TDS Rate Chart for FY 2026-27 Under the New Income-tax Act
From 1 April 2026, TDS is governed by the Income-tax Act, 2025. The familiar 194-series sections (194A, 194C, 194J and so on) have been merged into tables:
- Section 392: TDS on salary (old 192)
- Section 393(1): payments to residents (old 193, 194, 194A–194S)
- Section 393(2): payments to non-residents (old 195, 196A–196D, 194LB/LC)
- Section 393(3): certain special payments: lottery and online games, cash withdrawals, partners’ remuneration (old 194B, 194BB, 194N, 194T and others)
For most payments, the rates and thresholds have not changed. What has changed is the section numbers, the form numbers and some procedures. Payments made up to 31 March 2026 stay under the 1961 Act.
TDS rate chart: payments to residents (TY 2026-27)
| Nature of payment | Old section | Threshold | Rate |
|---|---|---|---|
| Salary | 192 → 392 | Taxable salary above the exemption limit | Slab rates (average rate) |
| Premature EPF withdrawal | 192A → 392 | ₹50,000 | 10% |
| Interest by banks, co-operative banks, post office | 194A → 393(1) | ₹50,000 a year (₹1,00,000 for senior citizens) | 10% |
| Interest by others (e.g. company deposits, loans) | 194A → 393(1) | ₹10,000 | 10% |
| Interest on securities | 193 → 393(1) | ₹10,000 | 10% |
| Dividend (domestic company) | 194 → 393(1) | ₹10,000 for individuals (see note) | 10% |
| Mutual fund income | 194K → 393(1) | ₹10,000 | 10% |
| Contractor / sub-contractor | 194C → 393(1) | ₹30,000 single payment or ₹1,00,000 in the year | 1% (individual/HUF payee) / 2% (others) |
| Insurance commission | 194D → 393(1) | ₹20,000 | 2% |
| Commission / brokerage | 194H → 393(1) | ₹20,000 | 2% |
| Rent: land, building, furniture | 194-I → 393(1) | ₹50,000 per month (or part of a month) | 10% |
| Rent: plant, machinery, equipment | 194-I → 393(1) | ₹50,000 per month | 2% |
| Rent paid by individuals/HUFs not liable to audit | 194-IB → 393(1) | ₹50,000 per month | 2% |
| Purchase of immovable property (other than agricultural land) | 194-IA → 393(1) | ₹50 lakh | 1% of the higher of consideration and stamp duty value |
| Joint development agreement payment | 194-IC → 393(1) | None | 10% |
| Professional fees | 194J → 393(1) | ₹50,000 a year | 10% |
| Technical services, call centres, film royalty | 194J → 393(1) | ₹50,000 | 2% |
| Director’s fees/commission (not salary) | 194J → 393(1) | None | 10% |
| Payments by individuals/HUFs for contracts, professional fees, commission (not covered above) | 194M → 393(1) | ₹50 lakh | 2% |
| Purchase of goods (buyer turnover above ₹10 crore) | 194Q → 393(1) | ₹50 lakh from one seller | 0.1% |
| E-commerce operators | 194-O → 393(1) | ₹5 lakh for individual/HUF sellers | 0.1% |
| Business perquisites | 194R → 393(1) | ₹20,000 | 10% |
| Transfer of virtual digital assets | 194S → 393(1) | ₹50,000 / ₹10,000 (specified persons) | 1% |
| Partner’s salary, remuneration, interest, commission | 194T → 393(3) | ₹20,000 | 10% |
| Cash withdrawals | 194N → 393(3) | ₹1 crore (₹3 crore for co-operative societies) | 2% |
| Lottery, crossword, games | 194B → 393(3) | ₹10,000 per transaction | 30% |
| Online gaming | 194BA → 393(3) | Net winnings | 30% |
Note on dividends: the ₹10,000 limit applies to dividends paid to resident individuals other than in cash. Check the table entry for your exact case.
Payments to non-residents (section 393(2), old 195)
TDS on payments to NRIs is deducted at the rates in force, which usually means the slab rate or the special rate for that income, plus surcharge and cess. Examples:
- LTCG on property sold by an NRI: 12.5%, plus surcharge and cess
- Rent paid to an NRI: 30%, plus surcharge and cess
- Interest on NRO deposits: 30%, plus surcharge and cess
A lower rate is available under a DTAA (with TRC and Form 41) or through a lower/nil deduction certificate (Form 128). See our NRI articles for details.
What happens if the payee has no PAN?
TDS is deducted at the higher of the normal rate or 20% (5% for goods purchases and e-commerce). This rule is in section 397(2), which replaced old section 206AA.
Due dates for deposit and returns
| Compliance | Due date |
|---|---|
| TDS deposit (non-government deductors) | 7th of the following month. For March, by 30 April |
| TDS on property / rent by individuals / 194M (challan-cum-statement, Form 141) | 30 days from the end of the month of deduction |
| Quarterly TDS returns | 31 July, 31 October, 31 January, 31 May |
| Salary certificate (Form 130, formerly Form 16) | 15 June after the year |
| Other TDS certificates (Form 131, formerly 16A) | Within 15 days of the return due date |
New form numbers at a glance
| Old form | New form (from TY 2026-27) |
|---|---|
| 24Q (salary return) | 138 |
| 26Q (resident non-salary return) | 140 |
| 27Q (non-resident return) | 144 |
| 27EQ (TCS return) | 143 |
| 26QB / 26QC / 26QD / 26QE (challan-cum-statement) | 141 |
| Form 16 / 16A / 16B | 130 / 131 / 132 |
| Form 13 (lower deduction) | 128 |
| Form 15G / 15H | 121 |
Returns and corrections for FY 2025-26 and earlier are still filed on the old forms.
Frequently asked questions
Have TDS rates changed under the new Act?
For most payments, no. The Finance Act 2025 thresholds (₹50,000 for professional fees and monthly rent, ₹20,000 for commission, and so on) carried over into the 2025 Act. The section numbers and forms changed.
Do I quote “section 194J” or “section 393” in invoices and agreements?
For payments from 1 April 2026, refer to section 393(1) of the Income-tax Act, 2025. For older periods, keep the old references.
Is TDS deducted on the GST component of an invoice?
Under CBDT Circular 23/2017, if GST is shown separately in the invoice, TDS is deducted on the amount excluding GST.
Need help setting up TDS under the new Act? Garvita Jain & Co. maps your vendor payments to the new section 393 entries, handles monthly deposits and quarterly returns, and issues certificates on time. Contact us here, or at contact@garvitajainandco.com or +91 98678 16597.
This article is general information based on the law as of November 2026 and is not professional advice.
Sources
Official
- Income Tax Department, Income-tax Act 2025 and Rules 2026 (Acts, Rules and forms)
- Income Tax e-filing portal (e-Pay Tax, Form 141 challan-cum-statements)
- TRACES (TDS returns, certificates and corrections)
Professional / CA publications
- TaxGuru, Complete TDS rate chart FY 2026-27, section-wise
- TaxGuru, TDS and TCS changes from 1 April 2026 (sections 392–400, new forms)
- TaxUpdate, New TDS/TCS return forms from FY 2026-27 (Forms 138, 140, 143, 144)
- CalcGuru, Section 393 TDS chart FY 2026-27