TDS Rate Finder & Calculator — Section-wise TDS Rates for FY 2025–26
This TDS Rate Finder covers all 40+ sections of the Income Tax Act 1961, showing the applicable rate, threshold limit, and no-PAN rate (Section 206AA) for each. The built-in calculator computes your exact TDS deduction, surcharge, 4% health & education cess, and net payable amount instantly. Built by a practicing Chartered Accountant; updated for FY 2025–26 (AY 2026–27).
| Section | Nature of Payment | Threshold | Rate (With PAN) | No PAN (Sec. 206AA) | Deductor |
|---|
What is TDS? A Complete Guide for FY 2025–26
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act 1961 by which the payer (deductor) deducts a specified percentage of tax before making payment to the recipient (deductee). The deducted amount is deposited with the Central Government, and the deductee gets credit in their annual income tax return. TDS ensures a regular flow of revenue and reduces tax evasion at the source of income.
The CBDT (Central Board of Direct Taxes) administers TDS compliance. All TDS filings and certificates are processed through the TRACES portal (TDS Centralised Processing Centre).
How TDS Works — Step by Step
When a deductor makes a payment covered under TDS provisions: (1) verify the payment crosses the threshold for the relevant section; (2) identify the applicable rate based on payee category and PAN status; (3) deduct TDS at the time of credit or payment — whichever is earlier; (4) deposit TDS by the 7th of the following month (30th April for March); (5) file quarterly returns on TRACES and issue TDS certificates to the deductee.
Who Must Deduct TDS?
For most sections (194A, 194C, 194J), any person carrying on a business with turnover exceeding ₹1 crore (₹50 lakh for professionals) must deduct TDS. For salary (Section 192), any employer whose employee's income exceeds the basic exemption must deduct TDS. For property purchases (Section 194IA), any individual buyer purchasing property worth ₹50 lakh or above must deduct 1% — regardless of business status. All deductors must hold a valid TAN (Tax Deduction Account Number) under Section 203A.
CA Tip: Always verify the PAN of the deductee before making payments. An inoperative PAN (not linked with Aadhaar) attracts higher TDS at 20% under Section 206AA. Use the income tax portal's PAN verification tool to confirm validity before each payment.
TDS Deposit Due Dates & Return Filing Deadlines FY 2025–26
Missing TDS deposit or filing deadlines triggers interest under Section 201(1A) and late fees under Section 234E (₹200 per day of default). Here are the key compliance dates:
TDS Deposit Due Dates
| Month of Deduction | Government Deductor | Other Deductors |
|---|---|---|
| April – February | Same day (challan) | 7th of the following month |
| March | Same day (challan) | 30th April |
Quarterly TDS Return Filing Deadlines
| Quarter | Period | Due Date (24Q / 26Q / 27Q) |
|---|---|---|
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
TDS Certificate Issuance
| Certificate | For | Due Date |
|---|---|---|
| Form 16 (Part A) | Salary TDS (Section 192) | 15th June (after Q4 return) |
| Form 16A | Non-Salary TDS | 15 days from TDS return due date |
| Form 16B | Property purchase (Section 194IA) | 15 days from Form 26QB due date |
| Form 16C | Rent (Section 194IB) | 15 days from Form 26QC due date |
Important: TDS returns must be filed with correct challan details. Mismatches between OLTAS payment data and the TDS return create defaults. Always reconcile using the TRACES portal before filing.
Penalties & Interest for TDS Default
Non-compliance with TDS provisions carries significant financial and legal consequences. The Income Tax Department can levy interest, penalty, and in extreme cases, initiate prosecution under Section 276B.
| Default Type | Section | Consequence |
|---|---|---|
| Failure to deduct TDS | Section 201(1A) | Interest @ 1% per month from date due to date of actual deduction |
| Delay in depositing TDS | Section 201(1A) | Interest @ 1.5% per month from deduction to deposit date |
| Failure to file TDS return | Section 234E | ₹200 per day of default (max: TDS amount) |
| Penalty for non-deduction | Section 271C | Penalty equal to TDS amount not deducted |
| Incorrect/late TDS return | Section 271H | ₹10,000 to ₹1,00,000 |
| Expenditure disallowance | Section 40(a)(ia) | 30% of expense disallowed if TDS not deducted |
| Prosecution (wilful failure) | Section 276B | Rigorous imprisonment 3 months to 7 years + fine |
Lower Deduction Certificate (Section 197): If a payee's estimated income results in lower tax liability, they can apply to the Assessing Officer for a lower/nil deduction certificate. Applications are submitted on the income tax portal and significantly improve cash flow by reducing TDS burden.
Section 206AA — TDS at Higher Rate Without PAN
Section 206AA mandates that if the payee does not furnish a valid PAN, TDS must be deducted at the higher of: (a) the rate in the relevant section, or (b) 20%. This ensures PAN compliance and creates an audit trail for income tax purposes.
Since FY 2024–25, a PAN linked with Aadhaar is treated as valid. However, an inoperative PAN (unlinked from Aadhaar) is treated as invalid and attracts the 20% higher rate. Deductors must verify PAN validity at the time of payment using the income tax portal's PAN verification tool.
TDS Rate = Higher of:
(a) Rate specified in the applicable TDS section
(b) Rate in force (where prescribed)
(c) 20%
Example: Section 194C (Contractor) — Normal rate: 2%
If No PAN → TDS = 20% (higher than 2%)
Section 206AB — Higher TDS for Non-Filers: From FY 2021–22, Section 206AB requires TDS at twice the applicable rate (or 5%, whichever is higher) for "specified persons" — those who have not filed ITR for both preceding two years AND whose aggregate TDS/TCS exceeded ₹50,000 per year. Check the compliance portal to verify if a deductee qualifies as a specified person.
