Tax Deducted at Source (TDS) Rate Chart for FY 2026-27
Tax Deducted at Source (TDS) is a method of collecting tax at the time a payment is made, with the payer deducting the applicable tax before transferring the remaining amount to the recipient.
The Income Tax Act, 2025, simplifies TDS compliance by consolidating all TDS provisions under Section 393, replacing the various sections that existed under the Income Tax Act, 1961.
It is important to understand the applicable TDS rates, threshold limits, and relevant section codes to ensure compliance and avoid penalties. The TDS rates to be applicable on income for the current year are updated in the TDS rates for FY 2026-27.
What is the TDS Rate Chart?
A TDS Rate Chart is a guide that lists the types of payments on which Tax Deducted at Source (TDS) applies, along with the applicable TDS rates, deduction limits, and relevant sections of the Income Tax Act. It helps deductors determine whether TDS needs to be deducted and, if so, how much tax should be withheld from a payment.
The amount of TDS depends on factors such as:
- The nature of the payment
- The residential status of the recipient (resident or non-resident)
- The amount being paid
TDS rates may be revised through announcements made in the Union Budget. Therefore, it is important for deductors to stay updated with the latest TDS rate chart to ensure compliance and avoid penalties arising from incorrect or delayed deductions.
TDS Rate Chart for FY 2026-27 (AY 2027-28)
The TDS rates for FY 2026-27 are as follows:
TDS Rate Chart for Resident Indians
Tax Deducted at Source (TDS) is applicable on different kinds of payments including salary, interest, commission, rent, professional fees, and winnings. Some thresholds and rates have changed effective 1st April 2025. Please find below a structured summary for residents to consider:
Section | Nature of Payment | Threshold (Rs.) | TDS Rate |
192 | Salary | As per slab | Slab Rate |
192A | EPF Withdrawal (Before 5 Yrs) | Rs. 50,000 | 10% |
193 | Interest on Securities | Rs. 10,000 | 10% |
194 | Dividend | Rs. 10,000 | 10% |
194A | Bank/Post Interest | Rs. 50,000 / Rs. 1,00,000 | 10% |
194B | Lottery/Cards/Crosswords | Rs. 10,000 | 30% |
194BA | Online Game Winnings | No threshold | 30% |
194BB | Horse Race Winnings | Rs. 10,000 (yearly) | 30% |
194C | Contractor/Subcontractor Payments | Rs. 30,000/Contract or Rs.1 lakh per year | 1% (Ind./HUF), 2% Others |
194D | Insurance Commission | Rs. 20,000 | 5% (Ind./HUF), 10% Others |
194DA | Life Insurance Maturity (Taxable Portion) | Rs. 1,00,000 | 2% |
194EE | NSS – Payments Received | Rs.2,500 | 10% |
194G | Lottery Ticket Commission | Rs.20,000 | 5% |
194H | Brokerage/Commission | Rs.20,000 | 5% |
194I | Rent - Land/Furniture/Machinery | Rs. 2,40,000/year | 2% / 10% |
194IA | Immovable Property Purchase | Rs. 50,00,000 | 1% |
194IB | Monthly Rent (Individuals/HUF) | Rs. 50,000/month | 5% |
194J(A) | Fees – Exhibition of Cinematography Films, Call Centre, Technical Services, etc. | Rs.50,000 | 2% |
194J(B) | Fees – All Other Professional Services | Rs.50,000 | 10% |
194K | Mutual Fund Income | Rs. 10,000 | 10% |
194LA | Property Compensation | Rs. 5,00,000 | 10% |
194LBA | Income from Business Trusts | No threshold | 10% |
194LBB | AIF Distributions | No threshold | 10% |
194LBC | Securitisation Trust | No threshold | 10% |
194M | Ind./HUF Payments (Not liable under other sec.) | Rs. 50,00,000 | 5% |
194N | Cash Withdrawals | Rs. 20L - 1Cr / Above Rs. 1Cr | 2% / 5% |
194O | E-commerce Payments | Rs. 5,00,000 (Ind./HUF) | 0.1% |
194P | Senior Citizens with Salary Interest (above 75 years) | No threshold | Slab Rates |
194Q | Purchase of Goods | Rs. 50,00,000 | 0.1% |
194R | Business Perquisites | Rs. 20,000 | 10% |
194S | Crypto / VDA Transfer | Rs. 10,000 / Rs. 50,000 | 1% |
194T | Partner Remuneration (taxable in hands) | Rs. 20,000 | 10% |
Income Tax TDS Rates Applicable for NRIs (Non-Resident Indians)
Section | Nature of Payment / Particulars | Threshold Limit (Rs.) | TDS Rate |
192 | Payment of salary | As per income slab | As per slab |
192A | Premature withdrawal from EPF | Rs. 30,000 | 10% |
194B | Winnings from lottery, card games, puzzles, etc. | Rs. 10,000 per transaction | 30% |
194BB | Winnings from horse races | Rs. 10,000 per transaction | 30% |
194E | Payment to non-resident sportsmen, entertainers or sports associations | No threshold | 20% |
194EE | Payment from National Savings Scheme (NSS) | No threshold | 10% |
194G | Commission, etc. on sale of lottery tickets | Rs. 20,000 | 2% |
194LB | Interest from infrastructure debt fund | No threshold | 5% |
194LBA(2) | Interest income received by a business trust from SPV and distributed to unitholders | No threshold | 5% |
194LBA(2) | Dividend income from SPV by business trust (100% owned except required govt. shareholding) | No threshold | 10% |
194LBA(3) | Rental income from real estate assets distributed by business trust | No threshold | 30% |
194LBB | Certain income paid by investment fund to unitholder | No threshold | 30% |
194LBC | Income from securitisation trust | No threshold | 30% |
194LC | Interest on foreign currency loan taken by Indian Co. or business trust | No threshold | 5% |
If interest paid on long-term bonds listed in IFSC | No threshold | 4% | |
194LD | Interest on rupee-denominated bonds to FIIs/QFIs | No threshold | 5% |
195 | Income from investment made by NRI | No threshold | 20% |
LTCG under Section 115E (NRI-specific provisions) | No threshold | 12.5% | |
LTCG under Section 112(1)(c)(iii) | No threshold | 12.5% | |
LTCG under Section 112A (on equity shares and mutual funds) | No threshold | 12.5% | |
STCG under Section 111A (on listed equity shares or equity mutual funds) | No threshold | 20% | |
Any other income by way of LTCG | No threshold | 12.5% | |
Interest payable on foreign currency borrowings by Govt. or Indian entity | No threshold | 20% | |
Royalty for technical agreement (under industrial policy) | No threshold | 20% | |
Royalty for copyright, software (Section 115A provisos) | No threshold | 20% | |
Technical fees for industrial policy agreements | No threshold | 20% | |
Any other income (not categorised above) | No threshold | 30% | |
196B | Income from offshore fund units | No threshold | 10% |
Long-term Capital Gains on sale of offshore fund units | No threshold | 12.5% | |
196C | Income (including LTCG) from GDRs/foreign currency bonds of Indian company | No threshold | 12.5% |
196D | Income (excluding capital gains & dividends) earned by Foreign Institutional Investors (FIIs) | No threshold | 20% |
196D(1A) | Income earned from securities covered under Section 115AD(1)(a) and payable to a specified fund as defined in Section 10(4D). | No threshold | 10% |
FAQs on TDS Rates Chart
- Is TDS rates applicable for advertisement?
Yes, TDS is applicable for advertisement and will be deduct under section 194C of income tax act for advertisement expenses.
- What is tds rate on fd?
For the FY 2023-24, TDS on fixed deposits (FDs) is 10%.
- What are the TDS rates that are applicable to interest on securities?
The TDS rate for interest on securities is 10%.
- What is a TDS Certificate?
A TDS certificate is a document that is issued by a deductor to a deductee. The two kinds of TDS certificates are Form 16 and Form 16A.
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