The Income Tax Act, 2025 has introduced a revised structure for Tax Deducted at Source (TDS), including new section codes and continued applicability of existing rates and thresholds. With effect from 1st April 2026, these provisions will be applicable for Financial Year 2026-27.
In order to provide a quick and practical reference for professionals, businesses, and taxpayers, I have compiled a summary of key TDS rates, threshold limits, and corresponding section codes. This ready reckoner aims to simplify compliance and ensure correct deduction of tax at source across various types of payments.
| S. No. | NATURE OF PAYMENT | Old Section | NEW SECTION CODE | Payment Code | Threshold | TDS Rate |
| 1 | Interest on securities | 193 | 393(1) [SI.5(i)] | 1019 | ₹10,000 in a Financial Year | 10% |
| 2 | Dividend to an individual shareholder | 194 | 393(1) [SI.7] | 1029 | Nil | 10% |
| 3 | Interest other than Securities: A) Senior Citizens B) Other Individuals C) In other cases |
194A | A) 393(1)[SI.5(ii).D(a)] B) 393(1)[SI.5(ii).D(b)] C) 393(1)[SI.5(iii)] |
A) 1020 B) 1021 C) 1022 |
A) ₹1,00,000 B) ₹50,000 C) ₹10,000 |
10% |
| 4 | Payment to Contractors/ Sub-Contractors: A) Individual or HUF B) Other than Individual or HUF |
194C | A) 393(1)[SI.6(i).D(a)] B) 393(1)[SI.6(i).D(b)] |
A) 1023 b) 1024 |
₹30,000 per contract or ₹1,00,000 aggregate in a year | A) 1% B) 2% |
| 5 | Commission or brokerage | 194H | 393(1)[SI.1(ii)] | 1006 | ₹20,000 in a Financial Year | 2% |
| 6 | Rent A) Plant, Machinery B) Land, Building & Furniture |
A) 194I (a) B) 194I (b) |
A) 393(1)[SI.2(ii).D(a)] B) 393(1)[SI.2(ii).D(b)] |
A) 1008 B) 1009 |
₹50,000 per month or part of month | A) 2% B) 10% |
| 7 | Fees for A) Technical Services B) Professional Services C) Remuneration, fees or commission paid to a Director of a company |
194J | A) 393(1)[SI.6(iii).D(a)] B) 393(1)[SI.6(iii).D(b)] C) 393(1)[SI.6(iii).D(b)] |
A) 1026 B) 1027 C) 1028 |
₹50,000 in a Financial Year | A) 2% B) 10% C) 10% |
| 8 | Business/ Profession Perquisite or Benefit A) Cash B) in kind, or partly in cash and partly in kind |
194R | A) 393(1)[SI.8(iv)] B) 393(1)[SI.8(iv) Note 6] |
A) 1034 B) 1035 |
₹20,000 in a Financial Year | 10% |
| 9 | Payment by partnership firm to partners | 194T | 393(3)[SI.7] | 1067 | ₹20,000 in a Financial Year | 10% |
| 10 | Purchase of goods (applicable to buyers) | 194Q | 393(1)[SI.8(ii)] | 1031 | ₹50 lakh in a Financial Year | 0.1% |
| 11 | Sale of Scrap | 206C(1) | 394(1)[SI.4] | 1073 | Nil | 1% |
The summary presented above is intended for general guidance and should be read in conjunction with the relevant provisions of the Income Tax Act, 2025 and applicable rules.
Author Bio
Respected Sir,
What is the new TDS rule of 2026-27 for 194 N Cash withdrawal. Please help me with this Knowledge.
THANK YOU
YOURS RESPECTFULLY
ROSHAN MISHRA