TDS Rate Chart for FY 2026-27: Every Common Rate and Threshold in One Table

TDS rates don't change every year, but the ones that do change tend to catch people out, because software, memory, and old articles all lag behind. This is the table for FY 2026-27, covering the deductions most individuals and small businesses actually deal with: salary, bank interest, rent, professional fees, contractor payments, and property purchase. It's deliberately a shorter list rather than an exhaustive section-by-section chart, because a smaller list of rates you can actually trust is worth more than a long one you have to double-check anyway.

TDS Rate Chart, FY 2026-27

A couple of these carry a specific trap worth flagging on their own. First, rent: the threshold for both plant/machinery rent and land/building rent is now tested per month, not per year. This changed on 1 April 2025, replacing the older annual test of ₹2,40,000. If you're checking whether TDS applies to a rent payment, use one month's rent against the ₹50,000 figure, not the annual total, since feeding an annual number into what is now a monthly test gives the wrong answer. Second, the two contractor rates under Section 194C look similar but aren't interchangeable: 1% applies when the payee is an individual or HUF, 2% applies to every other kind of payee, a company, partnership firm, LLP, or trust. Using the wrong one is a common, avoidable error.

Where Each of These Sits Under the New Section 393

The Income-tax Act, 2025 consolidated the entire 194-series into one table-driven provision, Section 393, for any transaction where the credit or payment falls on or after 1 April 2026. This table keeps the old section numbers above as the primary label deliberately, because they're what people search for, what Form 16A still reads like to a recipient, and what every existing contract and ledger references. But the new mapping is worth knowing if you're filing a return or reading the Act itself. Interest other than securities (old 194A) sits at Serial Nos. 5(ii) and 5(iii) of the table under Section 393(1). Professional and technical fees and contractor payments (old 194J and 194C) sit at Serial No. 6 of the same table. Purchase of immovable property (old 194-IA) sits at Serial No. 3. Salary is the exception: it did not move into Section 393 at all, it's Section 392, which absorbs both old Section 192 and old Section 192A.

What This Table Deliberately Leaves Out

Returns and challans under the new regime identify each deduction using a 4-digit payment code rather than an old section number, and quoting a stale section number on a new filing gets the statement rejected. This table does not attempt to list those codes, on purpose: a code has to match the current CBDT-published list exactly, and getting a code wrong from an article is worse than not having one at all. Pull the correct code from your return preparation software or the income tax portal at the time you're actually filing, not from any table, including this one. The quarterly return itself, and which form each of these payment types is reported on, is covered separately.

A Practical Checklist Before You Deduct

1. Confirm which section and rate applies to the specific payment, contractor payments and professional fees are easy to mix up and carry different rates.
2. Check the threshold basis carefully, most of these are annual, but rent is monthly and property purchase is per transaction.
3. For interest payments, confirm whether the recipient is a senior citizen, since the bank/post office threshold triples from ₹50,000 to ₹1,00,000 for them.
4. Deduct at the time of payment or credit, whichever is earlier, not at some later, more convenient date.
5. Deposit the tax deducted by the prescribed due date and report it correctly in the applicable quarterly TDS return.
6. If the payee has a valid lower or nil deduction certificate on file, apply that rate instead of the standard one, and keep a copy of the certificate.