Understanding TDS Rates 2025-26
January 8, 2026
Remembering TDS rates and threshold limits is a nightmare for accountants. We have compiled the most frequently used sections into this easy-to-read guide for the Financial Year 2025-26.
Crucial TDS Sections
| Section | Nature of Payment | Threshold | Rate (Ind/HUF) | Rate (Others) |
|---|---|---|---|---|
| 194C | Contractor Payment | 30k (Single) / 1L (Yearly) | 1% | 2% |
| 194J | Professional Fees | 30,000 p.a. | 10% | 10% |
| 194J (Tech) | Technical Services / Call Center | 30,000 p.a. | 2% | 2% |
| 194H | Commission / Brokerage | 15,000 p.a. | 5% | 5% |
| 194I (a) | Rent (Plant & Machinery) | 2,40,000 p.a. | 2% | 2% |
| 194I (b) | Rent (Land & Building) | 2,40,000 p.a. | 10% | 10% |
Understanding 194Q (Purchase of Goods)
Introduced recently, this section mandates that if your turnover is > 10 Cr and you purchase goods worth > 50 Lakhs from a single vendor, you must deduct TDS at 0.1%.
Note: If the seller applies TCS u/s 206C(1H), TDS u/s 194Q prevails. TDS takes priority over TCS.
Important Dates
- TDS Payment: 7th of next month (April to Feb), 30th April for March.
- TDS Return (Q1-Q3): 31st of month after quarter end.
- TDS Return (Q4): 31st May.