A comprehensive and updated TDS & TCS Rate Chart for Financial Year 2026-27 (effective from 1 April 2026), covering revised provisions, new vs old sections, applicable rates, thresholds, and key compliance insights.
This quick-reference guide is designed to help professionals, taxpayers and students easily navigate tax deduction and collection requirements with clarity and accuracy.
TAX DEDUCTED AT SOURCE (TDS)
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% |
Rs 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% |
Rs 10,000 |
Exempt: Govt securities, LIC, GIC, insurers |
| 194 |
393 |
Dividend |
10% |
Rs 10,000 |
Exempt: Dividend to LIC, GIC, insurers, business trust |
| 194A |
393 |
Bank/Post Office Interest |
10% |
Rs 50,000 |
Interest Income Other than securities |
| 194A |
393 |
Other Interest |
10% |
Rs 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% |
Rs 10,000 |
Applicable On net winnings |
| 194BA |
393 |
Online Gaming |
30% |
No limit |
Applicable On net winnings |
| 194BB |
393 |
Horse Racing |
30% |
Rs 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% |
Rs 30K / Rs 1L |
1% (Ind/HUF), 2% (others) |
| 194D |
393 |
Insurance Commission |
2% |
Rs 20,000 |
— |
| 194DA |
393 |
Life Insurance Payment |
2% |
Rs 1,00,000 |
Maturity/surrender value or any reward linked to insurance. |
| 194E |
393 |
Non-resident Sportsmen |
20% |
No limit |
— |
| 194G |
393 |
Lottery Commission |
2% |
Rs 20,000 |
— |
| 194H |
393 |
Brokerage / Commission |
2% |
Rs 20,000 |
Except specified entities |
5. Rent & Property Transactions
| Old Section |
New Section |
Nature of Payment |
Rate |
Threshold |
Remarks |
| 194I |
393 |
Rent |
2% / 10% |
Rs 50,000/month |
Plant & machinery: 2%, Land & building: 10% |
| 194IA |
393 |
Immovable Property Purchase |
1% |
Rs 50 Lakhs |
Higher of sale value or stamp duty |
| 194IB |
393 |
Rent by Individual/HUF |
2% |
Rs 50,000/month |
Non-audit cases |
6. Professional & Business Payments
| Old Section |
New Section |
Nature of Payment |
Rate |
Threshold |
Remarks |
| 194J |
393 |
Professional / Technical Fees |
10% |
Rs 50,000 |
2% for call centres; no threshold for director remuneration |
| 194M |
393 |
Payment by Individual/HUF |
2% |
Rs 50 Lakhs |
Not covered under 194C/194J/194H |
7. Special Provisions
| Old Section |
New Section |
Nature of Payment |
Rate |
Threshold |
Remarks |
| 194LA |
393 |
Land Acquisition Compensation |
10% |
Rs 2,50,000 |
No TDS for agricultural land |
| 194N |
393 |
Cash Withdrawal |
2% / 5% |
>Rs 1 Crore |
Non-filers: 2% (Rs 20L–Rs 1Cr), 5% (>Rs 1Cr) |
| 194O |
393 |
E-commerce Transactions |
0.10% |
Rs 5 Lakhs |
On gross sales |
| 194P |
393 |
Specified Senior Citizens |
Slab |
Slab |
Age 75+, pension + interest from same bank |
| 194Q |
393 |
Purchase of Goods |
0.10% |
Rs 50 Lakhs |
Buyer turnover > Rs 10 Cr |
| 194R |
393 |
Benefit/Perquisite |
10% |
Rs 20,000 |
Business/profession |
| 194S |
393 |
Virtual Digital Assets |
1% |
Rs 50K / Rs 10K |
- |
| 194T |
393 |
Payment to Partners |
10% |
Rs 20,000 |
Includes salary, interest, bonus |
8. Non-Resident Payments
| Old Section |
New Section |
Nature of Payment |
Rate |
Threshold |
Remarks |
| 195 |
393 |
Payment to NR / Foreign Company |
As per DTAA |
No limit |
Treaty rates apply |
TAX COLLECTED AT SOURCE (TCS)
1. General Goods & Services
| Old Section |
New Section |
Nature |
Rate |
Threshold |
Remarks |
| 206C(1) |
394 |
Liquor, Scrap, Timber, Minerals |
2% |
None |
Revised rates (1 to 2, 5 to 2%) |
| 206C(1C) |
394 |
Parking, Toll, Mining |
2% |
None |
Lease/license |
2. Sale Transactions
| Old Section |
New Section |
Nature |
Rate |
Threshold |
Remarks |
| 206C(1F) |
394 |
Motor Vehicle |
1% |
>Rs 10 Lakhs |
Per transaction |
| 206C(1F) |
394 |
Luxury Goods |
1% |
>Rs 10 Lakhs |
Includes watches, handbags, yachts, etc. |
3. Foreign Remittance (LRS)
| Old Section |
New Section |
Nature |
Rate |
Threshold |
Remarks |
| 206C(1G) |
394 |
LRS (General) |
2% |
>Rs 10 Lakhs |
Rate reduced to 2% w.e.f. 01-Apr-2026. No TCS < 10L. |
| 206C(1G) |
394 |
LRS (Other) |
20% |
>Rs 10 Lakhs |
No TCS up to 10L. |
| 206C(1G) |
394 |
Overseas Tour Package |
2% |
None |
Flat 2% irrespective of amount |
Click here to download the summarized TDS/TCS Rate Chart for FY 2026-27
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