TDS RATE CHART – FY 2025-26 (AY 2026-27)

-

 TDS RATE CHART – FY 2025-26 (AY 2026-27) Understanding TDS rates & thresholds is crucial to avoid interest, penalties, and notices. Here’s a quick summary of frequently applicable TDS sections 👇

🔹 FREQUENTLY APPLICABLE TDS SECTIONS


🔹 Sec 192 – Salary

✔ Threshold: NA

✔ TDS: As per applicable slab rates


🔹 Sec 194C – Contractor Payments

✔ ₹30,000 (single) | ₹1,00,000 (annual)

✔ TDS: 1% (Ind/HUF) | 2% (Others)


🔹 Sec 194H – Commission / Brokerage

✔ Threshold: ₹20,000

✔ TDS: 2%


🔹 Sec 194J – Professional / Technical Services

✔ Threshold: ₹50,000

✔ TDS:

• 2% – Technical services

• 10% – Professional services


🔹 Sec 194I – Rent

✔ Plant & Machinery: 2%

✔ Land / Building / Furniture: 10%

✔ Threshold: ₹50,000 per month


🔹 Sec 194IA – Purchase of Property

✔ Threshold: ₹50 Lakh

✔ TDS: 1%


🔹 Sec 194IB – Rent (Individual / HUF)

✔ Threshold: ₹50,000 per month

✔ TDS: 2%


🔹 Sec 194M – Payments by Individual / HUF

✔ Threshold: ₹50 Lakh

✔ TDS: 2%


🔹 Sec 194N – Cash Withdrawal

✔ ₹1 Cr (₹3 Cr for Co-op Society)

✔ TDS: 2%


🔹 Sec 194T – Payment to Partners

✔ Threshold: ₹20,000

✔ TDS: 10%


🔹 OTHER IMPORTANT TDS SECTIONS


🔸 Sec 194B – Lottery / Game Winnings

✔ ₹10,000 | TDS: 30%


🔸 Sec 194BA – Online Game Winnings

✔ No threshold | TDS: 30%


🔸 Sec 194D – Insurance Commission

✔ ₹20,000

✔ 2% (Ind/HUF) | 10% (Others)


🔸 Sec 194O – E-commerce Payments

✔ ₹5 Lakh | TDS: 0.1%


🔸 Sec 194R – Benefits / Perquisites

✔ ₹20,000 | TDS: 10%


⚠️ IMPORTANT TDS COMPLIANCE NOTES


✔ PAN not furnished → TDS @20% or higher rate

✔ TDS deduction at earlier of payment or credit

✔ Deposit TDS by 7th of next month

(March: 30th April)

✔ Interest:

• 1% p.m. – Non-deduction

• 1.5% p.m. – Late payment


📝 TDS RETURN FILING


✔ Quarterly filing mandatory

✔ Due date: End of next month after quarter

(Jan–Mar: 31st May)

✔ Penalty u/s 271H: ₹200 per day (subject to limits)


📌 SUMMARY


This TDS Rate Chart for FY 2025-26 helps businesses, professionals & individuals ensure correct deduction, timely payment, and compliant filing.


📩 Need help with TDS compliance or return filing?

GSTJIT Advisory – Tax | GST | TDS | Compliance

📧 gstjitadvisory@gmail.com

🌐 gstjitadvisory.blogspot.com

📸 Instagram: @gstjitadvisory



Comments

Post a Comment

Popular posts from this blog

Section 194Q vs Section 206C(1H)

-
Image
Section 194Q vs Section 206C(1H) Confused between TDS and TCS on purchase of goods? You’re not alone. With high-value transactions becoming common, understanding who deducts what is critical to avoid notices, interest & penalties. 🔍 Key Difference in Simple Terms: 1. Section 194Q (TDS on Purchase of Goods) ▪ Applicable to buyer ▪ Turnover > ₹10 Cr in preceding FY ▪ TDS @ 0.1% ▪ Applicable when purchase from a seller > ₹50 Lakhs 2. Section 206C(1H) (TCS on Sale of Goods) ▪ Applicable to seller ▪ Turnover > ₹10 Cr in preceding FY ▪ TCS @ 0.1% ▪ Collected when sale to a buyer > ₹50 Lakhs ⚠ Important Rule: 👉 If Section 194Q applies , then 206C(1H) will NOT apply . 📌 Proper identification = Zero compliance risk. 📩 Need help determining applicability for your business? GSTJIT Advisory is here to assist. — Sujit Boliar 📞 90642 63759 📧 gstjitadvisory@gmail.com 🔗 LinkedIn: Sujit Boliar Hashtags #IncomeTax #TDS #TCS #Section194Q #Section206C #TaxCompliance #GSTJITAdviso...
Read more

Post #28: Section 17(5) of CGST Act – Blocked Input Tax Credit

-
Image
  What is Section 17(5)? Section 17(5) of the CGST Act specifies certain expenses on which Input Tax Credit (ITC) is NOT allowed , even if GST has been paid. These are commonly known as Blocked Credits . ❌ Major Expenses Where ITC Is Blocked ✔️ Motor Vehicles (Except when used for transport of goods, passengers, or training) ✔️ Food & Beverages / Catering ✔️ Outdoor Catering ✔️ Beauty Treatment & Health Services ✔️ Club Memberships ✔️ Life & Health Insurance (except where mandatory under law) ✔️ Travel Benefits to Employees ✔️ Works Contract Services (for construction of immovable property) ✔️ Goods Lost, Stolen, Destroyed or Written Off ⚠️ Important Practical Point 📌 ITC on blocked items cannot be claimed even if used for business purposes . Wrong claim = interest + penalty . 🧠 Professional Insight “Most GST notices arise due to incorrect ITC claims under Section 17(5).” 📌 Action for Businesses ✔️ Review expense ledgers ✔️ Identify blocked ITC monthly ✔️ Reverse ITC...
Read more