Capital GainsOct 1, 2025
What are the TDS rates on salary, FD interest, rent, and other payments in India?
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Tax Deducted at Source (TDS) is the mechanism where the payer deducts tax before making a payment and deposits it with the government on your behalf. Here are the most common TDS rates.
Common TDS rates for individuals (FY 2025-26):
| Section | Payment Type | TDS Rate | Threshold |
|---|---|---|---|
| 192 | Salary | Slab rates | As per tax computation |
| 194A | Bank FD/RD interest | 10% | ā¹40,000/yr (ā¹50,000 for seniors) |
| 194B | Lottery/game show winnings | 30% | ā¹10,000 |
| 194C | Contractor payment (individual) | 1% | ā¹30,000 single / ā¹1L aggregate |
| 194C | Contractor payment (company/firm) | 2% | ā¹30,000 single / ā¹1L aggregate |
| 194H | Commission/brokerage | 5% | ā¹15,000/yr |
| 194I | Rent (land/building/furniture) | 10% | ā¹2,40,000/yr |
| 194I | Rent (plant/machinery/equipment) | 2% | ā¹2,40,000/yr |
| 194IA | Property sale (by buyer) | 1% | ā¹50 lakh |
| 194J | Professional/technical fees | 10% | ā¹30,000/yr |
| 194N | Cash withdrawal | 2%/5% | ā¹1Cr (filer) / ā¹20L (non-filer) |
| 194O | E-commerce payments | 1% | ā¹5 lakh |
How to avoid excess TDS:
- Form 15G/15H: If your total income is below the taxable limit, submit Form 15G (below 60) or Form 15H (senior citizens) to your bank to avoid TDS on interest. This must be submitted at the start of each financial year.
- Lower deduction certificate: Apply to the Assessing Officer under Section 197 if TDS at the standard rate results in excess deduction. You'll receive a certificate specifying a lower rate.
If TDS is deducted but you don't owe tax:
File your ITR and claim a refund. The excess TDS shows in your Form 26AS and will be refunded to your bank account (usually within 2-4 months of filing).
Important: If you do not have a PAN or have not linked PAN with Aadhaar, TDS is deducted at 20% (or the prescribed rate, whichever is higher) under Section 206AA.
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Disclaimer: This information is for general educational purposes and is not professional tax advice. Tax situations vary. Consult a qualified tax professional for advice specific to your circumstances.