TDS means cutting tax at the time of payment itself. If you pay salary, rent, contractors or professionals, you must deduct TDS once the payment crosses the limit. Here's the full list.
Main TDS Rates
| Type of payment | Limit | Rate |
|---|---|---|
| Salary | As per slab | Slab rate |
| Bank interest | ₹50,000 (₹1 lakh for senior citizens) | 10% |
| Contractor | ₹30,000 per payment / ₹1 lakh per year | 1% individual, 2% company |
| Commission / brokerage | ₹20,000 | 2% |
| Rent – building | ₹50,000 per month | 10% |
| Rent – machinery | ₹50,000 per month | 2% |
| Professional fees | ₹50,000 | 10% |
| Technical fees | ₹50,000 | 2% |
| Property purchase | ₹50 lakh | 1% |
| Purchase of goods | ₹50 lakh | 0.1% |
| Salary/interest to partner | ₹20,000 | 10% |
| Crypto | ₹10,000 | 1% |
| Lottery / online gaming | ₹10,000 | 30% |
| Dividend | ₹10,000 | 10% |
No PAN given? Then TDS is deducted at 20%.
When to deposit? By the 7th of the next month. For March, by 30 April.
Return filing dates: 31 July, 31 October, 31 January, 31 May.
If you're late: 1.5% interest per month plus ₹200 per day late fee.
Want to avoid TDS? Submit Form 15G (below 60) or Form 15H (senior citizen) at your bank. Or apply for a lower deduction certificate using Form 13.
3 mistakes to avoid:
- Don't deduct TDS on the GST amount — only on the basic value
- The rent limit is monthly, not yearly
- When a firm pays its partner, Section 194T applies — most people forget this
FAQ
- How much TDS on professional fees? 10%, above ₹50,000
- Do I need a TAN for a property purchase? No, file Form 26QB using your PAN
- What if extra TDS was deducted? Claim a refund in your ITR
Disclaimer: This is general information. The new Income Tax Act 2025 applies from FY 2026-27, so please confirm the rates on incometax.gov.in before publishing. Consulting a CA is advisable.