The Government has introduced several changes in TDS provisions under the new Income Tax Act, 2025. To help taxpayers, professionals, businesses, deductors, and accountants, we have prepared a simplified and updated TDS Rate Chart for Tax Year 2026-27.
This chart covers important TDS sections, applicable rates, payment codes, and threshold limits applicable during FY 2026-27.
The chart includes old Income Tax Act section references along with corresponding section mapping under the Income Tax Act, 2025.
| Old Section | New Section | Nature of Payment | Rate | Payment Code | Threshold Limit |
| 192 | – | Payment of Salary | Normal Slab Rate | 1001, 1002 & 1003 | – |
| 194D | 393(1) [Table: Sl.No.1 (i)] | Insurance commission – Individuals | 5% | 1005 | 20,000 |
| 194D | 393(1) [Table: Sl.No.1 (i)] | Insurance commission – Companies | 10% | 1005 | 20,000 |
| 194H | 393(1)[Table: Sl.No.1 (ii)] | Commission or brokerage | 2% | 1006 | 20,000 |
| 194I | 393(1) [Table: Sl.No. 2 (ii).D(a)] | Rent – Plant & Machinery | 2% | 1008 | 50,000 per month or part of month |
| 194I | 393(1)[Table: Sl.No.2 (ii).D(b)] | Rent – Land or building or furniture or fitting | 10% | 1009 | 50,000 per month or part of month |
| 194IB | 393(1) [Table: Sl.No.2 (i)] | Payment of rent by Individuals or HUF not liable to tax audit | 2% | – | 50,000 per month |
| 194IA | 393(1) [Table: Sl.No.3 (i)] | Payment on transfer of certain immovable property other than agricultural land | 1% | – | 50,00,000 |
| 194A | 393(1) [Table: Sl.No. 5 (ii).D(a)] | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit – Senior Citizen | 10% | 1020 | 1,00,000 |
| 194A | 393(1) [Table: Sl.No. 5 (ii).D(b)] | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit – Others | 10% | 1021 | 50,000 |
| 194A | 393(1) [Table: Sl.No. 5 (iii)] | Interest other than Interest on securities | 10% | 1022 | 10,000 |
| 194C | 393(1) [Table: Sl.No. 6 (i).D(a)] | Payment to contractor/sub-contractor – Individuals/HUF | 1% | 1023 | Single transaction – 30,000 / Aggregate transactions – 1,00,000 |
| 194C | 393(1) [Table: Sl.No. 6 (i).D(b)] | Payment to contractor/sub-contractor – Other than Individuals/HUF | 2% | 1024 | Single transaction – 30,000 / Aggregate transactions – 1,00,000 |
| 194J | 393(1) [Table: Sl.No. 6 (iii).D(a)] | Fees for technical services, royalty for cinematographic films, call centre operators | 2% | 1026 | 50,000 |
| 194J | 393(1) [Table: Sl.No. 6 (iii).D(b)] | Fees for professional services | 10% | 1027 | 50,000 |
| 194J | 393(1) [Table: Sl.No. 6 (iii).D(b)] | Director remuneration or commission | 10% | 1028 | – |
| 194 | 393(1) [Table: Sl.No. 7] | Dividend | 10% | 1029 | 10,000 |
| 194DA | 393(1) [Table: Sl.No. 8 (i)] | Payment in respect of life insurance policy | 2% | 1030 | 1,00,000 |
| 194Q | 393(1) [Table: Sl.No. 8 (ii)] | Payments for purchase of goods | 0.10% | 1031 | 50,00,000 |
| 194R | 393(1) [Table: Sl.No. 8 (iv)] | Perquisite or benefit to business or profession | 10% | 1033 / 1034 | 20,000 |
| 194B | 393(3) [Table: Sl.No. 1] | Lottery winnings, crossword puzzles and games | 30% | 1058 / 1059 | 10,000 in respect of a single transaction |
| 194BA | 393(3) [Table: Sl.No. 2] | Winnings from online games | 30% | 1060 / 1061 | – |
| 194BB | 393(3) [Table: Sl.No. 3] | Income from horse race winnings | 30% | 1062 | 10,000 in respect of a single transaction |
| 194T | 393(3) [Table: Sl.No. 7] | Payment to partners of firms & LLPs | 10% | 1067 | 20,000 |
Important Notes
- TDS rates mentioned above are general rates applicable in normal cases.
- Higher TDS may apply in cases of non-furnishing of PAN under applicable provisions.
- Special rates may apply for non-residents depending upon the nature of payment and DTAA provisions.
- Threshold limits are subject to conditions specified under respective sections.
- Payment codes are useful while depositing TDS through challans.
- The above chart is prepared for quick reference purposes only.
The TDS provisions under the Income Tax Act, 2025 continue to play a crucial role in tax compliance for businesses and professionals. Understanding the correct TDS rate, threshold limit, and applicable payment code is essential to avoid interest, penalty, and notices from the Income Tax Department.
Taxpayers should regularly verify latest amendments, notifications, and circulars before deducting tax at source.
Bookmark this page for quick reference to TDS Rates for FY 2026-27.
