The TDS and TCS Rate Chart for Financial Year 2026–27 (effective 01 April 2026) provides updated tax deduction and collection rates across various categories, incorporating both old and new section references. Salary payments continue to be taxed as per applicable slabs, while premature EPF withdrawals attract 10% TDS subject to conditions. Interest, dividend, and professional payments generally carry a 10% TDS rate with specified thresholds. Payments such as contractor fees, commission, and insurance commissions are taxed at 1%–2%, depending on the nature of the payer. Higher rates of 30% apply to winnings from lottery, online gaming, and horse racing. Property transactions, rent, and purchase of goods have specific rates and thresholds, including 1% TDS on property above ₹50 lakh. Special provisions cover cash withdrawals, e-commerce transactions, virtual digital assets, and non-resident payments. TCS provisions include 2% on specified goods, 1% on luxury purchases above ₹10 lakh, and revised rates for foreign remittances and tour packages.
TAX DEDUCTED AT SOURCE (TDS) RATE CHART – Financial Year 2026–27 (Effective 01 April 2026)- New & Old Sections
| 1. Salary & Employee Payments | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 192 | 392 | Salary | As per slab | As per slab | Based on applicable income tax slab |
| 192A | 392 | Premature EPF Withdrawal | 10% | 50,000 | No TDS if 5 years continuous service completed. |
| 2. Interest & Dividend | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 193 | 393 | Interest on Securities | 10% | 10,000 | Exempt: Govt securities, LIC, GIC, insurers. |
| 194 | 393 | Dividend | 10% | 10,000 | Exempt: Dividend to LIC, GIC, any other Insurer or Business trust |
| 194A | 393 | Bank/PO Interest | 10% | 50,000 | Interest income other than Securities |
| 194A | 393 | Other Interest | 10% | 10,000 | Interest income other than Securities |
| 3. Winnings & Games | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 194B | 393 | Lottery/Gambling | 30% | 10,000 | Applicable on net winnings. |
| 194BA | 393 | Online Gaming | 30% | No limit | Applicable on net winnings. |
| 194BB | 393 | Horse Racing | 30% | 10,000 | Aggregate winnings during a financial year not single transaction |
| 4. Contracts, Insurance & Commission | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 194C | 393 | Contractor/Sub-contractor | 1% / 2% | 30K / 1L | 1% Ind/HUF, 2% others |
| 194D | 393 | Insurance Commission | 2% | 20,000 | — |
| 194DA | 393 | Life Insurance Payment |
2% | 1,00,000 | Maturity/surrender value or any reward linked to insurance. |
| 194E | 393 | Non-resident sportsmen |
20% | No threshold | — |
| 194G | 393 | Lottery Commission | 2% | 20,000 | — |
| 194H | 393 | Brokerage/Commissi on | 2% | 20,000 | Except specified entities. |
| 5. Rent & Property Transactions | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 194I | 393 | Rent | 2% / 10% | 50,000 /month |
P&M-2%, Land & Building 10% |
| 194IA | 393 | Immovable property Purchase (nonagri) | 1% | 50 Lakhs | Higher of sale consideration or stamp duty value. |
| 194IB | 393 | Rent by Ind/HUF | 2% | 50,000 /month |
Non-audit cases |
| 6. Professional & Business Payments | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 194J | 393 | Professional/Technic al Fees | 10% | 50,000 | No threshold for director’s remuneration. Call center rate is 2%. |
| 194M | 393 | Payment by Ind/HUF | 2% | 50 Lakhs | For Ind/HUF not covered in 194C/J/H |
–
| 7. Special Provisions | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 194LA | 393 | Compensation on compulsory
Land acquisition |
10% | 2,50,000 | No TDS if Imm Property is Urban/ Rural Agri Land |
| 194N | 393 | Cash Withdrawal from Bank/PO | 2% / 5% | > 1 Crore | ITR Filers 2% above 1Cr
ITR non filers 20 lakh to 1 Cr – 2% ITR non filers above 1 cr -5% |
| 194O | 393 | E-commerce Transactions | 0.10% | 5 Lakhs | Applied on gross amount of sale.
Ind/ HUF require to furnished PAN/ Aadhaar |
| 194P | 393 | Specified banks | Slab rate | Slab rate | Resident senior citizens aged75 years or above having only pension income and interest income from the same bank where they receive their pension |
| 194Q | 393 | Purchase of Goods | 0.10% | 50 Lakhs | Applicable where buyer turnover > 10 Cr in preceding FY, TDS will be deducted on amount exceeding 50 Lakhs |
| 194R | 393 | Benefit/Perquisite | 10% | 20,000 | Business/ profession |
| 194S | 393 | Virtual Digital Assets | 1% | 50K / 10K | ś |
| 194T | 393 | Payment to Partners | 10% | 20,000 | Includes salary, remuneration, commission, bonus, interest. |
| 8. Non-Resident Payments | |||||
| Old Section | New Section | Nature of Payment | Rate | Threshold | Remarks |
| 195 | 393 | Payment to NR/Foreign Co. |
As per DTAA |
No limit | Applicable treaty rate |
| Specified person, any person except individual or HUF having turnover up to 1 crore in case of business and 50 lakhs in case of professional. | |||||
TAX COLLECTED AT SOURCE (TCS) Rate Chart: – Financial Year 2026–27 (Effective 01 April 2026)- New & Old Sections
1. General Goods & Services
|
|||||||||||||||||||||||||||
2. Sale Transactions
|
|||||||||||||||||||||||||||
3. Foreign Remittance (LRS)
|
|||||||||||||||||||||||||||
| TDS & TCS QUICK REFERENCE (FY 2026–27) | |||||||||||||||||||||||||||
| ♦ Most Used TDS Sections | |||||||||||||||||||||||||||
| Section | Payment | Rate | Threshold | ||||||||||||||||||||||||
| 192 | Salary | Slab | As per slab | ||||||||||||||||||||||||
| 194 | Dividend | 10% | ₹10,000 | ||||||||||||||||||||||||
| 194A | Interest | 10% | ₹10K / ₹50K / ₹1L | ||||||||||||||||||||||||
| 194C | Contractor | 1% / 2% | ₹30K / ₹1L | ||||||||||||||||||||||||
| 194H | Commission | 2% | ₹20,000 | ||||||||||||||||||||||||
| 194I | Rent | 2% / 10% | ₹50K/month | ||||||||||||||||||||||||
| 194J | Professional Fees | 10% | ₹50,000 | ||||||||||||||||||||||||
| 194Q | Purchase of Goods | 0.10% | ₹50 Lakhs | ||||||||||||||||||||||||
| ♦ Property / High Value | |||||||||||||||||||||||||||
| Section | Payment | Rate | Threshold | ||||||||||||||||||||||||
| 194IA | Property Purchase | 1% | ₹50 Lakhs | ||||||||||||||||||||||||
| 194IB | Rent (Ind/HUF) | 2% | ₹50K/month | ||||||||||||||||||||||||
| 194LA | Land Acquisition | 10% | ₹2.5 Lakhs | ||||||||||||||||||||||||
| ♦ Special / Important | |||||||||||||||||||||||||||
| Section | Payment | Rate | Key Point | ||||||||||||||||||||||||
| 194N | Cash Withdrawal | 2% / 5% | > ₹1 Cr | ||||||||||||||||||||||||
| 194O | E-commerce | 0.10% | > ₹5 Lakhs | ||||||||||||||||||||||||
| 194R | Perquisites | 10% | > ₹20K | ||||||||||||||||||||||||
| 194S | Crypto (VDA) | 1% | — | ||||||||||||||||||||||||
| 195 | Non-resident | DTAA | No limit | ||||||||||||||||||||||||
| ♦ Lottery / Gaming | |||||||||||||||||||||||||||
| Section | Payment | Rate | |||||||||||||||||||||||||
| 194B | Lottery | 30% | |||||||||||||||||||||||||
| 194BA | Online Gaming | 30% | |||||||||||||||||||||||||
| 194BB | Horse Race | 30% | |||||||||||||||||||||||||
| ♦ TCS QUICK VIEW | |||||||||||||||||||||||||||
| Section | Nature | Rate | Threshold | ||||||||||||||||||||||||
| 206C(1) | Scrap/Timber/Liquor | 2% | — | ||||||||||||||||||||||||
| 206C(1F) | Car Sale | 1% | > ₹10L | ||||||||||||||||||||||||
| 206C(1G) | Foreign Remittance | 2% / 20% | > ₹10L | ||||||||||||||||||||||||
| 206C(1G) | Tour Package | 2% | — | ||||||||||||||||||||||||
| ♦ Ultra Quick Memory Tricks | |||||||||||||||||||||||||||
| 10% Rule → 194, 194A, 194J | |||||||||||||||||||||||||||
| 2% Rule → 194C (company), 194H, 194D | |||||||||||||||||||||||||||
| 1% Rule → 194C (individual), 194IA, 194Q | |||||||||||||||||||||||||||
| 30% Rule → Lottery / Gaming | |||||||||||||||||||||||||||
| 0.1% Rule → 194Q / 194O | |||||||||||||||||||||||||||
| ♦ Pro Tips | |||||||||||||||||||||||||||
| 1. Always check PAN availability → else higher TDS@20% | |||||||||||||||||||||||||||
| 2. Verify threshold crossing per FY | |||||||||||||||||||||||||||
| 3. For NR payments → always check DTAA | |||||||||||||||||||||||||||
| 4. Keep eye on aggregate limits, not single transaction. | |||||||||||||||||||||||||||
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
Author Bio
