TDS rates chart for tax year 2026-27 under the Income-tax Act, 2025
From 1 April 2026, TDS is governed by the Income-tax Act, 2025. Salary TDS is in section 392. Almost every other TDS provision has been brought together as numbered entries in the tables of section 393. The Finance Act, 2026 kept rates and thresholds the same as in FY 2025-26. This chart gives the new reference for the most common payments, with the old 1961-Act section in brackets, followed by the new TDS return forms, due dates and the rules for deductees without PAN.
✓Checked against official sources · verified 30 October 2026
Common TDS rates for resident payees — tax year 2026-27
"393(1) Sl. 5(ii)" means section 393(1), Table, serial number 5(ii). Thresholds are per payee for the tax year unless stated otherwise.
| Payment | New reference (old section) | Rate | Threshold / condition |
|---|---|---|---|
| Salary | 392 (192) | Average rate at slab rates of the regime applied | When estimated taxable salary exceeds the amount not chargeable to tax |
| Rent – plant, machinery, equipment | 393(1) Sl. 2(ii)(a) (194-I) | 2% | More than ₹50,000 for a month or part of a month. Payer: specified person |
| Rent – land, building, furniture, fittings | 393(1) Sl. 2(ii)(b) (194-I) | 10% | More than ₹50,000 for a month or part of a month. Payer: specified person |
| Rent paid by individual/HUF who is not a specified person | 393(1) Sl. 2(i) (194-IB) | 2% | More than ₹50,000 for a month or part of a month |
| Fees for professional services, royalty | 393(1) Sl. 6(iii) (194J) | 10% | More than ₹50,000 |
| Fees for technical services, call-centre payments, royalty for cinematographic films | 393(1) Sl. 6(iii) (194J) | 2% | More than ₹50,000 |
| Director's remuneration (other than salary) | 393(1) Sl. 6(iii) (194J) | 10% | No threshold |
| Contractor / sub-contractor (including supply of labour or manpower) | 393(1) Sl. 6(i) (194C) | 1% if the payee is an individual/HUF; 2% for others | Single payment above ₹30,000, or aggregate above ₹1,00,000 in the year. Payer: designated person |
| Contract work, professional fees or commission paid by an individual/HUF not otherwise required to deduct | 393(1) Sl. 6(ii) (194M) | 2% | Above ₹50 lakh in the year |
| Commission or brokerage (other than insurance commission) | 393(1) Sl. 1(ii) (194H) | 2% | More than ₹20,000. Payer: specified person |
| Insurance commission | 393(1) Sl. 1(i) (194D) | Rates in force: 2% (payee not a company); 10% (company) | More than ₹20,000 |
| Interest other than on securities – bank, co-operative bank, post office | 393(1) Sl. 5(ii) (194A) | 10% | More than ₹50,000; ₹1,00,000 for senior citizens |
| Interest other than on securities – other payers | 393(1) Sl. 5(iii) (194A) | 10% | More than ₹10,000. Payer: specified person |
| Purchase of immovable property (not agricultural land) | 393(1) Sl. 3(i) (194-IA) | 1% of consideration or stamp duty value, whichever is higher | Consideration or stamp duty value of ₹50 lakh or more |
| Purchase of goods | 393(1) Sl. 8(ii) (194Q) | 0.1% of the amount above ₹50 lakh | Buyer's turnover above ₹10 crore in the preceding tax year |
| E-commerce operator paying a seller | 393(1) Sl. 8(v) (194-O) | 0.1% of gross amount | Not required for an individual/HUF seller with gross sales up to ₹5,00,000 in the year who has given PAN or Aadhaar |
| Dividend by a domestic company | 393(1) Sl. 7 (194) | 10% | Not required for an individual paid by a mode other than cash if dividends in the year are up to ₹10,000 |
Who is a "specified person" or "designated person"?
Several entries apply only when the payer is a specified person or designated person (defined in section 402). Broadly, this means anyone who is not an individual or HUF. It also includes an individual or HUF whose business turnover was more than ₹1 crore, or professional receipts more than ₹50 lakh, in the preceding tax year. The designated-person list for contractor payments also names government, companies, firms, co-operatives, trusts and similar bodies. Individuals and HUFs below these limits still have to deduct on rent above ₹50,000 a month (Sl. 2(i)), and on contract, professional or commission payments above ₹50 lakh a year (Sl. 6(ii)).
Higher TDS when the payee has no PAN
If the payee does not give a valid PAN, section 397(2) (formerly 206AA) requires TDS at the highest of: the rate in the table, the rate in force, or 20%. For purchase of goods (Sl. 8(ii)) and e-commerce (Sl. 8(v)), the fallback rate is 5% instead of 20%. For rent paid by individuals/HUFs (Sl. 2(i)), the higher deduction cannot be more than the rent for the last month of the tax year or of the tenancy. A no-deduction declaration given without a valid PAN is not valid.
TDS returns, certificates and due dates
Under the Income-tax Rules, 2026, the familiar forms have new numbers:
| Purpose | New form (earlier form) |
|---|---|
| Quarterly TDS statement – salary | Form 138 (24Q) |
| Quarterly TDS statement – non-salary, resident payees | Form 140 (26Q) |
| Quarterly TDS statement – non-residents | Form 144 (27Q) |
| Quarterly TCS statement | Form 143 (27EQ) |
| Challan-cum-statement for property purchase, rent or contract payments by individuals/HUFs, and VDA | Form 141 (26QB/26QC/26QD/26QE) – within 30 days from the end of the month of deduction |
| TDS certificate – salary / non-salary / challan-cum-statement cases / TCS | Form 130 (16) / Form 131 (16A) / Form 132 (16B–16E) / Form 133 (27D) |
| Quarter | Statement due (rule 219) | Form 131 certificate due |
|---|---|---|
| April – June | 31 July | 15 August |
| July – September | 31 October | 15 November |
| October – December | 31 January | 15 February |
| January – March | 31 May | 15 June |
Form 130 (salary certificate) is due by 15 June after the end of the tax year. The statement for July–September 2026 is due on 31 October 2026.
Interest and late fee
- Interest under section 398(3) (formerly 201(1A)) is 1% per month or part of a month from the date tax was deductible until it is actually deducted, and 1.5% per month or part of a month from the date of deduction until it is paid to the government.
- The late fee for a delayed TDS/TCS statement under section 427 (formerly 234E) is ₹200 per day. It cannot exceed the tax deductible and must be paid before the statement is filed.
Work out the exact amounts with our TDS interest and late fee calculator.
Frequently asked questions
Did TDS rates change on 1 April 2026?
No. The Finance Act, 2026 kept TDS rates and thresholds the same as FY 2025-26. What changed is the law and the numbering: sections 194C, 194J and the rest are now entries in the tables of section 393, and the return forms have new numbers.
Is the professional fee threshold ₹50,000 per payment or per year?
Section 393(1) tests the threshold against the amount, or the total of amounts, paid or credited to the payee during the tax year. Once the total goes above ₹50,000, tax is deducted on the whole amount. Director's remuneration has no threshold. If you pay one person several kinds of fees, ask us how the limit applies to you.
I pay my landlord ₹60,000 a month and I am salaried. Do I deduct TDS?
Yes. An individual who is not a specified person deducts 2% under Sl. 2(i) when rent is more than ₹50,000 for a month or part of a month. This is reported in the Form 141 challan-cum-statement, which is done using your PAN. You do not need a TAN for it.
Is supply of manpower a "contract" or a "professional service"?
From 1 April 2026, supply of manpower to work under the payer's supervision is expressly included in "work", so the contractor entry (1% or 2%) applies.
What if the deductee has no PAN?
Deduct at the higher rate under section 397(2): generally 20%, or 5% for purchase of goods and e-commerce payments. The deductee also cannot use a no-deduction declaration without a valid PAN.
How TaxEase can help
We work out the correct TDS reference and rate for each vendor, deposit tax on time, and file Forms 138, 140, 141 and 144 for businesses in Vapi, Valsad, Silvassa and Daman. Try our TDS calculator, check a filed statement with the TDS return checker, map old sections to new ones with the section finder, or send us your query.
- Income-tax Act, 2025 — Section 393 (TDS tables)
- Income-tax Act, 2025 — Section 402 (definitions)
- Income-tax Act, 2025 — Section 397 (PAN, statements)
- Income-tax Act, 2025 — Section 398 (interest)
- Income-tax Act, 2025 — Section 427 (fee for late statements)
- Finance Bill 2026 — Memorandum (rates unchanged; manpower supply as work)
- TRACES — TDS rates FY 2025-26 (rates in force carried forward)
- Income-tax Rules, 2026 — Rule 219 (statement forms and due dates)
- e-Filing portal — Forms (24Q/138, 26Q/140, 27Q/144, 27EQ/143)
- Income Tax Department — Forms 130 to 133 (certificates)
- Income Tax Department — Form 141 FAQs
Talk to us before the deadline does.
Share your question today — get a clear answer and a fixed quote the same working day.