TDS Rate Chart 2026 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Key Highlights
- TDS rates for Tax Year 2026-27 (Assessment Year 2027-28)
- Rates under ITA 2025 — Chapter XIX TDS/TCS provisions
- Higher TDS if PAN not furnished: 20% (Section 406 of ITA 2025)
- No TDS if payee submits Form 15G (resident, non-senior) or Form 15H (senior citizen)
- Lower/nil TDS certificate available under Section 398
- TDS deposit deadline: 7th of following month (30 April for March)
1. Key TDS Rates — Resident Payees (Tax Year 2026-27)
| Section (ITA 2025) | Nature of Payment | TDS Rate | Threshold |
|---|---|---|---|
| 391 | Salary (Section 391) | Average rate (slab-based) | Above basic exemption |
| 392 | Accumulated EPF withdrawal | 10% | Rs 50,000 |
| 393 | Dividend (Indian company) | 10% | Rs 5,000/year |
| 393A | Interest on securities | 10% | Rs 10,000 |
| 393B | Interest (bank/post office FD) | 10% | Rs 40,000 (Rs 50,000 senior) |
| 393C | Interest other sources (NBFCs) | 10% | Rs 5,000 |
| 393D | Lottery/crossword winnings | 30% | Rs 10,000 |
| 394 | Purchase of immovable property | 1% (buyer deducts) | Rs 50,00,000 |
| 394A | Online gaming net winnings | 30% | Rs 100 (year-end) |
| 395 | Capital gains on property (NRI) | LTCG: 20%; STCG: 30% | Nil |
| 396 | Non-resident payments (general) | As applicable / DTAA | Nil |
| 397 | Rent (individual/HUF Rs 50K+/month) | 5% (reduced from 10% — Budget 2024) | Rs 50,000/month |
| 398 | Payment to contractors | 2% (works contract); 1% (others) | Rs 30,000 single / Rs 1L aggregate |
| 399 | Professional/technical fees | 10% | Rs 30,000/year |
| 399A | Commission/brokerage | 5% (reduced — Budget 2024) | Rs 15,000/year |
| 399B | Rent (company/firm — Section 194I) | 10% (land/building); 2% (plant/machinery) | Rs 2,40,000/year |
| 400 | Payment for transfer of certain immovable property | 1% | Rs 50L |
| 401 | E-commerce operators to participants | 1% | Rs 5L/year |
2. Key Budget 2024 TDS Rate Changes (Effective 1 October 2024)
| Section | Nature | Old Rate | New Rate |
|---|---|---|---|
| 397 (194IB) | Rent by individual/HUF | 5% | 2% |
| 399A (194H) | Commission/brokerage | 5% | 2% |
| 399 (194J) | Professional/technical fees | 10%/2% | 10%/2% (no change) |
| 393B (194A) | Bank FD interest threshold | Rs 40,000 | Rs 50,000 (Budget 2025) |
3. Higher TDS for Non-PAN Cases (Section 406)
If the payee does not furnish their PAN, TDS must be deducted at the higher of: the applicable TDS rate; or 20%. This applies to all TDS sections. This encourages all payees to provide their PAN and ensures tax compliance.
4. Form 15G / 15H: When No TDS is Required
Payees with income below the taxable threshold can submit self-declarations to avoid TDS:
- Form 15G: For residents below 60 years with total income below the basic exemption limit (Rs 4L new regime) and estimated annual income below taxable limit
- Form 15H: For senior citizens (60+) whose total income is below taxable limit
- These forms can be submitted to banks, mutual funds, and other TDS deductors
- Valid for one Tax Year — must be submitted fresh every year
5. Why TaxClue
TDS compliance requires identifying the correct section, rate, threshold, and deposit deadline for every payment. TaxClue provides TDS advisory, quarterly TDS return filing (Form 24Q, 26Q, 27Q), and TDS reconciliation services. Contact us for complete TDS compliance under ITA 2025.
Key Facts About TDS Rate Chart 2026
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
What is the TDS rate on bank fixed deposit interest?
Under Section 393B of the Income Tax Act, 2025, TDS on interest from bank fixed deposits, recurring deposits, and savings accounts is deducted at 10% when the interest exceeds Rs 40,000 per year (Rs 50,000 for senior citizens). This threshold was enhanced for senior citizens to Rs 50,000 per year — they can also submit Form 15H to avoid TDS if their total income is below the taxable limit.
What TDS rate applies if the payee does not give their PAN?
Under Section 406 of the Income Tax Act, 2025, if the payee fails to furnish their PAN, TDS must be deducted at the higher of: the normal applicable TDS rate; or 20%. For example, if TDS on interest is normally 10% but the payee has not given PAN, TDS is deducted at 20%. This provision ensures all payees have an incentive to provide their PAN for correct TDS computation.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
TDS Rate Chart 2026: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.