| Nature of Payment | Sections of the Income Tax Act 2025 | Rate (%) (Income Tax Act 2025) | Notes |
|---|---|---|---|
| Salary | 392(1)–(6) | Normal slab rates | |
| Taxable accumulated EPF balance | 392(7) | 10% | Where aggregate ≥ ₹50,000 |
| Interest on securities | 393(1) Table Sl. No. 5(i) | Rates in force | |
| Dividend | 393(1) Table Sl. No. 7 | 10% | Payer: Domestic company; Threshold: Nil |
| Interest other than interest on securities (from banking co / co-op / post office) | 393(1) Table Sl. No. 5(ii) | Rates in force | Threshold: ₹1,00,000 (senior citizen); ₹50,000 (others) |
| Interest other than interest on securities (from specified person, other than above) | 393(1) Table Sl. No. 5(iii) | Rates in force | Threshold: ₹10,000 |
| Payment to contractor/sub-contractor (Individual/HUF) | 393(1) Table Sl. No. 6(i) | 1% | Threshold: ₹30,000 single; ₹1,00,000 aggregate |
| Payment to contractor/sub-contractor (Other than Individual/HUF) | 393(1) Table Sl. No. 6(i) | 2% | Threshold: ₹30,000 single; ₹1,00,000 aggregate |
| Insurance commission | 393(1) Table Sl. No. 1(i) | Rates in force | Threshold: ₹20,000 |
| Maturity of life insurance policy (taxable portion) | 393(1) Table Sl. No. 8(i) | 2% | On income comprised in such sum; Threshold: ₹1,00,000 |
| Commission or brokerage (not insurance) | 393(1) Table Sl. No. 1(ii) | 2% | Payer: Specified person; Threshold: ₹20,000 |
| Rent – Plant / Machinery / Equipment | 393(1) Table Sl. No. 2(ii)(a) | 2% | Payer: Specified person; Threshold: ₹50,000/month |
| Rent – Land / Building / Furniture / Fittings | 393(1) Table Sl. No. 2(ii)(b) | 10% | Payer: Specified person; Threshold: ₹50,000/month |
| Rent by Individual/HUF (not covered under 194-I) | 393(1) Table Sl. No. 2(i) | 2% | Payer: Person other than specified person; Threshold: ₹50,000/month |
| Transfer of immovable property (other than agricultural land) | 393(1) Table Sl. No. 3(i) | 1% | On consideration or stamp duty value, whichever higher; Threshold: ₹50 lakh |
| Payment under specified agreement (JDA) referred to in Sec 67(14) | 393(1) Table Sl. No. 3(ii) | 10% | Threshold: Nil |
| Fees for professional services / director remuneration / royalty / Sec 26(2)(h) | 393(1) Table Sl. No. 6(iii)(b) | 10% | Payer: Specified person; Threshold: ₹50,000 (Nil for director fees) |
| Fees for technical services (not professional) / royalty for cinematographic films / call centre | 393(1) Table Sl. No. 6(iii)(a) | 2% | Payer: Specified person; Threshold: ₹50,000 |
| Income in respect of units of MF / specified undertaking / specified company | 393(1) Table Sl. No. 4(i) | 10% | Threshold: ₹10,000; Not applicable if income is capital gain |
| Compensation on compulsory acquisition of immovable property (other than agricultural land) | 393(1) Table Sl. No. 3(iii) | 10% | Threshold: ₹5,00,000 |
| Business trust distribution (interest/rent/real estate income) to resident unit holders | 393(1) Table Sl. No. 4(ii) | 10% | Threshold: Nil |
| Investment fund income to resident unit holder | 393(1) Table Sl. No. 4(iii) | 10% | Threshold: Nil |
| Securitisation trust income to resident investor | 393(1) Table Sl. No. 4(iv) | 10% | Threshold: Nil |
| Payments by Individual/HUF (commission/brokerage/contract/professional fees) | 393(1) Table Sl. No. 6(ii) | 2% | Threshold: ₹50 lakh |
| E-commerce operator payment to e-commerce participant | 393(1) Table Sl. No. 8(v) | 0.1% | Threshold: Nil (Note 3 applies) |
| Specified senior citizen (bank deducts tax) | 393(1) Table Sl. No. 8(iii) | Rates in force | |
| Purchase of goods exceeding ₹50 lakh | 393(1) Table Sl. No. 8(ii) | 0.1% | On sum exceeding ₹50 lakh (Note 1) |
| Benefit/perquisite arising from business/profession | 393(1) Table Sl. No. 8(iv) | 10% | Payer: Specified person; Threshold: ₹20,000 |
| Transfer of Virtual Digital Asset | 393(1) Table Sl. No. 8(vi) | 1% | Threshold: Nil as per Table |
Income tax act 2025 is applicable with effect from 01/04/2026
| Nature of Payment | Sections of the Income Tax Act 2025 | Rate (%) (Income Tax Act 2025) | Notes |
|---|---|---|---|
| Winnings from lotteries / crossword / card game / gambling / betting | 393(3) Table Sl. No. 1 | Rates in force | Threshold: ₹10,000 per single transaction |
| Winnings from online games | 393(3) Table Sl. No. 2 | Rates in force | On net winnings as per Note 1 |
| Winnings from horse races | 393(3) Table Sl. No. 3 | Rates in force | Payer: Bookmaker/licensed person; Threshold: ₹10,000 per single transaction |
| Payment under National Savings Scheme (Sec 80CCA(2)(a) of ITA 1961) | 393(3) Table Sl. No. 6 | 10% | Threshold: ₹2,500 |
| Commission / remuneration / prize on lottery tickets | 393(3) Table Sl. No. 4 | 2% | Threshold: ₹20,000 |
| Cash withdrawal – normal | 393(3) Table Sl. No. 5 | 2% | Threshold: ₹3 crore (co-op society); ₹1 crore (others) |
| Cash withdrawal – non-filer cases | 393(3) Table Sl. No. 5 | 2% / 5% | Same conditions apply |
| Salary / remuneration / commission / bonus / interest paid to partner of firm | 393(3) Table Sl. No. 7 | 10% | Threshold: ₹20,000 |
| Repurchase of unit by Mutual Fund / UTI | – (Not carried forward) | N/A | Discontinued; not in ITA 2025 |