This TDS rate chart for FY 2026-27 (tax year 2026-27) lists the TDS rates and threshold limits for every common payment, with the new section numbers under the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026. Salary TDS is now under Section 392 and almost every other TDS (the old 193 and 194-series) is in the tables of Section 393. Rates and limits are mostly the same as FY 2025-26; the chart below also covers the Budget 2026 changes, TDS without PAN, due dates, new form numbers and worked examples.
Quick answer: the most common FY 2026-27 rates for residents are 10% on bank interest above ₹50,000 a year (₹1 lakh for senior citizens), 10% on rent of land or building above ₹50,000 a month, 2% on rent paid by individuals above ₹50,000 a month, 10% on professional fees above ₹50,000, 1% or 2% on contractor payments and 1% on property worth ₹50 lakh or more. Without PAN, TDS is usually 20%. Salary TDS has no fixed rate; work it out with our TDS on salary calculator.
What Changed for TDS From 1 April 2026
- New sections: the Income-tax Act, 2025 puts salary TDS in Section 392 (earlier 192), most other TDS in the tables of Section 393 (earlier 193 to 196D) and TCS in Section 394. Section 393(1) covers payments to residents, 393(2) to non-residents and 393(3) payments to any person.
- Same rates and limits: the rates and thresholds revised from 1 April 2025 (higher limits for interest, rent, dividend, professional fees and commission) carry on in FY 2026-27.
- Budget 2026: supply of manpower is now treated as "work", so it falls under the contractor rates (1% or 2%); interest awarded by a Motor Accidents Claims Tribunal to an individual has no TDS; and from 1 October 2026 a resident buying property from a non-resident can deduct TDS using their PAN instead of a TAN.
- Higher TDS for non-filers removed: the extra rate for people who had not filed returns (old Section 206AB) was omitted from 1 April 2025. Only the no-PAN rule remains.
- New forms: Form 16 is now Form 130, Form 16A is Form 131, Form 24Q is Form 138, Form 26Q is Form 140, Form 26AS is Form 168, and Forms 15G and 15H are merged into Form 121.
TDS Rate Chart FY 2026-27 for Residents
"New section" gives the Section 393 table and serial number under the Income-tax Act, 2025. Thresholds are per financial year unless stated.
| Nature of payment | Old section | New section | Threshold | TDS rate |
|---|---|---|---|---|
| Salary | 192 | 392 | Tax on salary above nil | Average rate on estimated income |
| EPF withdrawal before 5 years | 192A | 392(7) | ₹50,000 | 10% |
| Interest on securities | 193 | 393(1) Sl. 5(i) | ₹10,000 | 10% |
| Interest from bank, co-op bank or post office: senior citizen | 194A | 393(1) Sl. 5(ii) | ₹1,00,000 | 10% |
| Interest from bank, co-op bank or post office: others | 194A | 393(1) Sl. 5(ii) | ₹50,000 | 10% |
| Other interest (company deposits, loans) | 194A | 393(1) Sl. 5(iii) | ₹10,000 | 10% |
| Dividend | 194 | 393(1) Sl. 7 | ₹10,000 | 10% |
| Mutual fund income | 194K | 393(1) Sl. 4(i) | ₹10,000 | 10% |
| Rent paid by individual / HUF (not under audit) | 194-IB | 393(1) Sl. 2(i) | ₹50,000 a month | 2% |
| Rent of land, building or furniture | 194-I(b) | 393(1) Sl. 2(ii) | ₹50,000 a month | 10% |
| Rent of plant and machinery | 194-I(a) | 393(1) Sl. 2(ii) | ₹50,000 a month | 2% |
| Purchase of immovable property (not agricultural land) | 194-IA | 393(1) Sl. 3(i) | ₹50 lakh or more | 1% |
| Compensation on compulsory acquisition of property | 194LA | 393(1) Sl. 3(iii) | ₹5,00,000 | 10% |
| Contractor, including manpower supply: individual / HUF | 194C | 393(1) Sl. 6(i) | ₹30,000 a bill or ₹1,00,000 a year | 1% |
| Contractor, including manpower supply: others | 194C | 393(1) Sl. 6(i) | ₹30,000 a bill or ₹1,00,000 a year | 2% |
| Contract or professional work paid by individual / HUF not under audit | 194M | 393(1) Sl. 6(ii) | ₹50 lakh | 2% |
| Professional fees | 194J(b) | 393(1) Sl. 6(iii) | ₹50,000 | 10% |
| Technical fees, call centre, certain royalty | 194J(a) | 393(1) Sl. 6(iii) | ₹50,000 | 2% |
| Director's fees (other than salary) | 194J | 393(1) Sl. 6(iii) | No threshold | 10% |
| Commission or brokerage | 194H | 393(1) Sl. 1(ii) | ₹20,000 | 2% |
| Insurance commission: individual / others | 194D | 393(1) Sl. 1(i) | ₹20,000 | 2% / 10% (company) |
| Life insurance payout (taxable part) | 194DA | 393(1) Sl. 8(i) | ₹1,00,000 | 2% |
| Purchase of goods (buyer turnover above ₹10 crore) | 194Q | 393(1) Sl. 8(ii) | Above ₹50 lakh from one seller | 0.1% |
| E-commerce sales by sellers | 194-O | 393(1) Sl. 8(v) | ₹5 lakh (individual / HUF seller) | 0.1% |
| Business perquisites and benefits | 194R | 393(1) Sl. 8(iv) | ₹20,000 | 10% |
| Virtual digital assets (crypto) | 194S | 393(1) Sl. 8(vi) | ₹10,000 | 1% |
| Partner's salary, commission, interest | 194T | 393(3) Sl. 7 | ₹20,000 | 10% |
| Lottery, puzzles, card games | 194B | 393(3) Sl. 1 | ₹10,000 a transaction | 30% |
| Online game winnings | 194BA | 393(3) Sl. 2 | No threshold | 30% |
| Horse race winnings | 194BB | 393(3) Sl. 3 | ₹10,000 a transaction | 30% |
| Cash withdrawal from bank or post office | 194N | 393(3) Sl. 5 | Above ₹1 crore (₹3 crore for co-op societies) | 2% |
| Senior citizen aged 75+ with only pension and bank interest | 194P | 393(1) Sl. 8(iii) | Bank computes tax | Slab rates |
Payments to non-residents fall under Section 393(2) at the rates in force, usually with surcharge and cess. For salary, the rate depends on your tax for the year, explained in our TDS on salary guide.
TDS Rate Without PAN
If the payee does not give a valid PAN, TDS is deducted at the higher of the normal rate and 20% (5% for purchase of goods and e-commerce). This rule is now in Section 397(2) (earlier Section 206AA). A PAN that is inoperative because it is not linked with Aadhaar is treated the same as no PAN. For salary, TDS without PAN is the average rate or 20%, whichever is higher.
TDS Rate Chart Examples
| Payment | Calculation | TDS |
|---|---|---|
| FD interest ₹60,000 to a 40-year-old | Above ₹50,000, so 10% × ₹60,000 | ₹6,000 |
| FD interest ₹90,000 to a 65-year-old | Below the ₹1 lakh senior limit | Nil |
| Flat rent ₹60,000 a month paid by a salaried tenant | Above ₹50,000 a month, so 2% × ₹7,20,000 a year | ₹14,400 |
| Office rent ₹80,000 a month paid by a company | 10% × ₹80,000 | ₹8,000 a month |
| Professional fee ₹80,000 to a consultant | Above ₹50,000, so 10% | ₹8,000 |
| Flat bought for ₹75 lakh | ₹50 lakh or more, so 1% | ₹75,000 |
| Contractor bill ₹40,000 to an individual | Above ₹30,000 a bill, so 1% | ₹400 |
For TDS when you pay rent, read our TDS on rent guide.
TDS Due Dates and Forms FY 2026-27
| What | Due date |
|---|---|
| Deposit TDS (April to February) | 7th of the next month |
| Deposit TDS deducted in March | 30 April |
| Quarterly TDS return: Form 138 (salary), Form 140 (other payments) | 31 July, 31 October, 31 January, 31 May |
| Form 131 certificate (earlier 16A), non-salary | Within 15 days of the quarterly return due date |
| Form 130 certificate (earlier Form 16), salary | 15 June after the year ends |
Statements and certificates for FY 2025-26 and earlier are still filed in the old forms (24Q, 26Q, Form 16, 16A).
Interest and Fees for TDS Defaults
- Not deducted: interest at 1% a month from the date TDS was due to the date it is deducted.
- Deducted but deposited late: 1.5% a month from the date of deduction to the date of deposit. Part of a month counts as a full month.
- Late return: a fee of ₹200 a day until the return is filed, limited to the TDS amount.
- Business expenses: 30% of an expense can be disallowed if TDS on it was not deducted or paid.
How to Avoid TDS When Your Income Is Below the Taxable Limit
- Form 121 (which replaced Forms 15G and 15H): give it to the bank or payer at the start of the year if your total income is below the taxable limit. Senior citizens can use it if the tax on their total income for the year is nil.
- Lower or nil deduction certificate: apply online to the Assessing Officer if your actual tax is lower than the TDS.
- Claim a refund: any excess TDS is refunded when you file your return. Check every TDS entry in Form 168 (earlier 26AS) on the e-filing portal, and see our TDS mismatch guide if something is missing.
For the Act, rules and notifications, see the Income Tax Department.
Related: TDS on salary calculator · income tax calculator · income tax slabs FY 2026-27
Frequently Asked Questions
What is the TDS rate chart for FY 2026-27?
The main rates are 10% on interest, dividend, rent of land or building and professional fees; 2% on rent paid by individuals, technical fees and commission; 1% or 2% on contractors; and 1% on property worth ₹50 lakh or more. Each applies only above its threshold.
Which section covers TDS from April 2026?
Under the Income-tax Act, 2025, salary TDS is in Section 392 and most other TDS is in the tables of Section 393, which replaced Sections 193 to 196D of the 1961 Act.
What is the TDS limit on FD interest in 2026-27?
₹50,000 a year from a bank, co-operative bank or post office, and ₹1 lakh for senior citizens. For other interest, such as company deposits, the limit is ₹10,000. The rate is 10%.
What is the TDS rate on rent in FY 2026-27?
10% on rent of land, building or furniture and 2% on plant and machinery, once rent exceeds ₹50,000 a month. Individuals and HUFs not under audit deduct 2% when rent exceeds ₹50,000 a month.
What is the TDS rate on professional fees?
10% on professional fees and 2% on technical fees, once payments to a person exceed ₹50,000 in the year. Director's fees have no threshold.
What is the TDS rate if PAN is not given?
The higher of the normal rate and 20%, or 5% for purchase of goods and e-commerce. An inoperative PAN not linked with Aadhaar is treated as no PAN.
Is Section 206AB still applicable?
No. The higher TDS rate for people who had not filed returns under Section 206AB was omitted from 1 April 2025. Only the no-PAN rule remains.
What replaced Form 15G and 15H?
Form 121 under the Income-tax Rules, 2026. You give it to the bank or payer to avoid TDS when your total income is below the taxable limit.
What are the TDS return due dates for FY 2026-27?
31 July, 31 October and 31 January for the first three quarters, and 31 May for January to March. Returns are filed in Form 138 for salary and Form 140 for other payments.
Is TDS deducted on manpower supply?
Yes. From 1 April 2026, supply of manpower is treated as work, so TDS is 1% for an individual or HUF contractor and 2% for others, above the contractor thresholds.