TDS & TCS Rate Chart 2026-27
Searchable TDS and TCS rates and thresholds for Tax Year 2026-27, with each Section 392 / 393 / 394 entry mapped to the old 1961 Act section.
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This TDS and TCS rate chart lists the rates and thresholds for Tax Year 2026-27 (payments from 1 April 2026) under Sections 392, 393 and 394 of the Income Tax Act, 2025, with the matching section of the Income Tax Act, 1961 for each entry, for example Section 393(1) Table Sl. 6(i) for old Section 194C. Search by old or new section or by the nature of payment, and work out the TDS or TCS on an amount. It is for deductors, collectors and accountants moving from the old section numbers to the new tables.
Use the TDS & TCS Rate Chart 2026-27
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Base rates. TDS / TCS on payments to residents carries no surcharge or cess. A lower-deduction certificate or a Form 121 declaration (earlier Form 15G / 15H) can reduce or remove the deduction.
From 1 April 2026 TDS is deducted under Section 392 (salary) and Section 393 (all other payments: Sub-section (1) for residents, (2) for non-residents and (3) for any person), and TCS is collected under Section 394 of the Income Tax Act, 2025. The rates and thresholds of FY 2025-26 carry over, except the TCS rates changed by the Finance Act, 2026. Payments made up to 31 March 2026 stay under the old sections of the 1961 Act.
TDS and TCS rate chart — Tax Year 2026-27
Search by new section (393, 6(iii)), old section (194C, 206C) or nature of payment (rent, interest). “Sl.” is the serial number in the Table of the section.
| 2025 Act | 1961 Act | Nature of payment | Threshold | Rate |
|---|---|---|---|---|
| 392 | 192 | Salary | Estimated taxable salary above the basic exemption (after the Section 156 rebate) | Average rate at slab rates |
| 392(7) | 192A | Taxable withdrawal of accumulated EPF balance | Rs 50,000 or more | 10% |
| 393(1) Sl. 1(i) | 194D | Insurance commission | Rs 20,000 a year | 2% (payee other than a company); 10% (company) |
| 393(1) Sl. 1(ii) | 194H | Commission or brokerage (other than insurance commission) | Rs 20,000 a year | 2% |
| 393(1) Sl. 2(i) | 194-IB | Rent paid by an individual / HUF not liable to TDS on rent otherwise (not under tax audit) | Rs 50,000 a month or part of a month | 2% (deducted from the last month's rent of the year or tenancy) |
| 393(1) Sl. 2(ii)(a) | 194-I(a) | Rent for plant, machinery or equipment | Rs 50,000 a month or part of a month | 2% |
| 393(1) Sl. 2(ii)(b) | 194-I(b) | Rent for land, building (including factory building), furniture or fittings | Rs 50,000 a month or part of a month | 10% |
| 393(1) Sl. 3(i) | 194-IA | Purchase of immovable property other than agricultural land | Consideration or stamp duty value of Rs 50 lakh or more | 1% of the higher of consideration and stamp duty value |
| 393(1) Sl. 3(ii) | 194-IC | Monetary consideration under a joint development agreement | No threshold | 10% |
| 393(1) Sl. 3(iii) | 194LA | Compensation on compulsory acquisition of immovable property (not agricultural land) | Rs 5,00,000 | 10% |
| 393(1) Sl. 4(i) | 194K | Income from mutual fund units | Rs 10,000 a year | 10% |
| 393(1) Sl. 4(ii) | 194LBA | Income distributed by a business trust (REIT / InvIT) to a resident unitholder | No threshold | 10% |
| 393(1) Sl. 4(iii) | 194LBB | Income from units of an investment fund (AIF) | No threshold | 10% |
| 393(1) Sl. 4(iv) | 194LBC | Income from investment in a securitisation trust | No threshold | 10% |
| 393(1) Sl. 5(i) | 193 | Interest on securities | Rs 10,000 a year | 10% |
| 393(1) Sl. 5(ii) | 194A | Interest by a bank, co-operative bank or post office | Rs 1,00,000 a year for senior citizens; Rs 50,000 for others | 10% |
| 393(1) Sl. 5(iii) | 194A | Interest other than on securities, by other payers | Rs 10,000 a year | 10% |
| 393(1) Sl. 6(i) | 194C | Payment to a contractor / sub-contractor, including supply of manpower (individual / HUF contractor) | Above Rs 30,000 in one sum, or above Rs 1,00,000 in the year | 1% (individual / HUF); 2% (others) |
| 393(1) Sl. 6(i) | 194C | Payment to a contractor / sub-contractor, including supply of manpower (company, firm or other contractor) | Above Rs 30,000 in one sum, or above Rs 1,00,000 in the year | 2% |
| 393(1) Sl. 6(ii) | 194M | Contract work, professional fees or commission paid by an individual / HUF not otherwise required to deduct | Rs 50 lakh a year | 2% |
| 393(1) Sl. 6(iii) | 194J(a) | Fees for technical services, royalty for sale / exhibition of films, payment to a call-centre operator | Rs 50,000 a year | 2% |
| 393(1) Sl. 6(iii) | 194J(b) | Fees for professional services, other royalty, non-compete fees | Rs 50,000 a year | 10% |
| 393(1) Sl. 6(iii) | 194J | Remuneration, fees or commission to a director (other than salary) | No threshold | 10% |
| 393(1) Sl. 7 | 194 | Dividend by a domestic company | Rs 10,000 a year to an individual paid otherwise than in cash | 10% |
| 393(1) Sl. 8(i) | 194DA | Sum under a life insurance policy (taxable policies) | Rs 1,00,000 | 2% of the income portion (amount paid less premiums) |
| 393(1) Sl. 8(ii) | 194Q | Purchase of goods by a buyer with turnover above Rs 10 crore in the preceding year | Purchases from a seller above Rs 50 lakh in the year (TDS on the excess) | 0.1% |
| 393(1) Sl. 8(iii) | 194P | Tax on pension and interest of a senior citizen aged 75 or more, by the specified bank | Total income after deductions and rebate | Slab rates |
| 393(1) Sl. 8(iv) | 194R | Benefit or perquisite of a business or profession | Rs 20,000 a year | 10% of the value |
| 393(1) Sl. 8(v) | 194-O | Sale of goods or services through an e-commerce operator | No TDS for an individual / HUF participant with gross sales up to Rs 5 lakh (PAN or Aadhaar given) | 0.1% of gross sales |
| 393(1) Sl. 8(vi) | 194S | Transfer of a virtual digital asset | Rs 50,000 a year (specified person); Rs 10,000 (others) | 1% |
| 393(3) Sl. 1 | 194B | Winnings from lottery, crossword puzzle, card game or other game (not online games), gambling or betting | Above Rs 10,000 in a single transaction | 30% |
| 393(3) Sl. 2 | 194BA | Net winnings from online games | No threshold; at withdrawal and at the end of the tax year | 30% |
| 393(3) Sl. 3 | 194BB | Winnings from horse races | Above Rs 10,000 in a single transaction | 30% |
| 393(3) Sl. 4 | 194G | Commission on sale of lottery tickets | Rs 20,000 a year | 2% |
| 393(3) Sl. 5 | 194N | Cash withdrawal from a bank, co-operative bank or post office | Cash withdrawn above Rs 1 crore in the tax year (Rs 3 crore for a co-operative society). Section 393(3) reads "on the entire amount" once the limit is crossed, while Section 194N taxed only the part above the limit; the lower Rs 20 lakh limit for non-filers is not in the Table. Verify with the bank or on incometaxindia.gov.in | 2% |
| 393(3) Sl. 6 | 194EE | Payment from National Savings Scheme deposits | Above Rs 2,500 | 10% |
| 393(3) Sl. 7 | 194T | Salary, remuneration, commission, bonus or interest paid by a firm to a partner | Rs 20,000 a year | 10% |
| 393(2) Sl. 1 | 194E | Non-resident sportsman, entertainer or sports association | No threshold | 20% |
| 393(2) Sl. 2 to 4 | 194LC | Interest on approved foreign-currency borrowings and rupee bonds (including IFSC-listed bonds) | No threshold | 5%; IFSC-listed bonds 4% (issued before 1 July 2023) or 9% |
| 393(2) Sl. 5 | 194LB | Interest from an infrastructure debt fund | No threshold | 5% |
| 393(2) Sl. 6 and 7 | 194LBA | Income distributed by a business trust to a non-resident unitholder | No threshold | Interest 5%; dividend 10%; other income at rates in force |
| 393(2) Sl. 10 | 196A | Income from mutual fund units to a non-resident | No threshold | 20% (or the lower DTAA rate with a tax residency certificate) |
| 393(2) Sl. 11 to 14 | 196B / 196C | Offshore fund units; foreign-currency bonds and GDRs | No threshold | Income 10%; long-term capital gains 12.5% |
| 393(2) Sl. 15 | 196D | Income of a Foreign Institutional Investor from securities (not capital gains) | No threshold | 20% (or the lower DTAA rate) |
| 393(2) Sl. 17 | 195 | Any other interest or sum chargeable to tax paid to a non-resident (including sale of property by a non-resident) | No threshold | Rates in force (Finance Act) or DTAA rate, plus surcharge and cess |
| 394(1) Sl. 1 | 206C(1) | Sale of alcoholic liquor for human consumption | No threshold | 2% (1% up to 31 March 2026) |
| 394(1) Sl. 2 | 206C(1) | Sale of tendu leaves | No threshold | 2% (5% up to 31 March 2026) |
| 394(1) Sl. 3 | 206C(1) | Sale of timber or other forest produce (not tendu leaves) | No threshold | 2% |
| 394(1) Sl. 4 | 206C(1) | Sale of scrap | No threshold | 2% (1% up to 31 March 2026) |
| 394(1) Sl. 5 | 206C(1) | Sale of coal, lignite or iron ore | No threshold | 2% (1% up to 31 March 2026) |
| 394(1) Sl. 6 | 206C(1F) | Sale of a motor vehicle or other notified (luxury) goods | Value above Rs 10 lakh | 1% of the sale value |
| 394(1) Sl. 7 | 206C(1G)(a) | LRS remittance for education or medical treatment (education not financed by a loan) | Above Rs 10 lakh a year (TCS on the excess); nil where education is financed by a loan from a financial institution | 2% (5% up to 31 March 2026) |
| 394(1) Sl. 7 | 206C(1G)(a) | LRS remittance for any other purpose (investment, gifts, maintenance) | Above Rs 10 lakh a year (TCS on the excess) | 20% |
| 394(1) Sl. 8 | 206C(1G)(b) | Sale of an overseas tour programme package | No threshold | 2% (earlier 5% up to Rs 10 lakh and 20% above) |
| 394(1) Sl. 11 | 206C(1C) | Licence or lease of a parking lot, toll plaza, mine or quarry | No threshold | 2% |
No matching entry. Try the old section number (for example 194C) or a word such as rent.
Points to note
- No PAN: TDS is at the higher of the rate shown and 20% (5% for e-commerce and purchase of goods) under Section 397(2), the successor to Section 206AA. For TCS it is the higher of twice the rate and 5%, but not more than 20% (Section 397(2), the successor to Section 206CC).
- Payment codes: challans and the quarterly statements (Form 138, 140, 144 for TDS; Form 143 for TCS; Form 141 challan-cum-statement for property purchase, rent paid by an individual / HUF and the old Section 194M payments) use numeric payment codes instead of section numbers. See the codes in the TDS Calculator and confirm them on the e-Pay Tax screen.
- Threshold crossed: where an annual limit is crossed, TDS applies to the whole amount credited or paid in the year, including the earlier payments, except where the chart says the excess only (purchase of goods, LRS).
- Manpower supply is treated as work under the contract entry from 1 April 2026. Interest on compensation awarded by a Motor Accidents Claims Tribunal to an individual (or legal heir) is exempt, and no TDS applies to it (Finance Act, 2026).
- Payments up to 31 March 2026 follow the old sections and the TCS rates then in force, even if the statement is filed later.
Sources: Income Tax Act, 2025, Sections 392, 393 and 394 (incometaxindia.gov.in); Finance Act, 2026 (Act No. 4 of 2026, assent 30 March 2026, e-Gazette) for the TCS rate changes from 1 April 2026; Finance Act, 2025 for the thresholds carried into Section 393. Rates in force for non-residents come from the First Schedule of the Finance Act. Verify an entry on incometaxindia.gov.in before relying on it.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify the position on the official portal or with a qualified professional before acting on any computation.
Frequently Asked Questions
Which section of the Income Tax Act, 2025 replaces Sections 194C, 194J and 194-I?
All of them are entries in the Table of Section 393(1): Section 194C is Sl. 6(i), Section 194J is Sl. 6(iii) and Section 194-I is Sl. 2(ii). Salary TDS under Section 192 moves to Section 392, payments to non-residents under Section 195 to Section 393(2), and TCS under Section 206C to Section 394. The rates and thresholds for TDS are the same as in FY 2025-26.
What are the TCS rates from 1 April 2026?
The Finance Act, 2026 set TCS at 2% on alcoholic liquor, scrap, coal, lignite, iron ore, tendu leaves and forest produce, and at a flat 2% on overseas tour packages. TCS on LRS remittances for education or medical treatment is 2% on the amount above Rs 10 lakh a year, and 20% above Rs 10 lakh for other purposes. TCS on motor vehicles and notified goods above Rs 10 lakh stays at 1%.
What is the TDS rate if the payee does not give a PAN?
TDS is deducted at the higher of the normal rate and 20% under Section 397(2) of the Income Tax Act, 2025, which replaces Section 206AA. For e-commerce payments and purchase of goods the rate without PAN is 5%. Check the payee's PAN and its link with Aadhaar before deducting.
Do I quote the old section or the new section in a TDS return?
For payments made on or after 1 April 2026, the challan and the quarterly statement use the new payment codes under Sections 392 to 394 (Forms 138, 140, 143 and 144, and the Form 141 challan-cum-statement for property purchase, rent by an individual / HUF and the old Section 194M payments). Payments made up to 31 March 2026 are reported under the old sections of the 1961 Act in Forms 24Q, 26Q, 27Q and 27EQ.
Due in the next 30 days
Income tax- TDS / TCS deposit (e-Pay Tax, Challan ITNS 281) for October
- ITR Filing (taxpayers under audit, companies)
- ITR Filing (international / specified domestic TP)
Full compliance calendar → Statutory dates, which can be extended by notification. General information only.