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IN - Simplifying Tax Laws
Rates for tax deduction at source*
[For Assessment year 2025-26]
Particulars TDS Rates (in %)
1. In the case of a person other than a company
1.1 where the person is resident in India-
Section 192: Payment of salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the 10
hands of an employee.
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a 10
corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a recognised 10
stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of
1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating
Rate Savings Bonds, 2020 (Taxable) or any other notified security]
d) interest on any other security 10
Section 194: Income by way of dividend 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games 30
and other games of any sort, or from gambling or betting of any form or nature whatsoever.
Section 194BA: Income by way of winnings from any online game 30
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 5
Section 194DA: Payment in respect of life insurance policy 5
(till 30-09-2024)
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance 2
pay-out (w.e.f 01-10-2024)
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of 20
India
Note: The provisions of this section are not applicable with effect from 01-10-2024
Section 194G: Commission, etc., on sale of lottery tickets 5
WWW.TAXSCAN.IN - Simplifying Tax Laws (till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194H: Commission or brokerage 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194-IA: Payment on transfer of certain immovable property other than agricultural 1
land
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194-IC: Payment of monetary consideration under Joint Development Agreements 10
Section 194J: Fees for professional or technical services: 2
i) sum paid or payable towards fees for technical services
2
ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution
or exhibition of cinematographic films; 10
iii) Any other sum
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged
in business of operation of call center.
Section 194K: Income in respect of units payable to resident person 10
Section 194LA: Payment of compensation on acquisition of certain immovable property 10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received 10
or receivable by it from a SPV or any income received from renting or leasing or letting out
any real estate asset owned directly by it, to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than income 10
which is exempt under Section 10(23FBB)]
Section 194LBC: Income in respect of investment made in a securitisation trust (specified 25 in case of
in Explanation of section 115TCA) Individual or HUF
30 in case of other
person
Section 194M: Payment of commission (not being insurance commission), brokerage, 5
contractual fee, professional fee to a resident person by an Individual or a HUF who are not (till 30-09-2024)
liable to deduct TDS under section 194C, 194H, or 194J. 2
(w.e.f 01-10-2024)
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of
sum credited or paid during a financial year exceeds Rs. 50 lakh.
Section 194N: Cash withdrawal during the previous year from one or more account
maintained by a person with a banking company, co-operative society engaged in business of
banking or a post office: 2
i) in excess of Rs. 1 crore#
2/5
ii) in excess of Rs. 20 lakhs*
* for those persons who have not filed return of income (ITR) for three previous years
immediately preceding the previous year in which cash is
WWW.TAXSCAN.IN withdrawn,
- Simplifying Taxand
Lawsthe due date for
filing ITR under section 139(1) has expired. The deduction of tax under this situation shall
be at the rate of:
a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal
exceeds Rs. 20 lakhs during the previous year; or
b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal
exceeds Rs. 1 crore during the previous year.
# The threshold limit of Rs. 1 crore is increased to Rs. 3 croresif the withdrawal of cash is
made by co-operative society.
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce 1
participant (till 30-09-2024)
0.1
(w.e.f 01-10-2024)
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 Tax on total income
or more as per rate in force
Section 194Q: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs 0.1
Note: TDS is deductible on sum exceeding Rs. 50 lakhs
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate 10
value of such benefit/perquisite exceeds Rs. 20,000
Note: Benefit or perquisite should be arising from business or the exercise of a profession by
such resident.
Section 194S: Payment on transfer of Virtual Digital Asset 1
Note: No tax shall be deducted under this provision in the following circumstance:
• If the consideration is payable by any person (other than a specified person) and its
aggregate value does not exceed Rs. 10,000 during the financial year.
• if the consideration is payable by a specified person and its aggregate value does not
exceed Rs. 50,000 during the financial year.
Specified person means:
(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs.
1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year
immediately preceding the financial year in which virtual digital asset is transferred;
(b) An individual or a HUF who does not have any income under the head profits and gains
of business or profession.
Section 194T: Payments of any sum in the nature of salary, remuneration, commission, 10
bonus or interest to a partner of the firm.
Note:
(1) This provision is effective from 01-04-2025
(2) No deduction if aggregate of such sum paid/payable does not exceed Rs. 20,000 during
the financial year.
Any Other Income 10
1.2 where the person is not resident in India*-
Section 192: Payment of Salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the 10
hands of an employee.
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games 30
WWW.TAXSCAN.IN
and other games of any sort or from gambling or betting of- Simplifying
any form or Taxnature
Laws whatsoever.
Section 194BA: Income by way of winnings from any online game 30
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sportsmen/sports association 20
Section 194EE: Payment in respect of deposits under National Savings Scheme 10
Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of 20
India
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Sec. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a) 5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) 10
Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by business 30
trust to unit holders
Section 194LBB: Investment fund paying an income to a unit holder [other than income 30
which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a securitisation trust (specified 30
in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of 5 or 4* or 9**
money borrowed in foreign currency under a loan agreement or by way of issue of long-term
bonds (including long-term infrastructure bond) * In case where
interest is payable in
respect of Long-term
Bond or Rupee
Denominated Bond
listed on recognised
stock exchange
located in IFSC
** Where money
borrowed from a
source outside India
by issuing a long-
term bond or rupee-
denominated bond on
or after 01-04-2023,
which is listed only
on a recognised stock
exchange located in
an IFSC
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or 5
Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non- 10
resident Indian Citizen, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of 10
sub-Section (1) of Section 112, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024 WWW.TAXSCAN.IN - Simplifying Tax Laws
d) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 10
1,25,000 in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
e) Income by way of short-term capital gains referred to in Section 111A in respect of 15
transfer which takes place: 20
• Before 23-07-2024
• On or after 23-07-2024
f) Any other income by way of long-term capital gains [not being long-term capital gains 20
referred to in sections 10(33), 10(36)], in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
g) Income by way of interest payable by Government or an Indian concern on moneys 20
borrowed or debt incurred by Government or the Indian concern in foreign currency (not
being income by way of interest referred to in Section 194LB or Section 194LC)
h) Income by way of royalty payable by Government or an Indian concern in pursuance of 20
an agreement made by it with the Government or the Indian concern where such royalty is in
consideration for the transfer of all or any rights (including the granting of a licence) in
respect of copyright in any book on a subject referred to in the first proviso to sub-section
(1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any
computer software referred to in the second proviso to sub-section (1A) of Section 115A of
the Income-tax Act, to a person resident in India
i) Income by way of royalty [not being royalty of the nature referred to point h) above] 20
payable by Government or an Indian concern in pursuance of an agreement made by it with
the Government or the Indian concern and where such agreement is with an Indian concern,
the agreement is approved by the Central Government or where it relates to a matter
included in the industrial policy, for the time being in force, of the Government of India, the
agreement is in accordance with that policy
j) Income by way of fees for technical services payable by Government or an Indian concern 20
in pursuance of an agreement made by it with the Government or the Indian concern and
where such agreement is with an Indian concern, the agreement is approved by the Central
Government or where it relates to a matter included in the industrial policy, for the time
being in force, of the Government of India, the agreement is in accordance with that policy
k) Any other income 30
Section 196B: Income from units referred to in section 115AB(1)(i) 10
Section 196B: Long-term capital gain on transfer of units referred to in section 115AB, in 10
respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196C: Income by way of interest or dividends in respect of bonds or GDR referred 10
to in section 115AC
Section 196C: Long-term capital gain arising from transfer of bonds or GDR referred to in 10
section 115AC, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196D: Income of foreign Institutional Investors from securities (not being dividend 20
WWW.TAXSCAN.IN - Simplifying Tax Laws
or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the
existing TDS rate of 20%.
Section 196D(1A): Income in respect of securities referred to in section 115AD(1)(a) 10
payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)]
Note: Since recipient of income is a specified fund, surcharge & health and education cess
shall be nil.
2. In the case of a company-
2.1 where the company is a domestic company-
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a 10
corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a recognised 10
stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of
1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating
Rate Savings Bonds, 2020 (Taxable) or any other notified security]
d) interest on any other security 10
Section 194: Dividend 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games 30
and other games of any sort or from gambling or betting of any form or nature whatsoever.
Section 194BA: Income by way of winnings from any online game 30
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 5
(till 30-09-2024)
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance
pay-out 2
(w.e.f 01-10-2024)
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of 20
India
Note: The provisions of this section are not applicable with effect from 01-10-2024
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194H: Commission or brokerage 5
(till 30-09-2024)
WWW.TAXSCAN.IN - Simplifying Tax Laws 2
(w.e.f 01-10-2024)
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194-IA:Payment on transfer of certain immovable property other than agricultural 1
land
Section 194-IC:Payment of monetary consideration under Joint Development Agreements 10
Section 194J: Fees for professional or technical services: 2
iv) sum paid or payable towards fees for technical services
2
v) sum paid or payable towards royalty in the nature of consideration for sale, distribution
or exhibition of cinematographic films; 10
vi) Any other sum
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged
in business of operation of call center.
Section 194K : Income in respect of units payable to resident person 10
Section 194LA: Payment of compensation on acquisition of certain immovable property 10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received 10
or receivable by it from a SPV or any income received from renting or leasing or letting out
any real estate asset owned directly by it, to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than income 10
which is exempt under Section 10(23FBB)] .
Section 194LBC: Income in respect of investment made in a securitisation trust (specified 10
in Explanation of section115TCA)
Section 194M: Payment of commission (not being insurance commission), brokerage, 5
contractual fee, professional fee to a resident person by an Individual or a HUF who are not (till 30-09-2024)
liable to deduct TDS under section 194C, 194H, or 194J.
2
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of (w.e.f 01-10-2024)
sum credited or paid during a financial year exceeds Rs. 50 lakh.
Section 194N: Cash withdrawal during the previous year from one or more account 2
maintained by a person with a banking company, co-operative society engaged in business of
banking or a post office: 2/5
iii) in excess of Rs. 1 crore
iv) in excess of Rs. 20 lakhs*
* for those persons who have not filed return of income (ITR) for three previous years
immediately preceding the previous year in which cash is withdrawn, and the due date for
filing ITR under section 139(1) has expired. The deduction of tax under this situation shall
be at the rate of:
a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal
exceeds Rs. 20 lakhs but not exceeding Rs. 1 crore during the previous year; or
b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal
exceeds Rs. 1 crore during the previous year.
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce 1
participant (till 30-09-2024)
0.1
(w.e.f 01-10-2024)
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 Tax on total income
or more WWW.TAXSCAN.IN - Simplifying Tax Laws as per rate in force
Section 194Q: Payment to resident for purchase of goods of the aggregate value exceeding 0.1
Rs. 50 lakhs
Note: TDS is deductible on sum exceeding Rs. 50 lakhs
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate 10
value of such benefit/perquisite exceeds Rs. 20,000
Note: Benefit or perquisite should be arising from business or the exercise of a profession by
such resident.
Section 194S: Payment on transfer of Virtual Digital Asset 1
Note: No tax shall be deducted under this provision in the following circumstance:
• If the consideration is payable by any person (other than a specified person) and its
aggregate value does not exceed Rs. 10,000 during the financial year.
• if the consideration is payable by a specified person and its aggregate value does not
exceed Rs. 50,000 during the financial year.
Specified person means:
(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs.
1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year
immediately preceding the financial year in which virtual digital asset is transferred;
(b) An individual or a HUF who does not have any income under the head profits and gains
of business or profession.
Any Other Income 10
2.2 where the company is not a domestic company*-
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games 30
and other games of any sort or from gambling or betting of any form or nature whatsoever.
Section 194BA: Income by way of winnings from any online game 30
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sports association 20
Section 194G: Commission, etc., on sale of lottery tickets 5
(till 30-09-2024)
2
(w.e.f 01-10-2024)
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): - Payment of the nature referred to in Section 10(23FC)(a) 5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) 10
Section 194LBA(3): Business trust shall deduct tax while distributing any income received 40
from renting or leasing or letting out any real estate asset owned directly by it to its unit
holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than income 40
which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a securitisation trust (specified 40
in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of 5 or 4* or 9**
WWW.TAXSCAN.IN
money borrowed in foreign currency under - Simplifying
a loan agreement or by way TaxofLaws
issue of long-term
bonds (including long-term infrastructure bond) * In case where
interest is payable in
respect of Long-term
Bond or Rupee
Denominated Bond
listed on recognised
stock exchange
located in IFSC
** Where money
borrowed from a
source outside India
by issuing a long-
term bond or rupee-
denominated bond on
or after 01-04-2023,
which is listed only
on a recognised stock
exchange located in
an IFSC;
Section 194LD:Payment of interest on rupee denominated bond of an Indian Company or 5
Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of 10
sub-Section (1) of Section 112, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
b) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 10
1,25,000 in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
e) Income by way of short-term capital gains referred to in Section 111A in respect of 15
transfer which takes place: 20
• Before 23-07-2024
• On or after 23-07-2024
f) Any other income by way of long-term capital gains [not being long-term capital gains 20
referred to in sections 10(33), 10(36) and 112A], in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
e) Income by way of interest payable by Government or an Indian concern on moneys 20
borrowed or debt incurred by Government or the Indian concern in foreign currency (not
being income by way of interest referred to in Section 194LB or Section 194LC)
f) Income by way of royalty payable by Government or an Indian concern in pursuance of an 20
agreement made by it with the Government or the Indian concern after the 31st day of
March, 1976 where such royalty is in consideration for the transfer of all or any rights
(including the granting of a licence) in respect of copyright in any book on a subject referred
to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the
Indian concern, or in respect of any computer software referred to in the second proviso to
sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India
g) Income by way of royalty [not being royalty of the nature referred to in point f) above]
payable by Government or an Indian concern in pursuance of an agreement made by it with
the Government or the Indian concern and where such agreement is with an Indian concern,
the agreement is approved by the Central Government or where it relates to a matter
included in the industrial policy, for the time being in force,
WWW.TAXSCAN.IN of the Government
- Simplifying Tax Laws of India, the
agreement is in accordance with that policy—
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of 50
April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
h) Income by way of fees for technical services payable by Government or an Indian
concern in pursuance of an agreement made by it with the Government or the Indian concern
and where such agreement is with an Indian concern, the agreement is approved by the
Central Government or where it relates to a matter included in the industrial policy, for the
time being in force, of the Government of India, the agreement is in accordance with that
policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day 50
of April, 1976
B. where the agreement is made after the 31st day of March, 1976 20
i) Any other income 35
Section 196B: Income from units (including long-term capital gain on transfer of such units) 10
to an offshore fund
Section 196C: Income by way of interest or dividends in respect of bonds or GDR referred 10
to in section 115AC
Section 196C: Long-term capital gain arising from transfer of bonds or GDR referred to in 10
section 115AC, in respect of transfer which takes place: 12.5
• Before 23-07-2024
• On or after 23-07-2024
Section 196D(1): Income of foreign Institutional Investors from securities (not being 20
dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the
existing TDS rate of 20%.
Section 196D(1A): Income in respect of securities referred to in section 115AD(1)(a) 10
payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)]
Note: Since recipient of income is a specified fund, surcharge & health and education cess
shall be nil.
__________________________
* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.
[As amended by Finance (No. 2) Act, 2024]
