Published Nov 27, 2025 4 Min Read

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Tax planning plays a crucial role in achieving financial stability and growth. One of the most important aspects of tax planning is understanding TDS (Tax Deducted at Source), a mechanism that ensures timely tax collection by deducting tax at the source of income. For the fiscal year 2025–26 (assessment year 2026–27), staying updated on the latest TDS rates is essential for compliance and optimising your financial strategy.


Alongside tax planning, investing in secure and predictable instruments like Bajaj Finance Fixed Deposits (FDs) can help you build wealth while ensuring tax efficiency. Let us explore the updated TDS rates chart for FY 2025–26, key changes, and how Bajaj Finance FDs can complement your financial goals.


What is TDS rate chart?

TDS, or Tax Deducted at Source, is a system where tax is deducted by the payer at the time of making specific payments such as salary, interest, rent, or professional fees. The TDS rate chart outlines the applicable rates, threshold limits, and relevant sections under which tax is deducted.


Understanding the TDS rate chart is vital for individuals and businesses to ensure compliance, avoid penalties, and plan their finances effectively. For instance, if you are earning interest income from fixed deposits, knowing the applicable TDS rates can help you manage your tax liability efficiently.


Pro Tip: Bajaj Finance Fixed Deposits offer an attractive interest rate of up to 7.30% p.a. for senior citizens, providing a reliable way to grow your wealth while aligning with your tax planning strategy. Book FD. 

Current TDS Rate Chart for FY 2025-26

Here are the commonly applied TDS rates effective from FY 2025–26:

SectionNature of TransactionThreshold Limit (Rs. )TDS Rate
192SalaryBasic exemption limitSlab rates
192APremature EPF withdrawal50,00010%
193Interest on securities10,00010%
194Dividends10,00010%

194A



Interest on bank/post office deposits50,00010%
Interest for senior citizens1,00,00010%
Interest (others)10,00010%
194KDividend from mutual funds10,00010%
194BLottery, game shows, gambling winnings10,00030%
194BAOnline gaming winnings-30%
194BBWinnings from horse races10,000 (annual)30%
194CPayment to contractors/sub-contractors30,000 (single) / 1,00,000 (FY)1% (individual/HUF), 2% (others)
194DInsurance commission20,0002% (individual/HUF), 10% (others)
194DALife insurance payout1,00,0002%
194EENSS payments2,50010%
194GLottery commission20,0002%
194HCommission/brokerage20,0002%
194J(a)Technical services, royalty, call centre, films50,0002%
194J(b)Professional services (others)50,00010%
194I(a)Rent – plant & machinery50,0002%
194I(b)Rent – land/building/furniture50,00010%
194IATransfer of immovable property (non-agri)50,00,0001%
194IBRent payment by individual/HUF50,000 per month2%
194ICJoint development agreement payments-10%
194LACompensation for immovable property (non-agri)5,00,00010%
194LBInterest from infra debt fund (non-resident)-5%
194LBAIncome from business trust-10%
194LBBInvestment fund income-10% (residents), 30% (non-residents), 40% (foreign companies)
194LBCSecuritisation trust income-10% (resident), 40% (non-resident), 10% (individual/HUF)
194MPayments by individual/HUF for contract, brokerage, professional services50,00,0002%

194N



Cash withdrawalAbove 1 crore (3 crore for co-ops)2%
If ITR not filed (20L–1Cr)20,00,0002%
If ITR not filed (1Cr+)-5%
194OE-commerce participants5,00,0000.10%
194PSpecified senior citizens (75+)-Slab rates
194QPurchase of goods50,00,0000.10%
194RBusiness/professional perquisites20,00010%
194STransfer of virtual digital assets10,0001%
 Transfer of VDA by specified person50,0001%
194TPayment by partnership firms to partners20,00010%
194BGame/lucky draw/card game winningsUp to 10,000 (no TDS)30%
194ENon-resident sportsmen/entertainers-20%

194LBA(3)



Interest income distributed by business trust from SPV-5%
Dividend income from SPV-10%
Rental income distributed by business trust-40%

194LC


Interest on foreign currency loans/bonds-5%
Interest on long-term IFSC-listed bonds-4%
194LDInterest on rupee bonds to FIIs/QFIs-5%

195



Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii);Nil12.50%
Income by way of LTCG under section 112A;Nil12.50%
Income by way of STCG under section 111A;Nil20%
Any other income by way of LTCG;Nil12.50%
Interest payable on money borrowed by the government or Indian concern in foreign currency;Nil20%
Income by way of royaltyNil20%
Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy.Nil20%
Any other income.Nil35%

196B


Income from offshore fund units-10%
LTCG from offshore fund units-12.5%

196C


Income from foreign bonds/GDR-10%
LTCG from foreign bonds/GDR-12.5%
196DIncome of FIIs (non-dividend/non-capital gains)-20%

Note: The TDS rates mentioned above are subject to changes as per government regulations.


Why this matters: If you are earning interest income from fixed deposits, like those offered by Bajaj Finance, TDS is deducted at 10% if the interest exceeds Rs. 1,00,000 for senior citizens or Rs. 50,000 for others. This makes it essential to plan your investments and tax liabilities effectively. Bajaj Finance FDs offer assured returns with interest rates as high as 7.30% p.a., making them an excellent choice for securing your financial future. Start investing today!

TDS Rate Changes FY 2025-26


The following updates to TDS provisions will apply from 1st April 2025


The government has revised the threshold limits for TDS deduction across various sections. The updated limits are as follows:


SectionPrevious Threshold LimitModified Threshold Limit
193 – Interest on securitiesNilRs. 10,000
194A – Interest other than securities(i) Rs. 50,000 (senior citizens) 
(ii) Rs. 40,000 (others – bank/co-op/post office) 
(iii) Rs. 5,000 (other cases)		(i) Rs. 1,00,000 (senior citizens) 
(ii) Rs. 50,000 (others – bank/co-op/post office) 
(iii) Rs. 10,000 (other cases)
194 – Dividend (individual shareholders)Rs. 5,000Rs. 10,000
194K – Mutual fund incomeRs. 5,000Rs. 10,000
194B & 194BB – Lottery, games, horse race winningsAggregate exceeding Rs. 10,000 in a FYRs. 10,000 per single transaction
194D – Insurance commissionRs. 15,000Rs. 20,000
194G – Lottery commission/prizesRs. 15,000Rs. 20,000
194H – Commission or brokerageRs. 15,000Rs. 20,000
194-I – RentRs. 2,40,000 (per FY)Rs. 6,00,000 (per FY)
194J – Professional/technical feesRs. 30,000Rs. 50,000
194LA – Enhanced compensationRs. 2,50,000Rs. 5,00,000
206C(1G) – LRS remittance & overseas tour packagesRs. 7,00,000Rs. 10,00,000

  • Additionally, Section 206AB — which earlier increased the compliance burden for TDS deductors — has been removed.
  • The TDS rate under Section 194LBC, relating to income received from investments in securitisation trusts by residents, has been reduced to 10%.
  • A new Section 194T has been introduced, requiring a 10% TDS deduction on remuneration paid to partners, effective 1st April 2025.


How Bajaj Finance Fixed Deposits can enhance your financial planning


Fixed deposits are a popular investment choice for individuals seeking stability and assured returns. Bajaj Finance FDs stand out as a reliable and tax-efficient option, offering several benefits:

  1. Attractive interest rates:
    Earn up to 7.30% p.a. on your investment, with higher rates for senior citizens.
  2. Flexible tenures:
    Choose a tenure between 12 and 60 months to align with your financial goals.
  3. Low minimum deposit:
    Start your investment journey with just Rs. 15,000
  4. High credit safety:
    Bajaj Finance FDs are rated CRISIL AAA/STABLE and [ICRA]AAA(Stable), ensuring the highest level of safety for your investment.
  5. Tax efficiency:
    By diversifying your portfolio with fixed deposits, you can optimise your taxable income, especially in light of the updated TDS provisions.
  6. Convenient online process:
    Open an FD account online in just a few clicks, making it easier to secure your financial future.

Conclusion

Understanding the latest TDS rates and their implications is crucial for effective tax planning and compliance. For FY 2025–26, the changes in threshold limits and new provisions provide opportunities to optimise your taxable income.


Complementing your tax planning with secure investments like Bajaj Finance Fixed Deposits can help you achieve financial stability and growth. With attractive interest rates, flexible tenures, and high credit safety, Bajaj Finance FDs are an ideal choice for both short-term and long-term financial goals.


Start your journey today: Open a Bajaj Finance FD account with just Rs. 15,000 and take the first step towards a secure financial future.

Frequently Asked Questions

What is the current TDS rate?

The Tax Deducted at Source (TDS) rates in India for FY 2025–26 (AY 2026–27) depend on the type and value of the transaction. For instance, interest income generally attracts 10% TDS (subject to thresholds), lottery winnings are taxed at 30%, and the sale of immovable property above Rs. 50 lakh is subject to 1% TDS.

What is the threshold limit for TDS deduction in FY 2025-26?

Threshold limits depend on the transaction type. For instance, the limit for interest on deposits is Rs. 1,00,000 for senior citizens and Rs. 50,000 for others.

Are TDS rates different for individuals and companies?

Yes, TDS rates may vary. For example, payments to individuals under Section 194C attract a TDS rate of 1%, while payments to companies attract a rate of 2%.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.

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