TDS Rate Chart FY 2025-26: Section-Wise Rates, Thresholds & Due Dates

The rate depends on the payment, and the threshold decides whether it applies at all

TDS compliance is deceptively simple in theory — deduct at the prescribed rate, deposit by the 7th, file the quarterly return — and deceptively error-prone in practice. The rate depends on the nature of payment, the threshold depends on whether it's a single payment or an aggregate over the year, and the rate itself doubles (or worse) if the payee hasn't furnished a PAN under Section 206AA. This chart lays out the sections practitioners reference most, in the format that matters day to day: nature of payment, threshold, rate with PAN, rate without PAN, and due date.

The section-wise rate chart

For the complete list covering all 29 sections including 192A, 193, 194, 194A, 194B, 194D, 194DA, 194G, 194IA, 194IB, 194IC, 194K, 194LA, 194LBA, 194N, 194O, 194P, 194S, 195 and 206AA, use the interactive TDS Rate Finder — search any payment type and it surfaces the exact section instantly.

The Section 206AA no-PAN trap

If the deductee doesn't furnish a valid PAN, Section 206AA requires TDS at the higher of the rate specified in the relevant section, the rate in force, or 20% — and in select cases the applicable rate can reach 30%. In practice, this means accounts teams should verify PAN status before processing any payment that crosses a threshold, not after. A missing PAN discovered during a tax audit, well after the payment was made, cannot be fixed retroactively — the shortfall becomes a direct liability of the deductor under Section 201.

Deposit deadlines and quarterly returns

TDS deducted in a month is due for deposit by the 7th of the following month, with the sole exception of March deductions, which get an extended deadline of 30 April. Quarterly TDS returns — Form 24Q for salary, 26Q for other payments — follow the standard 31 July, 31 October, 31 January and 31 May cycle for each quarter respectively.

Interest under Section 201(1A) applies at 1% per month for late deduction and 1.5% per month for late deposit after deduction — the higher rate for deposit delay exists because holding tax already collected is treated more seriously than a delay in deducting it in the first place.

Worked example: a professional fee payment

Kothari Consultants LLP pays ₹45,000 to a freelance market research consultant, Ananya Rao, for a single engagement. Since this crosses the ₹30,000 threshold under Section 194J(b) (professional fees), TDS applies at 10% — ₹4,500 — provided Ananya has furnished her PAN. If she hasn't, Section 206AA pushes the rate to 20%, meaning Kothari Consultants must deduct ₹9,000 instead, doubling the deduction purely because of a missing PAN on file.

If Kothari Consultants deducts correctly at 10% on 5 June but deposits the tax on 20 July instead of the 7 July due date, interest under Section 201(1A) applies at 1.5% per month (or part thereof) on the ₹4,500 for the delay — a small but entirely avoidable cost.

Common mistakes with TDS deduction

• Confusing 194J(a) (technical services, 2%) with 194J(b) (professional fees, 10%) — the two sub-clauses cover different payment types at very different rates.
• Missing the ₹1,00,000 aggregate threshold under 194C when contractor payments are split across several smaller invoices through the year.
• Not re-verifying PAN status periodically, especially for vendors onboarded years ago whose PAN details were never captured properly.
• Applying 194Q and TCS under Section 206C(1H) to the same purchase transaction — only one should apply, with 194Q taking precedence where both could.
• Overlooking Section 194R on non-cash business perquisites like sponsored trips or free samples, which is easy to miss since no cash payment triggers the usual TDS workflow.