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RATE REFERENCE

TDS & Income Tax Rates

Complete reference guide for TDS rates under various sections and income tax slab rates for FY 2025-26 (AY 2026-27).

TDS Rates under Various Sections

New Updated

Applicable for FY 2025-26. Rates may vary if PAN is not available. Please consult your tax advisor.

Section Nature of Payment Rate (PAN Available) Threshold Limit (₹) Status
194A Interest (other than securities) 10% 5,000 Updated
194C Contractor / Sub-contractor 1% / 2% 30,000 (per contract) New
194D Insurance Commission 5% 15,000 -
194H Commission / Brokerage 5% 15,000 -
194I Rent (P&M / Land & Building) 2% / 10% 2,40,000 (annual) Updated
194J Professional / Technical Fees 10% 30,000 -
194K Dividend on Securities 10% 5,000 -
194M Payment to Contractor (Individual/HUF) 5% 50,00,000 New
194Q Purchase of Goods 0.1% 50,00,000 Updated
194S Cryptocurrency / VDA 1% 10,000 New

* TDS rate is 20% (or higher) if PAN is not available. Rates may vary with surcharge and cess.

Income Tax Slabs for FY 2025-26 (AY 2026-27)

Default

New Tax Regime

Income Slab Rate
₹ 0 - ₹ 4,00,000Nil
₹ 4,00,001 - ₹ 8,00,0005%
₹ 8,00,001 - ₹ 12,00,00010%
₹ 12,00,001 - ₹ 16,00,00015%
₹ 16,00,001 - ₹ 20,00,00020%
₹ 20,00,001 - ₹ 24,00,00025%
Above ₹ 24,00,00030%

* Rebate u/s 87A up to ₹ 12,00,000 income (tax rebate up to ₹ 60,000)

* Standard Deduction: ₹ 75,000 for salaried individuals

Optional

Old Tax Regime

Income Slab Rate
₹ 0 - ₹ 2,50,000Nil
₹ 2,50,001 - ₹ 5,00,0005%
₹ 5,00,001 - ₹ 10,00,00020%
Above ₹ 10,00,00030%

* Rebate u/s 87A up to ₹ 5,00,000 income (tax rebate up to ₹ 12,500)

* Standard Deduction: ₹ 75,000 for salaried individuals

* Deductions under 80C, 80D, 80E, 80G, etc. available

Surcharge & Health & Education Cess

Surcharge Rates

Income Range Surcharge Rate
₹ 50 Lakh - ₹ 1 Crore10%
₹ 1 Crore - ₹ 2 Crore15%
₹ 2 Crore - ₹ 5 Crore25%
Above ₹ 5 Crore37%

* Surcharge applicable on income tax amount (not on total income)

Health & Education Cess

4%

Applicable on Income Tax + Surcharge

Formula:

Cess = (Income Tax + Surcharge) × 4%

Example Calculation:

Income Tax: ₹ 1,00,000

Surcharge: ₹ 10,000 (if applicable)

Cess: (1,00,000 + 10,000) × 4% = ₹ 4,400

Total Tax Payable: ₹ 1,14,400

Last Updated: June 2026. Rates are subject to change. Please verify with official sources.

Quick Reference Summary

Key rates at a glance

Standard TDS Rate

10%

Section 194A, 194J

New Regime Slab 1

5%

₹4-8 Lakhs

Old Regime Slab 2

20%

₹5-10 Lakhs

Health & Education Cess

4%

On Tax + Surcharge

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