Understanding TDS (Tax Deducted at Source) provisions is one of the most important compliances under the Income Tax Act for businesses, professionals, and individuals who make specified payments. Every year, the Income Tax Department notifies TDS rates applicable to different types of payments such as salary, interest, commission, rent, professional fees, purchase of goods, and many more.
From 1 April 2026, the New Income Tax Act 2025 is expected to come into effect, and therefore it becomes even more important for taxpayers, accountants, and students to clearly understand the applicable TDS rates, sections, and compliance requirements.
In this article, we have compiled a complete and structured chart of TDS rates applicable for Assessment Year 2026-27 as amended by the Finance Act, 2025 so that readers can easily refer to the correct rates while making payments or filing returns. If you want to understand TDS and TCS practically with real examples, return filing, and compliance procedures, you can also explore our TDS & TCS Practical Course available on cagurujiclasses.com.
Additionally, for step-by-step learning and latest updates, you can watch our latest TDS-TCS YouTube video playlist covering the provisions applicable under the New Income Tax Act 2025 effective from 1 April 2026.
Rates for Tax Deduction at Source (TDS)
Assessment Year 2026-27
1. Person Other Than Company
1.1 Resident in India
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 192 | Salary | Normal Slab Rate |
| 192A | Payment of accumulated PF balance | 10% |
| 193 | Interest on securities | 10% |
| 194 | Dividend | 10% |
| 194A | Interest other than securities | 10% |
| 194B | Lottery / gambling winnings | 30% |
| 194BA | Online game winnings | 30% |
| 194BB | Horse race winnings | 30% |
| 194C | Contractor – Individual/HUF | 1% |
| 194C | Contractor – Others | 2% |
| 194D | Insurance commission | 5% |
| 194DA | Life insurance payout | 2% |
| 194EE | National Savings Scheme withdrawal | 10% |
| 194F | Repurchase of MF units (not applicable after 1-10-2024) | 20% |
| 194G | Lottery ticket commission | 2% |
| 194H | Commission / brokerage | 2% |
| 194I | Rent – Plant & Machinery | 2% |
| 194I | Rent – Land / building / furniture | 10% |
| 194IA | Property purchase (other than agricultural land) | 1% |
| 194IB | Rent by Individual / HUF not liable to audit | 2% |
| 194IC | Joint development agreement payment | 10% |
| 194J | Technical services | 2% |
| 194J | Royalty for film distribution | 2% |
| 194J | Other professional services | 10% |
| 194K | Income from mutual fund units | 10% |
| 194LA | Compensation on acquisition of property | 10% |
| 194LBA | Business trust distribution | 10% |
| 194LBB | Income from investment fund | 10% |
| 194LBC | Income from securitisation trust | 10% |
| 194M | Payment of commission / brokerage / professional fee by Individual/HUF exceeding ₹50L | 2% |
| 194N | Cash withdrawal exceeding ₹1 crore | 2% |
| 194N | Cash withdrawal for non-ITR filers | 2% / 5% |
| 194O | E-commerce operator payments | 0.1% |
| 194P | TDS by bank for senior citizens (75+) | As per slab |
| 194Q | Purchase of goods exceeding ₹50 lakh | 0.1% |
| 194R | Benefit or perquisite in business | 10% |
| 194S | Transfer of virtual digital asset | 1% |
| 194T | Payment to partner by firm (salary, commission etc.) | 10% |
| Other Income | Any other income | 10% |
1.2 Non-Resident (Individual / HUF / Others)
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 192 | Salary | Normal Slab Rate |
| 192A | PF withdrawal | 10% |
| 194B | Lottery / gambling winnings | 30% |
| 194BA | Online game winnings | 30% |
| 194BB | Horse race winnings | 30% |
| 194E | Payment to non-resident sportsman | 20% |
| 194EE | NSS payment | 10% |
| 194F | Mutual fund repurchase | 20% |
| 194G | Lottery ticket commission | 2% |
| 194LB | Interest on infrastructure debt fund | 5% |
| 194LBA | Income distribution by business trust | 5% / 10% / 30% |
| 194LBB | Investment fund income | 30% |
| 194LBC | Securitisation trust income | 30% |
| 194LC | Interest on foreign borrowing | 5% / 4% / 9% |
| 194LD | Interest on rupee denominated bonds | 5% |
| 194N | Cash withdrawal | 2% / 5% |
| 194T | Payment to partner | 10% |
Section 195 – Payments to Non-Residents
| Nature of Income | TDS Rate |
|---|---|
| Investment income of NRI | 20% |
| LTCG under section 115E | 12.5% |
| LTCG under section 112 | 12.5% |
| LTCG under section 112A | 12.5% |
| STCG under section 111A | 20% |
| Other LTCG | 12.5% |
| Dividend (IFSC unit) | 10% |
| Other dividends | 20% |
| Interest on foreign currency borrowing | 20% |
| Royalty | 20% |
| Fees for technical services | 20% |
| Any other income | 30% |
2. TDS Rates for Companies
2.1 Domestic Company
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 193 | Interest on securities | 10% |
| 194 | Dividend | 10% |
| 194A | Interest other than securities | 10% |
| 194B | Lottery winnings | 30% |
| 194BA | Online gaming winnings | 30% |
| 194BB | Horse race winnings | 30% |
| 194C | Contractor payment (Individual/HUF) | 1% |
| 194C | Contractor payment (Others) | 2% |
| 194D | Insurance commission | 10% |
| 194DA | Life insurance payout | 2% |
| 194EE | NSS payment | 10% |
| 194F | Mutual fund repurchase | 20% |
| 194G | Lottery ticket commission | 2% |
| 194H | Commission or brokerage | 2% |
| 194I | Rent (Plant & Machinery) | 2% |
| 194I | Rent (Land/Building) | 10% |
| 194IA | Property transfer | 1% |
| 194IC | JDA payment | 10% |
| 194J | Professional services | 2% / 10% |
| 194K | Mutual fund income | 10% |
| 194LA | Compensation on property acquisition | 10% |
| 194LBA | Business trust distribution | 10% |
| 194LBB | Investment fund income | 10% |
| 194LBC | Securitisation trust income | 10% |
| 194M | Commission / professional fee payment | 2% |
| 194N | Cash withdrawal | 2% / 5% |
| 194O | E-commerce payment | 0.1% |
| 194P | Senior citizen bank deduction | As per slab |
| 194Q | Purchase of goods | 0.1% |
| 194R | Benefit or perquisite | 10% |
| 194S | Virtual digital asset | 1% |
| Other Income | Any other income | 10% |
2.2 Foreign Company
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 194B | Lottery / gambling winnings | 30% |
| 194BA | Online game winnings | 30% |
| 194BB | Horse race winnings | 30% |
| 194E | Payment to sports association | 20% |
| 194G | Lottery ticket commission | 2% |
| 194LB | Infrastructure debt fund interest | 5% |
| 194LBA | Business trust income | 5% / 10% / 35% |
| 194LBB | Investment fund income | 35% |
| 194LBC | Securitisation trust income | 35% |
| 194LC | Interest on foreign borrowing | 5% / 4% / 9% |
| 194LD | Interest on rupee bond | 5% |
| 195 | Various income categories | 12.5% – 35% |
| 196A | Income from units | 20% |
| 196B | Units LTCG | 12.5% |
| 196C | Bonds/GDR income | 10% |
| 196D | FII income from securities | 20% |
| 196D(1A) | IFSC specified fund income | 10% |
Important Note
The TDS rates mentioned above are exclusive of surcharge and Health & Education Cess, which will be added wherever applicable.
Disclaimer
The contents of this article are for general informational purposes only and are intended to provide quick access to tax rate information. Readers are advised to verify the provisions with the Income-tax Act, relevant rules, notifications, and official government sources before making financial decisions.
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