TDS Rate Chart 2026-27
Effective from the 1st April 2026, the legacy tax legislation has been officially replaced by a streamlined statute designed to modernize and simplify compliance.
A major structural update in this new law is the complete elimination of the traditional, individual numbering system previously used to categorize tax deductions at source. Rather than relying on a complex series of specific alphanumeric identifiers for different payment categories, the framework consolidates these provisions and introduces a unified system of numerical payment codes.
New sections as per The Income tax Act, 2025:
- Salary- Section 392
- TDS (other than Salary)- Section 393
- TCS- Section 394
Businesses must now utilize these standardized numeric codes, alongside specific table references, to accurately classify, track, and report all applicable transactions. For clarity, the new section numbers have been omitted from this table, but the applicable numeric codes for each payment category have been retained for accurate reference.
Higher rate of TDS
Under the new Income Tax Act, 2025, the provision mandating a higher rate of tax deduction at source for the non-furnishing or inoperability of a Permanent Account Number is governed by Section 397. When a valid PAN is not provided or becomes inoperative, tax is deducted at source at a significantly higher rate.
The applicable rate is strictly determined as the highest of the following:
- The rate prescribed in the Act for the specific payment
- The current rate in force
- A standard flat rate of 20 % (Reduced to 5% in case of purchase of goods or e-commerce operator sales)
Resident only codes (1004-1038)
| Old Section | New numeric code | Category | Nature of payment | Threshold limit | Rate of TDS |
|---|---|---|---|---|---|
| 192A | 1004 | Salary & EPF | Premature withdrawal from Employees’ Provident Fund | INR 50,000 | 10% |
| 194D | 1005 | Commission & Brokerage | Insurance commission | INR 20,000 | In the case of individuals/HUF – 2% In case of others – 10% |
| 194H | 1006 | Commission & Brokerage | Commission/ Brokerage | INR 20,000 | 2% |
| 194IB | TBN | Rent | Payment of rent by individuals/HUF (not liable to tax audit) | INR 50,000 per month | 2% |
| 194I(a) | 1008 | Rent | Rent on plant & machinery | INR 6,00,000 | 2% |
| 194I(b) | 1009 | Rent | Rent on land/ building/ factory/ furniture/ fittings | INR 6,00,000 | 10% |
| 194IA | TBN | Immovable propert | Payment towards transfer of certain immovable property (other than agricultural land) | INR 50,00,000 | 1% |
| 194IC | 1011 | Immovable propert | Payment under JDA (Joint Development Agreement) | NIL | 10% |
| 194LA | 1012 | Immovable propert | Payment towards compensation for acquisition of certain specified immovable property [land (other than agricultural land)/ building or part thereof] | INR 5,00,000 | 10% |
| 194K | 1013 | MF, REIT, InvIT, AIF, Securitisation Trusts | Income relating to specified units | INR 10,000 | 10% |
| 194LBA | 1014, 1015, 1016 | MF, REIT, InvIT, AIF, Securitisation Trusts | Income from the units of business trust | NIL | 10% |
| 194LBB | 1017 | MF, REIT, InvIT, AIF, Securitisation Trusts | Income from units of investment funds | NIL | 10% |
| 194LBC | 1018 | MF, REIT, InvIT, AIF, Securitisation Trusts | Income relating to investment in securitization trust | NIL | 10% |
| 193 | 1019 | Interest | Interest on securities | INR 10,000 | 10% |
| 194A | 1020, 1021 | Interest | Interest (other than interest on securities) – Bank deposit/ banking co-operative society deposits/ post office deposit | In case of senior citizens- INR 1,00,000 Any other case- INR 50,000 | 10% |
| 194A | 1022 | Interest | Interest (other than interest on securities) – Deposits (other than above | INR 10,000 | 10% |
| 194C | 1023 | Contracts & Professional Fees | Payments to contractor – In case of individuals/ HUF | Single transaction – INR 30,000; and Aggregate of transactions – INR 1,00,000 | 1% |
| 194C | 1024 | Contracts & Professional Fees | Payments to contractor – Any other case | Single transaction – INR 30,000; and Aggregate of transactions – INR 1,00,000 | 2% |
| 194M | TBN | Contracts & Professional Fees | Payment of certain sums (i.e.contract/ commission/ brokerage/ fees for professional) by Individuals/ HUF | INR 50,00,000 | 2% |
| 194J(a) | 1026 | Contracts & Professional Fees | FTS (fees for technical services not being professional service) or royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films or payee, engaged only in the business of operation of call centre | INR 50,000 | 2% |
| 194J(b) | 1027 | Contracts & Professional Fees | Fees for Professional Services | INR 50,000 | 10% |
| 194J(b) | 1028 | Contracts & Professional Fees | Any sum by way of remuneration or fees or commission by whatever name called (other than Salary) to a director of a company | NIL | 10% |
| 194 | 1029 | Dividends | Dividends | INR 10,000 | 10% |
| 194DA | 1030 | Miscellaneous | Payment relating to life insurance policy | INR 1,00,000 | 2% |
| 194Q | 1031 | Miscellaneous | Payment towards purchase of goods | INR 50,00,000 | 0.1% |
| 194P | 1032 | Miscellaneous | Tax deduction in case of senior citizen of 75 or more years age | New Tax Regime (default)- INR 4,00,000 Old Tax Regime- INR 2,50,000 | Slab rates |
| 194R | 1033, 1034 | Miscellaneous | Benefit/ perquisite in respect of business/ profession | INR 20,000 | 10% |
| 194O | 1035 | Miscellaneous | Sale of goods / services by e-commerce participant through digital platform of operator | INR 5,00,000 | 0.10% |
| 194S, 194SP | 1037, 1038 | Miscellaneous | Payment relating to transfer of virtual digital asset by specified person | INR 50,000 | 1% |
Common codes (1001-1003 & 1058-1067)
| Old Section | New numeric code | Category | Nature of payment | Threshold limit | Rate of TDS |
|---|---|---|---|---|---|
| 192 | 1001, 1002, 1003 | Salary & EPF | Salary | New Tax Regime (default)- INR 4,00,000 Old Tax Regime- INR 2,50,000 | Slab rates |
| 194B | 1058, 1059 | Winnings | Winning from lottery/ crossword puzzle/ card game and other game/gambling or betting | INR 10,000 | 30% |
| 194BA | 1060, 1061 | Winnings | Winning from online games | NIL | 30% |
| 194BB | 1062 | Winnings | Winnings from horse races | INR 10,000 (aggregate in a year) | 30% |
| 194G | 1063 | Miscellaneous | Commission/ prize, etc. on sale of the lottery tickets | INR 20,000 | 2% |
| 194N | 1064, 1065 | Miscellaneous | Payment of certain amounts in cash, i.e. cash withdrawals | Co-operative society- INR 3,00,00,000 Others- INR 1,00,00,000 | 2% |
| 194EE | 1066 | Miscellaneous | Payments relating to deposits under NSS (National Savings Scheme) | INR 2,500 | 10% |
| 194T | 1067 | Miscellaneous | Payments by Partnership firms to partners | INR 20,000 | 10% |