Last reviewed: 25 September 2026. Every month, someone in every accounts team asks the same question: what is the TDS on this payment? The answer moved twice recently — Finance Act 2025 rewrote a dozen thresholds from 1 April 2025, and from 1 April 2026 the Income-tax Act, 2025 carries the same substance into section 392 and the consolidated Section 393 tables with renumbered forms. This page is the working answer: an interactive finder covering 27 common payments, the full reference table beneath it with both the 1961 and 2025 section references, and the traps (PAN-inoperative 20%, part-month rent rules, the 194T partner net) linked to our detailed guides. Payments up to 31 March 2026 stay under the 1961 sections; payments from 1 April 2026 use the 2025 Act references.
TDS Rate Finder — FY 2026-27 (and FY 2025-26)
Type the payment — rent, contractor, professional fees, dividend, crypto — and get the rate, threshold, section and the notes that usually get missed.
The full reference table — FY 2025-26 and FY 2026-27
Rates and thresholds below apply for FY 2025-26 (AY 2026-27) and continue in substance for FY 2026-27 under section 392 and the Section 393 tables of the Income-tax Act, 2025. Table serial numbers are as enacted; where a row shows only "Section 393 table", confirm the serial number against the current table before quoting it. Rows link to our detailed guides where we have them.
| Payment | Section (1961) | Income-tax Act, 2025 (FY 2026-27) | Rate | Threshold |
|---|---|---|---|---|
| Salary | 192 | 392 | Slab rates | No threshold — as per regime/slabs |
| Premature EPF withdrawal | 192A | 392(7) | 10% | ₹50,000 |
| Interest on securities/debentures | 193 | 393(1) S.No. 5(i) | 10% | ₹10,000 a year |
| Dividend | 194 | 393(1) S.No. 7 | 10% | ₹10,000 a year |
| Interest — bank / post office deposits | 194A | 393(1) S.No. 5(ii)/(iii) | 10% | ₹50,000 a year (₹1,00,000 for senior citizens) |
| Lottery / puzzle winnings | 194B | 393(3) S.No. 1 | 30% | ₹10,000 per single transaction |
| Online gaming winnings | 194BA | 393(3) S.No. 2 | 30% | No threshold — on net winnings |
| Contractor / job work (including manpower supply from FY 2026-27) | 194C | 393(1) S.No. 6(i) | 1% individual/HUF payee · 2% others | ₹30,000 single or ₹1,00,000 aggregate a year |
| Insurance commission | 194D | 393(1) S.No. 1(i) | 2% | ₹20,000 a year |
| Life insurance policy payout (taxable) | 194DA | Section 393 table | 2% | ₹1,00,000 |
| Commission on lottery tickets | 194G | Section 393 table | 2% | ₹20,000 |
| Commission / brokerage | 194H | 393(1) S.No. 1(ii) | 2% | ₹20,000 a year |
| Rent — land, building, furniture (business payers) | 194-I(b) | 393(1) S.No. 2(ii) | 10% | ₹50,000 per month or part |
| Rent — plant, machinery, equipment | 194-I(a) | 393(1) S.No. 2(ii) | 2% | ₹50,000 per month or part |
| Purchase of immovable property | 194-IA | 393(1) S.No. 3(i) | 1% | ₹50 lakh consideration |
| Rent paid by individuals/HUF (no tax audit) | 194-IB | 393(1) S.No. 2(i) | 2% | ₹50,000 per month or part |
| Professional fees | 194J(a) | 393(1) S.No. 6(iii) | 10% | ₹50,000 a year |
| Technical services / call centre | 194J(b) | 393(1) S.No. 6(iii) | 2% | ₹50,000 a year |
| Income from mutual fund units | 194K | Section 393 table | 10% | ₹10,000 a year |
| Contract/professional payment by individual (personal) | 194M | 393(1) S.No. 6(ii) | 2% | ₹50 lakh a year |
| Cash withdrawal from bank | 194N | Section 393 table | 2% above ₹1 crore | ₹1 crore a year (₹3 crore for co-op societies) |
| E-commerce participants (sales via platform) | 194-O | 393(1) S.No. 8(v) | 0.1% | ₹5 lakh (individuals/HUF) |
| Purchase of goods | 194Q | 393(1) S.No. 8(ii) | 0.1% | ₹50 lakh a year per seller |
| Business perquisites / benefits | 194R | 393(1) S.No. 8(iv) | 10% | ₹20,000 a year |
| Crypto / virtual digital assets | 194S | 393(1) S.No. 8(vi) | 1% | ₹50,000 (specified persons) / ₹10,000 others |
| Partner remuneration / interest | 194T | 393(3) S.No. 7 | 10% | ₹20,000 aggregate a year |
| Any payment to a non-resident | 195 | 393(2) | Rates in force + surcharge + cess | No threshold |
For payments to foreign vendors, the remittance paperwork is Form 145 and, where required, the accountant's certificate in Form 146 (old 15CA/15CB) — see our 15CA/15CB guide — and treaty rates need a tax residency certificate with Form 41 (old 10F), covered in our Form 41 and DTAA guide.
The five rules that ride on every row
- No or inoperative PAN → 20% (section 397(2), old 206AA; higher of the table rate and 20%). Check PAN–Aadhaar operative status before deducting — short deduction becomes your demand.
- Deposit by the 7th of the following month (30 April for March deductions). Interest at 1% p.m. for not deducting, 1.5% p.m. for deducting-not-depositing (section 398(3)(a), old 201(1A)).
- Quarterly statements — Form 26Q/27Q through FY 2025-26; Forms 140/144 from FY 2026-27. Certificates: Form 130 (old 16), Form 131 (old 16A), Form 132 (old 16B-16E) and Form 133 (old 27D). Lower-deduction applications: Form 128 (old 13). Late filing: ₹200/day under section 427 (old 234E).
- Business payers who skip TDS lose the deduction — 30% of the expense disallowed under section 35(b)(i) (old 40(a)(ia)), and the entire amount for non-resident payments under section 35(b)(ii) (old 40(a)(i)), restored only in the year of deposit.
- Individuals are deductors too — rent above ₹50,000/month (old 194-IB), big personal contracts above ₹50 lakh (old 194M), property purchases above ₹50 lakh (old 194-IA) — all without needing a TAN.
What changed recently — the two-minute history
| When | What moved |
|---|---|
| 1 Oct 2024 | Rates rationalised: 194-IB rent 5%→2%, 194H commission 5%→2%, 194-O e-commerce 1%→0.1%, 194DA 5%→2%. |
| 1 Apr 2025 (FA 2025) | Thresholds raised across the board: 194J ₹30k→₹50k, 194H ₹15k→₹20k, 194A bank interest ₹40k→₹50k (senior ₹1L), dividend ₹5k→₹10k, 194C aggregate ₹1L, rent moved to ₹50,000 per month. New: 194T on partner remuneration. TCS on sale of goods under 206C(1H) omitted. |
| 1 Apr 2026 (Income-tax Act 2025) | Same substance, new home: section 392 and the Section 393 tables. Forms renumbered — 26Q→140, 27Q→144, challan-cum-statements (26QB/QC/QD/QE)→141, 16A→131, 16B-16E→132, 27D→133. Our old-to-new mapping guide covers it section by section. |
| Tax year 2026-27 (Budget 2026) | Manpower supply brought into the contractor row at 1% or 2%; motor accident tribunal interest to natural persons made exempt, with no TDS; a resident buyer of property from a non-resident deducts and deposits through PAN instead of TAN; rule-based automated lower or nil deduction certificates for small taxpayers. |
Common mistakes to watch for
- Applying the old thresholds from memory — half the limits changed in April 2025.
- Deducting on the GST-inclusive amount for rent and works contracts where GST is shown separately.
- Missing 194T entirely — partner drawings against remuneration are in the net since FY 2025-26.
- Treating an NRI payee like a resident — section 195 (section 393(2) from FY 2026-27) has no thresholds and needs a TAN, 27Q/144 and often 15CA/CB or Forms 145/146 (see our LRS/TCS guide for the outbound side).
- Filing statements with unverified PANs — every inoperative PAN in the return generates a short-deduction demand.
Frequently asked questions
What is the TDS rate on rent for FY 2026-27?
Business payers: 10% on land/building/furniture and 2% on plant & machinery once rent exceeds ₹50,000 for a month or part, under section 393(1) Table S.No. 2(ii) of the Income-tax Act, 2025 (old 194-I). Individuals and HUFs outside tax audit: 2% under section 393(1) Table S.No. 2(i) (old 194-IB) above the same ₹50,000 monthly line, deducted once a year.
What happens if the payee’s PAN is missing or inoperative?
TDS applies at the higher of the table rate and 20% — under section 397(2) of the Income-tax Act, 2025 for payments from 1 April 2026 (section 206AA for FY 2025-26). An inoperative PAN (not linked to Aadhaar) counts as no PAN — verify operative status on the e-filing portal before deducting, because a short deduction becomes the deductor’s demand with interest.
Which TDS thresholds changed from 1 April 2025?
Finance Act 2025 raised most of them: professional fees to ₹50,000, commission to ₹20,000, bank interest to ₹50,000 (₹1 lakh for senior citizens), dividend and securities interest to ₹10,000, contractor aggregate to ₹1,00,000, and rent to ₹50,000 per month. It also introduced section 194T on partner remuneration at 10% above ₹20,000.
What changes for TDS from FY 2026-27 under the Income-tax Act, 2025?
Rates and thresholds carry forward in substance, relocated into section 392 (salary) and the tables of section 393. The Budget 2026 changes add manpower supply to the contractor row at 1% or 2%, end TDS on motor accident tribunal interest to natural persons, and let a resident buyer of property from a non-resident deduct and deposit through PAN instead of TAN. Forms are renumbered: 26Q becomes Form 140, 27Q becomes 144, 26QB/26QC/26QD/26QE consolidate into Form 141, Form 16A becomes 131, Forms 16B to 16E become 132 and Form 27D becomes 133.
When must deducted TDS be deposited?
By the 7th of the month following deduction — 30 April for amounts deducted in March. Interest runs at 1% per month for failure to deduct and 1.5% per month for deducting but not depositing (section 398(3)(a), old 201(1A)), and late statements attract ₹200 per day under section 427 (old 234E).
Do individuals who are not in business ever need to deduct TDS?
Yes — three common cases: rent above ₹50,000 a month (old 194-IB), buying property for ₹50 lakh or more (old 194-IA), and paying a contractor or professional more than ₹50 lakh in a year for personal work (old 194M). All three work on a challan-cum-statement (Form 141 from FY 2026-27) without a TAN.
We run TDS end-to-end — monthly computations, deposits, quarterly statements (26Q/140), certificates, PAN verification sweeps and short-deduction notice replies.
TDS Return Filing Bookkeeping & Accounting Talk to usThis tool and table are general information for FY 2025-26 and FY 2026-27, based on the law as on 25 September 2026 including Finance Act 2025 changes, the Income-tax Act, 2025 (section 392 and the Section 393 tables) effective 1 April 2026, the Income-tax Rules, 2026 form numbers and the Budget 2026 changes. Rates for non-residents vary by DTAA. Special cases, surcharge and specific exemptions are not modelled — confirm before deducting or take advice.