Common TDS rates and thresholds (residents)
These rates continue under the Income-tax Act, 2025 from tax year 2026-27, which consolidates the TDS provisions into one table.
| Payment | Rate | Threshold |
|---|---|---|
| Professional fees | 10% | ₹50,000 a year |
| Fees for technical services, call centres | 2% | ₹50,000 a year |
| Contract work — individual/HUF contractor | 1% | ₹30,000 single, ₹1 lakh a year |
| Contract work — others | 2% | ₹30,000 single, ₹1 lakh a year |
| Commission or brokerage | 2% | ₹20,000 a year |
| Rent — land, building, furniture (by businesses) | 10% | ₹50,000 a month |
| Rent — plant and machinery | 2% | ₹50,000 a month |
| Rent by individuals not under audit | 2% | ₹50,000 a month |
| Interest (other than banks) | 10% | ₹10,000 a year |
| Purchase of goods (large buyers) | 0.1% | ₹50 lakh a year per seller |
| Salary and commission to partners | 10% | ₹20,000 a year |
Deductor's obligations
- Hold a TAN
- Deposit TDS by the 7th of the next month (30 April for March)
- File quarterly TDS returns and issue TDS certificates
- Interest at 1% or 1.5% a month for late deduction or deposit
Worked example: paying a consultant
- 1Consultancy fees of ₹1,20,000 in a year — above the ₹50,000 threshold.
- 2TDS at 10% = ₹12,000; the consultant receives ₹1,08,000 (plus GST if charged, on which TDS isn't deducted when shown separately).
- 3Deposit by the 7th of the next month and report in the quarterly return.
TDS ₹12,000, which the consultant claims as credit in their ITR.
