Your quarterly-refreshed reference for TDS and TCS rates and thresholds under the Income Tax Act 2025 — with old (1961) to new section mapping for every major payment category.
What’s New This Quarter
This chart reflects rates and thresholds as applicable for Tax Year 2026-27 under the Income-tax Act, 2025, updated as of August 2026. Rates and thresholds substantively mirror the erstwhile Income-tax Act, 1961 — the primary change this year has been the renumbering of every TDS and TCS provision under the consolidated Section 393 (TDS) and Section 394 (TCS) framework.
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Practitioner note — check quarterly
TDS/TCS rates are among the most frequently amended provisions in Indian tax law, typically through Finance Act changes or CBDT notifications during the year. This chart is refreshed quarterly to reflect the latest confirmed rates — always cross-check against the current CBDT notification before applying a rate to a large-value transaction.
Old vs New Section Mapping
All TDS and TCS provisions previously scattered across Sections 192–206 of the 1961 Act are now consolidated under a single Section 393 (TDS) and Section 394 (TCS) of the 2025 Act, with individual payment categories identified by serial number within those sections.
Income Tax Act 1961
TDS on salary: Section 192
TDS on interest: Section 194A
TDS on commission: Section 194H
TDS on rent: Section 194I
TDS on professional fees: Section 194J
TDS on dividends: Section 194
TDS on goods purchase: Section 194Q
TCS provisions: Section 206C
Income Tax Act 2025
TDS on salary: Section 392(7)
TDS on interest: Section 393(1) [Sl. 5]
TDS on commission: Section 393(1) [Sl. 1]
TDS on rent: Section 393(1) [Sl. 2(ii)]
TDS on professional fees: Section 393(1) [Sl. 6(iii)]
TDS on dividends: Section 393(1) [Sl. 7]
TDS on goods purchase: Section 393(1) [Sl. 8(ii)]
TCS provisions: Section 394(1)
TDS Rates — Domestic Transactions
Old Section
Nature of Payment
New Section
Rate
Threshold
194H
Commission or brokerage
393(1)[Sl.1(ii)]
2%
₹20,000
194I(a)
Rent on machinery/plant/equipment
393(1)[Sl.2(ii).D(a)]
2%
₹50,000/month
194I(b)
Rent — land, building, furniture
393(1)[Sl.2(ii).D(b)]
10%
₹50,000/month
194IA
Immovable property transfer
393(1)[Sl.3(iii)]
10%
₹5 Lakh
194R
Business/profession perquisite
393(1)[Sl.8(iv)]
10%
₹20,000
Old Section
Nature of Payment
New Section
Rate
Threshold
193
Interest on securities
393(1)[Sl.5(i)]
10%
₹10,000
194A
Bank/post office interest — Senior citizens
393(1)[Sl.5(ii).D(a)]
10%
₹1,00,000
194A
Bank/post office interest — Others
393(1)[Sl.5(ii).D(b)]
10%
₹50,000
194
Dividends
393(1)[Sl.7]
10%
₹10,000
Old Section
Nature of Payment
New Section
Rate
Threshold
194C
Contract payments — Individual/HUF
393(1)[Sl.6(i).D(a)]
1%
₹30,000 (single) / ₹1L (aggregate)
194C
Contract payments — Others
393(1)[Sl.6(i).D(b)]
2%
₹30,000 (single) / ₹1L (aggregate)
194J(a)
Technical services/royalty (films)
393(1)[Sl.6(iii).D(a)]
2%
₹50,000
194J(b)
Professional fees
393(1)[Sl.6(iii).D(b)]
10%
₹50,000
194T
Partner’s remuneration/interest
393(3)[Sl.7]
10%
₹20,000
Old Section
Nature of Payment
New Section
Rate
Threshold
194Q
Purchase of goods
393(1)[Sl.8(ii)]
0.1%
Above ₹50 Lakh
194O
E-commerce participant supplies
393(1)[Sl.8(v)]
0.1%
₹5 Lakh (Individual/HUF)
194S
Virtual digital asset transfer
393(1)[Sl.8(vi)]
1%
₹10,000
194N
Cash withdrawal
393(3)[Sl.5]
2%
₹1 Cr (₹3 Cr — co-op societies)
194B
Lottery/gambling winnings
393(3)[Sl.1]
30%
₹10,000
194BA
Online game winnings
393(3)[Sl.2]
30%
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TDS Rates — Foreign / Non-Resident Transactions
Old Section
Nature of Payment
New Section
Rate
194E
Non-resident sportsmen/entertainers
393(2)[Sl.1]
20%
194LC
Foreign currency borrowing interest
393(2)[Sl.2]
5%
194LD
Rupee-denominated bond interest
393(2)[Sl.3]
5%
196D
Securities income (Sec. 210(1))
393(2)[Sl.15]
20%
195
Any other chargeable sum (non-salary)
393(2)[Sl.17]
Average rate as applicable
TCS Rates
Old Section
Nature of Transaction
New Section
Rate
206C-A
Alcoholic liquor
394(1)[Sl.1]
2%
206C-L
Motor vehicle (above threshold)
394(1)[Sl.6.D(a)]
1%
206C-T
LRS — education/medical (above ₹10L)
394(1)[Sl.7.D(a)]
2%
206C-Q
LRS — other purposes (above ₹10L)
394(1)[Sl.7.D(b)]
20%
206C-O
Overseas tour programme package
394(1)[Sl.8]
2%
PAN Rule & Higher Deduction
⚠️
Section 397(2), IT Act 2025 (old: 206AA/206CC)
TDS without valid PAN: higher of the specified rate, rate in force, or 20% (5% for goods purchase/e-commerce categories)
TCS without valid PAN: twice the specified rate or 5%, whichever is higher — capped at 20% overall
An inoperative PAN (not linked to Aadhaar) is treated exactly the same as no PAN for this purpose
Compliance Calendar
Compliance
Due Date
TDS/TCS deposit (monthly)
7th of following month (March: 30 April)
Q1 TDS return (Apr–Jun)
31 July
Q2 TDS return (Jul–Sep)
31 October
Q3 TDS return (Oct–Dec)
31 January
Q4 TDS return (Jan–Mar)
31 May
📄 Source reference: TDS & TCS provisions under Section 393 and Section 394 of the Income-tax Act, 2025, mapped from corresponding sections of the Income-tax Act, 1961. Rates and thresholds refreshed quarterly — last confirmed August 2026.
