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Section 194A TDS Rate FY 2026-27
TDS on interest other than interest on securities: rate, threshold, who deducts, and the new section number under the Income-tax Act 2025.
Quick answer
- TDS rate
- 10%
- Threshold
- Bank, co-operative bank or post office: ₹50,000 (₹1,00,000 for senior citizens). Others: ₹10,000
- Old section (1961 Act)
- Section 194A
- New section (2025 Act, from 1 Apr 2026)
- Section 393(1), Table Sl. No. 5(ii) and 5(iii)
- Without PAN
- 20% if the payee does not furnish a valid PAN.
What changed: Until 31 March 2025 the limits were ₹40,000 (₹50,000 for senior citizens) for banks and ₹5,000 for others. They were raised from 1 April 2025.
194A TDS rate chart
| Nature of payment | Rate |
|---|---|
| Interest paid by a bank, co-operative bank or post office | 10% |
| Interest paid by any other specified person | 10% |
Who deducts and when
Who has to deduct
Any person other than an individual or HUF, plus individuals and HUFs whose accounts were required to be audited in the preceding year, paying interest (other than interest on securities) to a resident.
When to deduct
At the time of credit (including credit to an interest payable or suspense account) or payment, whichever is earlier.
Points to remember
- Individuals whose income is below the taxable limit can submit Form 15G (or Form 15H for senior citizens) to avoid TDS.
- The bank limit applies per bank, aggregated across branches where the bank uses core banking.
- Interest on securities (old Section 193) is a different provision.
Worked example
A bank credits ₹1,20,000 of FD interest to a non-senior-citizen depositor in the year.
TDS at 10% = ₹12,000.
Section 194A TDS calculator
Runs in your browser. Check the threshold above before deducting.
Frequently Asked Questions
What is the TDS rate under Section 194A?
What is the threshold limit for TDS under 194A?
What is the new section for 194A under the Income-tax Act 2025?
Who has to deduct TDS under 194A?
When should TDS under 194A be deducted?
What is the TDS rate under 194A if PAN is not available?
What is the due date for depositing TDS under 194A?
What happens if TDS under 194A is not deducted or deposited on time?
What is the TDS limit on FD interest for FY 2025-26?
How can I avoid TDS on FD interest?
Section 393 table references are based on the Income-tax Act, 2025 as published. Verify the serial number against the official text before quoting it in a return or notice reply.