Short answer: TDS rates for FY 2026-27 are the same as last year. The common ones: 1% or 2% on contractors, 10% on professional fees and rent of buildings, 2% on technical fees and commission. What changed is the law. From 1 April 2026 the Income-tax Act, 2025 applies, so the old sections such as 194C and 194J now sit in the tables of section 393.
TDS rate chart for residents, FY 2026-27
| Payment | Old section | New section | Threshold | Rate |
|---|---|---|---|---|
| Contractor or sub-contractor (individual/HUF payee) | 194C | 393(1) Sl. 6(i) | ₹30,000 a payment or ₹1 lakh a year | 1% |
| Contractor or sub-contractor (other payee) | 194C | 393(1) Sl. 6(i) | ₹30,000 a payment or ₹1 lakh a year | 2% |
| Professional fees, royalty, non-compete fees | 194J(b) | 393(1) Sl. 6(iii) | ₹50,000 a year | 10% |
| Technical fees, call centre, film royalty | 194J(a) | 393(1) Sl. 6(iii) | ₹50,000 a year | 2% |
| Director's fees (not salary) | 194J | 393(1) Sl. 6(iii) | Nil | 10% |
| Commission or brokerage | 194H | 393(1) Sl. 1(ii) | ₹20,000 a year | 2% |
| Insurance commission | 194D | 393(1) Sl. 1(i) | ₹20,000 a year | 2% (10% for a company) |
| Rent of land, building or furniture | 194-I(b) | 393(1) Sl. 2(ii) | ₹50,000 a month | 10% |
| Rent of plant, machinery or equipment | 194-I(a) | 393(1) Sl. 2(ii) | ₹50,000 a month | 2% |
| Rent paid by individuals/HUF not under audit | 194-IB | 393(1) Sl. 2(i) | ₹50,000 a month | 2% |
| Purchase of immovable property | 194-IA | 393(1) Sl. 3(i) | ₹50 lakh | 1% |
| Interest from banks, co-op banks, post office | 194A | 393(1) Sl. 5(ii) | ₹50,000 (₹1 lakh for senior citizens) | 10% |
| Other interest (not on securities) | 194A | 393(1) Sl. 5(iii) | ₹10,000 | 10% |
| Interest on securities | 193 | 393(1) Sl. 5(i) | ₹10,000 | 10% |
| Dividend | 194 | 393(1) Sl. 7 | ₹10,000 a year | 10% |
| Mutual fund units | 194K | 393(1) Sl. 4(i) | ₹10,000 | 10% |
| Purchase of goods (buyer turnover above ₹10 crore) | 194Q | 393(1) Sl. 8(ii) | ₹50 lakh a seller a year | 0.1% on the excess |
| Business perquisites | 194R | 393(1) Sl. 8(iv) | ₹20,000 a year | 10% |
| E-commerce operator | 194-O | 393(1) Sl. 8(v) | Nil (₹5 lakh for small individual sellers) | 0.1% |
| Virtual digital assets | 194S | 393(1) Sl. 8(vi) | ₹50,000 or ₹10,000 | 1% |
| Life insurance payout (income part) | 194DA | 393(1) Sl. 8(i) | ₹1 lakh | 2% |
| Work or professional fees paid by individuals/HUF not otherwise liable | 194M | 393(1) Sl. 6(ii) | ₹50 lakh a year | 2% |
| Salary, interest, commission to partners | 194T | 393(3) | ₹20,000 a year | 10% |
| Salary | 192 | 392 | Basic exemption | Slab rates |
Once a yearly threshold is crossed, TDS applies to the whole amount paid that year, not just the excess. The only exception is purchase of goods, where TDS applies only above ₹50 lakh.
What else changed on 1 April 2026
| Item | Old (1961 Act) | New (2025 Act) |
|---|---|---|
| Salary TDS return | Form 24Q | Form 138 |
| Other resident TDS return | Form 26Q | Form 140 |
| Non-resident TDS return | Form 27Q | Form 144 |
| TCS return | Form 27EQ | Form 143 |
| Property purchase, individual rent, 194M payments, virtual digital assets | 26QB, 26QC, 26QD, 26QE | Form 141 (challan-cum-statement) |
| Late filing fee, ₹200 a day | Section 234E | Section 427 |
| Interest on late deduction or deposit | Section 201(1A) | Section 398(3) |
| Penalty for not filing | Section 271H | Section 461 |
Due dates that did not change
- Deposit TDS by the 7th of the next month. March deductions are due by 30 April.
- Form 141 (property purchase, individual rent, 194M payments and virtual digital assets) is due within 30 days of the end of the month of deduction.
- Quarterly returns are due on 31 July, 31 October, 31 January and 31 May.
Late deposit costs 1.5% a month, and late deduction 1% a month; a part month counts as a full month. Our late fee calculator works out both the fee and the interest, and the due-date calendar lists every TDS deadline for the next 60 days.
Rates for payments to residents as of November 2026, under section 393 of the Income-tax Act, 2025. Lower-deduction certificates, treaty rates and special cases override them, so check the Act and the TRACES portal before you deduct.