Commission, Brokerage and Rent (Sl. No. 1 and 2)
Tax is deducted on the entire amount once the amount or the aggregate of amounts exceeds the threshold limit in column D, at the time of credit or payment, whichever is earlier (section 393(1)(a) and (c)).
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 1(i) | Insurance commission: remuneration or reward, by way of commission or otherwise, for soliciting or procuring insurance business (including continuance, renewal or revival of insurance policies) | Any person | Rates in force | ₹20,000 |
| 1(ii) | Commission (not being insurance commission referred to in Sl. No. 1(i)) or brokerage | Specified person | 2% | ₹20,000 |
| 2(i) | Rent | Person other than specified person | 2% | ₹50,000 for a month or part of a month |
| 2(ii)(a) | Rent for the use of any machinery or plant or equipment | Specified person | 2% | ₹50,000 for a month or part of a month |
| 2(ii)(b) | Rent 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 | 10% | ₹50,000 for a month or part of a month |
Note 1 to Sl. No. 2: under Sl. No. 2(i) the tax is deducted at the time of credit or payment of rent, whichever is earlier, for the last month of the tax year or the last month of tenancy. Under section 402(29), for Sl. No. 2(i) only payment for land, building or land appurtenant to a building is treated as rent.
Work Out the TDS on a Payment to a Resident
Pick the payment and enter the amount. Where the threshold is on the year’s aggregate, enter the aggregate for the tax year.
Payments to residents only. Lower deduction certificates (s. 395), the nil-tax declaration (s. 393(6)) and the other no-deduction cases in section 393(4) are not applied. The rate is applied to the amount you enter; tax on earlier payments of the year, once an aggregate limit is crossed, is not worked out.
Transfer of Immovable Property (Sl. No. 3)
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 3(i) | Consideration for transfer of any immovable property (other than agricultural land) | Person other than the persons required to deduct tax under Sl. No. 3(iii) | 1% of the consideration or the stamp duty value, whichever is higher | Fifty lakh rupees, and as per Note 3 |
| 3(ii) | Consideration, not being consideration in kind, under the agreement referred to in section 67(14) | Any person | 10% | Nil |
| 3(iii) | Compensation or enhanced compensation, or consideration or enhanced consideration, on compulsory acquisition under any law of any immovable property (other than agricultural land) | Any person | 10% | ₹5,00,000 |
Note 1: for Sl. No. 3(i) the consideration is the aggregate of amounts paid or payable by all the transferees to the transferor or all the transferors. Note 2: where both Sl. No. 3(i) and 3(ii) apply, tax is deducted under 3(ii) only. Note 3, as amended by section 84(a) of the Finance Act, 2026: for Sl. No. 3(i), tax is deducted where the consideration or the stamp duty value is equal to or greater than fifty lakh rupees. Before the amendment Note 3 referred to Sl. No. 3(iii).
Capital Market Income and Interest (Sl. No. 4 and 5)
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 4(i) | 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, or units from the specified company | Any person | 10% | ₹10,000 |
| 4(ii) | Distributed income referred to in section 223, of the nature referred to in Schedule V (Table: Sl. Nos. 3 and 4), payable to a unitholder of a business trust | Any business trust | 10% | Nil |
| 4(iii) | Income, other than the proportion exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224, payable to its unitholder | Any investment fund specified in section 224 | 10% | Nil |
| 4(iv) | Income in respect of an investment in a securitisation trust specified in section 221, to an investor | Any securitisation trust specified in section 221 | 10% | Nil |
| 5(i) | Interest on securities | Any person | Rates in force | ₹10,000 |
| 5(ii) | Interest other than interest on securities | A banking company, a co-operative society carrying on the business of banking, or a post office for a deposit made under a scheme notified by the Central Government | Rates in force | ₹1,00,000 in the case of a senior citizen; ₹50,000 in case of a person other than senior citizen |
| 5(iii) | Interest other than interest on securities | Specified person other than a payer in Sl. No. 5(ii) | Rates in force | ₹10,000 |
Note 1 to Sl. No. 5: for time deposits with a banking company or a co-operative bank, and deposits with a housing finance public company eligible under section 32(e), the threshold is computed branch-wise if the payer has not adopted core banking solutions. The rates in force for tax year 2026-27 are given in a separate table below.
Contractors, Professional and Technical Fees, Dividend (Sl. No. 6 and 7)
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 6(i)(a) | Sum for carrying out any work (including supply of labour for carrying out any work) under a contract between the contractor and a designated person, where the contractor is an individual or Hindu undivided family | Any designated person | 1% | ₹30,000 for any such sum, and ₹1,00,000 in case of aggregate of such sums |
| 6(i)(b) | The same, where the contractor is a person other than an individual or Hindu undivided family | Any designated person | 2% | ₹30,000 for any such sum, and ₹1,00,000 in case of aggregate of such sums |
| 6(ii) | Sum for carrying out any work under a contract, or fees for professional services, or commission (not being insurance commission referred to in Sl. No. 1(i)) or brokerage | Individual or Hindu undivided family, other than those required to deduct under Sl. No. 6(i) and (iii) or Sl. No. 1(ii) | 2% | Fifty lakh rupees |
| 6(iii)(a) | Fees for technical services (not being professional services); royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; any Sl. No. 6(iii) sum where the payee is engaged only in the business of operation of call centre | Specified person | 2% | ₹50,000 |
| 6(iii)(b) | Fees for professional services; royalty other than the above; any sum referred to in section 26(2)(h) | Specified person | 10% | ₹50,000 |
| 6(iii)(b) | Remuneration or fees or commission, by whatever name called, to a director of a company, other than those on which tax is deductible under section 392 | Specified person | 10% | Nil |
| 7 | Dividend (including dividend on preference shares) declared | Any domestic company | 10% | Nil |
Note to Sl. No. 6: for work under section 402(47)(e) (manufacture to a customer specification with the customer material), tax under Sl. No. 6(i) is deducted on the invoice value excluding the value of material if that value is shown separately, otherwise on the whole invoice value. Section 90(b) of the Finance Act, 2026 added supply of manpower to a person to work under his supervision, control or direction to the definition of work in section 402(47). Note to Sl. No. 7: tax is deducted before making any distribution or payment of dividend.
Other Cases (Sl. No. 8)
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 8(i) | Sum under a life insurance policy, including the sum allocated as bonus, other than the amount not includible in total income under Schedule II (Table: Sl. No. 2) | Any person | 2% on income comprised in such sum | ₹1,00,000 |
| 8(ii) | Sum exceeding fifty lakh rupees for purchase of any goods | Any person, being a buyer | 0.1% | As per Note 1: tax is deducted on the sum exceeding fifty lakh rupees |
| 8(iii) | Total income of a specified senior citizen after deductions under Chapter VIII and rebate under section 156 | Specified bank | Rates in force | As applicable |
| 8(iv) | Benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident | Specified person | 10% of value or aggregate of values | ₹20,000 |
| 8(v) | Sale of goods or provision of services by an e-commerce participant, facilitated by an e-commerce operator through its digital or electronic facility or platform | Any e-commerce operator | 0.1% of gross amount of such sale or services or both | Nil |
| 8(vi) | Consideration for transfer of a virtual digital asset | Any person | 1% | Nil |
Note 1: Sl. No. 8(ii) does not apply to a transaction on which tax is deductible or collectible under any other provision of the Act. Under section 402(6) a buyer for Sl. No. 8(ii) is a person whose turnover from business exceeded ten crore rupees in the preceding tax year. Note 3: Sl. No. 8(v) takes precedence over other TDS provisions. Note 4: where both 8(v) and 8(vi) apply, tax is deducted only under 8(vi). Note 5: Sl. No. 8(iii) takes precedence over any other provision of the Chapter.
What "Rates in Force" Means for Tax Year 2026-27
Sl. No. 1(i) and 5 say "rates in force". Section 2(90) of the Act defines this as the rate specified in the Finance Act of the relevant year. Part II of the First Schedule to the Finance Act, 2026 gives these rates for a resident payee. For Sl. No. 8(iii) the rates in force are the slab rates in Part III of the First Schedule (section 3(10) of the Finance Act, 2026).
| Income | Payee: resident, not a company | Payee: domestic company |
|---|---|---|
| Interest other than interest on securities | 10% | 10% |
| Insurance commission | 2% | 10% (no separate entry: falls under any other income) |
| Interest on debentures or securities of a local authority or a statutory corporation, listed debentures of a company, and securities of the Central or a State Government | 10% | 10% (no separate entry: falls under any other income) |
| Any other income | 10% | 10% |
Part II items 1(a)(i), (v), (vi) and (vii) for a resident who is not a company, and items 2(a)(i) and (v) for a domestic company.
Where No Tax Is Deducted (Section 393(4))
Section 393(4) lists the cases where the Table in section 393(1) does not apply. The entries are shortened here: read the sub-section for the full conditions.
| 393(4) Sl. No. | TDS entry | No deduction where |
|---|---|---|
| 1 | Sl. No. 1(ii) | Commission or brokerage is payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees. |
| 2 | Sl. No. 2(ii) | Rent is credited or paid to a business trust, being a real estate investment trust, for a real estate asset referred to in Schedule V (Table: Sl. No. 4) owned directly by it. |
| 3 | Sl. No. 3(iii) | The award or agreement is exempted from income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. |
| 4 | Sl. No. 4(i) | The income is of the nature of capital gain. |
| 5 | Sl. No. 4(ii) | The income is of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] and the special purpose vehicle has not exercised the option under section 200. |
| 6 | Sl. No. 5(i) | Interest on National Development Bonds, notified debentures, and securities of the Central or a State Government other than 8% Savings (Taxable) Bonds, 2003, 7.75% Savings (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) and other notified securities; interest payable to the Life Insurance Corporation, the General Insurance Corporation and its four companies or any other insurer on securities they own; interest payable to a business trust by a special purpose vehicle. |
| 7(a) | Sl. No. 5(ii) and 5(iii) | Interest is credited or paid to a banking company or a co-operative society engaged in the business of banking, including a co-operative land mortgage bank (words added by section 84(b) of the Finance Act, 2026), a financial corporation set up under a Central, State or Provincial Act, the Life Insurance Corporation, the Unit Trust of India, an insurance company or co-operative society, or a body notified before 1 April 2020. |
| 7(b) | Sl. No. 5(ii) and 5(iii) | Interest paid by a co-operative society (other than a co-operative bank) to a member, or to another co-operative society; interest on deposits with a primary agricultural credit society, primary credit society, co-operative land mortgage bank or co-operative land development bank; interest on deposits (other than time deposits made on or after 1 July 1995) with any other co-operative society engaged in banking. Exception: tax is deducted where the turnover of the co-operative society exceeds fifty crore rupees in the preceding tax year and the interest exceeds the threshold in Sl. No. 5(ii). |
| 7(c) | Sl. No. 5(ii) and 5(iii) | Interest paid by the Central Government under the direct tax Acts named; on deposits under a notified Central Government scheme; on deposits (other than time deposits made on or after 1 July 1995) with a banking company; on compensation awarded by a Motor Accidents Claims Tribunal to an individual, or to any other person where the aggregate interest does not exceed ₹50,000 in the tax year (substituted by section 84(b) of the Finance Act, 2026); on zero coupon bonds issued on or after 1 June 2005 by the named issuers; interest referred to in Schedule V (Table: Sl. No. 3); interest paid by a firm to a partner. |
| 8 | Sl. No. 6(i) | The contractor is in the business of plying, hiring or leasing goods carriages, owns ten or less goods carriages at any time during the tax year and furnishes a declaration with his Permanent Account Number, and the payer reports the prescribed particulars; or the sum is paid by an individual or Hindu undivided family exclusively for personal purposes. |
| 9 | Sl. No. 6(iii) | The sum is credited or paid by an individual or Hindu undivided family exclusively for personal purposes. |
| 10 | Sl. No. 7 | Dividend is paid to the Life Insurance Corporation, the General Insurance Corporation and its four companies or any other insurer on shares they own, to a business trust by a special purpose vehicle, or to a notified person; or to an individual shareholder where the dividend is paid by any mode other than cash and the aggregate for the tax year does not exceed ₹10,000. |
| 11 | Sl. No. 8(v) | The e-commerce participant is an individual or Hindu undivided family, the gross amount of sales or services or both during the tax year does not exceed ₹5,00,000, and the participant has furnished the Permanent Account Number or Aadhaar number to the e-commerce operator. |
| 12 | Sl. No. 8(vi) | The consideration during the tax year does not exceed ₹50,000 when payable by an individual or Hindu undivided family (i) whose turnover in the preceding tax year does not exceed one crore rupees in case of business or fifty lakh rupees in case of profession, (ii) not having any income under the head Profits and gains of business or profession; or ₹10,000 when payable by any other person. |
Who Is a Specified Person and a Designated Person
- Specified person, section 402(37): any person who is not an individual or Hindu undivided family; or an individual or Hindu undivided family whose total sales, gross receipts or turnover exceeded one crore rupees in case of business or fifty lakh rupees in case of profession in the tax year immediately preceding the tax year of the credit or payment.
- Designated person for Sl. No. 6(i), section 402(11): the Central or a State Government, a local authority, a statutory corporation, a company, a co-operative society, a housing or town planning authority, a registered society, a trust, a university, a foreign Government, foreign enterprise or foreign association, a firm, and an individual, Hindu undivided family, association of persons or body of individuals whose turnover exceeded one crore rupees (business) or fifty lakh rupees (profession) in the preceding tax year.
- Senior citizen, section 2(100): an individual resident in India who is of the age of sixty years or more at any time during the relevant tax year.
- Specified senior citizen for Sl. No. 8(iii), section 402(39): a resident individual of the age of seventy-five years or more, having pension income and no other income except interest from the same specified bank, who has furnished the prescribed declaration to that bank.
No PAN, Surcharge and Cess
| Point | Rule | Source |
|---|---|---|
| Payee does not furnish a valid Permanent Account Number | Tax is deducted at the higher of: the rate in the relevant provision; the rates in force; 5% where tax is deductible under Sl. No. 8(ii) or 8(v), or 20% in any other case. | ITA 2025, s. 397(2)(b)(i) |
| Rent under Sl. No. 2(i) and no PAN | The deduction shall not exceed the rent payable for the last month of the tax year or of the tenancy. | ITA 2025, s. 397(2)(e) |
| Surcharge on TDS for a resident payee | The surcharge Table for deductions under section 393 names only non-resident persons and companies other than domestic companies. | FA 2026, s. 3(7) and First Schedule Part II |
| Health and Education Cess on TDS for a resident payee | The 4% cess does not apply where the income subjected to deduction is paid to a domestic company or any other person who is resident in India. | FA 2026, s. 3(16) and 3(17)(i) |
| Deductors who need not obtain a tax deduction and collection account number, from 1 October 2026 | A person deducting under Sl. No. 2(i), 3(i) or 6(ii); a person referred to in section 393(4) [Table: Sl. No. 12.C(a)] deducting on a virtual digital asset under Sl. No. 8(vi); a notified person. | ITA 2025, s. 397(1)(c) as substituted by FA 2026, s. 87 |
Late Fee and Penalty
Simple interest at 1% for every month or part of a month from the date tax was deductible to the date it is deducted, and 1.5% for every month or part of a month from the date of deduction to the date it is paid. It is paid before the statement is filed. ITA 2025 · s. 398(3)
₹200 for every day the statement under section 397(3)(b) is late, not exceeding the tax deductible, paid before the statement is delivered. ITA 2025 · s. 427(1) and (2)
₹10,000 to ₹1,00,000. Not levied for delay if the tax, fee and interest were paid and the statement is filed within one month of the due date. ITA 2025 · s. 461
The payer is an assessee in default for the tax not deducted or paid, and the Assessing Officer may impose a penalty equal to that tax. The payer is not in default if the payee has filed the return, included the amount and paid the tax, and an accountant certifies it in Form 149. ITA 2025 · s. 398(1), (2) and 448 · rule 221
Simple imprisonment up to two years or fine or both where the tax exceeds fifty lakh rupees; up to six months or fine or both above ten lakh rupees; fine in other cases. Not applicable if paid by the due date of the statement. ITA 2025 · s. 476, as substituted by FA 2026
What You Pay in Common Cases
Company pays office rent of ₹60,000 for a month
Company pays a professional fee of ₹75,000
Buyer with turnover above ten crore rupees buys goods for ₹80,00,000
Flat bought for ₹60,00,000, stamp duty value ₹65,00,000
How to Apply and Pay
- 1Get a TAN, unless exemptEvery deductor applies for a tax deduction and collection account number (s. 397(1)(a)). Not needed for Sl. No. 2(i), 3(i) or 6(ii) (s. 397(1)(c)).
- 2Deduct at credit or paymentWhichever is earlier (s. 393(1)(c)); on the entire amount once the threshold is crossed (s. 393(1)(a)).
- 3Deposit by the 7thWithin seven days from the end of the month of deduction, by 30 April for March (rule 218(2)). For Sl. No. 2(i), 3(i), 6(ii) and 8(vi): with Form 141 within thirty days from the end of the month (rule 218(3)).
- 4File the quarterly statementForm 140 by 31 July, 31 October, 31 January and 31 May (rule 219(1) and (4)). Form 141 replaces it for the four entries above (rule 219(5)).
- 5Issue the certificateForm 131 within fifteen days from the due date of the statement; Form 132 within fifteen days from the due date of Form 141 (rule 215(1)).
Documents to file with it
- Valid Permanent Account Number of the payee, shown in all bills, vouchers and correspondence (s. 397(2)(a) and (h))
- Tax deduction and collection account number of the payer, quoted in every challan, statement and certificate (s. 397(1)(b))
- Lower or nil deduction certificate of the payee, if any, to be followed till its validity (s. 395(1)(c))
- Declaration under section 393(6) where the payee claims nil tax; it is invalid without a valid PAN (s. 397(2)(f))
- Form 149 accountant certificate, where tax was not deducted but the payee has filed the return and paid the tax (s. 398(2) and rule 221)
How to Use This Chart
- First decide whether the payer is a specified person, a designated person or neither: the same payment falls in a different row for each.
- Check the threshold in column D before applying the rate. Once it is crossed, tax is deducted on the entire amount, except under Sl. No. 8(ii) where it is deducted only on the sum exceeding fifty lakh rupees.
- Where the row says rates in force, take the rate from Part II of the First Schedule to the Finance Act of that year.
- Look at section 393(4) and the nil-tax declaration under section 393(6) before deducting.
- Lower or nil deduction certificates under section 395 are not shown.
- The declaration for no deduction under section 393(6) and its conditions are not set out. The Finance Act, 2026 allows it to be furnished electronically to a depository for certain income with effect from 1 April 2027 (section 84(c)).
- Section 393(5) (no deduction on amounts payable to the Government, the Reserve Bank of India, certain exempt corporations and mutual funds) is not tabulated.
- Salary and provident fund withdrawals are under section 392, in a separate chart.
- Payments to non-residents (section 393(2)) and winnings, cash withdrawals and partner payments (section 393(3)) are in separate charts.
- Notifications under the Act (specified banks, notified securities, notified persons) are not covered. Of the Income-tax Rules, 2026, only the deposit dates, statement forms and certificate forms are shown.
- The 393(4) entries are shortened. Entries 13 to 19 of that Table relate to sections 393(2) and 393(3) and are not shown here.
Official documents behind this page
- Income-tax Act, 2025 (30 of 2025), as enacted, Gazette of India ExtraordinarySection 393(1), Table "For payments to resident", Sl. No. 1 to 8 with the Notes under each serial number; section 393(4), Table, Sl. No. 1 to 12; section 397(1) and (2); section 402(6), (11), (29), (37), (39) and (47); section 2(90) and 2(100).
- Finance Act, 2026 (4 of 2026), Gazette of India Extraordinary, 30 March 2026Section 84 (amendment of section 393: Note 3 under Sl. No. 3; section 393(4) Sl. No. 7; section 393(6) and (7)); section 87 (section 397(1)(c)); section 90 (section 402(47)); section 3(7), 3(16) and 3(17); First Schedule, Part II, items 1(a) and 2(a).
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (consolidated copy)Used as a second reading of the section 393(1) Table and of the footnotes marking the Finance Act, 2026 amendments, with effect from 1 April 2026. Also read for the calculator, penalties and steps: section 393(1)(a) to (c); section 395(1)(c); section 397(1), (2)(a), (e), (f), (h) and (3); section 398(1) to (3); section 427(1) and (2); sections 448 and 461; section 476(1) as substituted by the Finance Act, 2026.
- Income-tax Rules, 2026 (notified 20 March 2026), with the Income-tax (Fifth Amendment) Rules, 2026 (G.S.R. 830(E), 22 September 2026, in force 1 October 2026)Rule 215(1) Table Sl. No. 2 and 3 (Forms 131 and 132), rule 218(2) and (3) (time of deposit; challan-cum-statement in Form 141), rule 219(1) Table Sl. No. 3, 219(4) and 219(5) (Form 140, quarterly due dates, Form 141 within thirty days), rule 221 (Form 149).
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.