TDS Rate Chart — Tax Year 2026-27
Updated June 2026 · VerifiedComplete TDS Rate Chart for Tax Year 2026-27
Below is the comprehensive TDS rate chart showing payment types, applicable sections under the Income-tax Act, 2025 (with legacy section references), thresholds, normal rates, and no-PAN rates.
| Nature of Payment | Section (New) | Legacy Section | Threshold (₹) | TDS Rate | No-PAN Rate |
|---|---|---|---|---|---|
| Salary | 392 | 192 | Basic exemption limit | Average rate | Average rate |
| Interest on securities | 393 | 193 | 10,000 | 10% | 20% |
| Dividend | 393 | 194 | 5,000 | 10% | 20% |
| Interest (banks / post office) | 393 | 194A | 50,000 (senior: 1,00,000) | 10% | 20% |
| Winnings from lottery / crossword | 393 | 194B | 10,000 | 30% | 30% |
| Winnings from horse race | 393 | 194BB | 10,000 | 30% | 30% |
| Contractor — Individual/HUF | 393 | 194C | 30,000 single / 1,00,000 aggregate | 1% | 20% |
| Contractor — Others | 393 | 194C | 30,000 single / 1,00,000 aggregate | 2% | 20% |
| Insurance commission | 393 | 194D | 15,000 | 5% | 20% |
| Life insurance payout | 393 | 194DA | 1,00,000 | 5% | 20% |
| NSS deposit withdrawal | 393 | 194EE | 2,500 | 10% | 20% |
| Commission / brokerage | 393 | 194H | 15,000 | 5% | 20% |
| Rent — land, building, furniture | 393 | 194-I | 2,40,000 | 10% | 20% |
| Rent — plant & machinery | 393 | 194-I | 2,40,000 | 2% | 20% |
| Rent by individual/HUF (non-audit) | 393 | 194-IB | 50,000/month | 5% | 20% |
| Payment for immovable property | 393 | 194-IA | 50,00,000 | 1% | 20% |
| Professional / technical fees | 393 | 194J | 30,000 | 10% | 20% |
| Technical services (call centre etc.) | 393 | 194J | 30,000 | 2% | 20% |
| E-commerce operator payments | 393 | 194-O | 5,00,000 | 1% | 20% |
| Rent / purchase by individual above threshold | 393 | 194M | 50,00,000 | 5% | 20% |
| Cash withdrawal > ₹1 crore | 393 | 194N | 1,00,00,000 | 2% | 2% |
| Cash withdrawal (non-filer) > ₹20 lakh | 393 | 194N | 20,00,000 | 5% | 5% |
| Benefit / perquisite to business/profession | 393 | 194R | 20,000 | 10% | 20% |
| Transfer of virtual digital asset | 393 | 194S | 50,000 (specified) / 10,000 (others) | 1% | 20% |
Key Points About TDS Rates for Tax Year 2026-27
- No-PAN penalty: If the deductee does not furnish PAN, TDS is deducted at 20% or the applicable rate, whichever is higher.
- Lower deduction certificate: The deductee can apply to the Assessing Officer for a certificate to deduct TDS at a lower rate or nil rate.
- Threshold is per Tax Year: For most sections, the threshold applies to the aggregate amount paid/credited during the entire Tax Year.
- Surcharge and cess: TDS rates mentioned above do not include surcharge or cess. These are not applicable to TDS on resident payments (except salary).
What Is the TCS Rate Chart for Tax Year 2026-27?
Tax Collected at Source (TCS) is governed by Section 394 (earlier 206C) of the Income-tax Act, 2025. Key TCS rates:
| Nature of Goods/Transaction | TCS Rate |
|---|---|
| Sale of motor vehicle (> ₹10 lakh) | 1% |
| Sale of minerals (coal, lignite, iron ore) | 1% |
| Sale of timber / forest produce | 2.5% |
| Sale of scrap | 1% |
| Foreign remittance under LRS (> ₹10 lakh) | 5% (20% for non-filers) |
| Overseas tour package | 5% (above ₹10 lakh) |
Frequently Asked Questions
What is the TDS rate if PAN is not provided?
If the deductee does not furnish PAN, TDS is deducted at 20% or the applicable rate, whichever is higher. For salary (Section 392), the average rate continues to apply.
Are the TDS rates different under the new Income-tax Act, 2025?
The TDS rates remain largely the same. The main change is the consolidation of section numbers: all 194-series sections are now under Section 393, Section 192 is now Section 392, and Section 206C (TCS) is now Section 394.
Is surcharge applicable on TDS?
Surcharge and cess are not applicable on TDS deducted on payments to residents, except for TDS on salary (Section 392), where the average rate includes surcharge and cess.
When is TDS deposited to the government?
TDS must be deposited by the 7th of the following month. For TDS deducted in March, the due date is 30th April. Government deductors can deposit on the same day.
Can I get a lower TDS rate?
Yes. The deductee can apply for a lower or nil deduction certificate from the Assessing Officer under the relevant provisions of the Income-tax Act, 2025. The deductor then applies the rate mentioned in the certificate.
Income Tax Return Filing Near You
Expert CA/CS assistance for income tax return filing across India. Click your city for local details.