26 September 2026 · Ruhu AI
TDS rate chart for FY 2026-27
Tax Deducted at Source (TDS) means the payer withholds a slice of certain payments and deposits it with the government on the payee's behalf. Deduct at the wrong rate, or miss a threshold, and you face interest and disallowance, so the section-wise chart below is the reference you keep open through the year.
A note on FY 2026-27: this is the first year the new Income-tax Act, 2025 is in force (from 1 April 2026). It renumbers the TDS provisions, but the rates and thresholds are unchanged from FY 2025-26. Because the portal, utilities and everyday practice still use the familiar 194-series numbers, the chart leads with those and maps each to its new-Act section (392 for salary, 393 for the rest) in a second column.
The full TDS chart (FY 2026-27), resident payees
The Section column shows the familiar 194-series numbers (still used by the portal, challans and TDS utilities); the New Act column shows where the provision now sits under the Income-tax Act, 2025, salary TDS in Section 392, the non-salary deductions consolidated under Section 393.
| Section (1961) | New Act, 2025 | Nature of payment | Threshold (FY 2026-27) | Rate (resident) |
|---|---|---|---|---|
| 192 | 392 | Salary | Basic exemption limit (based on estimated annual salary) | Average slab rate |
| 192A | 393 | Premature EPF withdrawal | ₹50,000 | 10% (20% if no PAN) |
| 194 | 393 | Dividend (domestic company) | ₹10,000 | 10% |
| 194A | 393 | Interest (bank / post office / co-op) | ₹50,000 (₹1,00,000 for senior citizens) | 10% |
| 194A | 393 | Interest (other payers) | ₹10,000 | 10% |
| 194C | 393 | Payment to contractors | ₹30,000 single / ₹1,00,000 aggregate in FY | 1% (individual/HUF), 2% (others) |
| 194H | 393 | Commission or brokerage | ₹20,000 | 2% |
| 194-I(a) | 393 | Rent, plant & machinery / equipment | ₹50,000 per month | 2% |
| 194-I(b) | 393 | Rent, land / building / furniture | ₹50,000 per month | 10% |
| 194J | 393 | Professional fees / royalty / non-compete | ₹50,000 | 10% |
| 194J | 393 | Technical services / call-centre | ₹50,000 | 2% |
| 194Q | 393 | Purchase of goods | Buyer turnover > ₹10 cr; value > ₹50 lakh per seller | 0.1% (on value above ₹50 lakh) |
| 194O | 393 | E-commerce operator to participant | ₹5,00,000 (individual/HUF only) | 0.1% |
| 194-IA | 393 | Transfer of immovable property | ₹50,00,000 | 1% |
| 194-IB | 393 | Rent by individual/HUF (not under audit) | ₹50,000 per month | 2% |
| 194N | 393 | Cash withdrawal | > ₹1 cr (filers); > ₹20 lakh (non-filers) | 2% (filers); non-filers 2% on ₹20L–1cr, 5% above ₹1cr |
| 194T | 393 | Firm/LLP payment to partner (salary, interest, commission) | ₹20,000 in FY | 10% |
| 206AA | see note | PAN not furnished | n/a | Higher of specified rate, rate in force, or 20% (1% for 194O/194Q) |
The new-Act mapping (392 for salary, 393 for the rest) reflects the consolidation structure; confirm the exact section and sub-clause references, and the equivalent of 206AA, against the bare Act before relying on the new numbers.
Two recent structural changes to note:
- TCS on sale of goods (206C(1H)) was abolished from 1 April 2025, so there is no longer any 194Q vs 206C(1H) overlap; only 194Q (buyer deducts 0.1%) applies.
- The higher-rate-for-non-filers regime (206AB / 206CCA) was omitted from 1 April 2025. PAN-based higher deduction under 206AA still applies.
The sections you'll use most
- 194C, contractors. 1% for individuals/HUF, 2% for others, on a single payment over ₹30,000 or ₹1,00,000 in aggregate over the year.
- 194J, professional vs technical fees. 10% for professional/royalty, 2% for technical services, both over a ₹50,000 threshold. Classification decides the rate.
- 194H, commission & brokerage. 2% over ₹20,000.
- 194-I, rent. 2% for plant & machinery, 10% for land/building, over ₹50,000/month.
- 194Q, purchase of goods. Buyers with turnover above ₹10 crore deduct 0.1% on purchases above ₹50 lakh per seller in the year.
- 194T, payments to partners (new). Firms and LLPs now deduct 10% on partner salary, interest, commission and the like, over ₹20,000 in the year.
When to deduct, and when to deposit
TDS is deducted at the earlier of payment or credit. Then:
- Monthly deposit: by the 7th of the following month.
- March deductions: by 30 April.
- Quarterly TDS returns: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May.
- Certificates: Form 16 (salary) by 15 June following the FY; Form 16A (non-salary) within 15 days of the return due date.
Consequences of short or late deduction
- Interest: 1% per month for late/non-deduction; 1.5% per month for late deposit after deduction.
- Disallowance (s.40(a)(ia)): 30% of the expense is disallowed if TDS is not deducted or not deposited by the return due date (allowed back in the year it's paid).
- Late-filing fee (s.234E): ₹200 per day, capped at the quarter's TDS amount.
- Penalty (s.271H): ₹10,000 to ₹1,00,000 for non-filing or incorrect filing.
Lower / nil deduction, and no PAN
- Lower or nil deduction: a payee can apply (Form 13) for a certificate; the payer deducts at the certified rate.
- PAN not available (206AA): deduct at the higher of the normal rate or 20% (1% for 194O/194Q).
FAQ
What is the difference between TDS and TCS? TDS is deducted by the payer on certain payments (e.g. a company deducting on a contractor's bill). TCS is collected by the seller on certain sales. Note that TCS on sale of goods was withdrawn from April 2025.
Do individuals and HUFs have to deduct TDS? Broadly, individuals/HUFs whose accounts were subject to tax audit in the preceding year must deduct under sections like 194C and 194J. Some sections apply regardless of audit, for example 194-IA (property) and 194-IB (rent).
What rate applies if the payee has no PAN? The higher of the normal rate or 20% (1% for 194O/194Q).
When is TDS deposited for a March deduction? By 30 April, not the usual 7th-of-next-month date.
How do I reconcile the TDS credited to me? Match your Form 26AS and AIS against your records before filing, see the 26AS & AIS reconciliation guide.