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Understand the TDS rate chart for FY 2025–26 (AY 2026–27), including applicable rates, sections, and rules across different taxpayer categories in India.
Last updated on: April 29, 2026
Tax Deducted at Source or TDS applies to resident Indians, non‑resident Indians, domestic companies, and foreign companies operating in India. The TDS percentage can vary between 1% and 30%, based on the nature of income. Higher effective rates may apply in limited cases due to surcharge, cess, or non‑availability of PAN, but there is no standard 50% TDS rate under normal provisions.
The responsibility of deducting tax falls on the payer, and it must be deducted at the time of credit or payment, whichever is earlier, and deposited within prescribed deadlines. Any excess TDS deducted can be claimed as a refund while filing the income‑tax return.
TDS is applicable not only on income but also on certain investments and payments, including property purchases and winnings from online gaming. From FY 2023‑24 onwards, online gaming winnings are subject to TDS under Section 194BA.
Explore the applicable TDS rates across the following categories:
Resident Individuals
Non‑Resident Individuals (NRIs)
Domestic Companies
Foreign Companies
TDS provisions may vary depending on whether the recipient is a resident or a non-resident. The applicable rates differ across sections and are influenced by the nature of income and regulatory guidelines.
| Section | Description | TDS – Resident | TDS – NRI |
|---|---|---|---|
192 |
Salary |
As per slab |
As per slab |
194B |
Lottery / game winnings (non‑online) |
30% |
30% |
194BB |
Horse race winnings |
30% |
30% |
194EE |
NSS withdrawals |
10% |
10% |
194G |
Lottery ticket commission |
5% |
5% |
194F |
Omitted – section no longer applicable |
— |
— |
194LBB |
Income distributed by AIF |
10% |
30% (rates in force) |
194LBC |
Income from securitisation trust |
10% / 25% (as applicable) |
30% (rates in force) |
Note: NRI TDS is subject to ‘rates in force’, DTAA relief, surcharge, and cess, where applicable.
For resident individuals, TDS rates are defined based on the nature of income under different sections of the Income-tax Act. The following table outlines the applicable rates for commonly covered transactions:
| Section | Description | TDS Rate |
|---|---|---|
193 |
Interest on securities |
10% |
194 |
Dividend TDS section – no longer applicable |
— |
194A |
Interest other than interest on securities |
10% |
194D |
Insurance commission |
5% |
194DA |
Life insurance payout (taxable portion only) |
2% on net income component |
194H |
Commission or brokerage |
5% |
194I |
Rent – plant & machinery |
2% |
194I |
Rent – land/building/furniture |
10% |
For non-resident individuals (NRIs), TDS applies to various types of income earned in India, with rates depending on the nature of the income. The table below outlines indicative TDS rates across common income categories:
| Section | Nature of Income | TDS Rate |
|---|---|---|
195 |
Any income payable to NRI |
Rates in force (DTAA may apply) |
— |
Interest income |
20% |
— |
Long‑term capital gains |
10% / 20% |
— |
Short‑term capital gains (111A) |
15% |
— |
Royalty / FTS |
10% (DTAA dependent) |
196C |
Offshore fund units |
10% |
196D |
FII income from securities |
20% |
Note: Actual TDS rates for NRIs may vary based on DTAA provisions and applicable surcharge and cess.
For domestic companies, TDS is deducted on specified payments based on the nature of the transaction and the applicable section. The table below summarises the relevant sections and corresponding TDS rates:
| Section | Description | TDS Rate |
|---|---|---|
193 |
Interest on securities |
10% |
194A |
Interest |
10% |
194B |
Lottery winnings |
30% |
194BB |
Horse races |
30% |
194C |
Contractor payments |
1% (Individual/HUF) / 2% (Others) |
194D |
Insurance commission |
10% |
194DA |
Life‑insurance payout (taxable part) |
2% |
194G |
Lottery ticket commission |
5% |
194H |
Commission/brokerage |
5% |
194I |
Rent – plant/machinery |
2% |
194I |
Rent – building/furniture |
10% |
194IA |
Property purchase |
1% |
194J |
Professional / technical services |
10% |
194LA |
Compensation on land acquisition |
10% |
194LBA |
Business trust income |
10% |
Note: TDS applies only to payments covered under specific sections of the Income Tax Act.
The table below summarises the relevant sections and indicative TDS rates applicable to foreign companies:
| Section | Income Type | TDS Rate |
|---|---|---|
194B |
Lottery / games |
30% |
194BB |
Horse races |
30% |
194E |
Sports association |
20% |
194LB |
Infrastructure bond interest |
5% |
194LC |
Foreign currency loan interest |
5% |
194LD |
Rupee bond interest |
5% |
195 |
All other income |
Rates in force + DTAA |
Note: Capital gains, royalty, and FTS are governed by Sections 112/112A/9/195 and DTAA provisions, not fixed TDS percentages.
Always verify applicable TDS rates before making or receiving payments. If excess TDS is deducted, you may claim a refund by filing your income‑tax return. Tax‑saving instruments like term insurance can help reduce tax liability under Section 80C, while payouts may be exempt under Section 10(10D) only if prescribed premium limits and policy conditions are met.
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TDS is deducted at a higher rate of 20% when the recipient does not furnish a valid Permanent Account Number (PAN), as per the provisions of the Income Tax Act.
TDS is applicable on cryptocurrency transactions under Section 194S, where 1% tax is deducted on the transfer of virtual digital assets above specified thresholds.
The responsibility for deducting TDS lies with the payer, who is required to deduct tax at the applicable rate before making specified payments to the recipient.
A refund of TDS can be claimed if the total tax deducted exceeds the actual tax liability, and the excess amount is adjusted during Income Tax Return filing and processed by the tax authorities.
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