📑 TDS Desk — FY 2025-26
Post-Budget-2025 thresholds (including the new s.194T on partner payments), the interest every notice quotes, and the deductor's calendar.
Rate & threshold finder
s.192 — Salaryslab
Threshold: Basic exemption
Average rate on estimated annual income; employee's chosen regime (default new).
s.193 — Interest on securities10%
Threshold: ₹10,000
Threshold unified at ₹10,000 by FA 2025.
s.194 — Dividend10%
Threshold: ₹10,000/yr
Raised from ₹5,000 by FA 2025.
s.194A — Interest (bank/post office FD)10%
Threshold: ₹50,000 (₹1,00,000 senior citizens)
FA 2025 raised limits; ₹10,000 for other payers. No PAN → 20%.
s.194C — Contractor payments1% individual/HUF · 2% others
Threshold: ₹30,000 single / ₹1,00,000 annual
Transporter with ≤10 vehicles + declaration → nil.
s.194H — Commission / brokerage2%
Threshold: ₹20,000/yr
Rate cut to 2% (Oct 2024); threshold raised by FA 2025.
s.194I — Rent2% plant & machinery · 10% land/building
Threshold: ₹50,000 per month
FA 2025 moved to a monthly threshold.
s.194-IA — Purchase of immovable property1%
Threshold: ₹50,00,000
On the higher of consideration or stamp value; Form 26QB within 30 days.
s.194-IB — Rent by individual/HUF (no audit)2%
Threshold: ₹50,000 per month
Rate cut from 5% (Oct 2024); deduct once in the last month, Form 26QC.
s.194J — Professional / technical fees10% professional · 2% technical/call-centre
Threshold: ₹50,000/yr
FA 2025 raised from ₹30,000.
s.194Q — Purchase of goods0.1%
Threshold: ₹50,00,000/yr per seller
Buyer turnover > ₹10cr; overrides 206C(1H).
s.194T — Partner remuneration/interest from firm10%
Threshold: ₹20,000/yr
NEW from 1-Apr-2025 (FA 2024) — firms must now deduct on partner payments.
s.195 — Payments to non-residentsRates in force / DTAA
Threshold: ₹0
Form 15CA/CB discipline; treaty relief needs TRC.
Deducted late? Deposited late? — s.201(1A) + s.234E
Interest @1% (late deduction)
₹0
Interest @1.5% (late deposit)
₹1,500
234E fee (capped at TDS)
₹6,000
- • 1%/month (or part) for non-deduction — from the date deductible to the date deducted.
- • 1.5%/month (or part) for non-deposit — from the date of deduction to the date of payment.
- • Interest is mandatory before the TDS return is accepted; disallowance u/s 40(a)(ia) may also bite.
- • ₹200/day u/s 234E, capped at the TDS amount in the statement.
- • Separate penalty u/s 271H (₹10k–₹1L) can apply beyond one year's delay — avoidable if tax+interest+fee are paid and the return filed within a year.
The deductor's calendar
| 7th of next month | Deposit TDS deducted (challan ITNS-281) | March deductions: 30 April (non-government). |
| 31 Jul / 31 Oct / 31 Jan / 31 May | Quarterly returns 24Q (salary) & 26Q (others) | Q1–Q4 respectively; 27Q for non-resident payees. |
| Within 15 days of return due date | Issue Form 16A (quarterly) | Form 16 for salary: by 15 June annually. |
| 30 days from month-end | 26QB/26QC/26QE challan-cum-statements | Property, high rent, crypto payments. |
Reconciling what was actually deducted against the return? Use the 26AS Reconciliation tool (Pro).