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  7. TDS Rate Chart FY 2026-27: Latest TDS Rates, Limits & Sections

TDS RATE CHART FOR FY 2026-2027 UNDER INCOME TAX ACT, 2025

Updated on: 18 May, 2026 06:14 PM

TDS (Tax Deducted at Source) means collection of taxes by the Indian government at the source of income. TDS is applicable to various incomes like salary, rent, dividend, asset sales, etc. TDS (Tax Deducted at Source) is an important part of Income Tax compliance. TDS has to be deducted at the rates prescribed by the tax department. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Budget 2025 Update

  • The threshold for TDS on rent has been increased from Rs.2.4 lakhs per year to Rs.6 lakhs per year.
  • The threshold for TDS on senior citizen interest income has been increased from Rs.50,000 to Rs.1,00,000.

Contents

What is TDS?

TDS, or Tax Deducted at Source, is a taxation system in which the tax is deducted at the source of the income at the time of making the payment. This is a taxation system under which an individual or authority (deductor) makes a payment to some other individual (deductee) and, before making this payment, deducts a certain percentage of tax. This tax is, thereafter, directly deposited with the government. The aim behind introducing this system was to ensure tax is collected directly from the source of income, reducing the chances of tax evasion. A deductee can view this deducted tax amount in his/her Form 26AS. TDS is collected on several sources of income, including salary, bank interest (for instance, above Rs 40,000 for non-seniors), rent, professional fees, commission, etc. Every taxpayer, salaried employee, business proprietor, tax professional, chartered accountant, etc., should be aware of the applicable TDS rates, limits, and sections in order to avoid legal consequences like penalties.

The Indian government introduced it to prevent tax evasion. The TDS deducted is then submitted to the government. TDS is applicable on incomes such as rent, interest, salaries, and commission. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deducted.

TDS on Payment to Partners by Firm under Section 194T

Starting from April 1, 2025, if a firm makes any payments to its partners, it must deduct TDS at 10% if the payment amount exceeds the threshold limit of 20,000. These payments include salary, remuneration, bonus, commission, and interest.

Note: TDS is not applicable to the drawings and the capital repayment to the partners. But TDS applies to the interest on capital or borrowings from partners.

What is TDS Chart?

A TDS (Tax Deducted at Source) chart is a document or chart that outlines the rates at which tax is to be deducted at the source from various types of income as per the Income Tax Act. TDS chart provides information on the rates at which tax is to be deducted from the source for different types of payments such as salaries, interest, rent, professional fees, etc. These rates can vary depending on the nature of the payment, the amount, and the status of the recipient (whether they are an individual, a company, etc.).

TDS Rate Chart for FY 2026-27

TDS RATE (Tax Year/Financial Year 2026-2027)
Section under Income-Act, 1961 Section under Income-tax Act, 2025 Nature of Payment Made To Residents Threshold Individual / HUF Other than Individual / HUF
194C 393(1) [Table: Sl. No. 6(i).D(a)] Work contract (Contractor is Individual/HUF) 30k single / 1L aggregate 1.00% 2.00%
194C 393(1) [Table: Sl. No. 6(i).D(b)] Work contract (Contractor is Other than Individual/HUF) 30k single / 1L aggregate 1.00% 2.00%
194J (b) 393(1) [Table: Sl. No. 6(iii).D(a)] Fees for technical services 50000 (Aggregate) 2.00% 2.00%
194J (a) 393(1) [Table: Sl. No. 6(iii).D(b)] Fees for professional services 50000 (Aggregate) 10.00% 10.00%
194-IB 393(1) [Table: Sl. No. 2 (i)] Payment of any Rent (person other than specified person*) 50000 per month 2.00% 2.00%
194I(a) 393(1) [Table: Sl. No. 2 (ii).D(a)] For the use of any machinery or plant or equipment – specified person 50000 per month 2.00% 2.00%
194I(b) 393(1) [Table: Sl. No. 2 (ii).D(b)] For the use of any land, or building (including factory building), or land appurtenant to a building (including factory building), or furniture, or fittings – Specified Person 50000 per month 10.00% 10.00%
194D 393(1) [Table: Sl. No. 1 (i)] Any Income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policy). 20000 (Aggregate) 2.00% 10.00%
194H 393(1) [Table: Sl. No. 1 (ii)] Any income by way of commission or brokerage (not being insurance commission). 20000 (Aggregate) 2.00% 2.00%
192A 392(7) Any payment of accumulated balance due to an employee 50000 (Aggregate) 10.00% –
194-IA 393(1) [Table: SI. No. 3(i)] Any consideration for transfer of any immovable property (other than agricultural land). 50,00,000.00 1.00% 1.00%
194 IC 393(1) [Table: SI. No. 3(ii)] Payment on any Consideration, not being consideration in kind, under the agreement referred to in section 67(14)* Nil 10.00% 10.00%
194 LA 393(1) [Table: SI. No. 3(iii)] Payment of compensation on acquisition of certain immovable property (other than agricultural land) 500000 (Aggregate) 10.00% 10.00%
194K 393(1) [Table: Sl. No. 4 (i)] Any income in respect of – units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21)/units from the Administrator of the specified undertaking; /units from the specified company* 10000 (Aggregate) 10.00% 10.00%
194LBA 393(1) [Table: Sl. No. 4 (ii)] Interest income from units of a business trust to a resident unit holder Nil 10.00% 10.00%
194LBA(1) 393(1) [Table: Sl. No. 4 (ii)] Dividend income from units of a business trust to a resident unit holder Nil 10.00% 10.00%
194LBA(3) 393(1) [Table: Sl. No. 4 (ii)] Renting income from units of a business trust (Real estate investment trust) to a resident unit holder Nil 10.00% 10.00%
194LBB 393(1) [Table: Sl. No. 4 (iii)] Any income, other than that proportion of income which is exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224, payable to its unitholder. Nil 10.00% 10.00%
115TCA 393(1) [Table: Sl. No. 4 (iv)] Income from securitisation trust (section 221)* Nil 10.00% 10.00%
193 393(1) [Table: Sl. No. 5 (i)] Any income by way of Interest on securities – Any Person* 10000 (Aggregate) 10.00% 10.00%
194A 393(1) [Table: Sl. No. 5 (ii).D(a)] Interest (other than securities)-from bank/posto office/ co-operative society – Senior Citizen 100000 (Aggregate) 10.00% –
194A 393(1) [Table: Sl. No. 5 (ii).D(b)] Interest (other than securities)-from bank/posto office/co-op – not a Senior Citizen 50000 (Aggregate) 10.00% 10.00%
194A 393(1) [Table: Sl. No. 5 (iii)] Any income being interest other than interest on securities – Specified Person (other than post office for a deposit made under a scheme notified by the Central Government) 10000 (Aggregate) 10.00% 10.00%
194M 393(1) [Table: Sl. No. 6 (ii)] For carrying out any work (Including supply of labour for carrying out any work) in pursuance of a contract/ fees for professional services/ commission (not being insurance commission) 50,00,000.00 2.00% –
194J (1)(ba) 393(1) [Table: Sl. No. 6(iii).D(b)] Remuneration/fees/commission to company director – 10.00% 10.00%
194 393(1) [Table: Sl. No. 7] Dividends (including preference shares) 10000 (Individual) 10.00% 10.00%
194DA 393(1) [Table: Sl. No. 8 (i)] Sum under life insurance policy, including sum allocated as bonus on such policy, other than the amt not includible in the total income under schedule II(table : SI.NO.2) 1,00,000.00 2.00% 2.00%
194Q 393(1) [Table: Sl. No. 8 (ii)] Sum for purchase of any goods in excess of 5000000 0.10% 0.10%
194R 393(1) [Table: Sl. No. 8 (iv)] Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. 20000 (Aggregate Amt) 10.00% 10.00%
194O 393(1) [Table: Sl. No. 8 (v)] Sale by E-commerce participation, facilitated by an e-commerce operator through its digital or electronic facility or platform 500000 (Applicable only Ind/HUF) / Nil (Other than Ind/HUF) 0.10% 0.10%
194S 393(1) [Table: Sl. No. 8 (vi)] Transfer of virtual digital asset (other than Ind/HUF) 10000 (Aggregate) 1.00% 1.00%
194S 393(1) [Table: Sl. No. 8 (vi)] Transfer of virtual digital asset (by Ind/HUF) 50000 (Aggregate) 1.00% 1.00%
194S 393(1) [Table: Sl. No. 8 (vi)]Note 6 Any sum by way of consideration (cash or in kind or partly in cash and partly in kind )Transfer of virtual digital asset 10000 (Aggregate) 1.00% 1.00%
195 393(2) [Table: Sl. No. 1] Any income referred to in section 211* – 20.00% 20.00%
194LC 393(2) [Table: Sl. No. 2] Any income by way of interest payable in respect of moneys borrowed in foreign currency from a source outside India,—
(a) under a loan agreement or issue of long-term in- frastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or
(b) by way of issue of any longterm bond on or after the 1st October, 2014 but before the 1st July, 2023,
approved by the Central Government. – 5.00% 5.00%
194LD 393(2) [Table: Sl. No. 3] Any income by way of interest payable in respect of moneys borrowed from a source outside India by way of issue of rupee denominated bond before the 1st July, 2023. – 5.00% 5.00%
194LD 393(2) [Table: Sl. No. 4.E(a)] Income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long term bond or rupee denoinated bond, which is listed only on a recognised stock exchange located in any IFSC ( Issued on or after 01/04/2020 but before the 01/07/2023)) – 4.00% 4.00%
194LD 393(2) [Table: Sl. No. 4.E(b)] Income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long term bond or rupee denoinated bond, which is listed only on a recognised stock exchange located in any IFSC ( Issued on/after 01/07/23) – 9.00% 9.00%
194LB 393(2) [Table: Sl. No. 5] Interest from infrastructure debt fund – 5.00% 5.00%
115TA 393(2) [Table: Sl. No. 6] Distributed income (section 223* / Schedule V [Table: SI. No. 3.B((a)]) – 5%(Int) or 10%(Rent) 5%(Int) or 10%(Rent)
194LBA 393(2) [Table: Sl. No. 7] Distributed income from business trust (schedule V, Table 4) other distributed income – could be capital gain, dividends, misc income – 30.00% 35% (for non-residents company ), 30%(for non-residents other than companies)
194LBB 393(2) [Table: Sl. No. 8] Income from investment funds (sec 224)* – 10% (Resident)/30% (Non-Resident) 10% (Resident)/35% (Non-Resident Co)/30% (Non-Resident Other than company)
194LBC 393(2) [Table: Sl. No. 9] Income from securitisation trust (sec 221)* – 30.00% 10% (Resident )/35% (Non-Resident Co)/30% (Non-Resident Other than company)
194K 393(2) [Table: Sl. No. 10] Income from mutual funds or specified company – 20.00% 20%(not applicable for company )
115UA 393(2) [Table: Sl. No. 11] Income from units (Section 208)* – 10.00% 10.00%
112A 393(2) [Table: Sl. No. 12] LTCG from transfer of units (Section 208) – 12.50% 12.50%
115AC 393(2) [Table: Sl. No. 13] Interest or dividends from bonds or GDRs (Section 209)* – 10.00% 10.00%
115AC 393(2) [Table: Sl. No. 14] LTCG from transfer of bonds or GDRs (Section 209) – 12.50% 12.50%
193 393(2) [Table: Sl. No. 15] Income from securities (Section 210(1))* – 20.00% 20.00%
193 393(2) [Table: Sl. No. 16] Income in respect of securities (Section 210(1)) – 10.00% 10.00%
195 393(2) [Table: Sl. No. 17] Any interest(not covered under S.No. 2-5)/sums (excl. salaries) – – Avg Rate applicable
194B 393(3) [Table: Sl. No. 1] Winnings (Lottery, Crossword puzzles, card games, gambling) 10000 Single Transaction 30.00% 30.00%
194BA 393(3) [Table: Sl. No. 2] Winnings from online games – 30.00% 30.00%
194BB 393(3) [Table: Sl. No. 3] Winnings from horse race 10000 Single Transaction 30.00% 30.00%
194G 393(3) [Table: Sl. No. 4] Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets (by way of commission, remuneration or prize) on such tickets 20000 (Aggregate) 2.00% 2.00%
194N 393(3) [Table: Sl. No. 5.D(a)] Payment of certain amt in cash by bank/ post office/ co-operative society to a deductee being a co-operative society 3 Crore 2.00% 2.00%
194N 393(3) [Table: Sl. No. 5.D(b)] Payment of certain amt in cash by bank/ post office/ co-operative society to a deductee being a person (other than co-operative society) 1 Crore 2.00% 2.00%
194EE 393(3) [Table: Sl. No. 6] Any Amount referred to in Section 80CCA(2)(a)* of the income tax act, 1961 (43 of 1961) 2500 (Aggregate) 10.00% 10.00%
194T 393(3) [Table: Sl. No. 7] Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). 20000 (Aggregate) – 10.00%

TDS Rates Applicable on Non-Resident Indian (Other than a Company) for FY 2025-26

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 30%
Section 194LBB: Payment by investment fund to unitholder 30%
Section 194LBC: Income from investment in securitization fund 30%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum to NRI 10% / 20% / 30%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

TDS Rates Applicable for a Domestic Company for FY 2025-26

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 193: Interest on securities 10%
Section 194: Payment of any dividend 10%
Section 194A: Interest income (excluding securities) 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194C: Payment to contractor/sub-contractor 1% / 2%
Section 194D: Insurance commission 10%
Section 194DA: Income portion of life insurance payout 5%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194H: Commission or brokerage 5%
Section 194-I: Rent on plant/machinery or land/building/furniture 2% / 10%
Section 194-IA: Transfer of immovable property 1%
Section 194-IC: Payment under Joint Development Agreements (JDA) 10%
Section 194J: Payment for professional/technical services, etc. 2% / 10%
Section 194K: Income from units of mutual funds 10%
Section 194LA: Compensation on acquisition of immovable property 10%
Section 194LBA(1): Income distributed by a business trust 10%
Section 194LBB: Income paid by investment fund to unitholder 10%
Section 194LBC: Income from investment in securitization fund 10%
Section 194M: Payments by Individual/HUF exceeding ₹50 Lakhs 5%
Section 194N: Cash withdrawals exceeding ₹1 Crore 2% / 5%
Section 194O: Sale of goods/services via e-commerce platforms 1%
Section 194Q: Purchase of goods exceeding ₹50 Lakhs 0.1%
Any Other Income 10%

TDS Rates Applicable for a company other than Domestic Company for FY 2025-26

Particulars TDS Rate
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 40%
Section 194LBB: Payment by investment fund to unitholder 40%
Section 194LBC: Income from investment in securitization fund 40%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum, including capital gains 10% / 20% / 40%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

FAQ on TDS Rate Chart

Q- Who is eligible to pay TDS?

Any person whose total income exceeds the basic exemption limit and falls under the taxable bracket is eligible to pay TDS.

Q- Can I get a TDS refund?

Any tax paid in excess is refunded by the Income Tax Department. Once you file your ITR and your refund gets processed, the government refunds the excess income tax.

Q- What are the components of the TDS?

The TDS components are TDS, surcharge, PE-Cess, and SHE Cess.

Q- What are the changes in TDS rates for FY 2023 24?

Effective from July 1, 2023, the Tax Collected at Source (TCS) rate shall not exceed 20% if the collectee fails to furnish their PAN to the collector or if they are non-filers. Furthermore, concerning Tax Deducted at Source (TDS) under Section 192A for EPF withdrawals, the rate shall be fixed at 20% instead of the maximum marginal rate, even if the recipient does not provide their PAN.

Q- What is the threshold limit for TCS and TDS?

For TDS:

  • The tax deduction rate is 0.1% of the sum exceeding Rs. 50 lacs. This means if the transaction amount is over Rs. 50 lacs, the TDS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the transaction amount is Rs. 60 lacs, the TDS would be calculated as follows:

TDS = 0.1% of (Rs. 60,00,000 - Rs. 50,00,000) = 0.1% of Rs. 10,00,000 = Rs. 1,000.

For TCS:

  • The tax collection rate is also 0.1% of the sale sum exceeding Rs. 50 lacs. Similar to TDS, if the sale amount is over Rs. 50 lacs, the TCS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the sale amount is Rs. 70 lacs, the TCS would be calculated as follows:

TCS = 0.1% of (Rs. 70,00,000 - Rs. 50,00,000) = 0.1% of Rs. 20,00,000 = Rs. 2,000.

These rates and thresholds are subject to change, so it's essential to verify with the tax expert for accurate information.

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CA Abhishek Soni

CA Abhishek Soni
Founder & CEO at Tax2win

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Abhishek Soni is a Chartered Accountant by profession and an entrepreneur by passion. He has wide industry experience in telecom, retail, manufacturing, and entertainment and has handled various national and international assignments. He is the co-founder and CEO of Tax2win.in. Tax2win, an online tax filing platform, provides the easiest way to e-file your Income Tax Return in India. Through Tax2win.in, Abhishek endeavors to revolutionize how individuals file their income tax returns, offering a seamless and user-friendly experience.