Complete TDS & TCS Rate Chart
Tax Year 2026-27 (New IT Act 2025)
Tax deduction (TDS) and collection at source (TCS) remain among the most operationally intensive compliance obligations for businesses, employers, and professionals in India — and getting the rates right is non-negotiable. With the new Income-tax Act, 2025 now in force, Tax Year 2026-27 brings a significant structural change: the familiar section numbers under the Income-tax Act, 1961 have been renumbered under the new Act, meaning deductors must now map their transactions to freshly assigned section references such as Section 393 for TDS and Section 394 for TCS, while legacy codes continue to appear in returns for continuity.
A critical compliance overlay that applies across the board, failure to furnish a valid PAN triggers deduction or collection at the higher of the prescribed rate or 20%, making PAN verification a front-line compliance priority. This comprehensive rate chart for Tax Year 2026-27 is your ready reference to navigate TDS and TCS obligations accurately, covering domestic transactions, foreign payments, and TCS on specified goods and services.
| TDS RATE CHART TAX YEAR 2026-27 | |||||
|---|---|---|---|---|---|
| Codes to be used in Returns | Old Section | Nature of Payment | New Section (IT Act 2025) | Rates | Threshold (₹) |
| 1004 | 192 | Any payment of accumulated balance due to an employee | 392(7) | - | - |
| 1005 | 194D | Commission or brokerage - insurance | 393(1) [Table: Sl. No. 1(1)] | 2% in case for Individual 10% in case for Others | 20,000 |
| 1006 | 194H | Commission or Brokerage - others | 393(1) [Table: Sl. No. 1(ii)] | 2% | 20,000 |
| 1008 | 1941(a) | Rent on machinery etc.- specified person | 393(1) [Table: Sl. No. 2(ii).D(a)] | 2% | 50,000 per month |
| 1009 | 1941(b) | Rent other than machinery etc. - specified person | 393(1) [Table: Sl. No. 2(ii).D(b)] | 10% | 50,000 per month |
| 1011 | 194IC | Payment on any consideration, not being consideration in kind, under the agreement referred to in section 67(14). | 393(1) [Table: Sl. No. 3(ii)] | 10% | - |
| 1012 | 1941A | Payment of Compensation on Acquisition of Certain Immovable Property | 393(1) [Table: Sl. No. 3(iii)] | 10% | 5 Lakh |
| 1013 | 194K | Income payable to a resident assessee in respect of Units of a specified Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21) or units from the Administrator of the specified undertaking or units from specified company | 393(1) [Table: Sl. No. 4(i)] | 10% | 10,000 |
| 1014 1015 1017 | 194LBA 194LBA 194LBB | Certain income in the form of interest from units of a business trust to a resident unit holder Certain income in the form of dividend from units of a business trust to a resident unit holder Any income, other than that proportion of income which is exempt under Schedule V [Table: Sl. No. 2], in respect of units of an investment fund specified in section 224, payable to its unit holder | 393(1) [Table: Sl. No. 4(ii)] 393(1) [Table: Sl. No. 4(ii)] 393(1) [Table: Sl. No. 4(iii)] | 10% 10% 10% | - |
| 1018 | 194LBC | Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor. | 393(1) [Table: Sl. No. 4(iv)] | 10% | - |
| 1019 | 193 | Any income by way of Interest on securities | 393(1) [Table: Sl. No. 5(i)] | 10% | 10,000 |
| 1020 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is a senior citizen | 393(1) [Table: Sl. No. 5(ii).D(a)] | 10% | 1,00,000 |
| 1021 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is other than senior citizen | 393(1) [Table: Sl. No. 5(ii).D(b)] | 10% | 50,000 |
| 1022 | 194A | Any income being interest other than interest on securities | 393(1) [Table: Sl. No. 5(iii)] | 10% | 10,000 |
| 1023 1024 | 194C 194C | Any sum for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a designated person - if contractor is individual or Hindu undivided family Any sum for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a designated person - if contractor is a person other than individual or Hindu undivided family | 393(1) [Table: Sl. No. 6(i).D(a)] 393(1) [Table: Sl. No. 6(i).D(b)] | 1% in case for Individual 2% in case for Others 1% in case for Individual 2% in case for Others | (a) 30000 for any such sum; and (b) ₹100000 in case of aggregate of such sums. |
| 1026 | 194J(a) | Any sum by way of (a) fees for technical services (not being a professional services); or (b) royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; or (c) payee, engaged only in the business of operation of call centre | 393(1) [Table: Sl. No. 6(iii).D(a)] | 2% | 50,000 |
| 1027 | 194J(b) | Any sum by way of-- (a) fees for professional services; or (b) any sum referred to in section 26(2)(h) | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | 50,000 |
| 1028 | 194J(b) | Any sum by way of remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 392, to a director of a company | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | - |
| 1029 | 194 | Any dividends (including on preference shares) declared. resident unit holder | 393(1) [Table: Sl. No. 7] | 10% | 10,000 (Individual) |
| 1030 | 194DA | Any sum under a life insurance policy, including the sum allocated as bonus on such policy, other than the amount not includible in the total income under Schedule II [Table: Sl. No. 2] | 393(1) [Table: Sl. No. 8(i)] | 2% | 1 lakh |
| 1031 | 194Q | Any sum for purchase of any goods | 393(1) [Table: Sl. No. 8(ii)] | 0.1% | in excees of 50 lakh |
| 1033 | 194R | Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | 393(1) [Table: Sl. No. 8(iv)] | 10% | 20,000 |
| 1034 | 194R | Benefits or perquisites of business or profession where such benefit is provided in kind or where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released | 393(1) [Table: Sl. No. 8(iv)] Note 6 | 10% | 20,000 |
| 1035 | 194O | Sale of goods or provision of services by an e-commerce participant, facilitated by an e-commerce operator through its digital or electronic facility or platform - any e commerce operator | 393(1) [Table: Sl. No. 8(v)] | 0.1% | 5 Lakh (Individual/ HUF) |
| 1037 | 194S | Any sum by way of consideration for transfer of a virtual digital asset by other than Individual or Hindu Undivided Family. | 393(1) [Table: Sl. No. 8(vi)] | 1% | 10,000 |
| 1038 | 194SP | Any sum by way of consideration, whether in cash or in kind or partly in cash and partly in kind, for transfer of a virtual digital asset. | 393(1) [Table: Sl. No. 8(vi)] Note 6 | 1% | 10,000 |
| 1058 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from - (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever | 393(3) [Table: Sl. No. 1] | 30% | 10000 in case of a single transactions |
| 1059 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from - (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever where consideration, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 1] Note 2 | 30% | 10000 in case of a single transactions |
| 1060 | 194BA | Any income by way of winnings from online game. | 393(3) [Table: Sl. No. 2] | 30% | - |
| 1061 | 194BA | Any income by way of winnings from online games, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 2] Note 2 | 30% | 10000 in case of a single transactions |
| 1062 | 194BB | Any income by way of winnings from any horse race. | 393(3) [Table: Sl. No. 3] | 30% | 10000 in case of a single transactions |
| 1063 | 194G | Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets, by way of commission, remuneration or prize (by whatever name called) on such tickets | 393(3) [Table: Sl. No. 4] | 2% | 20,000 |
| 1064 1065 | 194N 194N | Payment of certain amounts in cash by bank/post office / co-operative society to a deductee being a co-operative society Payment of certain amounts in cash by bank/post office/co-operative society to a deductee being a person other than co-operative society | 393(3) [Table: Sl. No. 5.D(a)] 393(3) [Table: Sl. No. 5.D(b)] | 2% 2% | 3 Crore 1 Crore |
| 1066 | 194EE | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961). | 393(3) [Table: Sl. No. 6] | 10% | 2500 |
| 1067 | 194T | Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). | 393(3) [Table: Sl. No. 7] | 10% | 20,000 |
| TDS RATE CHART (FOREIGN) TAX YEAR 2026-27 | ||||
|---|---|---|---|---|
| Codes to be used in Returns | Old Section | Nature of Payment | New Section (IT Act 2025) | Rates |
| 1004 | 192A | Any payment of accumulated balance due to an employee | 392(7) | 10% |
| 1039 | 194E | Any income referred to in section 211. | 393(2) [Table: Sl. No.1] | 20% |
| 1040 | 194LC | Any income by way of interest payable in respect of monies borrowed in foreign currency from a source outside India,- (a) under a loan agreement or issue of long term infrastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or (b) by way of issue of any long-term bond on or after the 1st October, 2014 but before the 1st July, 2023, which is approved by the Central Govt. in this behalf. | 393(2) [Table: Sl. No. 2] | 5% |
| 1041 | 194LD | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond before the 1st July, 2023. | 393(2) [Table: Sl. No. 3] | 5% |
| 1042 | 194LC | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, which is listed only on a recognised stock exchange located in any International Financial Services Centre. - Issued on or after the 1st April, 2020 but before the 1st July, 2023 | 393(2) [Table: Sl. No. 4.E(a)] | 4% |
| 1043 | 194LC | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, which is listed only on a recognised stock exchange located in any International Financial Services Centre - Issued on or after the 1st July, 2023. | 393(2) [Table: Sl. No. 4.E(b)] | 9% |
| 1044 | 194LB | Income by way of Interest from Infrastructure debt fund payable to a Non-Resident | 393(2) [Table: Sl. No. 5] | 5% |
| 1045 | 194LBA(a) | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(a)] | 393(2) [Table: Sl. No. 6.E(a)] | 5% |
| 1046 | 194LBA(b) | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] | 393(2) [Table: Sl. No. 6.E(b)] | 10% |
| 1047 | 194LBC | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 4]. | 393(2) [Table: Sl. No. 7] | 35% - For Non Residents Company 30% - For Non Residents other than companies |
| 1048 | 194LBB | Any income, other than that proportion of income which is exempt under Schedule V [Table: Sl. No. 2], in respect of units of an investment fund specified in section 224. | 393(2) [Table: Sl. No. 8] | 10% - For Residents 35% - For Non Residents Company 30% - For Non Residents other than companies |
| 1049 | 194LBC | Any income in respect of an investment in a securitisation trust specified in section 221. | 393(2) [Table: Sl. No. 9] | 10% - For Residents 35% - For Non Residents Company 30% - For Non Residents other than companies |
| 1050 | 195 | Any income - (a) in respect of units of a Mutual Fund specified under Schedule VII [Table: Sl. No. 20] or [Table: Sl. No. 21]; or (b) from the specified company. | 393(2) [Table: Sl. No. 10] | 20% or rate provided in the agreement, whichever is lower |
| 1051 | 196B | Any income in respect of units referred to in section 208. | 393(2) [Table: Sl. No. 11] | 10% |
| 1052 | 196B | Any income by way of long-term capital gains arising from the transfer of units referred to in section 208. | 393(2) [Table: Sl. No. 12] | 12.5% |
| 1053 | 196C | Any income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 209. | 393(2) [Table: Sl. No. 13] | 10% |
| 1054 | 196C | Any income by way of long-term capital gains arising from the transfer of bonds or Global Depository Receipts referred to in section 209. | 393(2) [Table: Sl. No. 14] | 12.5% |
| 1055 | 196D | Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1]. | 393(2) [Table: Sl. No. 15] | 20% |
| 1056 | 196D | Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1]. | 393(2) [Table: Sl. No. 16] | 10% |
| 1057 | 195 | Any interest (not being interest referred to against serial numbers 2, 3, 4 and 5) or any other sum chargeable under the provisions of this Act, not being income chargeable under the head "Salaries". | 393(2) [Table: Sl. No. 17] | Average rate as applicable |
| 1058 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from - (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever | 393(3) [Table: Sl. No. 1] | 30% |
| 1059 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from - (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever where consideration, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 1] Note 2 | 30% |
| 1060 | 194BA | Any income by way of winnings from online game. | 393(3) [Table: Sl. No. 2] | 30% |
| 1061 | 194BA | Any income by way of winnings from online games, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 2] Note 2 | 30% |
| 1062 | 194BB | Any income by way of winnings from any horse race. | 393(3) [Table: Sl. No. 3] | 30% |
| 1063 1064 1065 | 194G 194N 194N | Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets, by way of commission, remuneration or prize (by whatever name called) on such tickets Payment of certain amounts in cash by bank/ post office/ co-operative society to a deductee being a co-operative society Payment of certain amounts in cash by bank/ post office/ co-operative society to a deductee being a person other than co-operative society | 393(3) [Table: Sl. No. 4] 393(3) [Table: Sl. No. 5.D(a)] 393(3) [Table: Sl. No. 5.D(b)] | 2% 2% 2% |
| 1066 | 194EE | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961). | 393(3) [Table: Sl. No. 6] | 10% |
| 1067 | 194T | Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). | 393(3) [Table: Sl. No. 7] | 10% |
| TCS RATE CHART TAX YEAR 2026-27 | ||||
|---|---|---|---|---|
| Codes to be used in Returns | Old Section | Nature of Payment | New Section (IT Act 2025) | Rates |
| 1068 | 206C-A | Sale of alcoholic liquor for human consumption. | 394(1) [Table: Sl. No. 1] | 2% |
| 1069 | 206C-1 | Sale of tendu leaves | 394(1) [Table: Sl. No. 2] | 2% |
| 1070 | 206C-B | Sale of timber obtained under a forest lease | 394(1) [Table: Sl. No. 3] | 2% |
| 1071 | 206C-C | Sale of timber obtained by any mode other than a forest lease | 394(1) [Table: Sl. No. 3] | 2% |
| 1072 | 206C-D | Sale of any other forest produce (not being timber or tendu leaves) obtained under a forest lease. | 394(1) [Table: Sl. No. 3] | 2% |
| 1073 | 206C-E | Sale of Scrap | 394(1) [Table: Sl. No. 4] | 2% |
| 1074 | 206C-J | Sale of minerals, being coal or lignite or iron ore. | 394(1) [Table: Sl. No. 5] | 2% |
| 1075 | 206C-L | Sale consideration exceeding threshold limit in case of sale of motor vehicle | 394(1) [Table: Sl. No. 6.D(a)] | 1% |
| 1076 | 206C-MA | Sale consideration exceeding threshold limit in case of sale of wrist watch | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1077 1078 | 206C-MB 206C-MC | Sale consideration exceeding threshold limit in case of sale of art piece such as antiques, painting, sculpture Sale consideration exceeding threshold limit in case of sale of collectibles such as coin, stamp | 394(1) [Table: Sl. No. 6.D(b)] 394(1) [Table: Sl. No. 6.D(b)] | 1% 1% |
| 1079 | 206C-MD | Sale consideration exceeding threshold limit in case of sale of yacht, rowing boat, canoe, helicopter | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1080 1081 | 206C-ME 206C-MF | Sale consideration exceeding threshold limit in case of sale of pair of sunglasses Sale consideration exceeding threshold limit in case of sale of bag such as handbag, purse | 394(1) [Table: Sl. No. 6.D(b)] 394(1) [Table: Sl. No. 6.D(b)] | 1% 1% |
| 1082 | 206C-MG | Sale consideration exceeding threshold limit in case of sale of pair of shoes | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1083 1084 | 206C-MH 206C-MI | Sale consideration exceeding threshold limit in case of sale of sportswear & equipment such as golf kit, ski-wear Sale consideration exceeding threshold limit in case of sale of home theatre system | 394(1) [Table: Sl. No. 6.D(b)] 394(1) [Table: Sl. No. 6.D(b)] | 1% 1% |
| 1085 | 206C-MJ | Sale consideration exceeding threshold limit in case of sale of horse for horse racing in race clubs and horse for polo | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1086 | 206C-T | Remittance under the Liberalised Remittance Scheme of an amount or aggregate of the amounts exceeding threshold limit for purposes of education or medical treatment (Threshold limit - 10 lakh) | 394(1) [Table: Sl. No. 7.D(a)] | 2% |
| 1087 | 206C-Q | Remittance under the Liberalised Remittance Scheme of an amount or aggregate of the amounts exceeding threshold limit for purposes other than education or medical treatment (Threshold limit-10 lakh) | 394(1) [Table: Sl. No. 7.D(b)] | 20% |
| 1088 1089 | 206C-0 206C-0 | Sale of "overseas tour programme package" including expenses for travel or hotel stay or boarding or lodging or any such similar or related expenditure with amount or aggregate of amounts up to 10,00,000. Sale of "overseas tour programme package" including expenses for travel or hotel stay or boarding or lodging or any such similar or related expenditure with amount or aggregate of amounts above 10,00,000. | 394(1) [Table: Sl. No. 8.D(a)] 394(1) [Table: Sl. No. 8.D(b)] | 2% 2% |
| 1090 1091 | 206C-P 206C-G | Use of parking lot for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). Use of toll plaza for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | 394(1) [Table: Sl. No. 9] 394(1) [Table: Sl. No. 9] | 2% 2% |
| 1092 | 206C-H | Use of mine or quarry for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | 394(1) [Table: Sl. No. 9] | 2% |
Notes & Key Provisions
- The above list covers most of the sections applicable for domestic transactions.
- Section 397(2) / Old Section - 206AA & 206CC:
- (a) Irrespective of anything contained in any other provision of this Act, every person, entitled to receive any amount on which tax is deductible or, paying any amount on which tax is collectible, shall furnish his valid Permanent Account Number to the person responsible for deducting or collecting tax.
- (b) In case of failure to comply with provisions of clause (a) -
- For TDS: tax shall be deducted at the higher of the following rates: (A) at the rate specified in the relevant provision of this Act; or (B) at the rate or rates in force; or (C) at the rate of 5% where tax is required to be deducted under section 393(1) [Table: Sl. No. 8(ii) or 8(v)]; or 20% in any other case.
- For TCS: tax shall be collected at the higher of the following rates, not exceeding 20% - (A) at twice the rate specified in the relevant provision of this Act; or (B) at the rate of 5%.
