TDS Rates and Sections 2026 — Complete Chart for FY 2026-27

TDS (Tax Deducted at Source) is deducted by the payer before making certain payments. The rate depends on the nature of payment and the applicable section. Here is the complete TDS rate chart for FY 2026-27.

Key TDS Sections and Rates

Section 192 — Salary

TDS on salary is deducted by employers based on the employee's estimated annual income and applicable tax slab. There is no fixed rate — it depends on the employee's total income and chosen tax regime.

Threshold: No minimum threshold — TDS applies if estimated annual tax liability exceeds ₹0.

Section 192A — Premature EPF Withdrawal

Section 193 — Interest on Securities

Section 194 — Dividends

Section 194A — Interest (Other Than Securities)

Section 194B — Lottery and Crossword Winnings

Section 194C — Payments to Contractors

Section 194D — Insurance Commission

Section 194H — Commission or Brokerage

Section 194I — Rent

Section 194IA — Transfer of Immovable Property

Section 194J — Professional and Technical Services

Note: IT companies and software developers typically fall under "technical services" at 2%, not "professional services" at 10%. Verify the correct rate with your client.

Section 194N — Cash Withdrawal

Section 194Q — Purchase of Goods

Section 194R — Benefits or Perquisites

TDS on NRI Payments

When TDS is Not Deducted

TDS is not deducted if:

• The payee submits Form 15G (individuals below 60) or Form 15H (senior citizens) declaring that their income is below the taxable limit
• The payee has a lower deduction certificate from the IT department under Section 197

TDS Deposit Deadlines

TDS Return Filing Deadlines

Penalty for Non-Deduction or Non-Deposit

• Non-deduction: Interest at 1% per month from the date tax was deductible to the date of deduction
• Non-deposit: Interest at 1.5% per month from the date of deduction to the date of deposit
• Late filing of TDS return: ₹200 per day (maximum equal to TDS amount)

Frequently Asked Questions

What if TDS is deducted at a higher rate?

Claim the excess TDS as a refund when filing your ITR. The refund will be credited to your bank account.

Can I ask my client to deduct TDS at a lower rate?

Yes. Apply for a lower deduction certificate under Section 197 on the IT portal. The certificate specifies the rate at which TDS should be deducted.

What is the TDS rate if PAN is not provided?

If the payee does not provide PAN, TDS is deducted at 20% or the applicable rate, whichever is higher.

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