TDS Quick Reference Chart 2026–27: Section Codes, Limits and Rates
Tax Deducted at Source (TDS) continues to be a key element of regulatory compliance for businesses, professionals, and other taxpayers. With the onset of Tax Year 2026–27, it is essential to apply the correct rates, adhere to prescribed threshold limits, and ensure alignment with the relevant statutory provisions to mitigate exposure to interest, penalties, and disallowances.
The TDS framework has progressively evolved towards a more streamlined and structured regime, addressing the earlier fragmentation across multiple provisions. The present approach is more systematically aligned with the nature of payment, residential status of the recipient, and applicable rate structure, thereby enabling greater clarity and consistency in implementation.
Presented below is a consolidated, section-wise summary of TDS provisions applicable for FY 2026–27 (AY 2027–28), covering key categories such as salary, contractual payments, professional fees, rent, commission, and interest. The inclusion of corresponding section codes alongside each category facilitates ease in identification, accurate deduction, payment processing, and reporting.
TDS CHART FOR TAX YEAR – 2026
|
Old Section |
New Act Reference |
Section Code |
Nature of Payment |
Threshold Limit |
TDS Rate |
|
192 |
392 (1) |
1002 |
Salary |
Basic exemption limit |
Average Rate of Tax |
|
192A |
392 (7) |
1004 |
Premature withdrawal from EPF |
≥50,000 |
10% |
|
193 |
393 (1) Table Sr No. 5 (i) |
1019 |
Interest On Security |
10,000 |
10% |
|
194 |
393 (1) Table Sr No. (7) |
1029 |
Dividend by Domestic Company |
No Threshold |
10% |
|
194K |
393 (1) Table Sr No. 4 (i) |
1013 |
Income from Mutual Fund Unit |
10,000 |
10% |
|
194A |
393 (1) Table Sr No. 5 (ii). D(a). |
1020 |
Interest Other than Security (Senior Citizen) |
Depends on Individual Case |
10% |
|
194A |
393 (1) Table Sr No. 5 (ii). D(b). |
1021 |
Interest Other than Security (Other than Senior Citizen) |
Depends on Individual Case |
10% |
|
194B |
393 (3) Table Sr No. 1 |
1058 |
Winning from Lottery, Crossword Puzzle and other Casual Game |
10,000 |
30% |
|
194BA |
393 (3) Table Sr No. 2 |
1060 |
Net winning from Online Game
|
No Threshold |
30% |
|
194BB |
393 (3) Table Sr No. 3 |
1062 |
Winning from Horse race |
10,000 |
30% |
|
194C |
393 (1) Table Sr No. 6 (i). D(a)] |
1023 |
Payment to Contractor / Sub Contractor (INDIVIDUAL OR HUF) |
30000 per single contract or 100000 in aggregate |
1% |
|
194C |
393 (1) Table Sr No. 6 (i). D(b)] |
1024 |
Payment to Contractor / Sub Contractor (OTHER THAN INDIVIDUAL OR HUF) |
30000 per single contract or 100000 in aggregate |
2% |
|
194D |
393 (1) Table Sr No. 1 (i) |
1005 |
Insurance Commission |
20,000 |
5% (10% if payment made to Company) |
|
194G |
393 (3) Table Sr No. 4 |
1063 |
Commission on Sale of Lottery |
20,000 |
2% |
|
194H |
393 (1) Table Sr No. 1 (ii) |
1006 |
Payment of Commission or Brokerage |
20,000 |
2% |
|
194DA |
393 (1) Table Sr No. 8 (i) |
1030 |
AMOUNT RECEIVED FROM LIFE INSURANCE POLICIES |
100,000 |
2% on the amount of Income comprised in the amount paid or credited by the insurance company |
|
194-I |
393 (1) Table Sr No 2 (ii). D(a) |
1008 |
Rent Income on Machinery |
50,000 Per Month or Part of a Month |
2%
|
|
194-I |
393 (1) Table Sr No 2 (ii) D(b). |
1009 |
Rent Income (Other than Machinery) i.e. Land, Building |
50,000 Per Month or Part of a Month |
10% |
|
194IB |
393 (1) Table Sr No 2 (i) |
No code (FORM – 141) |
Rent Income
Payment Of Rent By HUF/Individual Not Required for Tax Audit |
50,000 Per Month or Part of a Month |
2% |
|
194IA |
393 (1) Table Sr No 3 (i) |
No code (FORM – 141) |
Transfer of Immovable Property (Other than Agricultural Land) |
50,00,000 |
1% of Consideration for transfer of Immovable property OR SDV Whichever is Higher |
|
194LA |
393 (1) Table Sr No 3 (iii) |
1012 |
Compulsory Acquisition |
500000 |
10% |
|
194J |
393(1) Table Sr No 6 (iii). D(a) |
1026 |
Technical Services Fees, Royalty for cinematographic films, payee for in engaged in the business of Call Centre |
50000 |
2%
|
|
194J |
393(1) Table Sr No 6 (iii). D(b) |
1027 |
Professional Fees & Sum payable for not carrying out any activity in relation to any business or not sharing any know-how, patent, copy-right, trade mark, etc. |
50000 |
10% |
|
194J |
393(1) Table Sr No 6 (iii). D(b) |
1028 |
Remuneration payable to director other than those on which tax is deductible under the head salary |
|
10% |
|
194M |
393 (1) Table Sr No 6 (ii) |
No code (FORM 141) |
Payments Made to Contracts, Brokerage, Commission or Professional Fees excluding 194c,194h,194j Individual/HUF |
50,00,000 |
2% |
|
194N |
393 (3) Table Sr No 5. D(a). |
1064 |
Sum paid in cash, from one or more accounts Where deductee is Co-operative society |
3,00,00,000
|
2% |
|
194N |
393 (3) Table Sr No 5. D(b). |
1065 |
Sum paid in cash, from one or more accounts Where deductee is Other than Co-operative society |
100,00,000 |
2% |
|
194T |
393 (3) Table Sr No 7 |
1067 |
Partner Remuneration |
20,000 |
10% |
|
194 Q |
393 (1) Table Sr No 8 (ii) |
1031 |
Purchase of Goods |
50,00,000 |
0.1% (In Excess of 50Lakhs) |
|
194R |
393 (1) Table Sr No 8 (iv) |
1033 |
Perquisite Provided |
20000 |
10% |
|
194 S |
393 (1) Table Sr No 8 (vi) |
1037 |
Virtual Digital Asset Transfer |
No Threshold |
1% |
|
194 O |
393 (1) Table Sr No 8 (v) |
1035 |
E-Commerce Transaction |
- |
0.1 % of Gross Amount of Sale |
|
194P |
393 (1) Table Sr No 8 (iii) |
1032 |
Senior Citizen Above 75 Yrs of Age Having Salary and Interest Income, ITR Not Required |
NA |
Slab Rate |
It is pertinent to note that TDS compliance encompasses not only correct deduction but also timely remittance and precise reporting. Any inconsistency in applicability, rate selection, or procedural adherence may result in regulatory implications. Accordingly, a disciplined and updated approach remains essential for effective compliance management.
Also, comprehensive TDS Rate Chart for FY 2026-27 (AY 2027-28) has been prepared as a quick and practical reference guide for business owners, accountants, finance teams, and tax professionals. Instead of referring to multiple sections separately, this single chart gives a structured summary of applicable TDS sections, nature of payments, threshold limits, and relevant rates in one place. It is designed to help readers understand TDS applicability more easily and ensure timely compliance. Click the link to read the full chart.
https://www.aagamshahca.com/news-detail/tds-rates-2026-27-section-wise-chart-thr
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
