TDS rate chart FY 2026-27 and FY 2025-26: every section, threshold and rate
All 32 sections in one filterable table, the two rounds of changes that most charts get wrong, TDS on rent and purchases explained, and the due dates — with a PDF to keep.
The TDS rate chart for FY 2026-27 (AY 2027-28) is the same as for FY 2025-26 (AY 2026-27): the Income-tax Act, 2025, in force from 1 April 2026, carried every TDS rate and threshold forward unchanged. The chart below lists all 32 sections with the section number people still search by, the threshold above which tax is deducted, and the rate. The last big changes were the threshold increases of 1 April 2025 (Finance Act 2025) and the rate cuts of 1 October 2024 — both are marked in the notes column. Download the chart as a PDF.
- FY 2026-27 = FY 2025-26: the Income-tax Act, 2025 kept every rate and threshold
- Interest (194A): ₹1,00,000 senior citizens, ₹50,000 others at banks — 10%
- Rent (194-I): above ₹50,000 a month — 10% buildings, 2% machinery; individuals use 194-IB at 2%
- Professional fees (194J): ₹50,000 threshold — 10% (2% technical)
- Commission (194H): 2% above ₹20,000 · Contractors (194C): 1% / 2%
- New in 2025: 194T — 10% on payments by firms to partners above ₹20,000
- No PAN: 20% or the chart rate, whichever is higher
TDS rate chart FY 2026-27 and FY 2025-26
| Section | Nature of payment | Threshold | TDS rate | Note |
|---|---|---|---|---|
| 192 | Salary | Basic exemption limit under the regime chosen | Slab rates | Employer computes tax on estimated annual income; regime chosen by employee |
| 192A | Premature EPF withdrawal | ₹50,000 | 10% | Maximum marginal rate if PAN not furnished |
| 193 | Interest on securities | ₹10,000 | 10% | Threshold raised from ₹5,000 on 1 Apr 2025 |
| 194 | Dividend | ₹10,000 | 10% | Threshold raised from ₹5,000 on 1 Apr 2025 |
| 194A | Interest other than on securities | ₹1,00,000 senior citizens · ₹50,000 others from banks, co-operative banks, post office · ₹10,000 other payers | 10% | All three limits raised on 1 Apr 2025 (from ₹50,000 / ₹40,000 / ₹5,000) |
| 194B | Lottery, crossword, game-show winnings | ₹10,000 per transaction | 30% | Was aggregate per year; per-transaction from 1 Apr 2025 |
| 194BA | Net winnings from online games | Nil | 30% | On net winnings at year end or withdrawal |
| 194BB | Horse-race winnings | ₹10,000 per transaction | 30% | |
| 194C | Payments to contractors | ₹30,000 single · ₹1,00,000 aggregate in the year | 1% individual/HUF · 2% others | Transport operators with ≤10 vehicles: nil on declaration |
| 194D | Insurance commission | ₹20,000 | 2% (10% if payee is a company) | Rate cut from 5% on 1 Oct 2024; threshold raised from ₹15,000 on 1 Apr 2025 |
| 194DA | Life-insurance policy payout (taxable part) | ₹1,00,000 | 2% | Rate cut from 5% on 1 Oct 2024 |
| 194EE | National Savings Scheme withdrawals | ₹2,500 | 10% | |
| 194G | Commission on lottery tickets | ₹20,000 | 2% | Rate cut from 5% on 1 Oct 2024; threshold from ₹15,000 |
| 194H | Commission or brokerage | ₹20,000 | 2% | Rate cut from 5% on 1 Oct 2024; threshold from ₹15,000 |
| 194-I | Rent | ₹50,000 per month or part of a month | 2% plant & machinery · 10% land, building, furniture | Was ₹2,40,000 per year; monthly test from 1 Apr 2025 |
| 194-IA | Purchase of immovable property (not agricultural land) | ₹50 lakh (consideration or stamp-duty value) | 1% | Buyer deducts; Form 26QB within 30 days of month end |
| 194-IB | Rent paid by individuals/HUF not under tax audit | ₹50,000 per month | 2% | Rate cut from 5% on 1 Oct 2024; deducted once a year via Form 26QC |
| 194-IC | Payments under a joint development agreement | Nil | 10% | |
| 194J(a) | Fees for technical services, call-centre services, royalty for film distribution | ₹50,000 | 2% | Threshold raised from ₹30,000 on 1 Apr 2025 |
| 194J(b) | Professional fees, other royalty, non-compete fees | ₹50,000 | 10% | Director’s sitting fees: 10%, no threshold |
| 194K | Income from mutual-fund units | ₹10,000 | 10% | Threshold raised from ₹5,000 on 1 Apr 2025 |
| 194LA | Compensation on compulsory acquisition of immovable property | ₹5,00,000 | 10% | Threshold raised from ₹2,50,000 on 1 Apr 2025 |
| 194LBA/LBB/LBC | Income from business trusts and investment funds (residents) | Nil | 10% | 194LBC rationalised to 10% for all recipients from 1 Apr 2025 |
| 194M | Contract, commission or professional payments by individuals/HUF not covered above | ₹50 lakh in the year | 2% | Rate cut from 5% on 1 Oct 2024; Form 26QD |
| 194N | Cash withdrawal from banks, co-operative banks, post office | ₹1 crore (₹3 crore for co-operative societies) | 2% | Non-filers of returns: 2% above ₹20 lakh and 5% above ₹1 crore |
| 194-O | E-commerce operator paying sellers | ₹5 lakh for individual/HUF sellers | 0.1% | Rate cut from 1% on 1 Oct 2024 |
| 194P | Specified senior citizens aged 75+ (pension and interest via one bank) | Basic exemption | Slab rates | Bank computes tax; no return needed |
| 194Q | Purchase of goods by a buyer with turnover above ₹10 crore | ₹50 lakh from one seller in the year | 0.1% | On the amount above ₹50 lakh; 5% if seller has no PAN |
| 194R | Benefits or perquisites in business or profession | ₹20,000 | 10% | |
| 194S | Transfer of virtual digital assets (crypto, NFTs) | ₹50,000 specified persons · ₹10,000 others | 1% | |
| 194T | Salary, remuneration, commission, bonus or interest paid by a firm to a partner | ₹20,000 | 10% | New section, effective 1 Apr 2025 |
| 195 | Payments to non-residents | Nil | Rates in the Act or the tax treaty, whichever is lower | Surcharge and cess apply; Form 15CA/CB |
Two rules sit on top of every row. If the payee has not furnished a PAN, tax is deducted at 20% or the rate in the table, whichever is higher (Section 206AA; 5% for 194-O and 194Q). And the higher rate for non-filers under Section 206AB was removed on 1 April 2025, so a deductor no longer has to check whether the payee filed returns.
What changed on 1 April 2025 (Finance Act 2025)
Budget 2025 raised the thresholds below so that small payments stop attracting TDS, and added one section. These apply to FY 2025-26 and continue in FY 2026-27.
| Section | Old threshold | New threshold |
|---|---|---|
| 193 Interest on securities | ₹5,000 | ₹10,000 |
| 194 Dividend | ₹5,000 | ₹10,000 |
| 194A Interest — senior citizens | ₹50,000 | ₹1,00,000 |
| 194A Interest — others, from banks / post office | ₹40,000 | ₹50,000 |
| 194A Interest — other payers | ₹5,000 | ₹10,000 |
| 194B / 194BB Winnings | ₹10,000 aggregate in the year | ₹10,000 per transaction |
| 194D Insurance commission | ₹15,000 | ₹20,000 |
| 194G Lottery commission | ₹15,000 | ₹20,000 |
| 194H Commission / brokerage | ₹15,000 | ₹20,000 |
| 194-I Rent | ₹2,40,000 per year | ₹50,000 per month |
| 194J Professional / technical fees | ₹30,000 | ₹50,000 |
| 194K Mutual-fund income | ₹5,000 | ₹10,000 |
| 194LA Compensation on acquisition | ₹2,50,000 | ₹5,00,000 |
| 194T Payments to partners | — | New: ₹20,000, 10% |
What changed on 1 October 2024 (Finance (No. 2) Act 2024)
Six rates were cut, most of them from 5% to 2%: 194D insurance commission (non-company), 194DA life-insurance payouts, 194G lottery commission, 194H commission and brokerage, 194-IB rent paid by individuals, and 194M payments by individuals to contractors and professionals. 194-O for e-commerce operators fell from 1% to 0.1%. Section 194F (repurchase of units by mutual funds) was deleted. Several charts online still show the old 5% rates — check the effective date before relying on one.
TDS full form and what it means
TDS stands for Tax Deducted at Source. The person making a payment — an employer, a bank, a tenant, a company paying a contractor — deducts a slice of income tax before paying and deposits it with the government against the payee’s PAN. The payee sees it in Form 26AS and the Annual Information Statement, and sets it off against their final tax when they file a return. It is a collection mechanism, not an extra tax: if too much is deducted, the excess comes back as a refund.
In Hindi, TDS is स्रोत पर कर कटौती — tax cut at the source of the income. (The other “TDS”, total dissolved solids in water, is unrelated.)
TDS on rent: 194-I versus 194-IB
Two sections cover rent and people mix them up. 194-I applies to businesses and to individuals or HUFs who were under tax audit in the previous year: tax is deducted every month the rent crosses ₹50,000, at 10% for land, buildings and furniture and 2% for plant and machinery. 194-IB applies to everyone else — a salaried tenant paying more than ₹50,000 a month, for example: they deduct 2% once, in the last month of the year or of the tenancy, and file Form 26QC within 30 days. No TAN is needed for 194-IB; the PAN works. Our GST on rent page covers the indirect-tax side of the same payment.
194Q and 194-O: TDS on buying goods and on marketplaces
194Q makes a buyer whose turnover exceeded ₹10 crore in the previous year deduct 0.1% on purchases from a single seller above ₹50 lakh in the year, on the amount above the threshold. It takes priority over the seller’s TCS under 206C(1H). 194-O makes an e-commerce operator deduct 0.1% on the gross amount of sales it facilitates, with a ₹5 lakh exemption for individual and HUF sellers who have a PAN. Sellers on Amazon and Flipkart see it as a line on their settlement; our marketplace guide explains how it interacts with GST TCS.
How to pay TDS online and when
- Deposit by the 7th of the following month; TDS for March by 30 April. Pay on the e-filing portal under e-Pay Tax, challan ITNS 281, choosing the section, the nature of payment and whether the deductee is a company.
- 194-IA, 194-IB, 194M and 194S are paid with a challan-cum-statement (Forms 26QB, 26QC, 26QD, 26QE) within 30 days of the end of the month of deduction.
- Quarterly returns — 24Q for salary, 26Q for other residents, 27Q for non-residents — are due 31 July, 31 October, 31 January and 31 May.
- Certificates: Form 16 to employees by 15 June; Form 16A within 15 days of the return due date.
- Interest runs at 1% a month for failing to deduct and 1.5% a month for deducting but not depositing; late-filing fee under 234E is ₹200 a day.
Every one of these dates is on the tax calendar, computed from today.
Lower or nil deduction
A payee whose final tax will be lower than the TDS can apply for a certificate under Section 197 and give it to the deductor. Individuals above the basic exemption threshold on interest income can instead submit Form 15G (under 60) or 15H (60 and above) to the bank, and no tax is deducted. Both are common for senior citizens with fixed deposits, and the ₹1,00,000 194A threshold now removes the need for many of them.
Sections as renumbered by the Income-tax Act, 2025
From 1 April 2026 the Income-tax Act, 1961 is replaced by the Income-tax Act, 2025, which gathers the TDS provisions into Section 393 with tabulated rates instead of one section per payment. The rates and thresholds did not change, and the 1961 section numbers — 194C, 194J, 194-I — remain the way accountants, banks and search engines refer to them, so this chart keeps them. Challans and return forms continue to use the familiar codes for the transition.
Common questions
For FY 2026-27 the rates are: salary at slab rates (192); 10% on interest, dividend, professional fees, rent of buildings and mutual-fund income; 2% on contractor payments to companies (1% to individuals), commission, technical fees, rent of machinery and rent paid by individuals; 1% on property purchases above ₹50 lakh and on crypto; 0.1% on e-commerce and on goods purchases above ₹50 lakh; 30% on winnings. The thresholds are the ones set by the Finance Act 2025.
The same as FY 2026-27. The Income-tax Act, 2025 retained every rate and threshold when it took effect on 1 April 2026, so one chart covers both years.
Tax Deducted at Source: income tax that the payer deducts before making a payment and deposits against the payee's PAN, to be set off when the payee files a return. In Hindi, srot par kar katauti.
₹50,000 per month. Businesses and audited individuals deduct under 194-I every month the rent crosses it (10% for buildings, 2% for machinery). Other individuals and HUFs deduct 2% once a year under 194-IB using Form 26QC.
₹1,00,000 a year for senior citizens and ₹50,000 for everyone else, on interest from banks, co-operative banks and the post office, from 1 April 2025. Interest from other payers has a ₹10,000 threshold. The rate is 10%.
Yes, but the bank deducts 2% TDS under Section 194N on the amount above ₹1 crore in a financial year (₹3 crore for co-operative societies). If you have not filed returns for the previous three years, the limit is ₹20 lakh at 2% and 5% applies above ₹1 crore.
10% under Section 194J(b) once fees exceed ₹50,000 in the year. Technical services, call-centre services and film royalties are 2% under 194J(a). The threshold was ₹30,000 until 31 March 2025.
A section effective 1 April 2025 that makes a partnership firm or LLP deduct 10% TDS on salary, remuneration, commission, bonus or interest paid to a partner once the total exceeds ₹20,000 in the year.
0.1% deducted by a buyer whose turnover was above ₹10 crore in the previous year, on purchases from one seller above ₹50 lakh in the year, applied to the amount above ₹50 lakh. 5% if the seller has no PAN.
TDS is deducted at 20% or the rate in the chart, whichever is higher, under Section 206AA (5% for 194-O and 194Q, and the maximum marginal rate for 192A). The credit also cannot be matched to the payee.
- Income Tax Department — TDS rates (incometaxindia.gov.in)
- TRACES (TDS CPC) — rates and tables
- Finance Act 2025 and Finance (No. 2) Act 2024 — India Code
- Income-tax Act, 2025 — Section 393 (TDS)
Rates and thresholds verified against the Income-tax Department's published rates and the Finance Act 2025 on 25 September 2026. Reviewed for technical accuracy by CA Amit Tripathi.