TDS Deduction Rates & Due Dates for FY 2025-26

Key TDS Rates for FY 2025-26

Most commonly applicable TDS sections:

• Section 192: Salary — as per applicable slab rates
• Section 194A: Interest (Bank) — 10% (if > ₹40,000/year; ₹50,000 for senior citizens)
• Section 194C: Contractor payment — 1% (individual/HUF), 2% (others)
• Section 194H: Commission/Brokerage — 5%
• Section 194I: Rent — 10% (for land/building), 2% (for plant/machinery)
• Section 194J: Professional/Technical fees — 10%
• Section 194Q: Purchase of goods — 0.1% (if turnover >₹10 crore)
• Section 195: Foreign payments — rates as per DTAA or Income Tax Act

TDS Due Dates

• Monthly TDS payment: 7th of following month (April–February)
• March TDS payment: 30th April
• Q1 TDS return (26Q/27Q): 31st July
• Q2 TDS return: 31st October
• Q3 TDS return: 31st January
• Q4 TDS return: 31st May
• Form 16 issuance: 15th June (for salary TDS)
• Form 16A issuance: 15 days after TDS return due date

Consequences of TDS Default

• Interest @ 1% per month for late deduction
• Interest @ 1.5% per month for late deposit
• Penalty equal to TDS amount for non-deduction
• Late filing fee under Section 234E: ₹200 per day (max = TDS amount)
• Prosecution for wilful non-deduction/deposit