TDS & TCS Rate Chart
TDS & TCS Rate Chart FY 2026-27: Updated Rates and Threshold Limits
In this post, we will discuss the updated TDS and TCS Rate Chart for Tax Year 2026-27 under the new Income Tax Act, 2025. We will look at the applicable sections, revised rates, threshold limits, and important changes for both domestic and foreign transactions in a simple and easy-to-understand format.
Let us go through the applicable TDS and TCS sections one by one:
- TDS Rate Chart (Domestic): Applicable TDS rates and threshold limits for domestic transactions.
- TDS Rate Chart (Foreign Payments): TDS rates applicable on payments made to non-residents and foreign entities.
- TCS Rate Chart: Applicable TCS rates and collection provisions for different transactions.
TDS RATE CHART: TAX YEAR 2026-27 (Domestic Transactions)
Codes to be used in Returns | Old Section | Nature of payment | New Section (IT Act 2025) | Rates | Threshold (₹) |
| 1004 | 192 | Any payment of accumulated balance due to an employee | 392(7) | As per IT Slab | Â |
| 1005 | 194D | Commission or brokerage – insurance> [Table: Sl. No. 1(I)] | 393(1) [Table: Sl. No. 1(I)] | 2% in case for Individual 10% in case for Others | 20,000 |
| 1006 | 194H | Commission or Brokerage – others [Table: Sl. No. 1(ii)] | 393(1) [Table: Sl. No. 1(ii)] | 2% | >20,000 |
| 1008 | 194I(a) | Rent on machinery etc.- specified person [Table: Sl. No. 2(ii).D(a)] | 393(1) [Table: Sl. No. 2(ii).D(a)] | 2% | 50,000 per month |
| 1009 | 194I(b) | Rent other than machinery etc. – specified person [Table: Sl. No. 2(ii).D(b)] | 393(1) [Table: Sl. No. 2(ii).D(b)] | 10% | 50,000 per month |
| 1011 | 194IC | Payment on any consideration, not being considered in kind, under the agreement referred to in section 67(14). | 393(1) [Table: Sl. No. 3(ii)] | 10% | >- |
| 1012 | 194IA | Payment of Compensation on Acquisition of Certain Immovable Property [Table: Sl. No. 3(iii)] | 393(1) [Table: Sl. No. 3(iii)] | 10% | 5 Lakh |
| 1013 | 194K | Income payable to a resident assessee in respect of Units of a specified Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21) or units from the Administrator of the specified undertaking or units from specified company | 393(1) [Table: Sl. No. 4(i)] | 10% | 10,000 |
| 1014 | 194LBA | Certain income in the form of interest from units of a business trust to a resident unit holder | 393(1) [Table: Sl. No. 4(ii)] | 10% | Â |
1015/td> | 194LBA | Certain income in the form of dividend from units of a business trust to a resident unit holder | 393(1) [Table: Sl. No. 4(ii)] | 10% | Â |
| 1017 | 194LBB | Any income, other than that proportion of income which is exempt under Schedule V [Table: Sl. No. 2], in respect of units of an investment fund specified in section 224, payable to its unit holder | 393(1) [Table: Sl. No. 4(iii)] | 10% | Â |
| 1018 | 194LBC | Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor. | 393(1) [Table: Sl. No. 4(iv)] | 10% | Â |
| 1019 | 193 | Any income by way of Interest on securities [Table: Sl. No. 5(i)] | 393(1) [Table: Sl. No. 5(i)] | 10% | 10,000 |
| 1020 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is a senior citizen | 393(1) [Table: Sl. No. 5(ii).D(a)] | 10% | 1,00,000 |
| 1021 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is other than senior citizen | 393(1) [Table: Sl. No. 5(ii).D(b)] | 10% | 50,000 |
| 1022 | 194A | Any income being interest other than interest on securities [Table: Sl. No. 5(iii)] | 393(1) [Table: Sl. No. 5(iii)] | 10% | 10,000 |
| 1023 | 194C | Any sum for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a designated person – if contractor is individual or Hindu undivided family | 393(1) [Table: Sl. No. 6(i).D(a)] | 1% in case for Individual 2% in case for Others | (a) ₹30,000 for any such sum; and (b) ₹1,00,000 in case of aggregate of such sums. |
| 1024 | |||||
| 1026 | 194J(a) | Any sum by way of– (a) fees for technical services (not being a professional services); or (b) royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; or (c) payee, engaged only in the business of operation of call centre | 393(1) [Table: Sl. No. 6(iii).D(a)] | 2% | 50,000 |
| 1027 | 194J(b) | Any sum by way of– (a) fees for professional services; or (b) any sum referred to in section 26(2)(h) | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | 50,000 |
| 1028 | 194J(b) | Any sum by way of remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 392, to a director of a company | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | Â |
| 1029 | 194 | Any dividends (including on preference shares) declared. resident unit holder | 393(1) [Table: Sl. No. 7] | 10% | 10,000 (Individual) |
| 1030 | 194DA | Any sum under a life insurance policy, including the sum allocated as bonus on such policy, other than the amount not includible in the total income under Schedule II [Table: Sl. No. 2] | 393(1) [Table: Sl. No. 8(i)] | 2% | 1 lakh |
| 1031 | 194Q | Any sum for purchase of any goods [Table: Sl. No. 8(ii)] | 393(1) [Table: Sl. No. 8(ii)] | 0.1% | in excess of 50 lakh |
| 1033 | 194R | Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | 393(1) [Table: Sl. No. 8(iv)] | 10% | 20,000 |
| 1034 | 194R | Benefits or perquisites of business or profession where such benefit is provided in kind or where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released | 393(1) [Table: Sl. No. 8(iv)] Note 6 | 10% | 20,000 |
| 1035 | 194O | Sale of goods or provision of services by an e-commerce participant, facilitated by an e-commerce operator through its digital or electronic facility or platform – any e commerce operator | 393(1) [Table: Sl. No. 8(v)] | ||
| 1037 | 194S | Any sum by way of consideration for transfer of a virtual digital asset by other than Individual or Hindu Undivided Family. | 393(1) [Table: Sl. No. 8(vi)] | 1% | 10,000 |
| 1038 | 194SP | Any sum by way of consideration, whether in cash or in kind or partly in cash and partly in kind, for transfer of a virtual digital asset. | 393(1) [Table: Sl. No. 8(vi)] Note 6 | 1% | 10,000 |
| 1058 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from – (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever | 393(3) [Table: Sl. No. 1] | 30% | 10,000 in case of a single transactions |
| 1059 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from – (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever where consideration, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 1] Note 2 | 30% | 10,000 in case of a single transactions |
| 1060 | 194BA | Any income by way of winnings from online games. | 393(3) [Table: Sl. No. 2] | 30% | Â |
| 1061 | 194BA | Any income by way of winnings from online games, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 2] Note 2 | 30% | 10,000 in case of a single transactions |
| 1062 | 194BB | Any income by way of winnings from any horse race. | 393(3) [Table: Sl. No. 3] | 30% | 10,000 in case of a single transactions |
| 1063 | 194G | Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets, by way of commission, remuneration or prize (by whatever name called) on such tickets | 393(3) [Table: Sl. No. 4] | 2% | Â |
| 1064 | 194N | Payment of certain amounts in cash by bank/ post office / co-operative society to a deductee being a co-operative society | 393(3) [Table: Sl. No. 5.D(a)] | 2% | 3 Crore |
| 1065 | 194N | Payment of certain amounts in cash by bank/ post office / co-operative society to a deductee being a person other than co-operative society | 393(3) [Table: Sl. No. 5.D(b)] | 2% | 1 Crore |
| 1066 | 194EE | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961). | 393(3) [Table: Sl. No. 6] | 10% | 2500 |
| 1067 | 194T | Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). | 393(3) [Table: Sl. No. 7] | 10% | 20,000 |
Notes:
The above list covers most of the sections applicable for domestic transactions.
Section 397(2) | Earlier Section 206AA
(a) No matter what is mentioned in any other provision of the Income Tax Act, any person who is receiving an amount on which TDS is deducted or making a payment on which TCS is collected must provide a valid PAN to the person responsible for deducting or collecting tax.
(b) If PAN is not provided:
(i) Tax must be deducted at the higher of the following rates:
(A) the rate mentioned in the relevant section of the Act; or
(B) the rate or rates currently in force; or
(C) 5% where tax is required to be deducted under Section 393(1) [Table: Sl. No. 8(ii) or 8(v)], or 20% in all other cases.
Note:Â
- 5% tax applies to payments to e-commerce participants or to specific transactions under the 2025 Act.
- Sl. No. 8(v) – E-commerce: No deduction is required if the e-commerce participant is an individual/HUF, sales are under ₹5,00,000, and a PAN/Aadhaar is provided.
TDS RATE CHART (FOREIGN) TAX YEAR 2026–27
Codes to be used in Returns | Old Section | Nature of payment | New Section (IT Act 2025) | Rates |
| 1004 | 192A | Any payment of accumulated balance due to an employee | 392(7) | 10% |
| 1039 | 194E | Any income referred to in section 211. [Table: Sl. No.1] | 393(2) [Table: Sl. No.1] | 20% |
| 1040 | 194LC | Any income by way of interest payable in respect of monies borrowed in foreign currency from a source outside India,— (a) under a loan agreement or issue of long term infrastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or (b) by way of issue of any long-term bond on or after the 1st October, 2014 but before the 1st July, 2023, which is approved by the Central Govt. in this behalf. | 393(2) [Table: Sl. No. 2] | 5% |
| 1041 | 194LD | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond before the 1st July, 2023. | 393(2) [Table: Sl. No. 3] | 5% |
| 1042 | 194LC | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, which is listed only on a recognised stock exchange located in any International Financial Services Centre. – Issued on or after the 1st April, 2020 but before the 1st July, 2023 | 393(2) [Table: Sl. No. 4.E(a)] | 4% |
| 1043 | 194LC | Any income by way of interest payable in respect of monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, which is listed only on a recognised stock exchange located in any International Financial Services Centre – Issued on or after the 1st July, 2023. | 393(2) [Table: Sl. No. 4.E(b)] | 9% |
| 1044 | 194LB | Income by way of Interest from Infrastructure debt fund payable to a Non-Resident | 393(2) [Table: Sl. No. 5] | 5% |
| 1045 | 194LBA(a) | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(a)] | 393(2) [Table: Sl. No. 6.E(a)] | 5% |
| 1046 | 194LBA(b) | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] | 393(2) [Table: Sl. No. 6.E(b)] | 10% |
| 1047 | 194LBC | Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 4]. | 393(2) [Table: Sl. No. 7] | 35% – For Non Residents Company 30% – For Non Residents other than companies |
| 1048 | 194LBB | Any income, other than that proportion of income which is exempt under Schedule V [Table: Sl. No. 2], in respect of units of an investment fund specified in section 224. | 393(2) [Table: Sl. No. 8] | 10% – For Residents 35% – For Non Residents Company 30% – For Non Residents other than companies |
| 1049 | 194LBC | Any income in respect of an investment in a securitisation trust specified in section 221. | 393(2) [Table: Sl. No. 9] | 10% – For Residents 35% – For Non Residents Company 30% – For Non Residents other than companies |
| 1050 | 195 | Any income – (a) in respect of units of a Mutual Fund specified under Schedule VII [Table: Sl. No. 20] or [Table: Sl. No. 21]; or (b) from the specified company. | 393(2) [Table: Sl. No. 10] | 20% or rate provided in the agreement, whichever is lowe |
| 1051 | 196B | Any income in respect of units referred to in section 208. | 393(2) [Table: Sl. No. 11 | 10% |
| 1052 | 196B | Any income by way of long-term capital gains arising from the transfer of units referred to in section 208. | 393(2) [Table: Sl. No. 12] | 12.5% |
| 1053 | 196C | Any income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 209. | 393(2) [Table: Sl. No. 13] | 10% |
| 1054 | 196C | Any income by way of long-term capital gains arising from the transfer of bonds or Global Depository Receipts referred to in section 209. | 393(2) [Table: Sl. No. 14] | 12.5% |
| 1055 | 196D | Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1]. | 393(2) [Table: Sl. No. 15] | 20% |
| 1056 | 196D | Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1]. | 393(2) [Table: Sl. No. 16] | 10% |
| 1057 | 195 | Any interest (not being interest referred to against serial numbers 2, 3, 4 and 5) or any other sum chargeable under the provisions of this Act, not being income chargeable under the head “Salaries”. | 393(2) [Table: Sl. No. 17] | Average rate as applicable |
| 1058 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from – (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever | 393(3) [Table: Sl. No. 1] | 30% |
| 1059 | 194B | Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from – (a) any lottery; or (b) crossword puzzle; or (c) card game and other game of any sort; or (d) gambling or betting of any form or nature whatsoever where consideration, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 1] Note 2 | 30% |
| 1060 | 194BA | Any income by way of winnings from online games. | 393(3) [Table: Sl. No. 2] | 30% |
| 1061 | 194BA | Any income by way of winnings from online games, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 2] Note 2 | 30% |
| 1062 | 194BB | Any income by way of winnings from any horse race. | 393(3) [Table: Sl. No. 3] | 30% |
| 1063 | 194G | Any income, credited or paid to a person, who is or has been stocking, distributing, purchasing or selling lottery tickets, by way of commission, remuneration or prize (by whatever name called) on such tickets | 393(3) [Table: Sl. No. 4] | 2% |
| 1064 | 194N | Payment of certain amounts in cash by bank/ post office/ co-operative society to a deductee being a co-operative society | 393(3) [Table: Sl. No. 5.D(a)] | 2% |
| 1065 | 194N | Payment of certain amounts in cash by bank/ post office/ co-operative society to a deductee being a person other than co-operative society | 393(3) [Table: Sl. No. 5.D(b)] | 2% |
| 1066 | 194EE | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961). | 393(3) [Table: Sl. No. 6] | 10% |
| 1067 | 194T | Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner of the firm or credited to his account (including capital account). | 393(3) [Table: Sl. No. 7] | 10% |
TCS RATE CHART: TAX YEAR 2026-27
|
Codes to be used in Returns |
Old Section | Nature of payment |
New Section (IT Act 2025) |
Rates |
| 1068 | 206C – A | Sale of alcoholic liquor for human consumption. | 394(1) [Table: Sl. No. 1] | 2% |
| 1069 | 206C – I | Sale of tendu leaves | 394(1) [Table: Sl. No. 2] | 2% |
| 1070 | 206C – B | Sale of timber obtained under a forest lease | 394(1) [Table: Sl. No. 3] | 2% |
| 1071 | 206C – C | Sale of timber obtained by any mode other than a forest lease | 394(1) [Table: Sl. No. 3] | 2% |
| 1072 | 206C – D | Sale of any other forest produce (not being timber or tendu leaves) obtained under a forest lease. | 394(1) [Table: Sl. No. 3] | 2% |
| 1073 | 206C – E | Sale of Scrap | 394(1) [Table: Sl. No. 4] | 2% |
| 1074 | 206C – J | Sale of minerals, being coal or lignite or iron ore. | 394(1) [Table: Sl. No. 5] | 2% |
| 1075 | 206C – L | Sale consideration exceeding threshold limit in case of sale of motor vehicle | 394(1) [Table: Sl. No. 6.D(a)] | 1% |
| 1076 | 206C – MA | Sale consideration exceeding threshold limit in case of sale of wrist watch | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1077 | 206C – MB | Sale consideration exceeding threshold limit in case of sale of art piece such as antiques, painting, sculpture | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1078 | 206C – MC | Sale consideration exceeding threshold limit in case of sale of collectibles such as coin, stamp | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1079 | 206C – MD | Sale consideration exceeding threshold limit in case of sale of yacht, rowing boat, canoe, helicopter | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1080 | 206C – ME | Sale consideration exceeding threshold limit in case of sale of pair of sunglasses | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1081 | 206C – MF | Sale consideration exceeding threshold limit in case of sale of bag such as handbag, purse | 394(1)[Table: Sl. No. 6.D(b)] | 1% |
| 1082 | 206C – MG | Sale consideration exceeding threshold limit in case of sale of pair of shoes | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1083 | 206C – MH | Sale consideration exceeding threshold limit in case of sale of sportswear & equipment such as golf kit, ski-wear | 394(1) [Table: Sl. No. 6.D(b)] | 1% |
| 1084 | 206C – MI | Sale consideration exceeding threshold limit in case of sale of home theatre system | 394(1) [Table: Sl. No. 6.D(b)] |
1% |
| 1085 | 206C – MJ | Sale consideration exceeding threshold limit in case of sale of horse for horse racing in race clubs and horse for polo | 1% | |
| 1086 | 206C – T | Remittance under the Liberalised Remittance Scheme of an amount or aggregate of the amounts exceeding threshold limit for purposes of education or medical treatment (Threshold limit – ₹ 10 lakh) | 394(1) [Table: Sl. No. 7.D(a)] |
2% |
| 1087 | 206C – Q | Remittance under the Liberalised Remittance Scheme of an amount or aggregate of the amounts exceeding threshold limit for purposes other than education or medical treatment (Threshold limit – ₹ 10 lakh) | 394(1) [Table: Sl. No. 7.D(b)] |
20% |
| 1088 | 206C – O | Sale of “overseas tour programme package” including expenses for travel or hotel stay or boarding or lodging or any such similar or related expenditure with an amount or aggregate of amounts up to ₹ 10,00,000. | 394(1) [Table: Sl. No. 8.D(a)] |
2% |
| 1089 | 206C – O | Sale of “overseas tour programme package” including expenses for travel or hotel stay or boarding or lodging or any such similar or related expenditure with an amount or aggregate of amounts above ₹ 10,00,000. | 394(1) [Table: Sl. No. 8.D(b)] |
2% |
| 1090 | 206C – F | Use of parking lot for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | 394(1) [Table: Sl. No. 9] | 2% |
| 1091 | 206C – G | Use of toll plaza for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | 394(1) [Table: Sl. No. 9] | 2% |
| 1092 | 206C – H | Use of mine or quarry for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | 394(1) [Table: Sl. No. 9] | 2% |
Notes:
The above list covers most of the sections applicable for domestic transactions.
Section 397(2) | Earlier Section 206CC
(a) No matter what is mentioned in any other provision of the Income Tax Act, every person receiving an amount on which TDS is deducted, or making a payment on which TCS is collected, must provide a valid PAN to the person deducting or collecting tax.
(b) If PAN is not provided:
(ii) TCS will be collected at the higher of the following rates, subject to a maximum of 20%:
(A) Twice the rate mentioned under the relevant provision of the Act, or
(B) 5%
We hope this TDS and TCS rate chart for Tax Year 2026-27 helps you understand the updated rates, threshold limits, and applicable sections more easily. If you have any questions, feel free to share them in the comments below.
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