TDS Rate Chart for FY 2026-2027 under Income Tax Act, 2025
14 May 2026Saloni Kumari
TDS Rate Chart for FY 2026-2027 under Income Tax Act, 2025
The Income Tax Department has enforced the TDS (Tax Deducted at Source) rates for the Tax Year or Financial Year 2026-2027 (Assessment Year 2027-28) under the new Income Tax Act 2025. The TDS rates under the new framework generally range from 0.1% to 30%. Under the newly introduced IT Act 2025, all the TDS provisions have been unified under a single section, Section 393, which replaces the earlier spread-out section under the Income Tax Act 1961.
Now, let us understand what exactly TDS is. So, TDS, also known as Tax Deducted at Source, is a tax system under which an individual or authority (deductor) makes a payment to some other individual (deductee) and, before making this payment, deducts a certain percentage of tax. This tax is, thereafter, directly deposited with the government. The aim behind introducing this system was to ensure tax is collected directly from the source of income, reducing the chances of tax evasion. A deductee can view this deducted tax amount in his/her Form 26AS.
TDS is collected on several sources of income, including salary, bank interest (for instance, above Rs 40,000 for non-seniors), rent, professional fees, commission, etc. Every taxpayer, salaried employee, business proprietor, tax professional, chartered accountant, etc., should be aware of the applicable TDS rates, limits, and sections in order to avoid legal consequences like penalties.
Some important points related to TDS every taxpayer should be aware of:
- Form 26A provides a comprehensive detail of all TDS pertaining to you during a financial year or tax year. However, Form 26A has now been replaced with Form 149 under the new Income Tax Act 2025.
- If your income does not exceed the taxable limit and your age is below 60 years, then you can furnish Form 15G, and if you have attained the age of 60 years or above (senior citizen), then you can furnish Form 15H. These forms will help you prevent TDS deduction. However, now these forms have been replaced by a consolidated Form 121 under the new Income Tax Act 2025.
- If the total TDS amount is more than your aggregate tax liability, then in this case, you can claim the surplus amount as a refund while filing an income tax return (ITR).
The following are the TDS rates for Tax Year or Financial Year 2026-2027 (Assessment Year 2027-28) under the Income Tax Act, 2025:
| TDS RATE (Tax Year/Financial Year 2026-2027) | |||||
| Section under Income-Act, 1961 | Section under Income-tax Act, 2025 | Nature of Payment Made To Residents | Threshold | Individual / HUF | Other than Individual / HUF |
| 194C | 393(1) [Table: Sl. No. 6(i).D(a)] | Work contract (Contractor is Individual/HUF) | 30k single / 1L aggregate | 1.00% | 2.00% |
| 194C | 393(1) [Table: Sl. No. 6(i).D(b)] | Work contract (Contractor is Other than Individual/HUF) | 30k single / 1L aggregate | 1.00% | 2.00% |
| 194J (b) | 393(1) [Table: Sl. No. 6(iii).D(a)] | Fees for technical services | 50000 (Aggregate) | 2.00% | 2.00% |
| 194J (a) | 393(1) [Table: Sl. No. 6(iii).D(b)] | Fees for professional services | 50000 (Aggregate) | 10.00% | 10.00% |
| 194-IB | 393(1) [Table: Sl. No. 2 (i)] | Payment of any Rent (person other than specified person*) | 50000 per month | 2.00% | 2.00% |
| 194I(a) | 393(1) [Table: Sl. No. 2 (ii).D(a)] | For the use of any machinery or plant or equipment – specified person | 50000 per month | 2.00% | 2.00% |
| 194I(b) | 393(1) [Table: Sl. No. 2 (ii).D(b)] | For the use of any land, or building (including factory building), or land appurtenant to a building (including factory building), or furniture, or fittings – Specified Person | 50000 per month | 10.00% | 10.00% |
| 194D | 393(1) [Table: Sl. No. 1 (i)] | Any Income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policy) | 20000 (Aggregate) | 2.00% | 10.00% |
| 194H | 393(1) [Table: Sl. No. 1 (ii)] | Any income by way of commission or brokerage (not being insurance commission). | 20000 (Aggregate) | 2.00% | 2.00% |
| 192A | 392(7) | Any payment of accumulated balance due to an employee | 50000 (Aggregate) | 10.00% | – |
| 194-IA | 393(1) [Table: SI. No. 3(i)] | Any consideration for transfer of any immovable property (other than agricultural land). | 50,00,000.00 | 1.00% | 1.00% |
| 194 IC | 393(1) [Table: SI. No. 3(ii)] | Payment on any Consideration, not being consideration in kind, under the agreement referred to in section 67(14)* | Nil | 10.00% | 10.00% |
| 194 LA | 393(1) [Table: SI. No. 3(iii)] | Payment of compensation on acquisition of certain immovable property (other than agricultural land) | 500000 (Aggregate) | 10.00% | 10.00% |
| 194K | 393(1) [Table: Sl. No. 4 (i)] | Any income in respect of – units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21)/units from the Administrator of the specified undertaking; /units from the specified company* | 10000 (Aggregate) | 10.00% | 10.00% |
| 194LBA | 393(1) [Table: Sl. No. 4 (ii)] | Interest income from units of a business trust to a resident unit holder | Nil | 10.00% | 10.00% |
| 194LBA(1) | 393(1) [Table: Sl. No. 4 (ii)] | Dividend income from units of a business trust to a resident unit holder | Nil | 10.00% | 10.00% |
| 194LBA(3) | 393(1) [Table: Sl. No. 4 (ii)] | Renting income from units of a business trust (Real estate investment trust) to a resident unit holder | Nil | 10.00% | 10.00% |
| 194LBB | 393(1) [Table: Sl. No. 4 (iii)] | Any income, other than that proportion of income which is exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224, payable to its unitholder. | Nil | 10.00% | 10.00% |
| 115TCA | 393(1) [Table: Sl. No. 4 (iv)] | Income from securitisation trust (section 221)* | Nil | 10.00% | 10.00% |
| 193 | 393(1) [Table: Sl. No. 5 (i)] | Any income by way of Interest on securities – Any Person* | 10000 (Aggregate) | 10.00% | 10.00% |
| 194A | 393(1) [Table: Sl. No. 5 (ii).D(a)] | Interest (other than securities)-from bank/posto office/ co-operative society – Senior Citizen | 100000 (Aggregate) | 10.00% | – |
| 194A | 393(1) [Table: Sl. No. 5 (ii).D(b)] | Interest (other than securities)-from bank/posto office/co-op – not a Senior Citizen | 50000 (Aggregate) | 10.00% | 10.00% |
| 194A | 393(1) [Table: Sl. No. 5 (iii)] | Any income being interest other than interest on securities – Specified Person (other than post office for a deposit made under a scheme notified by the Central Government) | 10000 (Aggregate) | 10.00% | 10.00% |
| 194M | 393(1) [Table: Sl. No. 6 (ii)] | For carrying out any work (Including supply of labour for carrying out any work) in pursuance of a contract/ fees for professional services/ commission (not being insurance commission) | 50,00,000.00 | 2.00% | – |
| 194J (1)(ba) | 393(1) [Table: Sl. No. 6(iii).D(b)] | Remuneration/fees/commission to company director | – | 10.00% | 10.00% |
| 194 | 393(1) [Table: Sl. No. 7] | Dividends (including preference shares) | 10000 (Individual) | 10.00% | 10.00% |
| 194DA | 393(1) [Table: Sl. No. 8 (i)] | Sum under life insurance policy, including sum allocated as bonus on such policy, other than the amt not includible in the total income under schedule II(table : SI.NO.2) | 1,00,000.00 | 2.00% | 2.00% |
| 194Q | 393(1) [Table: Sl. No. 8 (ii)] | Sum for purchase of any goods | in excess of 5000000 | 0.10% | 0.10% |
| 194R | 393(1) [Table: Sl. No. 8 (iv)] | Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | 20000 (Aggregate Amt) | 10.00% | 10.00% |
| 194O | 393(1) [Table: Sl. No. 8 (v)] | Sale by E-commerce participation, facilitated by an e-commerce operator through its digital or electronic facility or platform | 500000 (Applicable only Ind/HUF) / Nil (Other than Ind/HUF) | 0.10% | 0.10% |
| 194S | 393(1) [Table: Sl. No. 8 (vi)] | Transfer of virtual digital asset (other than Ind/HUF) | 10000 (Aggregate) | 1.00% | 1.00% |
| 194S | 393(1) [Table: Sl. No. 8 (vi)] | Transfer of virtual digital asset (by Ind/HUF) | 50000 (Aggregate) | 1.00% | 1.00% |
| 194S | 393(1) [Table: Sl. No. 8 (vi)]Note 6 | Any sum by way of consideration (cash or in kind or partly in cash and partly in kind )Transfer of virtual digital asset | 10000 (Aggregate) | 1.00% | 1.00% |
| 195 | 393(2) [Table: Sl. No. 1] | Any income referred to in section 211* | – | 20.00% | 20.00% |
| 194LC | 393(2) [Table: Sl. No. 2] | Any income by way of interest payable in respect of moneys borrowed in foreign currency from a source outside India,— (a) under a loan agreement or issue of long-term in- frastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or (b) by way of issue of any longterm bond on or after the 1st October, 2014 but before the 1st July, 2023, approved by the Central Government. |
– | 5.00% | 5.00% |
| 194LD | 393(2) [Table: Sl. No. 3] | Any income by way of interest payable in respect of moneys borrowed from a source outside India by way of issue of rupee denominated bond before the 1st July, 2023. | – | 5.00% | 5.00% |
| 194LD | 393(2) [Table: Sl. No. 4.E(a)] | Income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long term bond or rupee denoinated bond, which is listed only on a recognised stock exchange located in any IFSC ( Issued on or after 01/04/2020 but before the 01/07/2023)) | – | 4.00% | 4.00% |
| 194LD | 393(2) [Table: Sl. No. 4.E(b)] | Income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long term bond or rupee denoinated bond, which is listed only on a recognised stock exchange located in any IFSC ( Issued on/after 01/07/23) | – | 9.00% | 9.00% |
| 194LB | 393(2) [Table: Sl. No. 5] | Interest from infrastructure debt fund | – | 5.00% | 5.00% |
| 115TA | 393(2) [Table: Sl. No. 6] | Distributed income (section 223* / Schedule V [Table: SI. No. 3.B((a)]) | – | 5%(Int) or 10%(Rent) | 5%(Int) or 10%(Rent) |
| 194LBA | 393(2) [Table: Sl. No. 7] | Distributed income from business trust (schedule V, Table 4) other distributed income – could be capital gain, dividends, misc income | – | 30.00% | 35% (for non-residents company ), 30%(for non-residents other than companies) |
| 194LBB | 393(2) [Table: Sl. No. 8] | Income from investment funds (sec 224)* | – | 10% (Resident)/30% (Non-Resident) | 10% (Resident)/35% (Non-Resident Co)/30% (Non-Resident Other than company) |
| 194LBC | 393(2) [Table: Sl. No. 9] | Income from securitisation trust (sec 221)* | – | 30.00% | 10% (Resident )/35% (Non-Resident Co)/30% (Non-Resident Other than company) |
| 194K | 393(2) [Table: Sl. No. 10] | Income from mutual funds or specified company | – | 20.00% | 20%(not applicable for company ) |
| 115UA | 393(2) [Table: Sl. No. 11] | Income from units (Section 208)* | – | 10.00% | 10.00% |
| 112A | 393(2) [Table: Sl. No. 12] | LTCG from transfer of units (Section 208) | – | 12.50% | 12.50% |
| 115AC | 393(2) [Table: Sl. No. 13] | Interest or dividends from bonds or GDRs (Section 209)* | – | 10.00% | 10.00% |
| 115AC | 393(2) [Table: Sl. No. 14] | LTCG from transfer of bonds or GDRs (Section 209) | – | 12.50% | 12.50% |
| 193 | 393(2) [Table: Sl. No. 15] | Income from securities (Section 210(1))* | – | 20.00% | 20.00% |
| 193 | 393(2) [Table: Sl. No. 16] | Income in respect of securities (Section 210(1)) | – | 10.00% | 10.00% |
| 195 | 393(2) [Table: Sl. No. 17] | Any interest(not covered under S.No. 2-5)/sums (excl. salaries) | – | – | Avg Rate applicable |
| 194B | 393(3) [Table: Sl. No. 1] | Winnings (Lottery, Crossword puzzles, card games, gambling) | 10000 Single Transaction | 30.00% | 30.00% |
| 194BA | 393(3) [Table: Sl. No. 2] | Winnings from online games | – | 30.00% | 30.00% |
| 194BB | 393(3) [Table: Sl. No. 3] | Winnings from horse race | 10000 Single Transaction | 30.00% | 30.00% |
| 194G | 393(3) [Table: Sl. No. 4] | Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets (by way of commission, remuneration or prize) on such tickets | 20000 (Aggregate) | 2.00% | 2.00% |
| 194N | 393(3) [Table: Sl. No. 5.D(a)] | Payment of certain amt in cash by bank/ post office/ co-operative society to a deductee being a co-operative society | 3 Crore | 2.00% | 2.00% |
| 194N | 393(3) [Table: Sl. No. 5.D(b)] | Payment of certain amt in cash by bank/ post office/ co-operative society to a deductee being a person (other than co-operative society) | 1 Crore | 2.00% | 2.00% |
| 194EE | 393(3) [Table: Sl. No. 6] | Any Amount referred to in Section 80CCA(2)(a)* of the income tax act, 1961 (43 of 1961) | 2500 (Aggregate) | 10.00% | 10.00% |
| 194T | 393(3) [Table: Sl. No. 7] | Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). | 20000 (Aggregate) | – | 10.00% |
Notes:
- Specified Person – Any person other than a small Individual/HUF—i.e., includes companies, firms, and Individuals/HUFs whose business turnover > ₹1 crore or professional receipts > ₹50 lakh in the preceding year.
- Section 67(14) – Capital Gain (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025))
- Specified Company – means a person (including company) not required to get accounts audited under the Act (generally small taxpayers/individuals/HUFs, i.e., not subject to tax audit.
- Section 211 – Tax on non-resident sportsmen or sports associations. (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 221 – Tax on income from securitisation trusts.(Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 224 – Tax on income of investment fund and its unit holders (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 208 – Tax on income from units purchased in foreign currency or capital gains arising from their transfer (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 209 – Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.(Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Any Person – generally refers to the entity responsible for paying income, such as rent, commissions, or fees to a resident, requiring TDS deduction at applicable rates. This includes individuals, HUFs, companies, firms, and associations, with specific thresholds.
- Section 223 – Tax on income of unit holder and business trust. (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 210(1) – Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer. (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)
- Section 80CCA(2)(a) – Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan. (Refer TDS Section 393, CHAPTER XIX – Collection and recovery of tax, Income Tax Act, 2025)