The updated Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rate charts for Financial Year 2026-27 provide a consolidated overview of deduction and collection rates applicable across salary payments, professional fees, contractor payments, rent, dividends, purchase of goods, overseas remittances, motor vehicle sales and other specified transactions.
The charts also align the provisions of the Income-tax Act, 1961 with the corresponding provisions proposed under the Income-tax Act, 2025, along with updated payment codes and threshold limits relevant for compliance and return filing purposes.
TDS Rate Chart for Tax Year 2026-27
| 1961 Section | 2025 Section | Nature of payment | Rate | Payment Code | Threshold Limit (₹) |
| 192 | — | Payment of Salary | Normal Slab Rate | 1001, 1002 & 1003 | — |
| 194D | 393(1) [Table: Sl.No.1 (i)] | Insurance commission – Individuals | 5% | 1005 | 20,000 |
| 194D | 393(1) [Table: Sl.No.1 (i)] | Insurance commission – Companies | 10% | 1005 | 20,000 |
| 194H | 393(1)[Table: Sl.No.1 (ii)] | Commission or brokerage | 2% | 1006 | 20,000 |
| 194I | 393(1) [Table: Sl.No. 2 (ii).D(a)] | Rent – (a) Plant & Machinery | 2% | 1008 | 50,000/- per month or part of a month |
| 194I | 393(1)[Table: Sl.No.2 (ii).D(b)] | Rent – (b) Land or building or furniture or fitting | 10% | 1009 | 50,000/- per month or part of a month |
| 194IB | 393(1) [Table: Sl.No. 2 (i)] | Payment of rent by Individuals or HUF not liable to tax audit | 2% | — | 50,000 per month |
| 194IA | 393(1) [Table: Sl.No.3 (i)] | Payment on transfer of certain immovable property other than agricultural land | 1% | — | 50,00,000 |
| 194A | 393(1) [Table: Sl. No. 5 (ii).D(a)] | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit – Senior Citizen | 10% | 1020 | 1,00,000 |
| 194A | 393(1) [Table: Sl. No. 5 (ii).D(b)] | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit – Others | 10% | 1021 | 50,000 |
| 194A | 393(1) [Table: Sl. No. 5 (iii)] | Interest other than “Interest on securities” (Other than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit) | 10% | 1022 | 10,000 |
| 194C | 393(1) [Table: Sl. No. 6 (i).D(a)] | Payment to contractor/sub-contractor – Individuals/HUF | 1% | 1023 | Single transaction – 30,000; Aggregate transactions – 1,00,000 |
| 194C | 393(1) [Table: Sl. No. 6 (i).D(b)] | Payment to contractor/sub-contractor – Other than Individuals/HUF | 2% | 1024 | Single transaction – 30,000; Aggregate transactions – 1,00,000 |
| 194J | 393(1) [Table: Sl. No. 6 (iii).D(a)] | Fees for technical services, royalty in nature of consideration for sale/distribution/exhibition of cinematographic films, call centre operations | 2% | 1026 | 50,000 |
| 194J | 393(1) [Table: Sl. No. 6 (iii).D(b)] | Fees for professional services; or any sum referred to in section 26(2)(h) | 10% | 1027 | 50,000 |
| 194J | 393(1) [Table: Sl. No. 6 (iii).D(b)] | Remuneration or fees or commission to director of a company (other than those covered u/s 192) | 10% | 1028 | — |
| 194 | 393(1) [Table: Sl. No. 7] | Dividend | 10% | 1029 | 10,000 |
| 194DA | 393(1) [Table: Sl. No. 8 (i)] | Payment in respect of life insurance policy | 2% | 1030 | 1,00,000 |
| 194Q | 393(1) [Table: Sl. No. 8 (ii)] | Payments for the purchase of goods | 0.10% | 1031 | 50,00,000 |
| 194R | 393(1) [Table: Sl. No. 8 (iv)] | Perquisite or benefit to a business or profession | 10% | 1033 / 1034 | 20,000 |
| 194B | 393(3) [Table: Sl.No. 1] | Income from lottery winnings, card games, crossword puzzles, and other games of any type | 30% | 1058 / 1059 | 10,000/- in respect of a single transaction |
| 194BA | 393(3) [Table: Sl. No. 2] | Winnings from online games | 30% | 1060 / 1061 | — |
| 194BB | 393(3) [Table: Sl. No. 3] | Income from horse race winnings | 30% | 1062 | 10,000/- in respect of a single transaction |
| 194T | 393(3) [Table: Sl. No. 7] | Payment to partners of firms & LLPs | 10% | 1067 | 20,000 |
Commission or brokerage payments under Section 194H will continue to attract TDS at 2%, while rent payments under Section 194I will attract TDS at 2% for plant and machinery and 10% for land, building, furniture or fittings. The threshold for rent remains ₹50,000 per month or part of a month.
For individuals or HUFs not liable to tax audit, Section 194IB prescribes TDS at 2% on rent payments exceeding ₹50,000 per month. Transfer of immovable property under Section 194IA continues to attract 1% TDS where the transaction value exceeds ₹50 lakh.
The chart also highlights revised thresholds for interest income under Section 194A. Senior citizens will be entitled to a higher threshold limit of ₹1 lakh for bank, post office and co-operative bank deposits, while the threshold for others is ₹50,000. Interest other than specified deposits will attract TDS beyond ₹10,000.
Payments to contractors and sub-contractors under Section 194C continue to attract TDS at 1% in case of Individuals/HUFs and 2% in other cases. The threshold remains ₹30,000 for a single transaction and ₹1 lakh in aggregate during the financial year.
Professional and technical service payments under Section 194J continue to witness differentiated rates. Technical services, royalty relating to cinematographic films and call centre operations attract TDS at 2%, while professional services and director remuneration attract TDS at 10%.
Dividend payments under Section 194 will continue to attract TDS at 10% beyond ₹10,000. Payments under life insurance policies under Section 194DA will attract 2% TDS where the amount exceeds ₹1 lakh.
Section 194Q relating to purchase of goods continues to prescribe TDS at 0.1% where purchases exceed ₹50 lakh. Section 194R relating to business perquisites or benefits continues with a 10% deduction rate where the value exceeds ₹20,000.
The charts further reiterate that winnings from lotteries, online games and horse races continue to attract TDS at 30%, while the newly introduced Section 194T relating to payments to partners of firms and LLPs prescribes TDS at 10% beyond ₹20,000.
TCS Rate Chart for Tax Year 2026-27
| 1961 Section | 2025 Section | 1961 Payment Code | 2025 Payment Code | Nature of payment | Rate | Threshold (₹) |
| 206C(1) | 394(1) [Table: Sl. No. 1] | 6CA | 1068 | Alcoholic Liquor for human consumption | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 2] | 6CI | 1069 | Tendu leaves | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CB | 1070 | Timber obtained under a forest lease | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CC | 1071 | Timber obtained by any mode other than under a forest lease | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CD | 1072 | Any other forest produce not being timber or tendu leaves | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 4] | 6CE | 1073 | Scrap | 2% | — |
| 206C(1) | 394(1) [Table: Sl. No. 5] | 6CJ | 1074 | Minerals, being coal or lignite or iron ore | 2% | — |
| 206C(1F) | 394(1) [Table: Sl. No. 6.D(a)] | 6CL | 1075 | Sale of Motor Vehicle | 1% | > 10 lakh |
| 206C(1F) | 394(1) [Table: Sl. No. 6.D(b)] | 6CL | 1076 to 1085 | Any other goods, as may be notified by the Central Government | 1% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 7.D(a)] | 6CQ | 1086 | Remittance under LRS – Education and Medical remittance | 2% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 7.D(b)] | 6CQ | 1087 | Other foreign remittances | 20% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 8.D(a)] | 6CO | 1088 | Sale of overseas tour program package | 2% | ≤ 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 8.D(b)] | 6CO | 1089 | Sale of overseas tour program package | 2% | > 10 lakh |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CF | 1090 | Parking lots | 2% | — |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CG | 1091 | Toll Plaza | 2% | — |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CH | 1092 | Mining and quarrying | 2% | — |
On the TCS side, the rate chart covers collection obligations under Section 206C. Sale of alcoholic liquor, tendu leaves, timber, forest produce, scrap and minerals continues to attract TCS at 2%.
Sale of motor vehicles exceeding ₹10 lakh attracts TCS at 1%, while notified goods under Section 206C(1F) also attract 1% collection beyond the prescribed threshold.
The chart also details TCS applicability on Liberalised Remittance Scheme (LRS) transactions and overseas tour packages. Education and medical remittances above ₹10 lakh attract TCS at 2%, whereas other foreign remittances attract TCS at 20%.
Overseas tour programme packages continue to attract TCS at 2%, while parking lots, toll plazas and mining or quarrying contracts remain subject to TCS at 2%.
The updated charts are expected to assist taxpayers, deductors, chartered accountants, payroll professionals and businesses in ensuring accurate deduction, collection and reporting compliance for FY 2026-27.
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