TDS Rate Chart FY 2025-26 (AY 2026-27) — All Sections
Updated TDS rates for FY 2025-26: 194O at 0.1%, 194A bank threshold raised to ₹50,000, 194I rent threshold raised to ₹6L, 206C(1H) repealed. All sections in one table.
Last reviewed:
Three things changed in FY 2025-26 that most rate charts haven't caught up with: Section 194O dropped to 0.1% from October 2024, the 194A interest thresholds were raised in Budget 2025, and Section 206C(1H) — TCS on sale of goods — was repealed entirely from April 1, 2025. The table below reflects all of them.
What Changed — FY 2025-26 at a Glance
Effective October 1, 2024 (Finance No. 2 Act, 2024):
- 194O: TDS on e-commerce sales reduced from 1% → 0.1%
- 206AB / 206CCA: Higher TDS/TCS for non-ITR-filers — omitted
Effective April 1, 2025 (Finance Act, 2025):
- 194A: Bank/post office interest threshold raised from ₹40,000 → ₹50,000; senior citizens from ₹50,000 → ₹1,00,000; others from ₹5,000 → ₹10,000
- 194I: Rent threshold raised from ₹2,40,000/year → ₹6,00,000/year (₹50,000/month)
- 194J: Professional/technical fees threshold raised from ₹30,000 → ₹50,000
- 194T: New section — firm payments to partners, 10%, ₹20,000 threshold
- 206C(1H): TCS on sale of goods — repealed
TDS Rate Chart — FY 2025-26 (AY 2026-27)
| Section | Nature of Payment | Threshold (₹) | Individual / HUF | Company / Others |
|---|---|---|---|---|
| 192 | Salary | Basic exemption limit | As per income tax slab | — |
| 192A | EPF premature withdrawal | 50,000 | 10% | 10% |
| 193 | Interest on securities / listed debentures | 10,000 | 10% | 10% |
| 194 | Dividend from domestic company | 10,000 | 10% | 10% |
| 194A | Interest — bank, co-op society, post office | 50,000 (1,00,000 senior citizens) | 10% | 10% |
| 194A | Interest — all other sources | 10,000 | 10% | 10% |
| 194B | Lottery / crossword puzzle / game show winnings | 10,000 per transaction | 30% | 30% |
| 194BB | Horse race winnings | 10,000 | 30% | 30% |
| 194C | Payment to contractor — single transaction | 30,000 | 1% | 2% |
| 194C | Payment to contractor — aggregate FY | 1,00,000 | 1% | 2% |
| 194D | Insurance commission | 15,000 | 5% | 10% |
| 194G | Commission on lottery tickets | 15,000 | 5% | 5% |
| 194H | Commission or brokerage | 15,000 | 5% | 5% |
| 194I(a) | Rent — plant, machinery, equipment | 6,00,000/year (₹50,000/month) | 2% | 2% |
| 194I(b) | Rent — land, building, furniture, fittings | 6,00,000/year (₹50,000/month) | 10% | 10% |
| 194J | Professional services fees | 50,000/year per category | 10% | 10% |
| 194J | Technical services / royalty on sale of software | 50,000/year per category | 2% | 2% |
| 194K | Income from mutual fund / UTI units | 5,000 | 10% | 10% |
| 194LA | Compulsory acquisition of immovable property | 2,50,000 | 10% | 10% |
| 194N | Cash withdrawal above threshold | 1,00,00,000 | 2% | 2% |
| 194N | Cash withdrawal — no ITR filed for 3 prior years | 20,00,000 | 5% | 5% |
| 194O | E-commerce operator to participant (see note) | 5,00,000 individual/HUF; nil others | 0.1% | 0.1% |
| 194Q | Purchase of goods by buyer | 50,00,000 | 0.1% | 0.1% |
| 194R | Business perquisite or benefit to resident | 20,000 | 10% | 10% |
| 194S | Transfer of virtual digital assets (crypto) | 50,000 specified persons; 10,000 others | 1% | 1% |
| 194T | Payments by firm to its partners (new FY 2025-26) | 20,000 | 10% | — |
| 206C(1H) | TCS on sale of goods | Repealed from April 1, 2025 | — | — |
194O note: Rate is 0.1% of gross sales value effective October 1, 2024 (reduced from 1%). Applies to all marketplace operators — Amazon, Flipkart, Meesho, etc. Threshold: ₹5,00,000 for individual/HUF participants; nil for companies. TDS certificate issued as Form 16A quarterly.
TCS Rate Chart — FY 2025-26
Note: Section 206C(1H) — TCS on sale of goods — was repealed effective April 1, 2025. Buyers and sellers who relied on this for compliance no longer need to track it. 194Q (TDS on purchase of goods above ₹50L) continues to apply from the buyer's side.
| Section | Nature of Collection | Threshold (₹) | TCS Rate |
|---|---|---|---|
| 206C(1) | Sale of alcoholic liquor / forest produce / scrap | — | 1%–2.5% (varies) |
| 206C(1C) | Grant of lease / licence for parking lot, toll plaza, mine | — | 2% |
| 206C(1F) | Sale of motor vehicle above threshold | 10,00,000 per vehicle | 1% |
| 206C(1G) | Remittance under Liberalised Remittance Scheme (LRS) | 7,00,000 | 20% (5% for education/medical) |
| 206C(1H) | Sale of goods | Repealed from April 1, 2025 | — |
The No-PAN Rule — Section 206AA
If the payee does not provide a valid PAN, TDS is deducted at: 20% or the applicable rate — whichever is higher.
This applies to every section in the table above. A contractor without a PAN on file means you deduct 20% instead of 1% or 2%. Collect PAN from every vendor and service provider before making the first payment.
From FY 2025-26: Sections 206AB and 206CCA — which imposed higher TDS/TCS on taxpayers who hadn't filed ITR for 2+ years — have been omitted. The 206AA no-PAN rule still applies.
Quick Reference — E-commerce Sellers
The three sections most relevant to marketplace sellers:
| Section | Who Deducts | Rate | Where to Claim |
|---|---|---|---|
| 194O | Amazon / Flipkart / Meesho (TDS on your sales) | 0.1% | Schedule TDS2 in your ITR |
| 194Q | Your business (if you purchase goods > ₹50L/year from one supplier) | 0.1% | You deduct and deposit — Form 26Q |
| GST TCS 52 | Amazon / Flipkart / Meesho (GST TCS on net taxable sales) | 1% | GSTR-3B Table 9 (not in ITR) |
GST TCS and Income Tax TDS are two separate deductions under two separate laws. Both appear in your settlement reports. Both are fully recoverable. Claim 194O TDS in your ITR. Claim GST TCS in your GSTR-3B. Never mix the two.
How to claim TDS credit from marketplace platforms in your ITR → Section 194O — 0.1% rate explained in detail → Full ITR filing guide for e-commerce sellers FY 2025-26 →
Last updated: April 13, 2026. Incorporates Finance (No.2) Act 2024 (effective Oct 1, 2024) and Finance Act 2025 (effective Apr 1, 2025).