What is the TDS rate on salary under Section 192?

TDS on salary under Section 192 is deducted at the applicable income tax slab rate of the employee (new or old regime). There is no fixed percentage — it depends on the employee's estimated annual income, tax regime chosen, and eligible deductions declared to the employer.

What is the TDS rate on rent under Section 194I?

Under Section 194I, TDS on rent is 2% for plant, machinery, or equipment, and 10% for land, building, or furniture. The threshold is ₹50,000 per month (revised from ₹2,40,000 per year). No TDS is required if the annual rent is below this limit.

What is the TDS rate on professional fees under Section 194J?

Under Section 194J, TDS is 2% for technical services and 10% for professional services, royalties, and non-compete fees. The threshold is ₹50,000 per year (revised from ₹30,000). Directors' fees have no threshold.

What is the higher TDS rate if PAN is not submitted?

If a deductee does not provide their PAN (or Aadhaar), TDS must be deducted at 20% or the applicable rate, whichever is higher, under Section 206AA. Under IT Act 2025, this is covered under Section 397(2).

What is the TDS rate on interest income from banks under Section 194A?

Under Section 194A, TDS on interest (other than interest on securities) is 10%. The threshold is ₹10,000 per year for bank/post office deposits (₹50,000 for senior citizens) and ₹10,000 for other sources. This threshold was revised upward in Finance Act 2025.

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IT Act 2025 · FY 2026-27 / AY 2027-28

TDS Rate Chart

All major TDS sections with old section (IT Act 1961) vs new section (IT Act 2025) comparison · Challan codes · FY 2026-27 rates · Searchable and filterable.

TDS Rate Chart FY 2026-27 — IT Act 1961 vs IT Act 2025 Section Comparison

Tax Deducted at Source (TDS) is one of the most operationally demanding aspects of India tax compliance. From 1 April 2026, the Income Tax Act 2025 replaced the Income Tax Act 1961, consolidating all TDS provisions under new section numbers — primarily Section 392 (salary), Section 393 (other payments), and Section 394 (TCS). Every deductor now needs to know both the old section number (used in historical returns and references) and the new IT Act 2025 section number (used in current filings).

The IT Act 2025 also rationalised several TDS rates: commission and brokerage (Sections 194D, 194G, 194H) dropped from 5% to 2%; life insurance policy maturity payments (194DA) dropped from 5% to 2%; e-commerce operator payments (194O) dropped from 1% to 0.1%; and threshold limits for professional fees (194J), dividend income (194), and mutual fund income (194K) were raised to ₹50,000 and ₹10,000 respectively.

This TDS rate chart covers all major sections for FY 2026-27 (AY 2027-28), displaying the old IT Act 1961 section, the corresponding IT Act 2025 section with table reference, and the ITNS 281 challan code for each payment type. Key features include: separate columns for Individual/HUF and Company/Other rates, updated threshold limits for FY 2026-27, and practical notes on rule changes, higher-rate triggers (no PAN), and Form 15G/15H applicability.

For cross-border payments under Section 195 (Sec. 393(2) under IT Act 2025), the domestic rate is the starting point — DTAA treaty rates can reduce this significantly with a Tax Residency Certificate and Form 10F. Use this chart alongside our DTAA Rate Finder for complete non-resident withholding coverage. Built by our Ex-Big 4 CA team, searchable by section number, new IT Act 2025 reference, challan code, payment type, or keyword.

IT Act 2025 Section Map:

Sec. 392Salary (old: 192)

Sec. 393(1)Domestic payments (old: 193–194T)

Sec. 393(2)Foreign / NR payments (old: 194E, 195–196D)

Sec. 393(3)Winnings, lottery, cash, partner (old: 194B–194T selected)

Sec. 397(2)Higher rate — no PAN (old: 206AA)

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42 sections

Old Sec (IT 1961)	New Sec (IT 2025) & Table Ref	Challan Code	Payee	Nature of Payment	Threshold	Ind / HUF	Co / Other	Key Notes
Sec 192	Sec. 392	100210031004	Resident	Salary	Taxable limit	Per slab	Per slab	Deductor estimates total annual income and deducts TDS monthly. No TDS if income is below basic exemption limit.
Sec 192A	Sec. 392(7)	1004	Resident	PF withdrawal before 5 years of service	₹50,000	10%	10%	If PAN not furnished: 20%. Fully exempt if withdrawn after 5 years of continuous service.
Sec 193	Sec. 393(1) Table 1: Sl. No. 5(i)	1019	Resident	Interest on securities (debentures, listed bonds)	₹10,000	10%	10%	No TDS on certain government security interest. Single threshold of ₹10,000 applies under IT Act 2025.
Sec 194	Sec. 393(1) Table: Sl. No. 7	1029	Resident	Dividend from domestic company	₹10,000	10%	10%	Includes deemed dividend u/s 2(22)(e). No TDS on dividends paid to LIC, GIC, etc.
Sec 194A	Sec. 393(1) Table: Sl. No. 5(ii)	10201021	Resident	Interest other than on securities — banks, co-op banks, post office	₹1,00,000 (senior citizens); ₹50,000 (others)	10%	10%	Senior citizen threshold raised to ₹1,00,000 p.a. (Budget 2025). General threshold ₹50,000 p.a. per branch.
Sec 194A	Sec. 393(1) Table: Sl. No. 5(iii)	1022	Resident	Interest other than on securities — non-banking (firms, companies)	₹10,000	10%	10%	Applies to co-op societies, companies, firms etc. paying interest. Threshold raised from ₹5,000 to ₹10,000.
Sec 194B	Sec. 393(3) Table: Sl. No. 1	10581059	Any	Winnings from lottery, crossword puzzle, card games or gambling	₹10,000 per transaction	30%	30%	Each transaction evaluated independently; no annual aggregation.
Sec 194BA	Sec. 393(3) Table: Sl. No. 2	10601061	Any	Winnings from online games	Nil (net winnings at year-end or on withdrawal)	30%	30%	TDS computed on net winnings at end of FY or on each withdrawal, whichever is earlier.
Sec 194BB	Sec. 393(3) Table: Sl. No. 3	1062	Any	Winnings from horse races	₹10,000 per transaction	30%	30%	Applies to licensed bookmakers and race course operators.
Sec 194C	Sec. 393(1) Table: Sl. No. 6(i)	10231024	Resident	Payment to contractors / sub-contractors	₹30,000 (single); ₹1,00,000 (aggregate in FY)	1%	2%	1% for individual/HUF payees; 2% for companies/firms. Sub-contractor payments are included.
Sec 194J(a)	Sec. 393(1) Table: Sl. No. 6(iii)	1026	Resident	Fees for technical services / software royalty / call-centre operators	₹50,000	2%	2%	Threshold raised from ₹30,000 to ₹50,000 under IT Act 2025. Rate 2% for technical services (not professional).
Sec 194J(b)	Sec. 393(1) Table: Sl. No. 6(iii)	1027	Resident	Professional services fees / royalties / non-compete fees / director remuneration	₹50,000	10%	10%	Threshold raised from ₹30,000 to ₹50,000 under IT Act 2025. Lawyers, doctors, architects, CAs, directors.
Sec 194M	Sec. 393(1) Table: Sl. No. 6(ii)	1018	Resident	Professional/technical or contractor payments by individual/HUF (not audit-liable)	₹50,00,000 in FY	5%	—	Only for individual/HUF payers not subject to tax audit. Applies when 194C/194J do not.
Sec 194D	Sec. 393(1) Table: Sl. No. 1(i)	1005	Resident	Insurance commission	₹20,000	2%	10%	Rate reduced from 5% to 2% for individuals under IT Act 2025 (FY 2026-27). Threshold raised from ₹15,000.
Sec 194G	Sec. 393(3) Table: Sl. No. 4	1063	Resident	Commission on sale of lottery tickets	₹20,000	2%	2%	Rate reduced from 5% to 2%; threshold raised from ₹15,000 to ₹20,000 under IT Act 2025.
Sec 194H	Sec. 393(1) Table: Sl. No. 1(ii)	1006	Resident	Commission or brokerage (other than insurance)	₹20,000	2%	2%	Rate reduced from 5% to 2%; threshold raised from ₹15,000 to ₹20,000 under IT Act 2025. Excludes 194D.
Sec 194I(a)	Sec. 393(1) Table: Sl. No. 2(ii)	1008	Resident	Rent — Plant, machinery or equipment	₹50,000 per month	2%	2%	Threshold restructured to ₹50,000/month under IT Act 2025 (was ₹2,40,000/year under IT Act 1961).
Sec 194I(b)	Sec. 393(1) Table: Sl. No. 2(ii)	1009	Resident	Rent — Land, building, furniture or fittings	₹50,000 per month	10%	10%	Threshold restructured to ₹50,000/month under IT Act 2025 (was ₹2,40,000/year under IT Act 1961).
Sec 194IB	Sec. 393(3) Table: Sl. No. 2(ii)	1010	Resident	Rent paid by individual / HUF (not subject to tax audit)	₹50,000 per month	2%	—	Rate reduced from 5% to 2% w.e.f. 1 Oct 2024 (Finance Act 2024). Deducted once a year in March. Not applicable to companies.
Sec 194IA	Sec. 393(1) Table: Sl. No. 3(i)	1012	Resident	Payment on transfer of immovable property (buyer deducts)	₹50,00,000	1%	1%	Buyer deducts TDS on purchase price. Does not apply to agricultural land in rural areas.
Sec 194IC	Sec. 393(1) Table: Sl. No. 3(ii)	1011	Resident	Monetary consideration under Joint Development Agreement (JDA)	Nil	10%	10%	Paid to individual/HUF landowner. Part of JDA where landowner receives cash/monetary consideration.
Sec 194LA	Sec. 393(3) Table: Sl. No. 3	1014	Resident	Compensation on compulsory acquisition of immovable property	₹5,00,000	10%	10%	Threshold raised from ₹2,50,000 to ₹5,00,000 under IT Act 2025. Exempt: agricultural land in rural areas.
Sec 194DA	Sec. 393(1) Table: Sl. No. 8(i)	1030	Resident	Payment on maturity of life insurance policy (taxable portion)	₹1,00,000	2%	2%	Rate reduced from 5% to 2% under IT Act 2025. TDS on income (difference) component, not entire proceeds.
Sec 194EE	Sec. 393(3) Table: Sl. No. 6	1066	Resident	Payments from National Savings Scheme (NSS) on withdrawal	₹2,500	10%	10%	Applies to NSS deposits under Section 80CCA.
Sec 194K	Sec. 393(1) Table: Sl. No. 4(i)	1013	Resident	Dividend income from mutual fund units	₹10,000	10%	10%	Threshold raised from ₹5,000 to ₹10,000 under IT Act 2025.
Sec 194T	Sec. 393(3) Table: Sl. No. 7	1067	Resident	Payments by partnership firm / LLP to partners (salary, remuneration, interest, bonus, commission)	₹20,000 per year	10%	10%	NEW — Finance Act 2025, effective 1 April 2025. PAN mandatory; 20% if PAN not furnished (Sec. 397(2) / old Sec 206AA).
Sec 194O	Sec. 393(1) Table: Sl. No. 8(v)	1035	Resident	Payments to e-commerce participants through digital platform	₹5,00,000 (individual/HUF only)	0.1%	0.1%	Rate reduced from 1% to 0.1% under IT Act 2025. Nil threshold for companies/firms. Operator deducts.
Sec 194P	Sec. 393(1) Table: Sl. No. 8(iii)	1032	Resident	TDS by specified bank for senior citizens aged 75+ (ITR-exempt cases)	Income above basic exemption limit	Slab rate	—	Finance Act 2021. Senior citizen (75+) with only pension + interest from the same bank — bank computes tax; no ITR required.
Sec 194Q	Sec. 393(1) Table: Sl. No. 8(ii)	1031	Resident	Purchase of goods (buyer with turnover > ₹10 Cr deducts)	₹50,00,000 per seller per FY	0.1%	0.1%	Not applicable if TCS u/s 206C(1H) or TDS u/s 194O already applies to the same transaction.
Sec 194R	Sec. 393(1) Table: Sl. No. 8(iv)	1033	Resident	Benefit or perquisite arising from business or profession	₹20,000 per recipient per FY	10%	10%	If benefit is in kind, payer must bear the TDS or ensure deductee pays before benefit is released.
Sec 194S	Sec. 393(1) Table: Sl. No. 8(vi)	1037	Any	Payment for Virtual Digital Assets (crypto, NFTs, etc.)	₹10,000 (specified persons); ₹50,000 (others)	1%	1%	"Specified persons" = those with business turnover > ₹1 Cr or professional receipts > ₹50L.
Sec 194N	Sec. 393(3) Table: Sl. No. 5	10641065	Any	Cash withdrawal from bank / post office / co-op bank	₹3 Cr (co-op society, ITR filer); ₹1 Cr (others, ITR filer); ₹20 lakh (non-filer)	2%/5%	2%/5%	2% for ITR filers (on excess); 5% for non-filers (on excess over ₹20L). Co-op society threshold raised to ₹3 Cr under IT Act 2025.
Sec 194E	Sec. 393(2) Table: Sl. No. 1	1039	Non-Resident	Payment to non-resident sportsman / sports association / entertainer	Nil	20%	20%	Plus applicable surcharge and 4% H&E Cess.
Sec 194LB	Sec. 393(2) Table: Sl. No. 5	1044	Non-Resident	Interest on infrastructure bonds to non-resident / foreign company	Nil	5%	5%	Plus surcharge and cess. Issued by infrastructure debt fund.
Sec 194LC	Sec. 393(2) Table: Sl. No. 4	1042	Non-Resident	Interest on ECB / long-term bonds in foreign currency (issued between 1 Apr 2020 – 1 Jul 2023)	Nil	4%	4%	Historical rate. Applies to ECBs issued on or after 1 April 2020 but before 1 July 2023. Plus surcharge and cess.
Sec 194LC	Sec. 393(2) Table: Sl. No. 4	1043	Non-Resident	Interest on ECB / long-term bonds in foreign currency (issued on or after 1 Jul 2023)	Nil	9%	9%	Current rate effective for bonds issued on or after 1 July 2023. Plus surcharge and cess.
Sec 194LD	Sec. 393(2) Table: Sl. No. 3	1041	Non-Resident	Interest on government securities / rupee-denominated bonds (FPI)	Nil	5%	5%	Applies to Foreign Portfolio Investors. Plus surcharge and cess.
Sec 195	Sec. 393(2) Table: Sl. No. 17	1057	Non-Resident	All payments / remittances to non-residents (various income types)	Nil (if income is chargeable to tax in India)	30%+	40%+	Rate varies by income type. DTAA may provide lower rate — requires Form 10F + Tax Residency Certificate.
Sec 196A	Sec. 393(2) Table: Sl. No. 10	1050	Non-Resident	Income from units of mutual fund / UTI to non-resident	Nil	20%	20%	Or rate provided in applicable DTAA, whichever is lower. Plus surcharge and cess.
Sec 196B	Sec. 393(2) Table: Sl. No. 11 & 12	10511052	Non-Resident	Income (incl. LTCG) from units of offshore funds	Nil	10% / 12.5%	10% / 12.5%	Plus surcharge and cess.
Sec 196C	Sec. 393(2) Table: Sl. No. 13 & 14	10531054	Non-Resident	Income from foreign currency bonds / GDR / shares (incl. LTCG/STCG)	Nil	10% / 12.5%	10% / 12.5%	Plus surcharge and cess.
Sec 196D	Sec. 393(2) Table: Sl. No. 15 & 16	10551056	Non-Resident	Income of Foreign Portfolio Investor (FPI) from securities	Nil	20% / 10%	20% / 10%	Excludes LTCG/STCG covered under Sec. 287 / Sec. 283 (old 112A/111A). Plus surcharge and cess.

Surcharge & Cess

For resident payments, TDS is at base rate (no surcharge/cess). For non-resident payments (Sec. 393(2) / old Sec 195 onwards), applicable surcharge and 4% H&E Cess are added on top.

Higher Rate — No PAN

If the deductee does not furnish a PAN, TDS is at the higher of: (a) prescribed rate, or (b) 20% under Sec. 397(2) of IT Act 2025 (old: Sec 206AA of IT Act 1961).

Lower Deduction Certificate

Deductees can apply to the Assessing Officer for a certificate permitting lower/nil TDS deduction under Sec. 351 of IT Act 2025 (old: Sec 197 of IT Act 1961).

Form 15G / 15H

Individuals/HUFs can submit Form 15G (below 60 yrs) or Form 15H (senior citizens) to the deductor for nil TDS where income is below the basic taxable limit.

Disclaimer: TDS rates and section references shown are for FY 2026-27 (AY 2027-28) under the Income Tax Act 2025, which came into force from 1 April 2026. New section numbers (Sec. 392, Sec. 393, Sec. 394) replace the old 192–196D numbering of the IT Act 1961. Challan codes are for ITNS 281 TDS/TCS payment challans. This table is for reference only. Consult a qualified CA for TDS compliance advice.