TDS/TCS · Tax Year 2026–27 · Income-tax Act, 2025
TDS rates & thresholds
TDS rates and thresholds for selected common payments in Tax Year 2026–27 (1 April 2026–31 March 2027), under the Income-tax Act, 2025 as amended by Finance Act, 2026. Search using a payment description, new section or familiar old section number.
Section 393(1) entries below apply to resident payees. Salary, EPF withdrawals and partner payments follow the separately identified provisions. Rates assume a valid PAN and no special exemption or lower-deduction certificate. Thresholds are annual aggregates per payee unless a monthly, single-payment or other test is stated.
19 of 19 selected entries
| New section / table | Payment | Standard rate | Threshold / key condition |
|---|---|---|---|
| 392(1)Formerly 192 | Salary | Average applicable rate | Employer deducts at payment, based on estimated taxable salary, the applicable regime and eligible reliefs. There is no single flat TDS rate or salary threshold. |
| 392(7)Formerly 192A | Taxable EPF withdrawal | 10% | Covered accumulated balance of ₹50,000 or more. Applies only where the withdrawal is taxable under the specified EPF provisions; exempt withdrawals are excluded. |
| 393(1)Table: 5(i)Formerly 193 | Interest on securities | 10% | Above ₹10,000. The rate in force is prescribed by Finance Act, 2026; instrument and payee exemptions under section 393(4) must be checked. |
| 393(1)Table: 7Formerly 194 | Dividend | 10% | No TDS for a resident individual if payment is non-cash and the annual dividend does not exceed ₹10,000. Otherwise no general monetary threshold; specified institutional exemptions also apply. |
| 393(1)Table: 5(ii)Formerly 194A | Bank, co-operative bank & notified post-office deposit interest | 10% | Above ₹50,000; above ₹1 lakh for a resident senior citizen aged 60 or more. These are interest amounts, not deposit balances. Deposit and payee exemptions apply. |
| 393(1)Table: 5(iii)Formerly 194A | Other interest, excluding securities | 10% | Above ₹10,000, paid by a specified person outside the bank / notified deposit category. Review statutory exemptions; firm-to-partner interest is covered separately below. |
| 393(1)Table: 6(i)Formerly 194C | Contractor & manpower supply payments | 1% / 2% | 1% for an individual / HUF contractor; 2% for other contractors. Single payment above ₹30,000 or annual aggregate above ₹1 lakh, by a designated payer. Eligible transporter and personal-use exceptions apply. |
| 393(1)Table: 1(i)Formerly 194D | Insurance commission | 2% / 10% | Above ₹20,000. Resident non-company recipient: 2%; domestic company: 10%, under the rates in force in Finance Act, 2026. |
| 393(1)Table: 1(ii)Formerly 194H | Commission or brokerage | 2% | Above ₹20,000, paid by a specified person. Excludes insurance commission and payments outside the statutory commission / brokerage definition. |
| 393(1)Table: 2(ii)Formerly 194-I | Rent paid by specified persons | 2% / 10% | Above ₹50,000 for a month or part of a month. Plant / machinery / equipment: 2%; land / building / furniture / fittings: 10%. The limit is monthly, not ₹6 lakh annually. |
| 393(1)Table: 3(i)Formerly 194-IA | Purchase of a resident seller's property | 1% | If consideration OR stamp duty value is ₹50 lakh or more; deduct on the higher value. Aggregate consideration across all buyers and sellers. Excludes specified agricultural land; separate rules apply to compulsory acquisition and specified development agreements. |
| 393(1)Table: 2(i)Formerly 194-IB | Land / building rent paid by other individuals or HUFs | 2% | Above ₹50,000 for a month or part, where the payer is outside the specified-person category. Deduct at the prescribed credit / payment trigger for the last month of the tax year or tenancy. |
| 393(1)Table: 6(iii)Formerly 194J | Professional / technical fees, royalty & director fees | 10% / 2% | Above ₹50,000 per relevant fee / royalty / non-compete category; no monetary threshold for covered director fees. Professional fees and other covered sums: 10%; non-professional technical services, specified film royalty and call-centre-only payees: 2%. Specified-payer and personal-use rules apply. |
| 393(1)Table: 6(ii)Formerly 194M | Large contract, commission & professional payments by other individuals / HUFs | 2% | Above ₹50 lakh, where an individual / HUF is outside the corresponding contractor, commission or professional-fee deduction requirement. Covers eligible business and personal payments to residents; excludes insurance commission. |
| 393(1)Table: 8(v)Formerly 194-O | E-commerce participant payments | 0.1% | On the gross sales / services amount. No TDS for a resident individual / HUF participant whose annual gross amount does not exceed ₹5 lakh and who furnishes PAN / Aadhaar. No general threshold for other participants. |
| 393(1)Table: 8(ii)Formerly 194Q | Purchase of goods | 0.1% of excess | Only on the amount above ₹50 lakh from a resident seller, where the buyer's preceding tax-year business turnover exceeded ₹10 crore. Does not apply where another TDS / TCS provision covers the transaction. |
| 393(1)Table: 8(iv)Formerly 194R | Business benefit / perquisite | 10% | Aggregate value above ₹20,000, provided by a specified person. Applies to the covered value, including benefits in kind; ensure the required tax is paid before release where cash is insufficient. |
| 393(1)Table: 8(vi)Formerly 194S | Virtual digital asset transfer | 1% | Above ₹50,000 for an individual / HUF with no business / professional income, or preceding-year business turnover up to ₹1 crore / professional receipts up to ₹50 lakh. Above ₹10,000 for other payers. In-kind and exchange rules apply. |
| 393(3)Table: 7Formerly 194T | Firm payments to partners | 10% | Covered salary, remuneration, commission, bonus or interest: annual aggregate above ₹20,000. Deduct on the whole covered amount, including credits to the capital account. Applies to resident and non-resident partners; profit share is a separate category. |
Using this TDS reference
New references from 1 April 2026. Use the full new section and table item for a current-year deduction, and select the corresponding nature of payment in the official portal. Former section numbers are cross-references only. Apply the old Act where the deduction trigger arose before 1 April 2026; a later payment does not create a second deduction.
Who is a specified person?. Section 402(37) includes persons other than individuals / HUFs, plus an individual / HUF whose preceding tax-year business turnover exceeded ₹1 crore or professional receipts exceeded ₹50 lakh. Contractors use the separate designated-payer definition in section 402(11).
Thresholds and exemptions. A threshold is a deduction trigger, not a tax-free allowance. Generally the whole covered amount becomes subject to TDS once the limit is crossed; goods purchases expressly use only the excess. Section 393(4) includes specific exceptions, including interest on Motor Accidents Claims Tribunal compensation paid to an individual.
Certificates, PAN and NRI payments. Check higher-rate PAN provisions and any valid declaration or lower / nil-deduction certificate before applying a special rate. A certificate application alone does not permit lower TDS. Non-resident payments require the relevant section 393(2) table entry, chargeability, treaty and surcharge / cess review; the 1% resident-property rate does not apply to an NRI seller.
OFFICIAL REFERENCES
Check the source.
Reference review: 15 September 2026. Apply the provisions for your period and facts; notifications and portal requirements can change.
- Income-tax Act, 2025, as amended by Finance Act, 2026
- Income Tax Department · section 393 tables and exemptions
- Income Tax Department · section 402 payer definitions
- Finance Act, 2026 · First Schedule, Part II (Gazette)
- Tax payments · Income-tax Act, 2025 transition FAQs
- Income Tax Department · Form 128 lower / nil deduction application