StartupFloraTDS Rate Chart For FY 2025-26: Updated Limits, Slabs & Rules You Must Know
Understanding tax compliance just got simpler. Whether you’re a freelancer, business owner, or salaried professional knowing the latest TDS rates, limits, and changes is key to avoiding penalties and staying financially smart.
In this guide, we’ll cover the TDS rate chart changes 2025, updates from Budget 2025, and breakdowns by category including salary, commission, rent, and digital assets. We've also added insights into GST rates 2025 to give you a complete tax overview.
What is TDS and Why Does it Matter?
TDS applies to various types of income such as salary, interest, rent, contractor payments, and professional fees. Knowing the correct rates and threshold limits helps avoid default and penalties. This guide provides the full TDS and TCS rate chart, highlighting all TDS rate chart changes 2025 and threshold modifications from Budget 2025.
Budget 2025: Key Changes in TDS You Need to Know
Here are the highlights of TDS rate chart changes 2025:
- New Section 194T: 10% TDS on partner’s remuneration (effective 1st April 2026)
- Lower TDS rates: Commission (Section 194H) and rent (Section 194-IB) now attract only 2%
- Threshold increases: Several limits raised across interest, rent, professional fees, and commission
- Section 206AB removed: Simplifies compliance for deductors
These tds limit changes in Budget 2025 are aimed at reducing unnecessary deductions on small payments.
Complete TDS Rate Chart FY 2025-26
Here are the popular TDS rates applicable from FY 2025-26:
| Section | Salary | Basic exemption limit | Slab rates |
| 192 | Salary | Basic exemption limit | Slab rates |
| 192A | EPF Premature Withdrawal | 50,000 | 10% |
| 193 | Interest on Securities | 10,000 | 10% |
| 194 | Dividend | 10,000 | 10% |
| 194A | Interest (Bank, Post Office) | 50,000 (SC), 10,000 (others) | 10% |
| 194B | Lottery, Game Shows | 10,000 per transaction | 30% |
| 194BA | Online Gaming Winnings | No threshold | 30% |
| 194BB | Horse Race Winnings | 10,000 | 30% |
| 194C | Contractor Payments | 30,000 per txn or 1L/yr | 1% (Ind/HUF), 2% (others) |
| 194D | Insurance Commission | 20,000 | 5% (Ind), 10% (Co.) |
| 194DA | Life Insurance Proceeds | 1,00,000 | 5% |
| 194EE | NSS Payments | 2,500 | 10% |
| 194G | Lottery Commission | 20,000 | 5% |
| 194H | Commission/Brokerage | 20,000 | 5% |
| 194I | Rent | 50,000 per month | 2% (plant), 10% (land/building) |
| 194IA | Sale of Immovable Property | 50 lakhs | 1% |
| 194IB | Rent by Individuals/HUF | 50,000 per month | 5% |
| 194IC | JDA Projects | NIL | 10% |
| 194J | Professional Fees | 50,000 | 2% (technical), 10% (others) |
| 194K | Mutual Fund Income | 10,000 | 10% |
| 194LA | Compensation on Land | 5,00,000 | 10% |
| 194M | Contract/Fees by Individuals | 50 lakhs | 5% |
| 194N | Cash Withdrawal | >1 Cr (general), >3 Cr (co-op) | 2%-5% |
| 194O | E-commerce Payments | 5 lakhs | 1% |
TDS Rate Chart Changes 2025 – As Per Budget
| Section | Previous Limit | Revised Limit |
| 193 | NIL | 10,000 |
| 194A | 40,000/50,000 | 50,000/1,00,000 |
| 194 | 5,000 | 10,000 |
| 194K | 5,000 | 10,000 |
| 194B | Aggregate 10,000 | 10,000 per transaction |
| 194D | 15,000 | 20,000 |
| 194D | 15,000 | 20,000 |
| 194H | 15,000 | 20,000 |
| 194I | 2.4L p.a. | 6L p.a. |
| 194J | 30,000 | 50,000 |
| 206C(1G) | 7,00,000 | 10,00,000 |
High-Risk Areas: Where People Usually Make Mistakes
- Deducting TDS below threshold.
- Missing new sections like 194T.
- Applying old TDS limits from FY 2024-25.
- Ignoring TDS on transport contracts or freelancers. (transport tds rate)
- Wrongly assuming zero TDS for small business payments. (tds rate for business)
Final Thoughts
Understanding updated TDS and TCS rate chart details can protect your business from non-compliance risks. Always check new thresholds and sections each financial year and don’t rely on outdated FY 2024-25 rates.
FAQs
Q1: Has the TDS rate on rent changed?
Yes, the monthly threshold has increased to ₹50,000.
Q2: What is Section 194T?
A new section for TDS on partnership firm payments to partners – 10% rate.
Q3: Are there different rates for NRIs?
Yes, payments under Section 195 attract 10–30% depending on income type.
Q4: What if I don’t deduct TDS correctly?
You may face penalties, disallowance of expense, or higher TDS rates under Section 206AB.
Q5: Which year’s limits to follow – FY 2024-25 or FY 2025-26?
Always follow the new TDS rates as per Budget 2025.