Tax Planning TDS rate chart 2026-27TDS rates FY 2026-27Section 194TTDS on rent 194ITDS on salary 192TDS threshold limitsBudget 2025 TDS changesNRI TDS ratesSection 393 new ActTDS on property 194IATDS on crypto 194S

TDS Rate Chart FY 2026-27: Every Section, Every Rate, Every Threshold

Complete TDS rate chart for FY 2026-27 with all 30+ sections, thresholds, Budget 2025 changes. Section 194T new. 206AB removed. NRI rates. Section 393 mapping.

By HonestMoney.in Editorial Team | Updated May 3, 2026

30+ TDS Sections. 10 Rate Cuts. 2 Sections Killed. 1 Brand New Section. This Is Every TDS Rate That Applies from April 2026.

Budget 2025 was the biggest TDS overhaul in a decade. Ten sections got rate cuts, two compliance sections were scrapped entirely, and a new section brought partnership firms into the TDS net for the first time. Then the Income Tax Act 2025 reshuffled every section number starting April 1, 2026.

If you deduct TDS, receive payments with TDS, or file TDS returns, you need the complete picture — not a summary of “key changes.” This is the full TDS rate chart for FY 2026-27 with every section, every rate, every threshold, and every Budget 2025 change marked.

The New Income Tax Act 2025: Section 393 Replaces Everything

From April 1, 2026, the Income Tax Act 2025 consolidates all non-salary TDS into Section 393 with a table-based structure. Each payment type gets a code from 1001 to 1067. Salary TDS moves to Section 392 (formerly Section 192).

The rates and thresholds remain identical. Only the section numbers change. Throughout this guide, we use the old section numbers (194A, 194C, 194H, etc.) because:

Your Form 26AS and AIS for FY 2025-26 still reference old numbers
Every TDS software, CA, and payroll system still uses old references
CBDT has issued a mapping table linking old sections to new payment codes

When your TDS software updates to Section 393 codes, the rates below apply exactly as listed. For the complete section mapping, see our Income Tax Act 2025 changes guide.

Complete TDS Rate Chart — FY 2026-27

Salary and Provident Fund

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
192	Salary	Slab-based	As per income tax slabs FY 2026-27	Employer deducts monthly based on estimated annual income
192A	Premature EPF withdrawal	10%	Rs 50,000	Only if service < 5 years. No TDS if Form 15G/15H submitted

Interest and Dividend

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
193	Interest on securities (debentures, govt bonds)	10%	Rs 10,000	No TDS on govt securities for individuals holding in demat
194	Dividend	10%	Rs 5,000	Applies to both listed and unlisted company dividends
194A	Interest other than securities (FDs, deposits)	10%	Rs 50,000 (general) / Rs 1,00,000 (senior citizens)	Budget 2025 doubled senior citizen threshold from Rs 50,000

Insurance

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194D	Insurance commission	2% (individual/HUF) / 10% (others)	Rs 20,000	Budget 2025: rate cut from 5% to 2%, threshold raised from Rs 15,000
194DA	Life insurance maturity proceeds	2%	Rs 1,00,000	Budget 2025: rate cut from 5% to 2%. Only if premium > 10% of sum assured

Winnings and Gaming

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194B	Lottery, crossword, card game winnings	30%	Rs 10,000	Flat 30%, no deductions allowed against this income
194BA	Online gaming (net winnings)	30%	No threshold	Every rupee of net winnings taxed. Deducted at withdrawal or year-end
194BB	Horse race winnings	30%	Rs 10,000	Applies per race meeting, not per bet

Contractor and Professional Payments

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194C	Contractor payments	1% (individual/HUF) / 2% (others)	Rs 30,000 (single) / Rs 1,00,000 (aggregate)	Applies to any works contract — construction, manufacturing, catering
194J(a)	Technical services, call centre fees	2%	Rs 50,000	Reduced rate for technical services
194J(b)	Professional fees, royalty, non-compete fees	10%	Rs 50,000	Applies to CA, lawyer, doctor, architect, consultant fees

Commission and Brokerage

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194G	Commission on lottery ticket sales	2%	Rs 15,000	Budget 2025: rate cut from 5% to 2%
194H	Commission or brokerage	2%	Rs 20,000	Budget 2025: rate cut from 5% to 2%, threshold raised from Rs 15,000

Rent

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194I(a)	Rent — plant and machinery	2%	Rs 50,000/month	Threshold raised from Rs 2.4L/year to Rs 6L/year
194I(b)	Rent — land, building, furniture	10%	Rs 50,000/month	Threshold raised from Rs 2.4L/year to Rs 6L/year
194IB	Rent paid by individuals/HUF (not liable to audit)	2%	Rs 50,000/month	Rate cut from 5% to 2% effective October 2024. No TAN required

Property, Immovable Assets, and Compulsory Acquisition

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194IA	Purchase of immovable property	1%	Rs 50,00,000	Buyer deducts. Applies on total sale value, not just stamp duty value
194LA	Compensation on compulsory acquisition of property	10%	Rs 2,50,000	Exemption under Section 96 of RFCTLARR Act — no TDS if exempt

Mutual Funds and Investments

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194K	Income from mutual fund units (IDCW)	2%	Rs 10,000	Budget 2025: rate cut from 10% to 2%. Not applicable on redemptions

E-Commerce, Goods Purchase, and Cash

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194O	E-commerce operator payments to sellers	0.1%	Rs 5,00,000	Budget 2025: rate cut from 1% to 0.1%, threshold raised from Rs 5L
194Q	Purchase of goods	0.1%	Rs 50,00,000	Buyer with turnover > Rs 10 crore deducts. Does not apply if seller deducts TCS
194N	Cash withdrawal from bank	2% / 5%	Rs 1 crore / Rs 20 lakh (non-filers)	2% above Rs 1 crore for filers. 5% above Rs 20 lakh for non-filers

Partnership Firms — NEW

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194T	Partnership firm payments to partners (salary, interest, bonus, commission)	10%	Rs 20,000	NEW section from April 2025. First-time TDS on partner income. See complete 194T guide

Crypto, Business Perks, and Other

Section	Nature of Payment	TDS Rate	Threshold	Key Notes
194S	Transfer of virtual digital assets (crypto, NFTs)	1%	Rs 50,000 (specified person) / Rs 10,000 (others)	On gross consideration, not profit
194R	Business perks and benefits in kind	10%	Rs 20,000	Applies to free trips, gifts, awards given as business incentives
194M	Commission, brokerage, contractual/professional fees to individuals	2%	Rs 50,00,000	Budget 2025: rate cut from 5% to 2%. No TAN required

Budget 2025 Changes — Before vs After

Section	Payment Type	Old Rate	New Rate	Old Threshold	New Threshold
194H	Commission/brokerage	5%	2%	Rs 15,000	Rs 20,000
194I(b)	Rent (land/building)	10%	10% (unchanged)	Rs 2,40,000/yr	Rs 6,00,000/yr
194I(a)	Rent (plant/machinery)	2%	2% (unchanged)	Rs 2,40,000/yr	Rs 6,00,000/yr
194IB	Rent by individual	5%	2%	Rs 50,000/mo	Rs 50,000/mo
194K	MF income (IDCW)	10%	2%	Rs 5,000	Rs 10,000
194DA	Life insurance maturity	5%	2%	Rs 1,00,000	Rs 1,00,000
194G	Lottery commission	5%	2%	Rs 15,000	Rs 15,000
194D	Insurance commission	5%	2%	Rs 15,000	Rs 20,000
194M	Commission to individual	5%	2%	Rs 50,00,000	Rs 50,00,000
194O	E-commerce payments	1%	0.1%	Rs 5,00,000	Rs 5,00,000
194A	Interest (senior citizens)	10%	10%	Rs 50,000	Rs 1,00,000
194T	Partnership payments	Did not exist	10%	—	Rs 20,000

Sections Removed

Section	What It Did	Status from April 2025
206AB	Higher TDS (double rate / 5%) for non-filers of ITR	Omitted
206CCA	Higher TCS for non-filers of ITR	Omitted
206C(1H)	TCS on sale of goods above Rs 50 lakh	Repealed

The removal of 206AB is a major compliance relief. Businesses no longer need to check the income tax portal to verify whether each payee has filed their ITR before applying TDS rates. Apply the standard rate for every deductee.

NRI TDS Rates — FY 2026-27

NRI payments fall under Section 195, with separate sections for mutual funds (196A) and FIIs (196D). These rates are significantly higher than resident rates.

Payment Type	Section	TDS Rate (NRI)	TDS Rate (Resident)	DTAA Override?
Interest income	195	30%	10%	Yes — most DTAAs cap at 10-15%
Dividend	195	20%	10%	Yes — typically 10-15% under DTAA
Rent on property	195	30%	10% (194I)	Yes
Professional/technical fees	195	40% (foreign company) / 30% (others)	10% (194J)	Yes — typically 10-15% under DTAA
Long-term capital gains (property)	195	12.5%	12.5%	Yes
Mutual fund income	196A	20%	2% (194K)	Yes
FII income	196D	20%	—	Yes

Surcharge and cess apply on top of these rates. A 30% base rate with 15% surcharge and 4% cess becomes 35.88% effective rate.

NRIs selling property in India face TDS at 12.5% (LTCG) or 30% (STCG) — the buyer is legally responsible for deducting this. See our NRI property sale TDS guide for the exact calculation and Form 27Q filing process.

TDS That Individuals Must Deduct — Even Without a Business

Most people think TDS is only for businesses. Wrong. Three sections require individuals and HUFs to deduct TDS even if they have zero business income:

1. Section 194IB — Rent Above Rs 50,000/Month

If you pay monthly rent exceeding Rs 50,000 to your landlord, you must deduct 2% TDS. No TAN is needed. File Form 26QC on the income tax portal within 30 days from the end of the month.

Example: Rent of Rs 60,000/month. TDS = Rs 1,200/month. You pay Rs 58,800 to the landlord and deposit Rs 1,200 as TDS.

2. Section 194IA — Property Purchase Above Rs 50 Lakh

When buying property valued above Rs 50 lakh, the buyer deducts 1% TDS on the total sale consideration. File Form 26QB within 30 days from the end of the month of payment.

Example: Property purchase at Rs 85 lakh. TDS = Rs 85,000. Pay Rs 84,15,000 to the seller and deposit Rs 85,000.

3. Section 194M — Commission/Professional Fees Above Rs 50 Lakh

If you pay commission, brokerage, or professional fees exceeding Rs 50 lakh in a year to a resident individual, deduct 2% TDS. File Form 26QD within 30 days.

None of these require TAN registration. You use your PAN to deposit TDS. But non-compliance attracts interest at 1-1.5% per month and disallowance of the expense if you are filing business income.

Common TDS Mistakes That Cost Money

Mistake 1: Not Deducting TDS on Rent Under 194IB

Tenants paying Rs 55,000-80,000/month often skip TDS deduction because they are unaware of Section 194IB. The landlord’s AIS will show rental income, and the tax department can trace the tenant. Penalty: interest at 1% per month from the date TDS was due.

Mistake 2: Confusing 194I(b) Rate with 194IB Rate

Section 194I(b) rate is 10% for businesses paying rent on land/building. Section 194IB rate is 2% for individuals paying rent. These are different sections with different rates. Applying 2% when you should apply 10% (or vice versa) triggers a demand notice.

Mistake 3: Applying Old 206AB Higher Rates

Some TDS software still prompts for 206AB compliance checks (verifying if the deductee filed ITR). Since 206AB is omitted from April 2025, applying higher rates results in excess TDS that the deductee must claim as a refund — creating unnecessary paperwork for both parties. Update your software.

Mistake 4: TDS on Crypto — Gross Consideration, Not Profit

Section 194S applies on the full sale consideration, not on your profit. If you sell Rs 10 lakh worth of Bitcoin, TDS is Rs 10,000 (1% of Rs 10 lakh) — even if you bought it at Rs 12 lakh and are making a loss. Exchanges deduct this automatically, but P2P transactions require the buyer to deduct.

Mistake 5: Ignoring the New Section 194T for Partnership Firms

Every partnership firm and LLP must now deduct 10% TDS when paying salary, remuneration, interest, bonus, or commission to partners above Rs 20,000 per year. Firms that have not updated their accounting systems are accumulating non-compliance every month. The penalty includes disallowance of the entire partner remuneration as a business expense under Section 40(a)(ia). Read the full Section 194T compliance guide.

How to Check TDS Deducted Against Your Income

Your TDS trail appears in three places:

Form 26AS (Form 168 under new Act) — Download from TRACES portal. Shows all TDS deducted against your PAN with deductor details, section, and amount.
Annual Information Statement (AIS) — Available on the income tax e-filing portal. Shows TDS plus other financial transactions (bank interest, mutual fund purchases, property transactions).
Taxpayer Information Summary (TIS) — Processed version of AIS with derived income values. Cross-check this against your own records before filing ITR.

If TDS is deducted but does not appear in Form 26AS, the deductor has not filed their TDS return. Contact the deductor and ask them to file. You cannot claim TDS credit without Form 26AS matching.

For freelancers receiving payments with TDS under 194J or 194C, reconcile every quarter — do not wait until ITR filing time to discover mismatches.

TDS Rates Without PAN — Section 206AA

If the deductee does not furnish a valid PAN, TDS is deducted at the highest of:

The rate specified in the section
20%

Scenario	Normal Rate	Rate Without PAN
FD interest (194A)	10%	20%
Rent (194I(b))	10%	20%
Professional fees (194J)	10%	20%
Contractor (194C)	1-2%	20%
Crypto (194S)	1%	20%
Online gaming (194BA)	30%	30% (already highest)
Lottery (194B)	30%	30% (already highest)

This is a flat penalty for not providing PAN. The excess TDS cannot be adjusted — the deductee must file ITR and claim a refund.

TDS Due Dates for FY 2026-27

Month of Deduction	TDS Deposit Deadline
April 2026	May 7, 2026
May 2026	June 7, 2026
June 2026	July 7, 2026
July 2026	August 7, 2026
August 2026	September 7, 2026
September 2026	October 7, 2026
October 2026	November 7, 2026
November 2026	December 7, 2026
December 2026	January 7, 2027
January 2027	February 7, 2027
February 2027	March 7, 2027
March 2027	April 30, 2027

March is the exception — TDS deducted in March gets an extended deadline of April 30 (not April 7).

Quarterly TDS return filing deadlines: Q1 by July 31, Q2 by October 31, Q3 by January 31, Q4 by May 31.

What Changed vs What Stayed the Same — Quick Summary

Changed (Budget 2025):

10 sections got rate cuts (194H, 194K, 194DA, 194G, 194D, 194IB, 194M, 194O, and threshold changes in 194I, 194A)
Section 194T introduced — 10% TDS on partnership firm payments to partners
Section 206AB and 206CCA omitted — no more higher TDS for non-filers
Section 206C(1H) repealed — no TCS on sale of goods

Changed (Income Tax Act 2025, April 2026):

All non-salary TDS consolidated under Section 393 with payment codes 1001-1067
Salary TDS moved to Section 392
Form numbers changed (Form 16 becomes Form 130, Form 26AS becomes Form 168)
Assessment Year abolished — replaced by Tax Year

Not changed:

TDS rates and thresholds remain exactly as set by Budget 2025
Filing process, challan submission, and TAN requirements unchanged
Form 15G/15H (now Form 121) still available for nil TDS declarations
Section 197 lower/nil TDS certificate process unchanged

For the complete section-by-section mapping between the old and new Act, see our Income Tax Act 2025 changes guide.

HonestMoney.in Editorial Team

Research-backed content sourced from official publications, regulatory filings, verified data, and real-world experiences. Updated May 2026.

FAQ 10

Frequently Asked Questions

Research-backed answers from verified data and published sources.

What are the major TDS rate changes in Budget 2025?

Budget 2025 reduced TDS rates across 10+ sections. Key changes: Section 194H commission dropped from 5% to 2% with threshold raised to Rs 20,000. Section 194I(b) rent on land/building dropped from 10% to 2% with threshold raised to Rs 50,000 per month. Section 194K mutual fund income dropped from 10% to 2%. Section 194DA life insurance maturity dropped from 5% to 2%. Section 194O e-commerce dropped from 1% to 0.1% with threshold raised to Rs 5 lakh. Section 194M payments to individuals dropped from 5% to 2%. A new Section 194T was introduced at 10% for partnership firm payments to partners above Rs 20,000.

Has Section 206AB (higher TDS for non-filers) been removed?

Yes. Sections 206AB and 206CCA have been omitted from April 1, 2025. These sections imposed higher TDS and TCS rates on persons who had not filed income tax returns for two preceding years. The rate was double the applicable rate or 5%, whichever was higher. Their removal means deductors no longer need to check whether the deductee has filed returns before applying TDS rates. This significantly reduces the compliance burden for businesses that make thousands of payments annually and previously had to verify filing status for each payee on the income tax portal.

What is the TDS rate on crypto and virtual digital assets for FY 2026-27?

TDS on crypto and virtual digital assets under Section 194S is 1% on consideration paid. The threshold is Rs 50,000 per year if the payer is a specified person (individual or HUF whose business turnover does not exceed Rs 1 crore or professional receipts do not exceed Rs 50 lakh). For all other payers, the threshold is Rs 10,000 per year. There is no threshold reduction for frequent traders. TDS applies on the gross consideration, not on profit. So if you buy Rs 5 lakh worth of crypto on an exchange, the exchange deducts Rs 5,000 as TDS regardless of whether you make or lose money on the trade.

What is Section 393 under the new Income Tax Act 2025?

From April 1, 2026, the Income Tax Act 2025 consolidates all TDS provisions into two master sections: Section 392 for salary and Section 393 for all other payments. Section 393 uses a table-based structure with payment codes 1001 through 1067, each mapping to a specific type of payment (rent, commission, professional fees, etc.). The old section numbers like 194C, 194H, 194J are replaced by these codes. However, the underlying rates, thresholds, and compliance rules remain the same. For FY 2026-27, deductors will reference Section 393 and the corresponding payment code instead of the individual section numbers used under the 1961 Act.

What TDS must individuals deduct in FY 2026-27?

Individuals and HUFs must deduct TDS in three specific situations even if they have no business income. Section 194IB requires 2% TDS on rent exceeding Rs 50,000 per month paid to a resident landlord. Section 194IA requires 1% TDS on purchase of immovable property valued above Rs 50 lakh. Section 194M requires 2% TDS on commission, brokerage, contractual payment, or professional fees exceeding Rs 50 lakh per year paid to a resident. These three sections do not require TAN — the individual uses PAN for the TDS deposit and files Form 26QC (194IB), Form 26QB (194IA), or Form 26QD (194M) on the income tax portal.

What is the TDS rate on rent for FY 2026-27?

There are three separate TDS sections for rent. Section 194I(a) applies to rent on plant and machinery at 2% with a threshold of Rs 50,000 per month (Rs 6 lakh per year). Section 194I(b) applies to rent on land, building, or furniture at 10% with the same Rs 50,000 per month threshold. Budget 2025 raised the threshold from Rs 2.4 lakh per year to Rs 6 lakh per year. Section 194IB applies when an individual or HUF (not liable to audit) pays rent exceeding Rs 50,000 per month — the rate was reduced from 5% to 2% effective October 2024. The applicable section depends on who is paying and the nature of the asset.

Is TDS applicable on mutual fund redemptions for FY 2026-27?

Section 194K applies TDS at 10% on income from mutual fund units (dividend, capital gains distribution) exceeding Rs 10,000 per year. However, this does NOT apply to redemption proceeds. When you redeem mutual fund units, no TDS is deducted. TDS under 194K applies only when the mutual fund scheme distributes income to you. Since SEBI abolished the dividend option and replaced it with IDCW (Income Distribution cum Capital Withdrawal) in 2021, 194K mainly applies to IDCW payouts. Growth option redemptions have no TDS — you pay capital gains tax when filing your ITR.

What are the TDS rates for NRIs in FY 2026-27?

NRI TDS rates under Section 195 are higher than resident rates. Interest income: 30% (no threshold). Dividend: 20%. Rent: 30%. Royalty and FTS (fees for technical services): 10%. Long-term capital gains on property: 12.5%. Short-term capital gains on equity: 20%. These are base rates before surcharge and cess. Section 196A covers mutual fund income paid to NRIs at 20%. Section 196D covers FII income at 20%. NRIs can claim lower rates under Double Taxation Avoidance Agreements (DTAA) by furnishing a Tax Residency Certificate. For NRI property sales, the buyer must deduct TDS at 12.5% or 30% depending on gain type.

What happens if TDS is deducted at a higher rate than my actual tax liability?

You claim the excess TDS as a refund when filing your income tax return. Verify that all TDS appears in your Form 26AS (Form 168 under the new Act) and Annual Information Statement on the income tax portal. Enter TDS details in the TDS schedule of your ITR with the deductor's TAN, section code, and amount. If your total tax liability is lower than total TDS, the difference is refunded to your pre-validated bank account — typically within 30-60 days of e-verification. You can also submit Form 13 (Form 121 under new Act) to the Assessing Officer to get a nil or lower TDS certificate if your income is below taxable limits.

Can I avoid TDS by submitting Form 15G or Form 15H?

Form 15G (for individuals below 60) and Form 15H (for senior citizens 60+) allow you to declare that your total income is below the taxable limit, so the payer does not deduct TDS. These forms work for interest income under Section 194A (bank FDs, post office deposits), dividend under Section 194, and insurance commission under Section 194D. They do NOT work for all TDS sections — salary TDS (192), rent TDS (194I), property TDS (194IA), and contractor TDS (194C) cannot be avoided using 15G/15H. Submit these forms at the beginning of each financial year. Under the new Income Tax Act 2025, Forms 15G and 15H are merged into a single Form 121.

Disclaimer: This information is for educational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified Chartered Accountant or tax professional before making tax-related decisions. Always verify with the latest Income Tax Act provisions and official government notifications.