This guide is general information. If you would rather a chartered accountant handled it, see TDS / TCS Return Filing or Bookkeeping Services.
This chart lists commonly used TDS provisions under the Income-tax Act, 1961 with indicative rates for residents. Rates and thresholds change with each Budget, and sections are renumbered under the Income-tax Act, 2025. Treat this as a reference and confirm before deducting.
Common TDS rates
| Section | Payment | Indicative rate |
|---|---|---|
| 192 | Salary | Slab rates |
| 194A | Interest other than on securities | 10% |
| 194C | Contractors | 1% for individuals/HUFs, 2% for others |
| 194H | Commission or brokerage | 2% |
| 194I | Rent | 2% for plant and machinery, 10% for land, building and furniture |
| 194J | Professional and technical fees | 10% (2% for technical services and call centres) |
| 194Q | Purchase of goods above the specified limit | 0.1% |
| 194-IA | Purchase of immovable property above the specified value | 1% |
Higher rates apply if the PAN is not available. Annual thresholds apply to most sections.
Due dates
| Item | Due date |
|---|---|
| Deposit of TDS | 7th of the following month (30 April for March deductions) |
| TDS return, Q1 (April to June) | 31 July |
| TDS return, Q2 (July to September) | 31 October |
| TDS return, Q3 (October to December) | 31 January |
| TDS return, Q4 (January to March) | 31 May |
| TDS certificates (Form 16A) | 15 days after the return due date |
Late payment
Interest applies at 1% per month on tax not deducted and 1.5% per month on tax deducted but not paid. Late filing of TDS returns attracts a fee of ₹200 per day, up to the TDS amount.
How to use the chart
- Identify the nature of payment, such as professional fees or contractor payment.
- Check whether the payee is a resident and whether PAN is available, because the rate is higher without PAN.
- Check whether the annual or single-payment threshold is crossed before deduction is required.
- Deduct at the correct rate, deposit by the due date, and file the quarterly return.
What happens if TDS is not deducted
If you do not deduct tax where required, interest is charged on the tax. In addition, a percentage of the expense can be disallowed as a deduction in computing your income, which increases your own tax. The deductee's own credit is not affected until the department identifies the default, so a short deduction can also lead to demands later.
Certificates and credit
After filing the quarterly return, the deductor issues a TDS certificate to the deductee. Form 16 is for salary and Form 16A is for other payments. The deductee's credit appears in Form 26AS and the Annual Information Statement. If the amounts do not match your records, ask the deductor to correct the return.
Tips for businesses
- Collect PAN and contract details before the first payment.
- Keep a vendor-wise TDS ledger.
- Match your payments against the threshold during the year.
- File corrections quickly when you find a mistake, because late corrections increase fees.
Rates that depend on facts
A single section can carry different rates depending on who receives the payment and what it is for. Contractor payments, for example, attract a lower rate when paid to an individual or a Hindu undivided family than to a company or firm. Professional fees attract a lower rate for certain technical services than for other professional work. Rent depends on whether it is for machinery or for land and buildings. Always check the facts before picking the rate.
Thresholds
Most sections apply only when payments to one person cross an annual or single-payment limit. These limits have been revised several times. If your payments are close to a threshold, track them for each vendor through the year, because once the limit is crossed, deduction may be needed from the entire amount or only from the excess, depending on the section.
Lower or nil deduction
A payee whose actual tax liability is lower than the rate at which tax would be deducted can apply for a lower deduction certificate. A payer should deduct tax at the rate given in the certificate, until the validity ends. Keep a copy of every certificate you rely on.
Record-keeping tips
- Keep PAN, address and contract copies for every vendor.
- Record the section, the rate, the amount deducted and the date of deposit for each payment.
- Reconcile the challan amount with the ledger before filing the quarterly return.
- Download Form 26AS for your TAN to confirm that the return reflects correctly.
Frequently asked questions
Is TDS deducted on GST?
TDS is generally deducted on the value of the payment excluding GST, if GST is shown separately on the invoice. Check the specific rules for each section.
What is the penalty for late filing of a TDS return?
A fee of ₹200 per day applies until the return is filed, subject to a cap at the amount of TDS, plus a possible penalty in some cases.
Can I get a refund of excess TDS?
Yes, by filing your income tax return and claiming credit for TDS deducted. The refund is processed after the return is verified.
Who needs a TAN?
Any person who deducts or collects tax at source must have a Tax Deduction and Collection Account Number and quote it in returns and certificates.
This content is for general information and does not constitute professional advice. Laws, rates and due dates change; confirm the current position for your case. Section references are to the Income-tax Act, 1961 unless stated; the Income-tax Act, 2025 applies to later periods with renumbered sections.