Last reviewed: 12 August 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 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, and the traps (PAN-inoperative 20%, part-month rent rules, the new 194T partner net) linked to our detailed guides.
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 the Section 393 tables of the Income-tax Act, 2025. Rows link to our detailed guides where we have them.
| Payment | Section (1961) | Rate | Threshold |
|---|---|---|---|
| Salary | 192 | Slab rates | No threshold — as per regime/slabs |
| Premature EPF withdrawal | 192A | 10% | ₹50,000 |
| Interest on securities/debentures | 193 | 10% | ₹10,000 a year |
| Dividend | 194 | 10% | ₹10,000 a year |
| Interest — bank / post office deposits | 194A | 10% | ₹50,000 a year (₹1,00,000 for senior citizens) |
| Lottery / puzzle winnings | 194B | 30% | ₹10,000 per single transaction |
| Online gaming winnings | 194BA | 30% | No threshold — on net winnings |
| Contractor / job work | 194C | 1% individual/HUF payee · 2% others | ₹30,000 single or ₹1,00,000 aggregate a year |
| Insurance commission | 194D | 2% | ₹20,000 a year |
| Life insurance policy payout (taxable) | 194DA | 2% | ₹1,00,000 |
| Commission on lottery tickets | 194G | 2% | ₹20,000 |
| Commission / brokerage | 194H | 2% | ₹20,000 a year |
| Rent — land, building, furniture (business payers) | 194-I(b) | 10% | ₹50,000 per month or part |
| Rent — plant, machinery, equipment | 194-I(a) | 2% | ₹50,000 per month or part |
| Purchase of immovable property | 194-IA | 1% | ₹50 lakh consideration |
| Rent paid by individuals/HUF (no tax audit) | 194-IB | 2% | ₹50,000 per month or part |
| Professional fees | 194J(a) | 10% | ₹50,000 a year |
| Technical services / call centre | 194J(b) | 2% | ₹50,000 a year |
| Income from mutual fund units | 194K | 10% | ₹10,000 a year |
| Contract/professional payment by individual (personal) | 194M | 2% | ₹50 lakh a year |
| Cash withdrawal from bank | 194N | 2% above ₹1 crore | ₹1 crore a year (₹3 crore for co-op societies) |
| E-commerce participants (sales via platform) | 194-O | 0.1% | ₹5 lakh (individuals/HUF) |
| Purchase of goods | 194Q | 0.1% | ₹50 lakh a year per seller |
| Business perquisites / benefits | 194R | 10% | ₹20,000 a year |
| Crypto / virtual digital assets | 194S | 1% | ₹50,000 (specified persons) / ₹10,000 others |
| Partner remuneration / interest | 194T | 10% | ₹20,000 aggregate a year |
| Any payment to a non-resident | 195 | Rates in force + surcharge + cess | No threshold |
The five rules that ride on every row
- No or inoperative PAN → 20% (section 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.
- Quarterly statements — Form 26Q/27Q through FY 2025-26; Forms 140/144 from FY 2026-27 (certificates: Form 131 series replacing 16A). Late filing: ₹200/day u/s 234E.
- Business payers who skip TDS lose the deduction — 30% of the expense disallowed (entire amount for non-resident payments), restored only in the year of deposit.
- Individuals are deductors too — rent above ₹50,000/month (194-IB), big personal contracts above ₹50 lakh (194M), property purchases above ₹50 lakh (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. |
| 1 Apr 2026 (Income-tax Act 2025) | Same substance, new home: the Section 393 tables. Forms renumbered — 26Q→140, 27Q→144, challan-cum-statements (26QB/QC/QD)→141, certificates→131 series. Our old-to-new mapping guide covers it section by section. |
Common mistakes the finder can't stop (but we can)
- 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 has no thresholds and needs a TAN, 27Q/144 and often 15CA/CB (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 under section 194-I once rent exceeds ₹50,000 for a month or part. Individuals and HUFs outside tax audit: 2% under 194-IB above the same ₹50,000 monthly line, deducted once a year. The same substance continues under the Section 393 tables from FY 2026-27.
What happens if the payee’s PAN is missing or inoperative?
TDS applies at the higher of the table rate and 20% under section 206AA. 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 the consolidated tables of Section 393. The compliance paperwork is renumbered: Form 26Q becomes Form 140, 27Q becomes 144, the challan-cum-statement family (26QB/26QC/26QD) consolidates into Form 141, and certificates move to the Form 131 series.
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, and late statements attract ₹200 per day under section 234E.
Do individuals who are not in business ever need to deduct TDS?
Yes — three common cases: rent above ₹50,000 a month (194-IB), buying property for ₹50 lakh or more (194-IA), and paying a contractor or professional more than ₹50 lakh in a year for personal work (194M). All three work on challan-cum-statement forms 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 12 August 2026 including Finance Act 2025 changes and the Income-tax Act, 2025 (Section 393 tables) effective 1 April 2026. Rates for non-residents vary by DTAA. Special cases, surcharge and specific exemptions are not modelled — confirm before deducting or take advice.