With the new Income-tax Act (applicable from tax year 2026–27), TDS / TCS provisions are consolidated into a few sections (mainly Section 393), with rates specified through tables.
While the prime section remains the same, the relevant table row and its code determine the applicable rate and reporting. The code is to be used for reporting purpose while preparing the TDS / TCS Returns.
The chart below maps the new provisions with corresponding old sections for ease of understanding. As more information and clarifications are still being progressively shared by the Income Tax Dept, we shall keep you updated on these.
TDS RATE CHART TAX YEAR 2026-27
| Codes to be used in Returns | Old Section | Nature of Payment | New Section (IT Act 2025) | Rates (%) | Threshold (₹) |
| 1004 | 192 | Any payment of accumulated balance due to an employee | 392(7) | – | – |
| 1005 | 194D | Commission or brokerage – insurance | 393(1) [Table: Sl. No. 1(i)] | 2% in case for Individual 10% in case for Others | ₹ 20,000 |
| 1006 | 194H | Commission or Brokerage – others | 393(1) [Table: Sl. No. 1(ii)] | 2% | ₹ 20,000 |
| 1008 | 194I(a) | Rent on machinery etc.- specified person | 393(1) [Table: Sl. No. 2(ii).D(a)] | 2% | ₹ 50,000 per month |
| 1009 | 194I(b) | Rent other than machinery etc.- specified person | 393(1) [Table: Sl. No. 2(ii).D(b)] | 10% | ₹ 50,000 per month |
| 1011 | 194IC | Payment on any consideration, not being consideration in kind, under the agreement referred to in section 67(14) | 393(1) [Table: Sl. No. 3(ii)] | 10% | – |
| 1012 | 194IA | Payment of Compensation on Acquisition of Certain Immovable Property | 393(1) [Table: Sl. No. 3(iii)] | 10% | ₹ 5 Lakh |
| 1013 | 194K | Income payable to a resident assessee in respect of Units of a specified Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21) or units from the Administrator of the specified undertaking or units from specified company | 393(1) [Table: Sl. No. 4(i)] | 10% | ₹ 10,000 |
| 1014 | 194LBA | Certain income in the form of interest from units of a business trust to a resident unit holder | 393(1) [Table: Sl. No. 4(ii)] | 10% | – |
| 1015 | 194LBA | Certain income in the form of dividend from units of a business trust to a resident unit holder | 393(1) [Table: Sl. No. 4(ii)] | 10% | – |
| 1017 | 194LBB | 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 unitholder. | 393(1) [Table: Sl. No. 4(iii)] | 10% | – |
| 1018 | 194LBC | Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor. | 393(1) [Table: Sl. No. 4(iv)] | 10% | – |
| 1019 | 193 | Any income by way of Interest on securities | 393(1) [Table: Sl. No. 5(i)] | 10% | ₹ 10,000 |
| 1020 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is a senior citizen | 393(1) [Table: Sl. No. 5(ii).D(a)] | 10% | ₹ 1,00,000 |
| 1021 | 194A | Any income by way of interest other than interest on securities, in case of deductee/payee is other than senior citizen | 393(1) [Table: Sl. No. 5(ii).D(b)] | 10% | ₹ 50,000 |
| 1022 | 194A | Any income being interest other than interest on securities | 393(1) [Table: Sl. No. 5(iii)] | 10% | ₹ 10,000 |
| 1023 | 194C | 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 – if contractor is individual or Hindu undivided family | 393(1) [Table: Sl. No. 6(i).D(a)] | 1% in case for Individual 2% in case for Others | (a) ₹ 30000 for any such sum; and (b) ₹ 100000 in case of aggregate of such sums. |
| 1024 | 194C | 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 – if contractor is a person other than individual or Hindu undivided family | 393(1) [Table: Sl. No. 6(i).D(b)] | 1% in case for Individual 2% in case for Others | (a) ₹ 30000 for any such sum; and (b) ₹ 100000 in case of aggregate of such sums. |
| 1026 | 194J(a) | Any sum by way of – (a) fees for technical services (not being a professional services); 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 | 393(1) [Table: Sl. No. 6(iii).D(a)] | 2% | ₹ 50,000 |
| 1027 | 194J(b) | Any sum by way – (a) fees for professional services; or (b) any sum referred to in section 26(2)(h) | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | ₹ 50,000 |
| 1028 | 194J(b) | 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, to a director of a company | 393(1) [Table: Sl. No. 6(iii).D(b)] | 10% | – |
| 1029 | 194 | Any dividends (including on preference shares) declared. | 393(1) [Table: Sl. No. 7] | 10% | ₹ 10,000 (Individual) |
| 1030 | 194DA | 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] | 393(1) [Table: Sl. No. 8(i)] | 2% | ₹ 1 lakh |
| 1031 | 194Q | Any sum for purchase of any goods | 393(1) [Table: Sl. No. 8(ii)] | 0.1% | in excees of ₹ 50 lakh |
| 1033 | 194R | Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | 393(1) [Table: Sl. No. 8(iv)] | 10% | ₹ 20,000 |
| 1034 | 194R | Any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind, whether convertible into money or not, arising from business or the exercise of a profession of any resident. | 393(1) [Table: Sl. No. 8(iv)] Note 6 | 10% | ₹ 20,000 |
| 1035 | 194O | 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. – any e commerce operator | 393(1) [Table: Sl. No. 8(v)] | 0.1% | ₹ 5 Lakh (Individual/HUF) |
| 1037 | 194S | Any sum by way of consideration for transfer of a virtual digital asset by other than Individual or Hindu Undivided Family | 393(1) [Table: Sl. No. 8(vi)] | 1% | ₹ 10,000 |
| 1038 | 194SP | 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. | 393(1) [Table: Sl. No. 8(vi)] Note 6 | 1% | ₹ 10,000 |
| 1058 | 194B | 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 | 393(3) [Table: Sl. No. 1] | 30% | ₹ 10,000 in case of a single transcations |
| 1059 | 194B | 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 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 | 393(3) [Table: Sl. No. 1] Note 2 | 30% | ₹ 10,000 in case of a single transcations |
| 1060 | 194BA | Any income by way of winnings from online game. | 393(3) [Table: Sl. No. 2] | 30% | – |
| 1061 | 194BA | Any income by way of winnings from online games, is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released | 393(3) [Table: Sl. No. 2] Note 2 | 30% | ₹ 10,000 in case of a single transcations |
| 1062 | 194BB | Any income by way of winnings from any horse race. | 393(3) [Table: Sl. No. 3] | 30% | ₹ 10,000 in case of a single transcations |
| 1063 | 194G | 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 | 393(3) [Table: Sl. No. 4] | 2% | ₹ 20,000 |
| 1064 | 194N | Payment of certain amounts in cash by bank/ post office / co-operative society to a deductee being a co-operative society | 393(3) [Table: Sl. No. 5.D(a)] | 2% | ₹ 3 Crore |
| 1065 | 194N | Payment of certain amounts in cash by bank/ post office / co-operative society to a deductee being a person other than co-operative society | 393(3) [Table: Sl. No. 5.D(b)] | 2% | ₹ 1 Crore |
| 1066 | 194EE | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961). | 393(3) [Table: Sl. No. 6] | 10% | ₹ 2,500 |
| 1067 | 194T | 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). | 393(3) [Table: Sl. No. 7] | 10% | ₹ 20,000 |
Notes:
The above list covers most of the sections applicable for domestic transactions
| Section 397(2) Old Section – 206AA | (a) Irrespective of anything contained in any other provision of this Act, every person, entitled to receive any amount on which tax is deductible or, paying any amount on which tax is collectible, shall furnish his valid Permanent Account Number to the person responsible for deducting or collecting tax; (b) in case of failure to comply with provisions of clause (a)- (i) tax shall be deducted at the higher of the following rates:- (A) at the rate specified in the relevant provision of this Act; or (B) at the rate or rates in force; or (C) at the rate of 5% where tax is required to be deducted under section 393(1) [Table: Sl. No. 8(ii) or 8(v)]; or 20% in any other case; |