TDS Rate Chart FY 2026-27: sections, rates & thresholds
8 min read · TDS
A quick-reference chart of the most-used resident TDS sections for FY 2026-27. Rates and thresholds have been revised repeatedly in recent Budgets — the Budget 2025 and 2026 cycles raised several deduction thresholds — so treat this as an orientation table and verify each figure against the latest Finance Act / CBIC notification before you deduct.
| Section | Nature of payment | Rate | Notes |
|---|---|---|---|
| 192 | Salary | Slab rate | Basic exemption limit — deducted on estimated annual salary at the applicable regime slab. |
| 194A | Interest (other than securities) | 10% | Bank/post-office interest above the notified limit; higher senior-citizen limit. Non-bank payers have a lower limit. |
| 194C | Payment to contractors | 1% / 2% | 1% if payee is individual/HUF, 2% otherwise. Per-payment and annual-aggregate thresholds apply. |
| 194H | Commission or brokerage | 5% (see note) | Threshold applies; Budget changes have revised the rate/limit — verify the current figure. |
| 194I | Rent | 2% / 10% | 2% on plant & machinery, 10% on land, building or furniture. Annual threshold applies. |
| 194J | Professional / technical fees | 10% / 2% | 10% professional, 2% technical services (and call-centre / certain royalty). |
| 194Q | Purchase of goods | 0.1% | Buyer with turnover above the notified limit, on purchases above ₹50 lakh from a resident seller. |
| 194O | E-commerce operator payments | 0.1% | On the gross amount of sales facilitated for an e-commerce participant. |
| 194N | Cash withdrawal | 2% / 5% | 2% above the annual cash-withdrawal limit; higher rate/lower limit for non-filers. |
| 206AB | Higher rate — specified non-filers | Higher of 2x / 5% | Applies when the deductee is a specified non-filer of returns. |
How to read the chart
The rate is the standard resident rate assuming a valid PAN is furnished. Most sections carry a threshold below which no TDS is deducted — some per-payment, some on the annual aggregate — so check both. Rates shown as a range (like 194C's 1%/2% or 194I's 2%/10%) depend on the payee type or the nature of the asset.
No PAN and non-filers push the rate up
If the deductee does not furnish a valid PAN, §206AA requires TDS at the higher of the normal rate or 20%. For a specified non-filer of returns, §206AB applies a higher rate — broadly twice the normal rate, or 5%, whichever is higher. Both are easy to miss when deducting manually.
Why the caveats matter
TDS thresholds and rates are among the most frequently amended parts of the Income-tax Act. A rate that was correct last year may have moved this year, and mid-year notifications happen. The figures above are indicative as of Sep 2026 — the safe practice is to confirm against the current Finance Act / CBIC notification, or with your CA, before applying any of them.
OnGravy tags each payment with the correct section, rate and threshold — handles no-PAN and non-filers — and prepares your 26Q/24Q.
Try OnGravy →General information, not tax advice. Rates and thresholds change — verify against the latest Finance Act / CBIC notification or with your CA.