What changed in TDS thresholds from April 2025?

Interest for senior citizens rose to ₹1 lakh, dividend and MF income to ₹10,000, professional fees to ₹50,000, commission to ₹20,000, rent under 194-I to ₹50,000 a month, and 194T was introduced for partners' remuneration at 10%.

What is the TDS rate if the payee has no PAN?

Section 206AA requires deduction at the higher of the section rate or 20% (5% for 194Q and 194-O). An inoperative PAN not linked to Aadhaar is treated the same way.

When is TDS deducted, on credit or payment?

At the earlier of credit to the payee's account (including a suspense or provision account) or actual payment.

What is the due date to deposit TDS?

The 7th of the following month; for March deductions, 30 April. Government deductors have different rules. Late deposit attracts 1.5% a month interest.

Does TDS apply to GST on the invoice?

No. CBDT Circular 23/2017 excludes the GST component when it is shown separately on the invoice; TDS is on the value excluding GST.

TDS Rate Finder FY 2025-26

Every TDS section with its rate and threshold after the Finance Act 2025 changes, searchable, with the deduction on any amount.

Switch tool

Search by section, payment type or payee

Payment amount (₹, optional)

₹

Payee has furnished PAN?

Section details

Section

194J(b)

Nature of payment

Professional fees, director's fees, non-compete

Rate

10%

Threshold

₹50,000 (nil for director's fees)

Payee

Resident

Indicative only. Rates and thresholds for FY 2025-26 as amended by the Finance Act 2025 (effective 1 April 2025). Lower-deduction certificates under 197, Form 15G/15H declarations and DTAA rates override these. Surcharge and cess apply only to payments to non-residents and companies under 195.

How it works

Find the section

Search by what you are paying for; the list narrows to the matching sections with rate and threshold.

Check the threshold

TDS applies only once the payment, single or aggregate as the section says, crosses the threshold.

Compute

Enter the amount to see the deduction at the section rate, or at 20% if the payee has no PAN.

What changed from 1 April 2025

The Finance Act 2025 raised most TDS thresholds for the first time in years: interest for senior citizens to ₹1 lakh, dividend and MF income to ₹10,000, professional fees to ₹50,000, commission to ₹20,000, and rent under 194-I from ₹2.4 lakh a year to ₹50,000 a month. It added Section 194T, taxing partners' remuneration and interest at 10%, and dropped the higher rate for non-filers under 206AB. The rates themselves were mostly unchanged after the 2024 cuts on 194D, 194G, 194H and 194-IB to 2%.

Deduct at credit or payment

TDS is due when the amount is credited to the payee's account or paid, whichever is earlier; year-end provisions count.

Deposit by the 7th

Deposit by the 7th of the next month (30 April for March), file 24Q/26Q quarterly and issue Form 16/16A.

Late deduction costs

1% a month for late deduction, 1.5% a month for late deposit, ₹200 a day for a late return; use the TDS interest calculator.

Disallowance

30% of an expense on which TDS was not deducted is disallowed under 40(a)(ia) until the tax is paid.