TDS sections, rates and thresholds for 2026-27
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Salary TDS moved to section 392 and nearly every other TDS section became a row in section 393. This page keeps the old numbers people still use and shows where each one lives now. Every rate is taken from incometaxindia.gov.in and was checked on 13 October 2026.
TDS rates by section
Rates exclude surcharge and cess. Open a section for who deducts, conditions and exemptions.
| Old section | Payment | Threshold | Rate | Income-tax Act, 2025 |
|---|---|---|---|---|
| 192 | TDS on salary | See section | Average rate of income-tax computed on the basis of the rates in force for the tax year on estimated salary income for the tax year (no fixed percentage) | Section 392(1) |
| 193 | TDS on interest on securities | Rs 10,000 | 10% | Section 393(1), Table Sl. No. 5(i) |
| 194 | TDS on dividends | Nil in the s.393(1) table; but no deduction for an individual shareholder where dividend is paid by a mode other than cash and the aggregate does not exceed Rs 10,000 (s.393(4) Table Sl. No. 10(f)) | 10% | Section 393(1), Table Sl. No. 7 |
| 194A | TDS on interest other than interest on securities | Bank/co-op bank/post office: Rs 1,00,000 for senior citizens, Rs 50,000 for others; other payers: Rs 10,000 | 10% | Section 393(1), Table Sl. No. 5(ii) and 5(iii) |
| 194B | TDS on winnings from lottery, crossword puzzle, card games etc. | Rs 10,000 in a single transaction | 30% | Section 393(3), Table Sl. No. 1 |
| 194BB | TDS on winnings from horse races | Rs 10,000 in a single transaction | 30% | Section 393(3), Table Sl. No. 3 |
| 194C | TDS on payments to contractors | Rs 30,000 for a single sum, or Rs 1,00,000 aggregate in the tax year | 1% / 2% | Section 393(1), Table Sl. No. 6(i) |
| 194D | TDS on insurance commission | Rs 20,000 | 2% | Section 393(1), Table Sl. No. 1(i) |
| 194DA | TDS on payment in respect of life insurance policy | Rs 1,00,000 | 2% on the income comprised in the sum | Section 393(1), Table Sl. No. 8(i) |
| 194G | TDS on commission on sale of lottery tickets | Rs 20,000 | 2% | Section 393(3), Table Sl. No. 4 |
| 194H | TDS on commission or brokerage | Rs 20,000 | 2% | Section 393(1), Table Sl. No. 1(ii) |
| 194I | TDS on rent | Rs 50,000 for a month or part of a month | 2% / 10% | Section 393(1), Table Sl. No. 2(ii) |
| 194IA | TDS on sale of immovable property | Rs 50 lakh (consideration or stamp duty value; aggregated across all transferees/transferors per Note 1 and Note 3) | 1% of consideration or stamp duty value, whichever is higher | Section 393(1), Table Sl. No. 3(i) |
| 194IB | TDS on rent by individuals/HUF | Rs 50,000 for a month or part of a month | 2% | Section 393(1), Table Sl. No. 2(i) |
| 194IC | TDS on payment under joint development agreement | Nil | 10% | Section 393(1), Table Sl. No. 3(ii) |
| 194J | TDS on professional or technical fees | Rs 50,000 per category for professional fees, technical fees, royalty and s.26(2)(h) sums; Nil for director remuneration | 2% / 10% | Section 393(1), Table Sl. No. 6(iii) |
| 194K | TDS on income from mutual fund units | Rs 10,000 | 10% | Section 393(1), Table Sl. No. 4(i) |
| 194LA | TDS on compensation for compulsory acquisition | Rs 5,00,000 | 10% | Section 393(1), Table Sl. No. 3(iii) |
| 194M | TDS on contract, commission or professional fees paid by individuals/HUF | Rs 50 lakh | 2% | Section 393(1), Table Sl. No. 6(ii) |
| 194N | TDS on cash withdrawal | Rs 3 crore where recipient is a co-operative society; Rs 1 crore for any other recipient | 2% | Section 393(3), Table Sl. No. 5 |
| 194O | TDS on e-commerce transactions | Nil in Table 393(1); but no deduction (s.393(4) Sl. 11) for individual/HUF participant whose gross sales/services in the tax year do not exceed Rs 5,00,000 and who has furnished PAN/Aadhaar | 0.1% of gross amount of sales/services | Section 393(1), Table Sl. No. 8(v) |
| 194P | TDS by bank for specified senior citizens | See section | Rates in force | Section 393(1), Table Sl. No. 8(iii) |
| 194Q | TDS on purchase of goods | Rs 50 lakh; tax deducted only on the sum exceeding Rs 50 lakh (Note 1(b)) | 0.1% (on amount above Rs 50 lakh) | Section 393(1), Table Sl. No. 8(ii) |
| 194R | TDS on business perquisites | Rs 20,000 | 10% of value/aggregate value of benefit or perquisite | Section 393(1), Table Sl. No. 8(iv) |
| 194S | TDS on transfer of virtual digital assets | Nil in Table 393(1); no deduction under s.393(4) Sl. 12 where aggregate consideration in the tax year does not exceed Rs 50,000 (payer is an individual/HUF within the turnover limits and without business income) or Rs 10,000 (any other payer) | 1% | Section 393(1), Table Sl. No. 8(vi) |
| 194T | TDS on payments to partners | Rs 20,000 | 10% | Section 393(3), Table Sl. No. 7 |
| 195 | TDS on payments to non-residents | See section | Rates in force (per Finance Act; DTAA rate may apply) | Section 393(2), Table Sl. No. 17 |
Sections that no longer apply
- Section 206C(1H) (TCS on sale of goods) was switched off by the Finance Act, 2025 from 1 April 2025.
- Section 206AB (Higher TDS for non-filers) was switched off by the Finance Act, 2025 from 1 April 2025.
Which Act applies to your payment
The deciding date is whichever comes first, the credit in your books or the payment. If either happened on or before 31 March 2026, deduct under the 1961 Act, even if you deposit the tax later. If both fall on or after 1 April 2026, deduct under the 2025 Act. Salary goes by the payment date.
Related
- TDS calculator
- AIS reconciliation — check that TDS deducted on your income shows up.
- India tax calendar 2026
Frequently asked questions
Has section 194J been replaced?
Yes, for payments made or credited on or after 1 April 2026. The Income-tax Act, 2025 replaced the 1961 Act from that date. TDS on salary is now under section 392, and almost every other TDS payment, including old 194C, 194J and 194I, is a row in the tables of section 393.
Which Act applies to a payment around 1 April 2026?
The e-filing portal's TDS FAQ says the Act is decided by whichever happens first, the credit or the payment. If either happened on or before 31 March 2026, the 1961 Act applies. If both happen on or after 1 April 2026, the 2025 Act applies. Salary follows the payment date.
Did TDS rates change under the new Act?
The e-filing portal's TDS FAQ says rates and thresholds were carried over unchanged. The section numbers are what changed. Check each section's page here for the rate and threshold as published in section 393.
What is the TDS rate if the payee has no PAN?
Under section 397, tax is deducted at the highest of the section's own rate, the rates in force, or 20%. For old 194Q and 194O the floor is 5% instead of 20%.
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