TDS Rate Chart for FY 2026-27 from April 1, 2026

The Government has introduced a comprehensive TDS (Tax Deducted at Source) framework effective from April 1, 2026, under the revamped Income Tax Act, 2025. The new regime consolidates multiple earlier provisions into simplified sections, primarily Section 392 (salary) and Section 393 (payments to residents), along with separate provisions for non-residents.

The updated TDS structure aims to reduce complexity, rationalize compliance, and maintain largely unchanged tax rates, while introducing certain new provisions such as TDS on partner payments.

PART A: TDS on Payments to Residents

Old Sec	New Sec	Nature of Payment	Deductor	Threshold Limit	TDS Rate	Key Notes
192	392(1–6)	Salary	Employer	Basic exemption	Slab rate	Based on estimated income
192A	392(7)	EPF withdrawal	Any person	₹50,000	10%	If taxable
193	393	Interest on securities	Any	₹10,000	10%	Listed debentures exempt
194	393	Dividend	Company	₹10,000	10%
194A	393	Interest other than securities	Bank/PO/others	₹50,000 (senior) / ₹10,000	10%
194B	393	Lottery winnings	Any	₹10,000	30%
194BA	393	Online gaming winnings	Any	Nil	30%
194BB	393	Horse race winnings	Any	₹10,000	30%
194C	393	Contractor payments	Any	₹30,000 / ₹1,00,000	1% / 2%	Individual/HUF vs others
194D	393	Insurance commission	Any	₹20,000	2% / 10%
194DA	393	Life insurance payout	Insurer	₹1,00,000	2%
194G	393	Lottery commission	Any	₹20,000	2%
194H	393	Commission/Brokerage	Any	₹20,000	2%
194J	393	Professional/technical fees	Any	₹50,000	2% / 10%
194I	393	Rent	Any	₹50,000	2% / 10%
194IA	393	Immovable property	Buyer	₹50 lakh	1%
194IB	393	Rent by individual	Individual/HUF	₹50,000/month	2%
194IC	393	JDA payments	Developer	Nil	10%
194K	393	Mutual fund income	Any	₹10,000	10%
194LA	393	Land acquisition compensation	Any	₹5 lakh	10%
194M	393	Payment by individual/HUF	Individual/HUF	₹50 lakh	2%
194N	393	Cash withdrawal	Bank	₹1 crore	2% / 5%	Higher for non-filers
194O	393	E-commerce transactions	Operator	₹5 lakh	0.1% / 1%
194Q	393	Purchase of goods	Buyer	₹50 lakh	0.1%
194S	393	Virtual digital assets	Any	₹10k/₹50k	1%
194T	393	Partner payments	Firm	₹20,000	10%	New section

Most rates remain between 0.1% to 10%, with higher rates for winnings (30%).

PART B: TDS on Payments to Non-Residents

Section	Nature of Payment	Payee	TDS Rate	Remarks
192	Salary	Individual	Slab rate
192A	EPF withdrawal	Individual	10%
194B/BA/BB	Lottery, gaming, horse race	Any	30%
194E	Sports income	Non-resident	20%
194EE	NSS deposits	Individual	10%
194F	Mutual fund repurchase	Individual	20%
194LB	Infra debt fund interest	NRI	5%
194LBA	Business trust income	NRI	5–30%
194LBB	Investment fund income	NRI	30%
194LBC	Securitisation trust	NRI	30%
194LC	Foreign borrowings	NRI	4% / 9%
195	Other payments	Non-resident	20%	DTAA applicable
196A/B/C	Units & capital gains	NRI	20–30%

Rates may vary based on DTAA benefits and surcharge applicability.

PART C: Key Compliance Parameters & Due Dates

Compliance Requirement	Due Date / Rule
TDS Deduction	At time of payment/credit
TDS Deposit	7th of next month
March Deposit	30th April
Quarterly Returns	31 July / 31 Oct / 31 Jan / 31 May
TDS Certificates (Form 16/16A)	Within prescribed timelines
PAN Requirement	Mandatory for lower rate
Higher TDS (non-filers)	Removed under new regime

PART D: Important Notes

Old provisions under Sections 192–206AB are now replaced by Sections 392–393.
Higher TDS for non-filers removed, simplifying compliance.
Senior citizen interest threshold increased to ₹1,00,000.
Partner remuneration now subject to TDS (Section 194T).
TDS continues on virtual digital assets and e-commerce transactions.
Buyer can deduct TDS on property purchases using PAN (no TAN required).

Conclusion

The TDS Rate Chart for FY 2026–27 reflects a major structural simplification rather than drastic rate changes. By consolidating sections and maintaining familiar thresholds, the government has aimed to reduce litigation and improve ease of compliance.

For taxpayers and professionals, the focus now shifts from understanding multiple sections to efficient tracking, timely deduction, and accurate filing under the streamlined system.