to see the TDS rate chart, latest amendments, and updates for seamless compliance and slab rates.
Latest TDS Updates from Union Budget 2025
The Union Budget meeting chaired on 1st April, 2025 introduced multiple changes in TDS rates and regulations. Check them below:
- TDS Rate Chart Changes 2025: The TDS rates were revised for a few income segments like fees and rents received.
- Increased Exemptions: The TDS rate chart observed higher exemptions benefiting small taxable individuals.
- Digitalization of Compliance: Budget 2025 emphasized on e-filing and online payments to ease TDS processes.
New TDS Rate Chart Threshold Limits: Before Vs After Budget 2025
As we have seen the key amendments in TDS, let’s navigate to the revised threshold TDS limits.
| Payment Category | Before 1st April 2025 | After 1st April 2025 |
|---|---|---|
| 193 – Interest on securities | NIL | 10,000 |
| 194A – Interest other than Interest on securities | (i) 50,000/- for senior citizen; (ii) In the case of non-senior citizens, the threshold is ₹40,000 when the payer is a bank, co-operative society, or post office. (iii) 5,000/- in other cases | (i) 1,00,000/- for senior citizen (ii) ₹50,000 is the prescribed limit for others when the paying entity is a bank, co-operative society, or post office (iii) 10,000/- in other cases |
| 194 – Dividend, for an individual shareholder | 5,000 | 10,000 |
| 194K – TDS applicable on mutual fund unit income. | 5,000 | 10,000 |
| Section 194B – Deduction on income from lotteries, crossword competitions, and related activities. 194BB – Winnings from horse race | For cumulative transactions above ₹10,000 during the year. | 10,000/- in respect of a single transaction |
| 194D – Insurance commission | 15,000 | 20,000 |
| 194G – Income by way of commission, prize etc. on lottery tickets | 15,000 | 20,000 |
| 194H – Commission or brokerage | 15,000 | 20,000 |
| 194-I – Rent | 2,40,000 (in a financial year) | 6,00,000 (in a financial year) |
| 194J – Fee for professional or technical services | 30,000 | 50,000 |
| 194LA – Income by way of enhanced compensation | 2,50,000 | 5,00,000 |
| 206C(1G) – Applicable to LRS transfers and expenses on overseas travel packages. | 7,00,000 | 10,00,000 |
TDS Rate Chart: Current Rates!
Budget 2024 witnessed reductions in the TDS rate chart to focus on business processes and enhance compliance. The following table highlights TDS rates according to various slabs.
| Payment Categories | % of TDS Rate |
|---|---|
| Salaries | Depends on the Slabs |
| Interest (Not the Securities) | 10% |
| Rent From Residential Estate | 10% |
| Rent From Commercial Estate | 10% |
| Professional Service Fees | 10% |
| Contract/ Brokerage | 5% |
| Contract Payments | 2% |
Now, since we have taken an overview of the new TDS rate chart and the threshold limits, let’s quickly break them down.
TDS Rate Chart: Salary and Retirement Income
| Section | Transaction Type | Threshold Limit (₹) | % TDS Rate Applied | |
| Individual/HUF | Others | |||
| 192 | Salary | Basic exemption limit of employee | Slab Rates | Slab Rates |
| 192A | Premature withdrawal from EPF | ₹50,000 | 10% | 10% |
TDS Rate Chart: Interest
| Section | Transaction Type | Threshold Limit (₹) | TDS Rate (%) | |
| Individual/ HUF | Others | |||
| 193 | Interest on Securities | ₹10,000 | 10% | 10% |
| 194 | Dividends | ₹10,000 | 10% | 10% |
| 194A | Banking or post office deposit interest | ₹50,000 | 10% | 10% |
| 194A | Banking or post office deposit interest (Senior Citizen) | ₹1,00,000 | 10% | 10% |
| 194A | Interest (Others) | ₹10,000 | 10% | 10% |
| 194K | Paying dividends Through MFs | ₹10,000 | 10% | 10% |
TDS Rate Chart: Lottery, Gambling, & Gaming!
| Section | Transaction Type | Threshold Limit (₹) | % of TDS Rate Applied | |
| Individual/ HUF | Others | |||
| 194 | Lottery, game shows, gambling winnings | ₹10,000 | 30% | 30% |
| 194BA | Online gaming winning amount | – | 30% | 30% |
| 194BB | Horse Race Wins | Threshold of ₹10,000 on cumulative yearly winnings, not on individual transactions. | 30% | 30% |
TDS Rate Chart: Professional Services and Royalties
| Section | Transaction Type | Threshold Limit (₹) | TDS Rate (%) | |
| Individual/HUF | Others | |||
| 194J(a) | Fee transactions of Technical Services, Call Centres, Royalties, Distribution or Exhibition of Cinematography Films, and more. | ₹50,000 | 2% | 2% |
| 194J(b) | Fees for All other Professional Services | ₹50,000 | 10% | 10% |
TDS Rate Chart: Rental Transactions
| Section | Transaction Type | Threshold Limit (₹) | % of TDS Rate Applied | |
| Indv/HUF | Others | |||
| 194I(a) | Rent for Plant Installations & Machineries | ₹50,000 | 2% | 2% |
| 194I(b) | Rent applied for Land Buildings & Furniture | ₹50,000 | 10% | 10% |
| 194IA | Immovable property transactions, excluding agricultural land. | ₹50L | 1% | 1% |
| 194IB | Rental payments by individual/HUF outside the scope of Sec 194I. | ₹50,000 pm | 2% | 2% |
| 194IC | Payment under specified Joint Development Agreement | – | 10% | 10% |
TDS Rate Chart: International Companies
For international companies, there is no exemption limit on the TDS deductions from foreign companies.
| Section | Description | % TDS Rate |
| 194B | Amount earned by winning lotteries, card games, crossword puzzles, and other games of any type (Up to Rs.10,000 per transaction- No TDS needs to be deducted) | 30% |
| 194BB | Income generated through horse race (Up to Rs.10,000 per transaction -TDS isn’t to be deducted) | 30% |
| 194E | Payment to NRI sportsmen (including an athlete) or an NRI entertainer or NRI sports association. | 20% |
| 194G | Commission or prize earnings from lottery ticket sales – exempt from TDS up to ₹20,000. | 2% |
| 194LB | Payment relating to compensation for certain property acquisitions. | 5% |
| 194LBA(3) | Business trust interest receipts from SPV, distributed further to unitholders. | 5% |
| Business trust dividend income from SPV, with complete shareholding apart from mandatory government holdings, distributed among unitholders. | 10% | |
| Income in the form of rent earned on real estate assets owned by the business trust and passed to unitholders. | 40% | |
| 194LBB | Investment fund payout of defined income to its unitholders. | 40% |
| 194LBC | Income from investment in securitization fund | 40% |
| 194LC | Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*. | 5% |
| If interest is payable against long term bonds listed in recognized stock exchange in IFSC | 4% | |
| 194LD | Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor | 5% |
| 195 | Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii); | 12.5% |
Conclusion
The TDS rate chart isn’t just about updating numbers or thresholds, it’s a strategy by the Indian government to balance compliance with the tax relief. The recent TDS rate chart changes 2025 have introduced new exemptions, thresholds, and rates to simplify compliance for businesses as well as individuals.
Doesn’t matter if you are a startup owner or a successful entrepreneur, knowing details on latest TDS amendments and rates is crucial to avoid unwanted TDS shocks. Stay updated with thresholds, slab rates, and compliance guidelines to avoid penalties.
Save the blog right away to manage taxes efficiently!
Find More Resources on TDS
Section 194T: TDS Applied on Partnership Firms
How to File TDS Return
FAQs on TDS Rate Chart
What is a TDS Rate Chart?
TDS rate chart is simply an official reference table released by the IT department that depicts the tax deducted at source (TDS) percentage for a wide array of payment categories.
What TDS rate is applied for professional fees?
According to the new TDS rate chart, 10% is applied on professional fees.
How do the TDS rate chart changes 2025 benefit general citizens?
The exemption limit for Tax deduction at source has increased from ₹40K to ₹50, minimizing the tax burden for general citizens.
Why is the New TDS rate chart important?
The new TDS rate chart for FY2025, outlines exemptions, latest rates, and thresholds allowing businesses and taxpayers to stay compliant with latest TDS regulations.
How do I know the New TDS rate chart applies to me?
Compare your sources of income like salary, rental, commission, etc and check the latest TDS rate chart changes 2025 if they impact you.
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