TDS Slabs
TDS & TCS Master Reference
(Updated for Tax Year 2026–27 under Income Tax Act, 2025)
Master TDS & TCS reference: The tables below present the applicable TDS and TCS provisions for Tax Year 2026–27, aligned with the Income-tax Act, 2025, effective from 1st April 2026. TDS provisions are consolidated under Section 393, while TDS on salary is governed by Section 392(1). TCS provisions are consolidated under Section 394. The corresponding provisions under the Income-tax Act, 1961 are retained alongside the new section numbers for reference and transition purposes
About this Reference
This page is divided into categories for easier reading. The Master Table provides a consolidated reference of TDS and TCS provisions applicable for Tax Year 2026–27 under the Income-tax Act, 2025.
- Section (Old / New) — Shows the applicable provision and relevant table reference under the Income-tax Act, 2025, along with the corresponding provision under the Income-tax Act, 1961 for reference.
- Nature of Payment — Brief description of the payment or transaction covered by the applicable TDS or TCS provision.
- TDS / TCS Rate — Applicable rate for Tax Year 2026–27. The TDS and TCS rates and monetary thresholds have largely been retained under the new Act.
- Threshold / Conditions — Applicable monetary thresholds, conditions, exemptions, and other relevant compliance requirements.
For payments or credits made on or after 1st April 2026, the applicable TDS provisions are governed by the Income-tax Act, 2025. TDS on salary is covered under Section 392, while TDS on other specified payments is consolidated under Section 393. TCS provisions are covered under Section 394.
Salary & Employment
Section 392(1) — TDS on salary and employment income. Tax is deducted based on the applicable tax regime and estimated taxable salary for Tax Year 2026–27.
Interest & Securities
Section 393 — TDS on interest and interest on securities under the applicable table entries. Rates and thresholds depend on the nature of the interest income and the recipient.
Dividends & Mutual Funds
Section 393 — TDS on dividend income and specified income from mutual funds, subject to the applicable threshold and conditions.
Lottery / Gaming
Section 393 — TDS on winnings from lotteries, puzzles, games, horse races and online games, with different rates applicable depending on the type of winnings.
Contractors & Professionals
Section 393(1) [Table: Sl. No. 6(i)–6(iii)] — TDS on payments to contractors and professionals. Applicable rates and thresholds depend on the nature of payment and the status of the payer and payee.
Rent & Property
Section 393(1) — TDS on specified rent payments and transfer of immovable property, subject to the applicable threshold, rate and conditions. Specified transactions are covered under the relevant table entries, including Table Sl. No. 2(i) and 3(i).
Non-residents & Offshore
Section 393(2) — TDS on specified payments made to non-residents, including certain interest, royalty, fees for technical services and other taxable payments, subject to the applicable rates and conditions.
Capital Gains & Misc
Section 393 — TDS on other specified payments and income covered by the relevant tables, including certain transactions involving non-residents and specified taxable payments.
Highlight Notes (Tax Year 2026–27):
Tax Year 2026–27: TDS provisions consolidated under Sections 392 and 393 of the Income-tax Act, 2025.
Section 206AB repealed — higher TDS provisions for specified non-filers are no longer applicable.
Partner remuneration, salary, commission, bonus and interest — covered under Section 393(3), Table Sl. No. 7 at 10% above the prescribed threshold.
Section 194LBC mapped to Section 393(1), Table Sl. No. 4(iv) — TDS rate remains 10%.
Section 392 — Salary
Section 393(1), Table Sl. No. 5(ii) — Interest
Section 393(1), Table Sl. No. 6(i) & 6(ii) — Contractors
Section 393(1), Table Sl. No. 2(i) — Rent / Property
Section 393(1), Table Sl. No. 6(iii) — Professional Fees
Section 393(3), Table Sl. No. 1 & 3 — Winnings
Section 393(1), Table Sl. No. 8(ii) — Purchase of Goods
Section 393(3), Table Sl. No. 7 — Partner Remuneration
Master TDS/TCS Table:
| Section | Nature of Payment | TDS / TCS Rate | Threshold / Conditions |
|---|---|---|---|
| Salary & Employment | |||
| 392(1) | Salary | As per applicable income-tax slab | TDS based on estimated taxable salary for Tax Year 2026–27 |
| 392(7) | Premature withdrawal from EPF | 10% | Threshold: Rs. 50,000 |
| Interest, Securities & Dividends | |||
| 393(1), Table Sl. No. 5(i) | Interest on Securities | 10% | Subject to the applicable threshold and conditions |
| 393(1), Table Sl. No. 7 | Dividends | 10% | Threshold: ₹10,000, subject to applicable conditions |
| 393(1), Table Sl. No. 5(ii) | Interest on bank / post office / co-operative bank deposits | 10% | Threshold: ₹50,000 for persons other than senior citizens |
| 393(1), Table Sl. No. 5(ii) | Interest on bank / post office / co-operative bank deposits — Senior Citizen | 10% | Threshold: Rs. 10,000 |
| 393(1), Table Sl. No. 5(iii) | Other interest | 10% | Threshold: ₹10,000 |
| 393(1), Table Sl. No. 4 | Income from units of mutual funds / specified mutual-fund income | 10% | Threshold: ₹10,000, subject to applicable conditions |
| Lottery / Gaming / Winnings | |||
| 393(3), Table Sl. No. 1 | Winnings from lottery, crossword puzzles, card games, gambling or betting | 30% | Threshold: ₹10,000 for a single transaction |
| 393(3), Table Sl. No. 2 | Winnings from online games | 30% | No minimum monetary threshold; applicable on net winnings |
| 393(3), Table Sl. No. 3 | Winnings from horse races | 30% | Threshold: ₹10,000 for a single transaction |
| Contractors, Commission & Professional Services | |||
| 393(1), Table Sl. No. 6(i) | Payments to contractors or sub-contractors | 1% / 2% | Threshold: ₹30,000 for a single payment or ₹1,00,000 in aggregate during the tax year. 1% for individuals/HUFs; 2% for others |
| 393(1), Table Sl. No. 1(i) | Insurance commission | 2% | Threshold: ₹20,000 |
| 393(1), Table Sl. No. 8(i) | Payment under a life insurance policy | 2% | Threshold: ₹1,00,000 |
| 393(3), Table Sl. No. 6 | Payment under the National Savings Scheme (NSS) | 10% | Threshold: ₹2,500 |
| 393(3), Table Sl. No. 4 | Commission, remuneration or prize on lottery tickets | 2% | Threshold: ₹20,000 |
| 393(1), Table Sl. No. 1(ii) | Commission or brokerage | 2% | Threshold: ₹20,000 |
| 393(1), Table Sl. No. 6(iii).D(a | Fees for technical services, royalty in respect of cinematographic films, or payments to a call-centre operator | 2% | Threshold: ₹50,000 |
| 393(1), Table Sl. No. 6(iii).D(b | Fees for professional services other than those covered above | 10% | Threshold: ₹50,000 |
| Rent & Immovable Property | |||
| 393(1), Table Sl. No. 2(ii).D(a) | Rent for plant, machinery or equipment | 2% | Threshold: ₹50,000 per month or part of a month |
| 393(1), Table Sl. No. 2(ii).D(b) | Rent of land, building, furniture or fittings | 10% | Threshold: ₹50,000 per month or part of a month |
| 393(1), Table Sl. No. 3(i) | Transfer of immovable property other than agricultural land | 1% | Threshold: ₹50 lakh; TDS on consideration or stamp duty value, whichever is higher, subject to applicable conditions |
| 393(3), Table Sl. No. 2(ii) | Rent paid by specified individual / HUF not covered under the regular rent provision | 2% | Threshold: ₹50,000 per month or part of a month |
| 393(1), Table Sl. No. 3(ii) | Monetary consideration under a specified Joint Development Agreement | 10% | Threshold: Nil |
| 393(1), Table Sl. No. 3(iii) | Compensation or enhanced compensation/consideration on compulsory acquisition of immovable property other than agricultural land | 10% | Threshold: ₹5 lakh |
| Non-residents, Business Trusts & Funds | |||
| 393(2), Table Sl. No. 7 | Interest from infrastructure debt fund paid to a non-resident | 5% | Threshold: Nil |
| 393(1), Table Sl. No. 4(ii) | Specified income from units of a business trust | 10% | Threshold: Nil; applicable conditions depend on the nature of income |
| 393(1), Table Sl. No. 4(iii) | Income in respect of units of an investment fund | 10% | Threshold: Nil |
| 393(1), Table Sl. No. 4(iv) | Income in respect of investment in a securitisation trust | 10% | Threshold: Nil |
| Miscellaneous & Recent Sections | |||
| 393(1), Table Sl. No. 6(ii) | Payments for contracts, professional services, commission or brokerage by specified individual / HUF | 2% | Threshold: ₹50 lakh in aggregate during the tax year; applicable to specified individuals/HUFs not liable to tax audit |
| 393(3), Table Sl. No. 5 | Cash withdrawal exceeding the prescribed limit | 2% / 5% | ₹1 crore generally; ₹3 crore for specified co-operative societies. Higher rate provisions may apply where the prescribed return-filing conditions are not satisfied |
| 393(1), Table Sl. No. 8(v) | Payment by an e-commerce operator to an e-commerce participant | 0.10% | Threshold: ₹5 lakh for specified individual/HUF participants, subject to applicable conditions |
| 393(1), Table Sl. No. 8(vii) | TDS in case of a specified senior citizen | As per applicable tax rates | Applies to specified senior citizens meeting the prescribed conditions |
| 393(1), Table Sl. No. 8(ii) | Purchase of goods exceeding the prescribed threshold | 0.10% | Threshold: ₹50 lakh, subject to applicable buyer and seller conditions |
| 393(1), Table Sl. No. 8(iv) | Benefits or perquisites arising from business or profession | 10% | Threshold: ₹20,000 during the tax year |
| Virtual Digital Assets | |||
| 393(1), Table Sl. No. 8(vi) | Payment of consideration for transfer of a virtual digital asset by a person other than a specified Individual / HUF | 1% | Threshold: ₹10,000 |
| 393(1), Table Sl. No. 8(vi), Note 6 | Payment of consideration for transfer of a virtual digital asset by a specified Individual / HUF | 1% | Threshold: ₹50,000 |
| Partnerships & Partners | |||
| 393(3), Table Sl. No. 7 | Salary, remuneration, commission, bonus or interest paid or credited by a firm to its partner | 10% | Threshold: ₹20,000 during the tax year |
| Special / Duplicate Cases | |||
| 393(3), Table Sl. No. 1 | Winnings from lottery, crossword puzzles, card games, gambling, betting or other specified games | 30% | Threshold: ₹10,000 in a single transaction |
| 393(2), Table Sl. No. 1 | Payment to a non-resident sportsman, entertainer or sports association | 20% | Threshold: Nil |
| Business Trust / SPV Specific | |||
| 393(1), Table Sl. No. 4(ii) | Interest income received or receivable by a business trust from an SPV and distributed to its unitholders | 5% | Threshold: Nil; subject to applicable conditions |
| 393(1), Table Sl. No. 4(ii) | Dividend income received from an SPV by a business trust and distributed to its unitholders | 10% | Threshold: Nil; subject to applicable conditions |
| 393(1), Table Sl. No. 4(ii) | Rental income from real estate assets owned directly by a business trust and distributed to its unitholders | 40% | Threshold: Nil; subject to applicable conditions |
| Foreign Currency / Bonds / FIIs | |||
| 393(2), Table Sl. Nos. 2, 3 & 4 | Interest payable on specified foreign-currency borrowings, long-term infrastructure bonds, long-term bonds and specified rupee-denominated bonds | 5% / Rates as specified | Applies to the specified borrowing/bond arrangements and dates prescribed under the relevant provisions; no separate monetary threshold |
| 194LD — Omitted | Interest on specified rupee-denominated bonds / Government securities to FII or QFI | — | Omitted under the Income-tax Act, 2025 |
| Section 195 & Capital Gains / Royalty / Fees | |||
| 393(2), Table Sl. No. 17 | Other interest or any other sum chargeable to tax paid to a non-resident, other than income chargeable under Salaries | Rates in force | No general monetary threshold; applicable rate depends on the nature of income and the Finance Act / applicable tax treaty |
| Offshore Funds / Foreign Instruments | |||
| 393(2), Table Sl. No. 11 | Income in respect of specified units received by an offshore fund | 10% | Threshold: Nil |
| 393(2), Table Sl. No. 12 | Long-term capital gains arising from transfer of specified units by an offshore fund | 12.5% | Threshold: Nil |
| 393(2), Table Sl. No. 13 | Interest or dividends in respect of specified foreign-currency bonds or Global Depository Receipts of an Indian company | 10% | Threshold: Nil |
| 393(2), Table Sl. No. 14 | Long-term capital gains arising from transfer of specified foreign-currency bonds or Global Depository Receipts | 12.5% | Threshold: Nil |
| 393(2), Table Sl. No. 15 | Income in respect of specified securities received by a Foreign Institutional Investor | As per applicable rate | Threshold: Nil; subject to the applicable provisions and rates in force |
| 393(2), Table Sl. No. 16 | Income in respect of specified securities received by a specified fund | 10% | Threshold: Nil; subject to applicable conditions |
| Old Section / Provision | Previous Threshold (FY 2025-26) | Current Threshold (Tax Year 2026-27) |
|---|---|---|
| 193 – Interest on securities | NIL | ₹10,000 |
| 194A – Interest other than interest on securities |
(i) ₹1,00,000 – Senior Citizens (ii) ₹50,000 – Others through bank/co-operative bank/post office (iii) ₹10,000 – Other cases |
Unchanged |
| 194 – Dividend | ₹10,000 | Unchanged |
| 194K – Income from mutual fund units | ₹10,000 | Unchanged |
| 194B / 194BB – Lottery / Horse-race winnings | ₹10,000 per single transaction | Unchanged |
| 194I – Rent | ₹6,00,000 per year | Unchanged; corresponding provisions are now covered under Section 393 |
| 194J – Professional / Technical Fees | ₹50,000 | Unchanged |
| 194LD – Interest on specified rupee-denominated bonds | Applicable | Omitted from Tax Year 2026-27 |
| 206C(1) – TCS on alcoholic liquor | 1% | Revised to 2% |
| 206C(1) – TCS on scrap | 1% | Revised to 2% |
| 206C(1) – TCS on minerals (coal, lignite or iron ore) | 1% | Revised to 2% |
| 206C(1) – TCS on tendu leaves | 5% | Revised to 2% |
| 206C(1G) – LRS remittances for education or medical treatment | 5% on the amount exceeding ₹10 lakh | 2% on the amount exceeding ₹10 lakh |
| 206C(1G) – Overseas tour programme package | 5% up to ₹10 lakh and 20% on the amount exceeding ₹10 lakh | 2% irrespective of amount; ₹10 lakh threshold removed |
Other Tax Year 2026–27 Notes: TDS on salary is governed by Section 392, while other TDS provisions are consolidated under Section 393 of the Income-tax Act, 2025. TCS provisions are consolidated under Section 394. For amounts paid, credited or received, as applicable, on or after 1st April 2026, the relevant provisions of the Income-tax Act, 2025 apply. Form 141 consolidates the earlier Forms 26QB, 26QC, 26QD and 26QE for specified transactions covered under Section 393(1). TAN requirements remain applicable.
Explainer Blocks
Salary / EPF
Section 392 — Salary TDS is deducted based on the applicable tax rates. Premature EPF withdrawal is subject to 10% TDS above the prescribed ₹50,000 threshold, subject to applicable conditions.
Interest / Bank
Section 393 — TDS on interest on securities and specified bank, post-office and co-operative-bank deposits is generally 10%, with applicable thresholds including ₹1,00,000 for senior citizens and ₹50,000 for other specified depositors.
Dividends / Mutual Funds
Section 393 — TDS on dividends and specified mutual-fund income is generally 10%, subject to the applicable ₹10,000 threshold and conditions.
Contractors & Professionals
Section 393 — TDS on contractor payments and professional or technical fees is generally 1%, 2% or 10%, depending on the nature of payment and recipient, subject to applicable thresholds.
Rent & Property
Section 393 — TDS applies to specified rent payments and certain immovable-property transactions. Applicable rates and thresholds depend on the type of transaction.
Winnings & Gaming
Section 393 — TDS on specified winnings is generally 30%, with the applicable threshold and conditions depending on the type of winnings.
Non-Resident / Offshore
Section 393(2) — TDS on specified payments to non-residents, including certain interest, royalty, fees for technical services and other taxable payments, is governed by the applicable rates and conditions.
Virtual Digital Assets
194S: Transfer of VDA – 1% Section 393 — TDS on consideration for transfer of specified virtual digital assets is generally 1%, subject to the applicable threshold and conditions.
392 — Salary
393 — Interest & Securities
393 — Bank Interest
393 — Contractors
393 — Professional Fees
393 — Rent
393 — Purchase of Goods
393 — Partner Payments
393 — New TDS Provisions
394 — New TCS Provisions
TCS — Common Items (Selected)
Below are common Tax Collection at Source (TCS) provisions applicable for Tax Year 2026–27 under Section 394 of the Income-tax Act, 2025.
| Old Section → New Section | Nature of Receipt | TCS Rate | Threshold / Remarks |
|---|---|---|---|
| 206C(1) → 394(1), Table Sl. No. 1 | Sale of alcoholic liquor for human consumption | 2% | No monetary threshold |
| 206C(1) → 394(1), Table Sl. No. 2 | Sale of tendu leaves | 2% | No monetary threshold |
| 206C(1) → 394(1), Table Sl. No. 3 | Sale of timber or other specified forest produce | 2% | Applicable as prescribed under Section 394 |
| 206C(1) → 394(1), Table Sl. No. 4 | Sale of scrap | 2% | No monetary threshold |
| 206C(1) → 394(1), Table Sl. No. 5 | Sale of minerals — coal, lignite or iron ore | 2% | No monetary threshold |
| 206C(1F) → 394(1), Table Sl. No. 6 | Sale of a motor vehicle or other notified goods | 1% | Sale consideration exceeding ₹10 lakh |
| 206C(1G) → 394(1), Table Sl. No. 7(a) | Remittance under the Liberalised Remittance Scheme for education or medical treatment | 2% | Applicable on the amount exceeding ₹10 lakh |
| 206C(1G) → 394(1), Table Sl. No. 7(b) | Remittance under the Liberalised Remittance Scheme for purposes other than education or medical treatment | 20% | Applicable on the amount exceeding ₹10 lakh |
| 206C(1G) → 394(1), Table Sl. No. 8 | Sale of an overseas tour programme package | 2% | No monetary threshold; applicable irrespective of the amount |
| 206C(1) → 394(1), Table Sl. No. 9 | Use of parking lot, toll plaza, mine or quarry for business purposes | 2% | Subject to the applicable provisions of Section 394 |
| 206C(1H) → Omitted | TCS on sale of goods exceeding ₹50 lakh | Not applicable | Provision withdrawn with effect from 1 April 2025 |
Note: Section 206C(1H) (TCS on Sale of Goods exceeding ₹50 lakh) has been omitted with effect from 1 April 2025. Accordingly, sellers are no longer required to collect TCS under this provision for transactions from FY 2025–26 onwards.