TDS Rate Chart, FY 2026-27
A single-page TDS rate chart covering the sections individuals and small businesses run into most often, with rates and threshold limits for FY 2026-27.
Figures last checked against source on
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Section numbering changed on 1 April 2026
The Income-tax Act, 2025 folded the entire 194-series into one table-driven provision, Section 393. For any payment where credit or payment falls on or after 1 April 2026, that is the section to quote, and TDS returns and challans now use the numeric payment codes under it rather than the old section numbers. The rates and thresholds themselves did not change: the reform is structural. The old numbers are kept in the chart below because they are still what contracts, ledgers, and Form 16A read like, but confirm the correct code before you file.
| Nature of payment | Section | Rate | Threshold |
|---|---|---|---|
| Salary Deducted at the employee's applicable income tax slab rate for the year, not a flat percentage. Use the Income Tax Calculator to estimate the underlying tax. | 192 | Slab rate | Varies |
| Interest on securities | 193 | 10.0% | Varies No single flat threshold. It varies by the type of security, and some categories have no threshold at all. Check the specific instrument before deducting. |
| Dividend | 194 | 10.0% | ₹10,000 per financial year Per shareholder, per financial year. |
| Interest other than securities (bank/FD/RD interest) | 194A | 10.0% | ₹50,000 per financial year This is the limit where the payer is a bank, co-operative bank, or post office. For a senior citizen the limit is ₹1,00,000. Where the payer is anyone else, for example a company paying interest on a loan, the limit is ₹10,000. |
| Payment to a contractor, individual/HUF payee | 194C | 1.0% | ₹30,000 per payment Also applies if total payments to this contractor in the year cross ₹1,00,000, even if each individual payment stays below ₹30,000. |
| Payment to a contractor, other payee (company, firm, etc.) | 194C | 2.0% | ₹30,000 per payment Also applies if total payments to this contractor in the year cross ₹1,00,000, even if each individual payment stays below ₹30,000. |
| Commission or brokerage | 194H | 2.0% | ₹20,000 per financial year Per payee, per financial year. |
| Rent on plant, machinery or equipment | 194-I | 2.0% | ₹50,000 per month Tested per month, per landlord. This replaced the old ₹2,40,000 annual test on 1 April 2025, so enter one month's rent rather than the yearly figure. |
| Rent on land, building or furniture | 194-I | 10.0% | ₹50,000 per month Tested per month, per landlord. This replaced the old ₹2,40,000 annual test on 1 April 2025, so enter one month's rent rather than the yearly figure. |
| Professional fees | 194J | 10.0% | ₹50,000 per financial year Per payee, per financial year. |
| Technical services fees | 194J | 2.0% | ₹50,000 per financial year Per payee, per financial year. |
| Purchase of immovable property Applies on the higher of the actual consideration or the property's stamp duty value, not just the agreed sale price. | 194-IA | 1.0% | ₹50,00,000 per payment |
This covers the sections individuals and small businesses run into most often, not every TDS provision. Rates and thresholds change with each Union Budget; confirm the current figure before deducting or filing, especially for a transaction close to a Budget date. For general informational purposes only, not professional tax advice.