Key Takeaways — TDS / TCS Rate Chart FY 2026-27
- The new Income Tax Act, 2025 replaces the 1961 Act effective 1 April 2026; TDS / TCS sections are renumbered (e.g.
192→392,193 / 194→393,206C→394) but most rates and thresholds carry forward. - This chart covers 39 TDS sections for residents, 30 TDS sections for non-residents, and 25 TCS sections — 94 entries in total.
- Most resident TDS rates remain at 1%, 2% or 10%; foreign payments retain DTAA-friendly rates such as 5%, 10% and 20%; TCS on luxury items (watches, art, yachts, sunglasses, shoes etc. above ₹10 lakh) attracts 1%.
- Use the free TaxFetch TDS & TCS Calculator to compute the exact deductible amount, generate a PDF, and email it to your accountant or vendor.
The TDS / TCS rate chart for FY 2026-27 (AY 2027-28) is the first one published entirely under India’s brand-new Income Tax Act, 2025, which replaces the Income Tax Act, 1961 with effect from 1 April 2026. Sections have been renumbered, the language has been simplified, and a few thresholds have been rationalised — but the day-to-day rates that deductors and collectors apply remain largely intact.
This is the complete TDS & TCS chart as per IT Act 2025 — every section that appears inside our free TDS & TCS Calculator tool, with the old section, the new section, the threshold, the rate, and a plain-English description of the nature of payment. Bookmark this page; it is the same data you get inside the calculator’s downloadable PDF.
What’s new under the Income Tax Act, 2025?
The new Income Tax Act, 2025 (often called the “new IT Act” or “DTC 2.0”) restructures the deduction-at-source framework into three master sections:
- Section 392 — Salary related deductions (replaces old Section 192 family, including 192A for accumulated PF balance).
- Section 393 — All other resident TDS & non-resident TDS payments. Old sections 193, 194, 194A through 194T, 195, 196B, 196C, 196D have been folded into
393(1),393(2)and393(3)sub-tables. - Section 394 — Tax Collected at Source (TCS) — replaces the entire Section 206C family.
Quick mapping cheat sheet:
- Section 192 (Salary) → Section 392
- Section 192A (PF balance) → Section 392(7)
- Sections 193 / 194 / 194A…194T / 195 / 196B / 196C / 196D → Section 393 (with sub-tables)
- Section 206C and all sub-clauses → Section 394(1)
The NEW TDS / TCS rate structure for FY 2026-27 keeps almost every percentage and threshold from the previous year intact — what changes is mainly the legal reference you quote in your TDS return and Form 16 / 16A / 27D.
How to read this TDS / TCS chart
Each row tells you everything you need to deduct (or collect) the right amount of tax:
- Code — The 4-digit deduction code used in TDS return forms (26Q, 27Q, 27EQ).
- Section (IT Act 2025) — The section & sub-table reference under the new Act.
- Old Section — The familiar 1961 Act section number, kept for easy cross-reference.
- Nature of Payment — Plain English description so non-tax professionals can match their transaction.
- Threshold — The amount above which TDS / TCS becomes mandatory.
- Rate — The percentage to deduct or collect. Where a row has multiple variants (e.g. Individual vs Other), pick the one matching your payee.
Skip the chart — calculate your TDS / TCS in 5 seconds
Pick the section, enter the amount and our free TDS & TCS Calculator instantly tells you how much tax to deduct, with old-vs-new section mapping and a branded PDF report.
TDS Rate Chart FY 2026-27 — Resident Payees (39 sections)
This is the TDS chart for resident payees — salaries, contractor payments, professional fees, rent, dividends, interest, commissions, virtual digital assets, e-commerce, partner remuneration, lottery / online game winnings, cash withdrawals, and more. All thresholds and rates below are as applicable for FY 2026-27 (AY 2027-28) under the Income Tax Act, 2025.
| Code | Section (IT Act 2025) | Old Section | Nature of Payment | Threshold | Rate |
|---|---|---|---|---|---|
| 1004 | Sec. 392(7) | 192 | Payment of accumulated PF balance to employee Any payment of accumulated balance due to an employee. | ₹50,000 TDS applicable when accumulated PF balance paid is ₹50,000 or more (as per Section 192A read with new Sec. 392(7)). | 10% |
| 1005 | Sec. 393(1) Table: Sl. No. 1(I) | 194D | Insurance commission or brokerage Commission or brokerage payable for soliciting / procuring insurance business (insurance commission or brokerage). | ₹20,000 | 2% — Individual 10% — Other than Individual |
| 1006 | Sec. 393(1) Table: Sl. No. 1(ii) | 194H | Commission or brokerage (other than insurance) Commission or brokerage – other than insurance commission. Common cases: real-estate brokerage, sales commission, agency commission, etc. | ₹20,000 | 2% |
| 1008 | Sec. 393(1) Table: Sl. No. 2(ii).D(a) | 194I(a) | Rent on plant, machinery or equipment Rent paid for use of any plant, machinery or equipment to a specified person. | ₹50,000 per month TDS triggered when monthly rent / part-month rent exceeds ₹50,000. | 2% |
| 1009 | Sec. 393(1) Table: Sl. No. 2(ii).D(b) | 194I(b) | Rent — land, building, furniture (other than machinery) Rent other than rent on plant / machinery / equipment — i.e. rent on land, building (residential or commercial), furniture or fittings paid to a specified person. | ₹50,000 per month TDS triggered when monthly rent / part-month rent exceeds ₹50,000. For rent paid by individuals/HUFs to a resident landlord, refer Sec. 194-IB separately. | 10% |
| 1011 | Sec. 393(1) Table: Sl. No. 3(ii) | 194IC | Joint development agreement — monetary consideration Payment of any consideration (not being consideration in kind) under the agreement referred to in section 67(14) — i.e. specified joint development agreements. | No threshold | 10% |
| 1012 | Sec. 393(1) Table: Sl. No. 3(iii) | 194LA | Compensation on acquisition of immovable property Payment of compensation on acquisition of certain immovable property (other than agricultural land). | ₹5 lakh | 10% |
| 1013 | Sec. 393(1) Table: Sl. No. 4(i) | 194K | Mutual Fund units — income to resident Income payable to a resident assessee in respect of units of a specified Mutual Fund (Schedule VII Sl. No. 20 or 21), units from the Administrator of the specified undertaking, or units from the specified company. | ₹10,000 | 10% |
| 1014 | Sec. 393(1) Table: Sl. No. 4(ii) | 194LBA | Business trust units — interest income (resident) Certain income in the form of interest from units of a business trust to a resident unit holder. | No threshold | 10% |
| 1015 | Sec. 393(1) Table: Sl. No. 4(ii) | 194LBA | Business trust units — dividend income (resident) Certain income in the form of dividend from units of a business trust to a resident unit holder. | No threshold | 10% |
| 1017 | Sec. 393(1) Table: Sl. No. 4(iii) | 194LBB | Investment fund units — income to unit-holder 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. | No threshold | 10% |
| 1018 | Sec. 393(1) Table: Sl. No. 4(iv) | 194LBC | Securitisation trust — income to investor Any income, in respect of an investment in a securitisation trust specified in section 221, paid to an investor. | No threshold | 10% |
| 1019 | Sec. 393(1) Table: Sl. No. 5(i) | 193 | Interest on securities Any income by way of interest on securities — e.g. debentures, government bonds, listed securities (subject to specified exceptions). | ₹10,000 | 10% |
| 1020 | Sec. 393(1) Table: Sl. No. 5(ii).D(a) | 194A | Interest (other than on securities) — Senior citizen payee Any income by way of interest other than interest on securities, where the deductee / payee is a senior citizen — e.g. bank FD interest paid to a senior citizen. | ₹1,00,000 | 10% |
| 1021 | Sec. 393(1) Table: Sl. No. 5(ii).D(b) | 194A | Interest (other than on securities) — Non senior payee (bank/post office/co-op) Any income by way of interest other than interest on securities, where deductee / payee is other than a senior citizen — paid by banks, post offices or co-operative banks. | ₹50,000 | 10% |
| 1022 | Sec. 393(1) Table: Sl. No. 5(iii) | 194A | Interest (others, not bank/post office/co-op) Any income being interest other than interest on securities — paid by persons other than banks, post offices or co-operative banks (e.g. interest on inter-corporate deposits, unsecured loans). | ₹10,000 | 10% |
| 1023 | Sec. 393(1) Table: Sl. No. 6(i).D(a) | 194C | Contractor (Individual / HUF) 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 — where the contractor is an individual or HUF. | ₹30,000 single OR ₹1,00,000 aggregate TDS applicable when (a) any single payment exceeds ₹30,000 OR (b) aggregate of payments in the FY exceeds ₹1,00,000. | 1% — Individual / HUF (Payee) 2% — Other than Individual / HUF (Payee) |
| 1024 | Sec. 393(1) Table: Sl. No. 6(i).D(b) | 194C | Contractor (other than Individual / HUF) 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 — where the contractor is a person other than individual or HUF (e.g. partnership firm, company). | ₹30,000 single OR ₹1,00,000 aggregate TDS applicable when (a) any single payment exceeds ₹30,000 OR (b) aggregate of payments in the FY exceeds ₹1,00,000. | 1% — Individual / HUF (Payee) 2% — Other than Individual / HUF (Payee) |
| 1026 | Sec. 393(1) Table: Sl. No. 6(iii).D(a) | 194J(a) | Technical fees / Royalty (films) / Call centre Any sum by way of — (a) fees for technical services (not being a professional service); 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. | ₹50,000 | 2% |
| 1027 | Sec. 393(1) Table: Sl. No. 6(iii).D(b) | 194J(b) | Professional fees / Royalty (other) / Non-compete fees Any sum by way of — (a) fees for professional services; or (b) any sum referred to in section 26(2)(h) — i.e. royalty (other than films) and non-compete fees. | ₹50,000 | 10% |
| 1028 | Sec. 393(1) Table: Sl. No. 6(iii).D(b) | 194J(b) | Director's remuneration / sitting fees 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 (i.e. salary), to a director of a company. | No threshold | 10% |
| 1029 | Sec. 393(1) Table: Sl. No. 7 | 194 | Dividends (including preference shares) Any dividends (including dividend on preference shares) declared, distributed or paid by a domestic company. | ₹10,000 (Individual) For shareholder being an individual, TDS triggered when aggregate dividend in the FY exceeds ₹10,000. | 10% |
| 1030 | Sec. 393(1) Table: Sl. No. 8(i) | 194DA | Life insurance maturity payout (taxable) 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]. | ₹1 lakh TDS applicable on the income component (i.e. payout minus premium paid) only when total payout in the FY is ₹1 lakh or more. | 2% |
| 1031 | Sec. 393(1) Table: Sl. No. 8(ii) | 194Q | Purchase of goods (buyer-side TDS) Any sum payable for purchase of any goods. Applicable to a buyer whose total turnover in the immediately preceding FY exceeds ₹10 crore. | ₹50 lakh (in excess of) TDS @ 0.1% applies only on the amount of purchase EXCEEDING ₹50 lakh in the FY (not on the full amount). | 0.1% |
| 1033 | Sec. 393(1) Table: Sl. No. 8(iv) | 194R | Benefits / perquisites — business or profession Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | ₹20,000 | 10% |
| 1034 | Sec. 393(1) Table: Sl. No. 8(iv) — Note 6 | 194R | Benefits / perquisites — paid in kind (tax pre-paid) 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. | ₹20,000 | 10% |
| 1035 | Sec. 393(1) Table: Sl. No. 8(v) | 194O | E-commerce operator — payments to e-commerce participant 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 — TDS by the e-commerce operator. | ₹5 lakh (Individual / HUF) For an Individual / HUF e-commerce participant, TDS triggered when gross sales/services in the FY exceed ₹5 lakh. For other participants, no threshold. | 0.1% |
| 1037 | Sec. 393(1) Table: Sl. No. 8(vi) | 194S | Virtual Digital Asset — transfer (other than Individual/HUF) Any sum by way of consideration for transfer of a virtual digital asset (e.g. crypto / NFT) by a person other than an Individual or Hindu Undivided Family. | ₹10,000 | 1% |
| 1038 | Sec. 393(1) Table: Sl. No. 8(vi) — Note 6 | 194SP | Virtual Digital Asset — transfer in kind (tax pre-paid) 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 — where tax required to be deducted is paid before such asset is released. | ₹10,000 | 1% |
| 1058 | Sec. 393(3) Table: Sl. No. 1 | 194B | Lottery / crossword / card game / gambling winnings 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. | ₹10,000 (single transaction) Threshold of ₹10,000 applies per single transaction. | 30% |
| 1059 | Sec. 393(3) Table: Sl. No. 1 — Note 2 | 194B | Lottery / crossword / gambling winnings — in kind Any winnings from lottery / crossword / card game / gambling / betting 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. | ₹10,000 (single transaction) | 30% |
| 1060 | Sec. 393(3) Table: Sl. No. 2 | 194BA | Online game winnings Any income by way of winnings from online game (e.g. fantasy gaming, online rummy / poker etc.). | No threshold No threshold — TDS @ 30% on net winnings in user account at end of FY / on withdrawal. | 30% |
| 1061 | Sec. 393(3) Table: Sl. No. 2 — Note 2 | 194BA | Online game winnings — in kind (tax pre-paid) Any income by way of winnings from online games 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. | ₹10,000 (single transaction) | 30% |
| 1062 | Sec. 393(3) Table: Sl. No. 3 | 194BB | Horse race winnings Any income by way of winnings from any horse race. | ₹10,000 (single transaction) | 30% |
| 1063 | Sec. 393(3) Table: Sl. No. 4 | 194G | Lottery ticket commission 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. | ₹20,000 | 2% |
| 1064 | Sec. 393(3) Table: Sl. No. 5.D(a) | 194N | Cash withdrawal — payee is co-operative society Payment of certain amounts in cash by bank / post office / co-operative society to a deductee being a co-operative society. | ₹3 crore (in excess of) TDS @ 2% only on cash withdrawals in excess of ₹3 crore in a FY. | 2% |
| 1065 | Sec. 393(3) Table: Sl. No. 5.D(b) | 194N | Cash withdrawal — payee other than co-operative society Payment of certain amounts in cash by bank / post office / co-operative society to a deductee being a person other than a co-operative society. | ₹1 crore (in excess of) TDS @ 2% only on cash withdrawals in excess of ₹1 crore in a FY (lower threshold of ₹20 lakh applies if ITRs of last 3 years not filed). | 2% |
| 1066 | Sec. 393(3) Table: Sl. No. 6 | 194EE | NSS withdrawal — Section 80CCA(2)(a) Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 — i.e. payment under National Savings Scheme on which deduction was earlier claimed. | ₹2,500 | 10% |
| 1067 | Sec. 393(3) Table: Sl. No. 7 | 194T | Partner of firm — salary / remuneration / interest 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). | ₹20,000 | 10% |
Skip the chart — calculate your TDS / TCS in 5 seconds
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TDS Rate Chart FY 2026-27 — Non-Resident Payees (30 sections)
When you pay a non-resident or a foreign company, TDS is governed mainly by Section 393(2) of the new Act (the old Section 195 / 196B / 196C / 196D family). Most of these rows have no minimum threshold — tax must be deducted on the entire payment. Rates can also be reduced by the applicable DTAA (Double Tax Avoidance Agreement) — always apply the lower of the domestic rate or the treaty rate.
| Code | Section (IT Act 2025) | Old Section | Nature of Payment | Threshold | Rate |
|---|---|---|---|---|---|
| 1004 | Sec. 392(7) | 192A | Payment of accumulated PF balance — non-resident employee Any payment of accumulated balance due to an employee (where employee is non-resident at the time of payment). | No threshold (foreign payee) | 10% |
| 1039 | Sec. 393(2) Table: Sl. No. 1 | 194E | Non-resident sportsmen / sports association / entertainer Any income referred to in section 211 — payments to non-resident sportsmen, sports associations, or entertainers. | No threshold | 20% |
| 1040 | Sec. 393(2) Table: Sl. No. 2 | 194LC | Foreign currency loan / long-term infra bond interest (pre-Jul-2023) Interest payable on monies borrowed in foreign currency from a source outside India — under (a) a loan agreement or issue of long-term infrastructure bond on or after 01-Jul-2012 but before 01-Jul-2023; or (b) by way of issue of any long-term bond on or after 01-Oct-2014 but before 01-Jul-2023, approved by the Central Govt. | No threshold | 5% |
| 1041 | Sec. 393(2) Table: Sl. No. 3 | 194LD | Rupee Denominated Bond interest — issued before 01-Jul-2023 Interest payable on monies borrowed from a source outside India by way of issue of rupee denominated bond before 01-Jul-2023. | No threshold | 5% |
| 1042 | Sec. 393(2) Table: Sl. No. 4.E(a) | 194LC | IFSC-listed long-term bond / RDB interest — issued Apr-2020 to Jun-2023 Interest on monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, listed only on a recognised stock exchange located in any International Financial Services Centre — issued on or after 01-Apr-2020 but before 01-Jul-2023. | No threshold | 4% |
| 1043 | Sec. 393(2) Table: Sl. No. 4.E(b) | 194LC | IFSC-listed long-term bond / RDB interest — issued on/after 01-Jul-2023 Interest on monies borrowed from a source outside India by way of issue of any long-term bond or rupee denominated bond, listed only on a recognised stock exchange located in any International Financial Services Centre — issued on or after 01-Jul-2023. | No threshold | 9% |
| 1044 | Sec. 393(2) Table: Sl. No. 5 | 194LB | Infra debt fund interest — to non-resident Income by way of interest from an Infrastructure Debt Fund, payable to a non-resident. | No threshold | 5% |
| 1045 | Sec. 393(2) Table: Sl. No. 6.E(a) | 194LBA(a) | Business trust distribution to non-resident — interest (specified) Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(a)] — interest from SPV portion paid by business trust to non-resident unit holder. | No threshold | 5% |
| 1046 | Sec. 393(2) Table: Sl. No. 6.E(b) | 194LBA(b) | Business trust distribution to non-resident — dividend (specified) Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] — dividend portion paid by business trust to non-resident unit holder. | No threshold | 10% |
| 1047 | Sec. 393(2) Table: Sl. No. 7 | 194LBC | Securitisation trust — distribution to non-resident Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 4] — paid to non-resident investor of a securitisation trust. | No threshold | 35% — Non-Resident — Company 30% — Non-Resident — Other than Company |
| 1048 | Sec. 393(2) Table: Sl. No. 8 | 194LBB | Investment fund distribution — Resident / Non-Resident 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. | No threshold | 10% — Resident 35% — Non-Resident — Company 30% — Non-Resident — Other than Company |
| 1049 | Sec. 393(2) Table: Sl. No. 9 | 194LBC | Securitisation trust — Resident / Non-Resident investor Any income in respect of an investment in a securitisation trust specified in section 221. | No threshold | 10% — Resident 35% — Non-Resident — Company 30% — Non-Resident — Other than Company |
| 1050 | Sec. 393(2) Table: Sl. No. 10 | 195 | Mutual fund / specified company income — to non-resident 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 — payable to a non-resident. | No threshold | 20% (or DTAA rate, whichever is lower) Apply the lower of (i) 20% under domestic law or (ii) the rate provided in the applicable DTAA / tax treaty. |
| 1051 | Sec. 393(2) Table: Sl. No. 11 | 196B | Offshore fund units — income (Section 208) Any income in respect of units referred to in section 208 — payable to an offshore fund. | No threshold | 10% |
| 1052 | Sec. 393(2) Table: Sl. No. 12 | 196B | Offshore fund units — LTCG (Section 208) Any income by way of long-term capital gains arising from the transfer of units referred to in section 208 (offshore fund units). | No threshold | 12.5% |
| 1053 | Sec. 393(2) Table: Sl. No. 13 | 196C | Bonds / GDRs interest or dividends (Section 209) Any income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 209. | No threshold | 10% |
| 1054 | Sec. 393(2) Table: Sl. No. 14 | 196C | Bonds / GDRs LTCG (Section 209) Any income by way of long-term capital gains arising from the transfer of bonds or Global Depository Receipts referred to in section 209. | No threshold | 12.5% |
| 1055 | Sec. 393(2) Table: Sl. No. 15 | 196D | FII / FPI securities income — Section 210(1) [Table: Sl. 1] Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1] — paid to a Foreign Institutional Investor / FPI. | No threshold | 20% |
| 1056 | Sec. 393(2) Table: Sl. No. 16 | 196D | FII / FPI securities income — Section 210(1) [Table: Sl. 1] — concessional Any income in respect of securities referred to in section 210(1) [Table: Sl. No. 1] — concessional rate category. | No threshold | 10% |
| 1057 | Sec. 393(2) Table: Sl. No. 17 | 195 | Other interest / sums chargeable (not Salary) to non-resident 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”. | No threshold | Average rate as applicable Rate is the average rate of tax applicable to the recipient as per slabs / DTAA — not a single fixed %. This calculator cannot compute this; please refer slab / DTAA. |
| 1058 | Sec. 393(3) Table: Sl. No. 1 | 194B | Lottery / gambling winnings — non-resident Any income by way of winnings (other than winnings from Sl. No. 2 of section 393(3)) from any lottery, crossword puzzle, card game and other game, gambling or betting — paid to a non-resident. | No threshold (foreign payee) | 30% |
| 1059 | Sec. 393(3) Table: Sl. No. 1 — Note 2 | 194B | Lottery / gambling winnings — non-resident, in kind Lottery / crossword / card game / gambling / betting winnings paid to a non-resident in kind, or where cash is insufficient, with tax paid before release. | No threshold (foreign payee) | 30% |
| 1060 | Sec. 393(3) Table: Sl. No. 2 | 194BA | Online game winnings — non-resident Any income by way of winnings from online game — paid to a non-resident. | No threshold | 30% |
| 1061 | Sec. 393(3) Table: Sl. No. 2 — Note 2 | 194BA | Online game winnings — non-resident, in kind Online game winnings to a non-resident in kind / where cash insufficient — tax paid before release. | No threshold | 30% |
| 1062 | Sec. 393(3) Table: Sl. No. 3 | 194BB | Horse race winnings — non-resident Any income by way of winnings from any horse race paid to a non-resident. | No threshold | 30% |
| 1063 | Sec. 393(3) Table: Sl. No. 4 | 194G | Lottery ticket commission — non-resident Any income credited or paid to a non-resident person who is or has been stocking, distributing, purchasing or selling lottery tickets, by way of commission, remuneration or prize. | No threshold | 2% |
| 1064 | Sec. 393(3) Table: Sl. No. 5.D(a) | 194N | Cash withdrawal — non-resident co-operative society Cash payments by bank / post office / co-operative society to a non-resident deductee being a co-operative society. | No threshold (foreign payee) | 2% |
| 1065 | Sec. 393(3) Table: Sl. No. 5.D(b) | 194N | Cash withdrawal — non-resident other than co-op society Cash payments by bank / post office / co-operative society to a non-resident deductee being a person other than a co-operative society. | No threshold (foreign payee) | 2% |
| 1066 | Sec. 393(3) Table: Sl. No. 6 | 194EE | NSS withdrawal — non-resident (Section 80CCA(2)(a)) Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 — paid to a non-resident. | No threshold | 10% |
| 1067 | Sec. 393(3) Table: Sl. No. 7 | 194T | Partner of firm — non-resident partner Any sum in the nature of salary, remuneration, commission, bonus or interest paid to a non-resident partner of the firm, or credited to his account (including capital account). | No threshold | 10% |
Skip the chart — calculate your TDS / TCS in 5 seconds
Pick the section, enter the amount and our free TDS & TCS Calculator instantly tells you how much tax to deduct, with old-vs-new section mapping and a branded PDF report.
TCS Rate Chart FY 2026-27 (Section 394 of IT Act 2025) — 25 sections
Tax Collected at Source (TCS) under the old Section 206C is now consolidated into Section 394(1) of the IT Act, 2025. The rates below cover commodity sales (alcohol, tendu leaves, timber, scrap, minerals), motor vehicles, the entire luxury-goods TCS list (watches, art, yachts, sunglasses, handbags, shoes, sportswear, home theatres, race horses), foreign remittances under LRS, overseas tour packages, and business use of parking / toll plaza / mining lease.
| Code | Section (IT Act 2025) | Old Section | Nature of Payment | Threshold | Rate |
|---|---|---|---|---|---|
| 1068 | Sec. 394(1) Table: Sl. No. 1 | 206C - A | Sale of alcoholic liquor for human consumption Sale of alcoholic liquor for human consumption. | No threshold (TCS on full amount) | 2% |
| 1069 | Sec. 394(1) Table: Sl. No. 2 | 206C - I | Sale of tendu leaves Sale of tendu leaves. | No threshold (TCS on full amount) | 2% |
| 1070 | Sec. 394(1) Table: Sl. No. 3 | 206C - B | Sale of timber under forest lease Sale of timber obtained under a forest lease. | No threshold (TCS on full amount) | 2% |
| 1071 | Sec. 394(1) Table: Sl. No. 3 | 206C - C | Sale of timber (other than forest lease) Sale of timber obtained by any mode other than a forest lease. | No threshold (TCS on full amount) | 2% |
| 1072 | Sec. 394(1) Table: Sl. No. 3 | 206C - D | Sale of any other forest produce Sale of any other forest produce (not being timber or tendu leaves) obtained under a forest lease. | No threshold (TCS on full amount) | 2% |
| 1073 | Sec. 394(1) Table: Sl. No. 4 | 206C - E | Sale of scrap Sale of Scrap. | No threshold (TCS on full amount) | 2% |
| 1074 | Sec. 394(1) Table: Sl. No. 5 | 206C - J | Sale of minerals — coal / lignite / iron ore Sale of minerals, being coal or lignite or iron ore. | No threshold (TCS on full amount) | 2% |
| 1075 | Sec. 394(1) Table: Sl. No. 6.D(a) | 206C - L | Sale of motor vehicle (above threshold) Sale consideration exceeding threshold limit in case of sale of motor vehicle. | Above ₹10 lakh per vehicle TCS @ 1% applies on the entire sale consideration when sale value of a single motor vehicle exceeds ₹10 lakh. | 1% |
| 1076 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MA | Sale of wrist watch (above threshold) Sale consideration exceeding threshold limit in case of sale of wrist watch. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value of a single luxury watch exceeds ₹10 lakh. | 1% |
| 1077 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MB | Sale of art piece (antique / painting / sculpture) Sale consideration exceeding threshold limit in case of sale of art piece such as antiques, painting, sculpture. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value of a single art piece exceeds ₹10 lakh. | 1% |
| 1078 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MC | Sale of collectibles (coin / stamp) Sale consideration exceeding threshold limit in case of sale of collectibles such as coin, stamp. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value of a single collectible exceeds ₹10 lakh. | 1% |
| 1079 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MD | Sale of yacht / boat / canoe / helicopter Sale consideration exceeding threshold limit in case of sale of yacht, rowing boat, canoe, helicopter. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1080 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - ME | Sale of pair of sunglasses Sale consideration exceeding threshold limit in case of sale of pair of sunglasses. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1081 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MF | Sale of bag (handbag / purse) Sale consideration exceeding threshold limit in case of sale of bag such as handbag, purse. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1082 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MG | Sale of pair of shoes Sale consideration exceeding threshold limit in case of sale of pair of shoes. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1083 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MH | Sale of sportswear & equipment (golf kit, ski-wear) Sale consideration exceeding threshold limit in case of sale of sportswear & equipment such as golf kit, ski-wear. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1084 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MI | Sale of home theatre system Sale consideration exceeding threshold limit in case of sale of home theatre system. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1085 | Sec. 394(1) Table: Sl. No. 6.D(b) | 206C - MJ | Sale of horse for race / polo Sale consideration exceeding threshold limit in case of sale of horse for horse racing in race clubs and horse for polo. | Above ₹10 lakh per item TCS @ 1% applies on the entire sale consideration when sale value exceeds ₹10 lakh. | 1% |
| 1086 | Sec. 394(1) Table: Sl. No. 7.D(a) | 206C - T | LRS remittance — Education / Medical (above ₹10 lakh) 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. | ₹10 lakh (in excess of) TCS @ 2% applies only on the amount exceeding ₹10 lakh in the FY for education / medical purpose. Education funded by loan from notified institution: TCS @ 0.5% (refer separately). | 2% |
| 1087 | Sec. 394(1) Table: Sl. No. 7.D(b) | 206C - Q | LRS remittance — Other purposes (above ₹10 lakh) 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. | ₹10 lakh (in excess of) TCS @ 20% applies only on the amount exceeding ₹10 lakh in the FY for non-education / non-medical purposes (e.g. investments abroad, gifts). | 20% |
| 1088 | Sec. 394(1) Table: Sl. No. 8.D(a) | 206C - O | Overseas tour package — up to ₹10 lakh 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 amount or aggregate of amounts up to ₹10,00,000. | TCS on full amount (up to ₹10 lakh) TCS @ 2% on the full sale value of overseas tour package up to ₹10 lakh per FY. | 2% |
| 1089 | Sec. 394(1) Table: Sl. No. 8.D(b) | 206C - O | Overseas tour package — above ₹10 lakh 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 amount or aggregate of amounts above ₹10,00,000. | TCS on full amount (above ₹10 lakh) TCS @ 2% on the full sale value of overseas tour package above ₹10 lakh per FY. | 2% |
| 1090 | Sec. 394(1) Table: Sl. No. 9 | 206C - F | Use of parking lot for business Use of parking lot for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | No threshold (TCS on full amount) | 2% |
| 1091 | Sec. 394(1) Table: Sl. No. 9 | 206C - G | Use of toll plaza for business Use of toll plaza for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | No threshold (TCS on full amount) | 2% |
| 1092 | Sec. 394(1) Table: Sl. No. 9 | 206C - H | Use of mine or quarry for business Use of mine or quarry for the purpose of business, excluding mining and quarrying of mineral oil (including petroleum and natural gas). | No threshold (TCS on full amount) | 2% |
FAQ — TDS / TCS FY 2026-27 (IT Act 2025)
1. From when does the new Income Tax Act, 2025 apply for TDS / TCS?
The Income Tax Act, 2025 applies from 1 April 2026 — i.e. for FY 2026-27 / AY 2027-28. Any payment, credit or collection on or after that date should quote the new section numbers in your TDS / TCS challans, Form 26Q / 27Q / 27EQ returns, and Form 16 / 16A / 27D certificates.
2. Have the TDS rates changed for FY 2026-27?
No. The vast majority of TDS & TCS rates remain unchanged from FY 2025-26. What changes is the section reference — for example, professional fees TDS is still 10%, but the section is now 393(1) Table Sl. No. 6(iii).D(b) instead of the old 194J(b).
3. Is there a TDS rate chart PDF for FY 2026-27?
Yes — the free TaxFetch TDS & TCS Calculator generates a branded PDF that lists the section, threshold, rate, and your computed TDS amount. You can download it and email it directly to your CA or vendor.
4. What is the TDS rate on rent under the new Act?
For rent on plant / machinery / equipment, TDS is 2% when monthly rent exceeds ₹50,000 (Sec. 393(1) Table Sl. 2(ii).D(a)). For rent on land / building / furniture, TDS is 10% on the same threshold (Sec. 393(1) Table Sl. 2(ii).D(b)). See rows above for full detail.
5. What is the TCS rate on luxury watches, sunglasses and handbags?
TCS at 1% applies on the full sale value when a single luxury item (wrist watch, art piece, sunglasses, handbag, shoes, sportswear, home theatre, yacht, race horse, etc.) is sold for more than ₹10 lakh — under Section 394(1) Table Sl. 6.D(b).
6. What is the TCS rate on LRS foreign remittances?
For education / medical purposes, TCS is 2% only on the amount in excess of ₹10 lakh per FY. For all other purposes (investments, gifts, etc.), TCS is 20% on the amount in excess of ₹10 lakh per FY (Sec. 394(1) Table Sl. 7).
7. How do I quickly compute TDS / TCS without reading the chart?
Use our free TDS & TCS Calculator — pick the section, enter the amount, and you get the exact deductible figure with the new IT Act 2025 reference, ready-to-share PDF, and the matching old section number for your records.
Conclusion
The TDS & TCS rate chart for FY 2026-27 is the first one fully aligned with the Income Tax Act, 2025. While the rates have largely been preserved, the section numbers, sub-tables and references have been overhauled. Keep this chart handy for quick reference, and whenever you need to compute a deduction or collection, jump to the free TaxFetch TDS & TCS Calculator — it does the maths, maps the old section to the new section, and gives you a sharable PDF in one click.
Skip the chart — calculate your TDS / TCS in 5 seconds
Pick the section, enter the amount and our free TDS & TCS Calculator instantly tells you how much tax to deduct, with old-vs-new section mapping and a branded PDF report.