TDS RATE FOR FY 2026-27.

 Given below the TDS rate for FY 2026-27 under Income Tax act 2025.

 

1. TDS Rate

A.  Section 392: Salary & Employee balances TDS on Payment of salary

 

Sec 392 (1) For Computation of TDS on salary slab rate is in force remain as in old act Section 192 TDS on Accumulated PF Balance due on Employee

 

Sec 392 (7) Rate of 10 % remain same For Computation of TDS on Accumulated Balance PF

B.    

C.   PAYMENTS TO RESIDENT – Section 393(1)

 

Nature of Payment

New Act Ref

Table Sl. No.

Deductor

Deductee

Rate

Threshold

Old Act Section

Insurance Commission

393(1)

1(i)

Any person

Resident Insurance Agent

Rates in force

Rs 20,000

194D

Commission/Brokerage

393(1)

1(ii)

Specified person

Resident Agent/Broker

2%

Rs 20,000

194H

Rent (Individual payer)

393(1)

2(i)

Individual/HUF (non-audit)

Resident Landlord

2%

Rs 50,000 per month

194-IB

Rent – Plant & Machinery

393(1)

2(ii)(a)

Specified person

Resident Owner

2%

Rs 50,000 per month

194-I

Rent – Land/Building

393(1)

2(ii)(b)

Specified person

Resident Landlord

10%

Rs 50,000 per month

194-I

Sale of Immovable Property

393(1)

3(i)

Buyer

Resident Seller

1%

Rs 50 lakh

194-IA

Compulsory Acquisition

393(1)

3(iii)

Any person

Resident Recipient

10%

Rs 5 lakh

194LA

Mutual Fund Income

393(1)

4(i)

Any person

Resident Unit holder

10%

Rs 10,000

194K

Business Trust Income

393(1)

4(ii)

Business Trust

Resident Unit holder

10%

Nil

194LBA

Investment Fund Income

393(1)

4(iii)

Investment Fund

Resident Unit holder

10%

Nil

194LBB

Securitisation Trust Income

393(1)

4(iv)

Securitisation Trust

Resident Investor

10%

Nil

194LBC

Interest on Securities

393(1)

5(i)

Any person

Resident Security Holder

Rates in force

Rs 10,000

193

Bank Interest

393(1)

5(ii)

Bank/Co-op Bank/Post Office

Resident Depositor

Rates in force

Rs 1L (SC), Rs 50k others

194A

Contractor – Individual/HUF

393(1)

6(i)(a)

Designated person

Resident Contractor (Ind/HUF)

1%

Rs 30k single / ₹1L agg

194C

Contractor – Others

393(1)

6(i)(b)

Designated person

Resident Contractor (Other)

2%

Same

194C

Professional Fees

393(1)

6(iii)(a)

Specified person

Resident Professional

10%

Rs 30,000

194J

Technical Fees

393(1)

6(iii)(b)

Specified person

Resident Service Provider

2%

Rs 30,000

194J

Director Fees

393(1)

6(iii)(c)

Company

Resident Director

10%

Nil

194J

Dividend

393(1)

7

Domestic Company

Resident Shareholder

10%

Nil

194

Life Insurance Payout

393(1)

8(i)

Insurer

Resident Policyholder

2% (income part)

Rs 1 lakh

194DA

Purchase of Goods > ₹50L

393(1)

8(ii)

Buyer

Resident Seller

0.1%

Rs 50 lakh

194Q

Benefit/Perquisite

393(1)

8(iv)

Specified person

Resident Business Recipient

10%

Rs 20,000

194R

E-commerce Payment

393(1)

8(v)

E-commerce Operator

Resident Participant

0.1%

Nil

194-O

Virtual Digital Asset

393(1)

8(vi)

Any person

Resident Transferor

1%

Nil

194S