TDS is a mode of Tax Collection where payments are made by Payer after reduction of Tax as specified by law. Provisions of all TDS have been consolidated in Section 393 of Income Tax Act, 2025, thus replacing several sections of Income Tax Act, 1961 under which these provisions were spread across.
Understanding the TDS Rate Chart for FY 2026-27
Refer to the TDS Rate Chart for FY 2026-27 for detailed information on the applicable rates.
Whether you are an employee, entrepreneur or even a Chartered Accountant for that matter, it is always better to know the rate, limit and section code that is required to be followed while deducting the tax to avoid any penalty.
Amount of TDS if exceeded than tax liability can be claimed while filing Income Tax Returns (ITR)
If your income is below the tax limit, you can prevent TDS from being deducted from your income by submitting Form 15G (for below 60 years) / Form 15H (for senior citizens) to your bank. As already mentioned above, in terms of the Income Tax Act 2025, Form 121 has been introduced in place of the aforementioned forms.
Form 26A was used to obtain details of all TDS applied against your PAN throughout the year. This form has been replaced by Form 149 under Income Tax Act 2025.
TDS Rates for Residents
Section numbers as per Income Tax Act, 1961 are provided only for reference purposes.
| Section* | Nature of Transaction | Threshold Limit (Rs) | TDS Rate (%) |
| 192 | Salary | Basic exemption limit of employee | Slab rates |
| 192A | Premature withdrawal from EPF | Rs. 50,000 | 10% |
| 193 | Interest on Securities | Rs. 10,000 | 10% |
| 194 | Dividends | Rs. 10,000 | 10% |
| 194A | on bank/post office deposits | Rs. 50,000 | 10% |
| Interest on bank/post office deposits (Senior Citizen) | Rs. 1,00,000 | 10% | |
| Interest (Others) | Rs. 10,000 | 10% | |
| 194K | Payment of dividend by mutual Funds | Rs. 10,000 | 10% |
| 194B | Lottery, game shows, gambling winnings | Rs. 10,000 | 30% |
| 194BA | Online gaming winnings | – | 30% |
| 194BB | Winnings from horse races | Rs. 10,000 (Aggregate winnings during a financial year not single transaction) | 30% |
| 194C | Payment to contractors or sub-contractors | Rs. 30,000 (Single Transaction) or Rs. 1 lakh (In a FY) | 1% for individuals and HUF, 2% for others |
| 194D | Insurance Commission | Rs. 20,000 | 2% for individuals and HUF, 10% for others |
| 194DA | Payment received – Life insurance Policy | Rs. 1 lakh | 2% |
| 194EE | Payment received – National Savings Scheme (NSS) | Rs. 2,500 | 10% |
| 194G | Lottery Commission | Rs. 20,000 | 2% |
| 194H | Commission/Brokerage | Rs. 20,000 | 2% |
| 194J(a) | Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc. | Rs. 50,000 | 2% |
| 194J(b) | Fees – All other Professional Services | Rs. 50,000 | 10% |
| 194I(a) | Rent for Plant & Machinery | Rs. 50,000 | 2% |
| 194I(b) | Rent of Land Building & Furniture | Rs. 50,000 | 10% |
| 194IA | Transfer of certain immovable property other than agricultural land | Rs. 50 lakh | 1% |
| 194IB | Rent payment by individual / HUF not covered u/s 194I | Rs. 50,000 pm | 2% |
| 194IC | Payment under specified Joint Development Agreement | – | 10% |
| 194LA | Compensation on transfer of certain immovable property other than agricultural land | Rs. 5 lakh | 10% |
| 194LBA | Certain income from units of a business trust | – | 10% |
| 194LBB | Income in respect of investment of investment fund | – | 10% |
| 194LBC | Income in respect of investment in securitization trust | – | 10% |
| 194M | Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF | Rs. 50 lakh | 2% |
| 194N | Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society | 1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society) | 2% |
| 20 Lakh (if ITR not filed for previous 3 years) | 2% (Rs. 20 Lakh – 1 Crore) | ||
| 5% (Rs. 1 Crore and above) | |||
| 194O | TDS on e-commerce participants | Rs. 5 lakh | 0.10% |
| 194P | TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required) | – | Slab Rates |
| 194Q | TDS on Purchase of Goods exceeding Rs. 50 Lakh | Rs. 50 lakh | 0.10% |
| 194R | Benefits or perquisites of business or profession | Rs. 20,000 | 10% |
| 194S | Payment of consideration for transfer of virtual digital asset by persons other than specified person | Rs. 10,000 | 1% |
| Payment of consideration for transfer of virtual digital asset by specified person | Rs. 50,000 | 1% | |
| 194T | Payments by Partnership Firms to Partners | Rs. 20,000 | 10% |
TDS Rates for Non- Residents FY 2026-27
Section numbers as per Income Tax Act, 1961 are provided only for reference purposes.
| Section* | Payment Type | TDS Rate |
| Section 192 | Payment of Salary | Normal Slab Rate |
| Section 192A | Payment of accumulated balance of provident fund which is taxable in the hands of an employee. | 10% |
| Section 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. | 30% |
| Section 194BA | Income by way of winnings from any online game | 30% |
| Section 194BB | Income by way of winnings from horse races | 30% |
| Section 194E | Payment to non-resident sportsmen/sports association | 20% |
| Section 194EE | Payment in respect of deposits under National Savings Scheme | 10% |
| Section 194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India* | 20% |
| Section 194G | Commission, etc., on sale of lottery tickets | 2% |
| Section 194LB | Payment of interest on infrastructure debt fund | 5% |
| Sec. 194LBA(2) | Payment of the nature referred to in Section 10(23FC)(a) | 5% |
| Section 194LBA(2) | Payment of the nature referred to in Section 10(23FC)(b) | 10% |
| Section 194LBA(3) | Payment of the nature referred to in section 10(23FCA) by business trust to unit holders | 30% |
| Section 194LBB | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. | 30% |
| Section 194LBC | Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) | 30% |
| Section 194LC | When an Indian company pays interest in foreign currency : | |
| 1. When interest is paid for a long term bond or RDB – listed on IFSC | 4% | |
| 2. When bonds specified in (1) is issued after 01-04-2023 | 9% | |
| Section 194LD | Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | |
| Section 194N | Cash withdrawals in excess of Rs. 1 crore | 2% |
| ii) If ITR not filed for preceding 3 years: | ||
| a) in excess of Rs. 20 lakhs* | 2% | |
| b) in excess of Rs. 1 crore | 5% | |
| Section 194T | Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. From 01-04-2025, when the payment exceeds Rs 20,000. | 10% |
| Section 195 | Payment of any other sum to a Non-resident | |
| a) Income in respect of investment made by a Non-resident Indian Citizen | ||
| b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen, | 20% | |
| c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | 12.50% | |
| d) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 1,25,000 | 12.50% | |
| e) Income by way of short-term capital gains referred to in Section 111A | 12.50% | |
| f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in sections 10(33), 10(36)] | 20% | |
| g) Income by way of dividend from a unit in International Financial Services Centre | 12.50% | |
| h) Income by way of dividend [Other than (g)] | 10% | |
| i)Interest on foreign-currency borrowings payable by the Government or an Indian concern (excluding Sections 194LB and 194LC). | 20% | |
| j) Royalty paid by the Government or an Indian concern for transfer or licensing of specified book copyrights or computer software under Section 115A. | 20% | |
| k) Royalty income (other than (j)) payable by the government or Indian Concern under central government approved agreement or in accordance with industrial policy | 20% | |
| l) Fees for technical services in accordance with government agreement, government approved agreement or included in industrial policy in force | 20% | |
| m) Any other income | 20% | |
| Section 196A | Income in respect of units of non-resident | 30% |
| Section 196B | Income from units referred to in section 115AB(1)(i) | 20% |
| Section 196B | Long-term capital gain on transfer of units referred to in section 115AB, | 12.50% |
| Section 196C | Income by way of interest or dividends in respect of bonds or GDR referred to in section 115AC | 12.50% |
| Section 196C | Long-term capital gain arising from transfer of bonds or GDR referred to in section 115AC | 12.50% |
| Section 196D | Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) | 20% |
| Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%. | ||
| Section 196D(1A) | Income in respect of securities referred to in section 115AD(1)(a) payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)] | 10% |
| Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil. |
Excess TDS amount already deducted can be claimed as refund at the time of ITR filing.
TCS Rate Chart
With effect from 1st April, 2026, section 394 of the Income Tax Act, 2025 deals with the provisions of Tax Collected at Source. However, the sections as per Income Tax Act 1961 are retained for reference purposes.
| Section* | Particulars | Threshold Limit | TCS Rate* |
| 206C(1) | Alcoholic liquor for human consumption | Not applicable | 2% |
| 206C(1) | Tendu leaves | Not applicable | 2% |
| 206C(1) | Timber (forest lease or other mode) | Not applicable | 2% |
| 206C(1) | Scrap | Not applicable | 2% |
| 206C(1) | Minerals (coal, lignite, iron ore) | Not applicable | 2% |
| 206C(1C) | Parking lot, Toll plaza, Mining & Quarrying | Not applicable | 2% |
| 206C(1F) | Sale of motor vehicle | ₹10 lakh | 1% |
| 206C(1G) | Foreign remittance under LRS – education/medical | ₹10 lakh | 2% |
| 206C(1G) | LRS – other purposes | ₹10 lakh | 20% |
| 206C(1G) | Overseas tour programme package | Not applicable* | 2% |
Q. Where can we check the amount of TDS credit available?
Ans. The amount of TDS credit available is shown in ‘Form 26AS’.
Q. What is the interest rate for late deduction of TDS?
Ans. Simple Interest of 1% per month would be payable. Interest would be calculated from the date on which the TDS was required to be deducted by the payer till the date of its actual deduction.
Q. When should we deduct TDS at higher rate?
Ans. When a payer has collected PAN but the same has not been furnished in the payment data (say because it was not collected earlier), TDS to be deducted at higher rate of 20% (as specified in section for higher rate of TDS for non furnishing of PAN). In such cases, after arriving at the TDS rate as specified in section, Cess also to be added to such TDS rate.
Q. What is the TDS rate for NRI?
Ans. What is the TDS rate when payment is made to NRI? The TDS rate for various kinds of payments when made to NRI is specifically mentioned in the section. Any payment that is not covered under the aforesaid rates shall attract TDS to be deducted at prescribed rates and also cess to be added thereto.