The Income Tax Act, 2025 is more of a structural recodification than a policy overhaul for TDS. The rates, thresholds, and core principles are the same, but the section numbers, form numbers, and payment codes are entirely new, making it critical for businesses to update their ERP systems, payroll software, and compliance workflows.
TDS Rates Under Income Tax Act 2025:
TDS Rate Chart – Domestic Payments (Tax Year 2026-27)
| Nature of Payment | Old Section | New Section (2025 Act) | Payment Code | TDS Rate (%) | Threshold Limit (₹) |
| Salary (Accumulated Balance) | 192 | 392(1) | 1001/1002/1003 | Slab Rates | Basic Exemption Limit |
| Premature EPF Withdrawal | 192A | 392(7) | 1004 | 10% | 50,000 |
| Interest on Securities (Uniform) | 193 | 393(1)[5(i)] | 1019 | 10% | 10,000 |
| Dividends | 194 | 393(1)[7] | 1029 | 10% | No Limit |
| Interest – Senior Citizens | 194A | 393(1)[5(ii)] | 1020 | 10% | 1,00,000 |
| Interest – Others (Bank/PO) | 194A | 393(1)[5(ii)] | 1021 | 10% | 50,000 |
| Interest – Other than Bank/PO | 194A | 393(1)[5(iii)] | 1022 | 10% | 10,000 |
| Lottery/Game Winnings | 194B | 393(3)[1] | 1058/1059 | 30% | 10,000 |
| Online Gaming Winnings | 194BA | 393(3)[2] | 1060/1061 | 30% | On Net Winnings |
| Horse Race Winnings | 194BB | 393(3)[3] | 1062 | 30% | 10,000 |
| Contractors (Ind/HUF) | 194C | 393(1)[6(i)] | 1023 | 1% | 30,000 (Single) / 1 Lakh (Aggregate) |
| Contractors (Others) | 194C | 393(1)[6(i)] | 1024 | 2% | 30,000 (Single) / 1 Lakh (Aggregate) |
| Insurance Commission (Individual) | 194D | 393(1)[1(i)] | 1005 | 2% | 20,000 |
| Life Insurance Payout | 194DA | 393(1)[8(i)] | 1030 | 2% | 1,00,000 |
| Payment from National Savings Scheme | 194EE | 393(3)[6] | 1066 | 10% | 2,500 |
| Lottery Commission / Prizes | 194G | 393(1)[1(iii)] | 1063 | 2% | 20,000 |
| Commission or Brokerage | 194H | 393(1)[1(ii)] | 1006 | 2% | 20,000 |
| Rent – Plant & Machinery | 194I(a) | 393(1)[2(ii)] | 1008 | 2% | 50,000 per month |
| Rent – Land/Building/Furniture | 194I(b) | 393(1)[2(ii)] | 1009 | 10% | 50,000 per month |
| Immovable Property Purchase | 194IA | 393(1)[3(i)] | 1010 | 1% | 50,00,000 |
| Rent by Ind/HUF (Non-Audit) | 194IB | 393(1)[2(i)] | 1007 | 2% | 50,000 per month or part |
| Monetary Consideration under JDA | 194IC | 393(1)[3(ii)] | 1011 | 10% | No Limit |
| Technical Fees (FTS) / Royalty | 194J(a) | 393(1)[6(iii)] | 1026 | 2% | 50,000 |
| Professional Fees (Others) | 194J(b) | 393(1)[6(iii)] | 1027 | 10% | 50,000 |
| Director’s Fees | 194J(b) | 393(1)[6(iii)] | 1028 | 10% | No Limit |
| Mutual Fund Income | 194K | 393(1)[4(i)] | 1013 | 10% | 10,000 |
| Compensation for Immovable Property Acq. | 194LA | 393(1)[3(iii)] | 1012 | 10% | 5,00,000 |
| Business Trust Income (Resident) | 194LBA | 393(1)[4(ii)] | 1014/1015/1016 | 10% | Nil |
| Investment Fund Income | 194LBB | 393(1)[4(iii)] | 1017 | 10% | Nil |
| Securitization Trust Income | 194LBC | 393(1)[4(iv)] | 1018 | 10% | Nil |
| Payment by Ind/HUF (Contract/Prof/Comm) | 194M | 393(1)[6(ii)] | 1025 | 2% | 50,00,000 |
| Cash Withdrawal (Non-Cooperative) | 194N | 393(3)[5.D(b)] | 1065 | 2% | Above 1 Crore |
| Cash Withdrawal (Cooperative Society) | 194N | 393(3)[5.D(a)] | 1064 | 2% | Above 3 Crore |
| E-commerce Participants | 194O | 393(1)[8(v)] | 1035 | 0.1% | Nil (5L for Ind/HUF) |
| TDS on Senior Citizen (Above 75 Years) | 194P | 393(1)[8(iii)] | 1032 | Slab Rate | 4,00,000 |
| Purchase of Goods (Over ₹50L) | 194Q | 393(1)[8(ii)] | 1031 | 0.1% | 50,00,000 |
| Business Benefits/Perquisites | 194R | 393(1)[8(iv)] | 1033/1034 | 10% | 20,000 |
| Virtual Digital Assets (Crypto) | 194S | 393(1)[8(vi)] | 1037/1038 | 1% | 10,000 (50k for Specified Persons) |
| Partner Salary/Interest/Bonus | 194T | 393(3)[7] | 1067 | 10% | 20,000 |
Read Also: https://taxguru.in/income-tax/key-income-tax-april-1-2026-income-tax-act-2025.html
TDS Rate Chart – Non-Resident Payments (Tax Year 2026-27)
Nature of Payment |
Old Section |
New Section (2025 Act) |
Payment Code |
TDS Rate (%) |
Threshold Limit (₹) |
NR Sportsperson/Entertainer/Sports Assoc. |
194E |
393(2)[1] |
1039 |
20% |
No Limit |
Interest on Foreign Currency Borrowing (Loan/Bond 2012–2023) |
194LC |
393(2)[2] |
1040 |
5% |
No Limit |
Interest on Rupee Denominated Bond (before 01.07.2023) |
194LC |
393(2)[3] |
1041 |
5% |
No Limit |
Interest on IFSC Bonds (01.04.2020 to 30.06.2023) |
194LC |
393(2)[4] |
1042 |
4% |
No Limit |
Interest on IFSC Bonds (on or after 01.07.2023) |
194LC |
393(2)[4] |
1043 |
9% |
No Limit |
Interest by Infrastructure Debt Fund |
194LB |
393(2)[5] |
1044 |
5% |
No Limit |
Business Trust Income (Interest) |
194LBA |
393(2)[6(a)] |
1045 |
5% |
No Limit |
Business Trust Income (Rental) |
194LBA |
393(2)[6(b)] |
1046 |
10% |
No Limit |
Business Trust Income (Real Estate Asset) |
194LBA |
393(2)[7] |
1047 |
30% / 40% |
No Limit |
Income from Units of Investment Fund |
194LBB |
393(2)[8] |
1048 |
30% / 40% |
No Limit |
Income from Units of Securitization Trust |
194LBC |
393(2)[9] |
1049 |
30% / 40% |
No Limit |
Income from Units of UTI or Mutual Fund |
196B |
393(2)[10] |
1050 |
20% / DTAA |
No Limit |
Income of Offshore Fund (Units per Sec 208) |
196C |
393(2)[11] |
1051 |
10% |
No Limit |
Income of Offshore Fund (Long Term Cap Gain) |
196C |
393(2)[12] |
1052 |
12.5% |
No Limit |
Interest / Dividend on Bonds or GDRs |
196C |
393(2)[13] |
1052 |
10% |
No Limit |
LTCG on Transfer of Bond or GDR |
196C |
393(2)[14] |
1054 |
12.5% |
No Limit |
Income to FII for Securities |
196D |
393(2)[15] |
1055 |
20% / DTAA |
No Limit |
Income for Securities to Specified Fund |
196D |
393(2)[16] |
1056 |
10% |
No Limit |
Any Other Sum (General Provision) |
195 |
393(2)[17] |
1057 |
Applicable Rate |
No Limit |
Read also: https://taxguru.in/income-tax/tax-loss-harvesting-losses-work.html
Important Notes – TDS Rate Chart TY 2026-27
1. From 1 April 2026, the old TDS sections (192–195 etc.) are consolidated into the new Income-tax Act 2025 under Sections 392, 393 and 402.
2. This chart shows the old section for easy reference and the corresponding new clause under the 2025 Act, along with TDS rates and threshold limits for TY 2026-27.
3. Surcharge and cess apply as per law for certain high-income and non-resident cases.
4. Thresholds are per Deductor per payee in a tax year, unless otherwise stated.
5. Individual/HUF whose turnover/gross receipts do not exceed ₹1 crore (business) or ₹50 lakh (profession) in the preceding year need not deduct TDS under Sections 194C, 194J, 194H, 194I — except under Section 194IB (rent > ₹50,000/month) and Section 194M (contractor/professional payments > ₹50 lakh).
Read also: https://taxguru.in/income-tax/form-26-era-tax-audit-reporting-india.html
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Disclaimer: This TDS Rate Chart for Tax year (TY) 2026-27 is a general reference prepared on the basis of the Income-tax Act, 2025. It is intended for informational purposes only and does not constitute professional advice. Users are advised to verify rates and provisions with the bare Act, official notifications and their tax advisor before taking any decision.
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