TDS Rates for Tax Year 2026–27: Complete Section-wise Chart with Thresholds and Updates
Tax Deducted at Source (TDS) continues to remain one of the most important compliance responsibilities for every business, professional and startup. With the beginning of the Tax Year 2026-27, understanding the latest applicable TDS rates, thresholds and sections is essential to avoid interest, penalties and disallowances.
This comprehensive TDS rate chart for FY 2026-27 (AY 2027-28) is designed as a quick reference guide for business owners, accountants, finance teams and tax professionals. Instead of searching multiple sections, this single chart gives you a structured view of applicable sections, nature of payments, thresholds and rates.
Whether you are making payments for professional fees, contractors, salary, rent, commission or interest, this guide will help you determine:
• When TDS is applicable
• At what rate TDS must be deducted
• Key threshold limits
This guide is especially useful for growing businesses and compliance teams who want a ready reckoner they can refer to throughout the year.
STRUCTURAL TRANSITION UNDER NEW TAX FRAMEWORK
The newly introduced provisions consolidate and rationalize the earlier fragmented TDS structure into a more integrated and tabular framework, thereby enhancing clarity and administrative efficiency.
Earlier multiple sections governing different payments have now been streamlined into unified provisions
Classification is broadly structured based on:
-> Nature of payment
-> Residential status of recipient
-> Applicable rate and threshold
This transition reflects a shift from section-specific complexity to principle-based consolidation.
TDS CHART FOR TAX YEAR - 2026-27
|
Old Section |
New Act Reference |
Nature of Payment |
Threshold Limit |
TDS Rate |
|
192 |
392 (1) |
Salary |
Basic exemption limit |
Average Rate of Tax |
|
192A |
392 (7) |
Premature withdrawal from EPF |
≥50,000 |
10% |
|
193 |
393 (1) Table Sr No. 5 (i) |
Interest On Security |
10,000 |
10% |
|
194 |
393 (1) Table Sr No. (7) |
Dividend by Domestic Company |
No Threshold |
10% |
|
194K |
393 (1) Table Sr No. 4 (i) |
Income from Mutual Fund Unit |
10,000 |
10% |
|
194A |
393 (1) Table Sr No. 5 (ii) |
Interest Other than Security |
Depends on Individual Case |
10% |
|
194B |
393 (3) Table Sr No. 1 |
Winning from Lottery, Crossword Puzzle and other Casual Game |
10,000 |
30% |
|
194BA |
393 (3) Table Sr No. 2 |
Net winning from Online Game
|
No Threshold |
30% |
|
194BB |
393 (3) Table Sr No. 3 |
Winning from Horse race |
10,000 |
30% |
|
194C |
393 (1) Table Sr No. 6 (i) |
Payment to Contractor / Sub Contractor |
30000 per single contract or 100000 in aggregate |
1% (2% if payment made to person other than Individual/HUF) |
|
194D |
393 (1) Table Sr No. 1 (i) |
Insurance Commission |
20,000 |
5% (10% if payment made to Company) |
|
194G |
393 (3) Table Sr No. 4 |
Commission on Sale of Lottery |
20,000 |
2% |
|
194H |
393 (1) Table Sr No. 1 (ii) |
Payment of Commission or Brokerage |
20,000 |
2% |
|
194DA |
393 (1) Table Sr No. 8 (i) |
Amt Received from Life Insurance Company |
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) (a) & 2(ii) (b) |
Rent Income |
50,000 Per Month or Part of a Month |
Plant & Machinery: 2 Land/Building: 10 |
|
194IB |
393 (1) Table Sr No 2 (i) |
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) |
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) |
Compulsory Acquisition |
500000 |
10% |
|
194J |
393(1) Table Sr No 6 (iii) |
Professional/Technical Fees |
50000 |
Fees For Technical service : 2 Professional Service: 10 |
|
194M |
393 (1) Table Sr No 6 (ii) |
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 |
Cash Withdrawal |
Co-Op Soc:3,00,00,000 Others: 100,00,000
|
2% |
|
194T |
393 (3) Table Sr No 7 |
Partner Remuneration |
20,000 |
10% |
|
194Q |
393 (1) Table Sr No 8 (ii) |
Purchase of Goods |
50,00,000 |
0.1% (In Excess of 50Lakhs) |
|
194R |
393 (1) Table Sr No 8 (iv) |
Perquisite Provided |
20000 |
10% |
|
194S |
393 (1) Table Sr No 8 (vi) |
Virtual Digital Asset Transfer |
No Threshold |
1% |
|
194O |
393 (1) Table Sr No 8 (v) |
E-Commerce Transaction |
Nil |
0.1 % of Gross Amount of Sale |
|
194P |
393 (1) Table Sr No 8 (iii) |
Senior Citizen Above 75 Yrs of Age Having Salary and Interest Income, ITR Not Required |
NA |
Slab Rate |
TDS compliance is not just about deducting tax. It is about deducting correctly, depositing on time and reporting accurately. A small mistake in rate selection or applicability can lead to notices, interest costs and litigation.
Businesses that maintain a simple internal TDS checklist and refer to updated rate charts like this can significantly reduce compliance risks and improve financial discipline.
As tax laws continue to evolve, staying updated with practical compliance tools has become essential. Bookmark this page as your ready TDS reference for Tax Year 2026-27 and share it with your accounts team to ensure smooth compliance.
Navigate Section 393 of the Income Tax Act 2025 by clicking following link:
https://www.incometaxindia.gov.in/w/section-393-5
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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.
