TDS · FY 2026-27

TDS rate chart, FY 2026-27.

Section-wise TDS rates and thresholds in one table — salary, contractor payments, professional fees, rent, purchase of goods, partner payments and non-resident remittances. Built by Chartered Accountants.

Reviewed July 2026
7 min read
CA Anil Agarwal & the TatvaBooks team

How to read the chart

Every row below assumes the payee is a resident of India and has furnished a valid PAN. TDS applies once the aggregate payment to that payee in the financial year crosses the threshold shown — below the threshold, no TDS is required. The rate column is the rate to deduct once TDS becomes applicable.

No PAN, or an inoperative PAN? Section 206AA overrides every rate in this chart — TDS jumps to the higher of 20% or twice the specified rate. Always verify PAN (and its Aadhaar-linked status) before the first payment. See §3 below for the full rule.

Need the exact rupee amount rather than just the rate? Use our free TDS calculator — pick the section, enter the payment, and it works out the threshold, rate and net payable for you.

TDS rate chart

TDS rates and thresholds are revised by the Finance Act — verify the current figure before deducting. Items marked * below have seen rate or threshold changes in recent Finance Acts; double-check against the current notification before relying on them for a live deduction.

Section	Nature of payment	Threshold	TDS rate
192	Salary	Basic exemption limit	Slab rate
192A	PF withdrawal (premature)	₹50,000	10%
193	Interest on securities	₹10,000 (₹5,000 for debentures)	10%
194	Dividend	₹5,000	10%
194A	Interest (other than securities — bank/post office)	₹40,000 (₹50,000 senior citizens)	10%
194C	Contractor payments — Individual/HUF	₹30,000 single / ₹1,00,000 aggregate	1%
194C	Contractor payments — Others	₹30,000 single / ₹1,00,000 aggregate	2%
194H	Commission / brokerage	₹15,000	5%*
194I(a)	Rent — plant & machinery	₹2,40,000 p.a.	2%
194I(b)	Rent — land & building	₹2,40,000 p.a.	10%
194J	Professional fees	₹30,000	10%
194J	Technical fees / call centre payments	₹30,000	2%
194Q	Purchase of goods (buyer-side)	₹50 lakh aggregate	0.1%
194O	E-commerce participants (Individual/HUF with PAN)	₹5 lakh	1%
194T	Payment to partners — remuneration / interest	₹20,000 aggregate p.a.	10%
194-IA	Transfer of immovable property	₹50 lakh	1%
194-IB	Rent by individual/HUF (not liable to audit)	₹50,000 / month	2%*
195	Payments to non-residents	No threshold — per nature of payment	Act / DTAA rates

* 194H (commission/brokerage) and 194-IB (rent by individual/HUF) rates have been reduced in recent Finance Acts — confirm the figure in force for the payment date before deducting. Add applicable surcharge and 4% health & education cess for payments to non-residents under Section 195; resident TDS rates above are generally applied without cess or surcharge.

Want the mechanics behind each section — who deducts, when, and the common mistakes? See our TDS sections guide or the full TDS guide for deposit due dates and quarterly returns.

Higher TDS for no-PAN / non-filers

Section 206AA — PAN not furnished

If the payee has not furnished a valid PAN, TDS must be deducted at the higher of 20%, twice the rate specified in the Act, or the rate in force. An inoperative PAN — one not linked with Aadhaar — is treated as PAN not furnished, so a routine 1% or 2% deduction can jump to 20% without anyone noticing until the deductee's 26AS shows the shortfall.

Section 206AB — repealed

Until 31 March 2025, Section 206AB loaded a higher rate on "specified persons" who hadn't filed their ITR. It was omitted by the Finance Act 2025 with effect from 1 April 2025, along with its TCS counterpart 206CCA. For FY 2026-27, there is no non-filer loading to check — only the no-PAN rule under 206AA remains in force.

Frequently asked questions

What is the TDS rate chart for FY 2026-27?

The TDS rate chart lists every payment covered under Chapter XVII-B of the Income Tax Act — the section, the nature of payment, the threshold below which no TDS applies, and the rate to deduct once the threshold is crossed. It covers salary (192), contractor payments (194C), professional fees (194J), rent (194I/194-IB), purchase of goods (194Q), payments to partners (194T) and more. See the full table above. Rates and thresholds are set by the annual Finance Act, so always verify the current figure before deducting.

How do I know which TDS section applies to a payment?

Match the nature of the payment to the closest section in the chart — a contractor invoice falls under 194C, a CA or lawyer's fee under 194J, office rent under 194I, and a purchase of goods above ₹50 lakh under 194Q. When two sections could apply (for example 194Q and 206C(1H) on the same purchase), the buyer's TDS obligation under 194Q generally takes precedence. Our tds-sections-guide page walks through the most common sections one by one.

What happens if the payee doesn't have a PAN?

Section 206AA requires TDS at the higher of 20% or twice the rate specified in the Act, whichever is higher, when the payee has not furnished a valid PAN. An inoperative PAN (not linked to Aadhaar) is treated the same as no PAN. Always collect and verify PAN before the first payment to avoid this higher deduction.

Is TDS deducted on the whole payment or only above the threshold?

Once the aggregate payment to a payee crosses the threshold for that section in the financial year, TDS is usually deducted on the entire payment amount — not just the portion above the threshold (194Q and 206C(1H), which apply only to the excess over ₹50 lakh, are the main exceptions). Check the specific section, since the mechanics differ slightly across sections.

Can I calculate the exact TDS amount instead of just checking the rate?

Yes — use our free TDS calculator. Pick the section, enter the payment amount and payee type, and it applies the correct threshold, rate and PAN-status adjustment automatically, so you don't have to work it out from the chart by hand.

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