With the new Income-tax Act (applicable from tax year 2026\u201327),\u00a0TDS \/ TCS\u00a0provisions are consolidated into a few sections (mainly Section 393), with rates specified through tables.<\/p>\n\n\n\n
While the\u00a0prime section remains the same<\/strong>, the\u00a0relevant table row and its code<\/strong>\u00a0determine the applicable rate and reporting. The code is to be used for reporting purpose while preparing the\u00a0TDS \/ TCS Returns.<\/p>\n\n\n\n The chart below maps the new provisions with corresponding old sections<\/strong> 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.<\/p>\n\n\n\n Notes:<\/strong><\/p>\n\n\n\n The above list covers most of the sections applicable for domestic transactions<\/p>\n\n\n\n With the new Income-tax Act (applicable from tax year 2026\u201327),\u00a0TDS \/ TCS\u00a0provisions are consolidated into a few sections (mainly Section 393), with rates specified through tables. While the\u00a0prime section remains the same, the\u00a0relevant table row and its code\u00a0determine the applicable rate and reporting. The code is to be used for reporting purpose while preparing the\u00a0TDS…<\/p>\nTDS RATE CHART TAX YEAR 2026-27<\/strong><\/h2>\n\n\n\n
Codes to be used in Returns<\/strong><\/td> Old Section<\/strong><\/td> Nature of Payment<\/strong><\/td> New Section (IT Act 2025)<\/strong><\/td> Rates (%)<\/strong><\/td> Threshold (\u20b9)<\/strong><\/td><\/tr> 1004<\/td> 192<\/td> Any payment of accumulated balance due to an employee<\/td> 392(7)<\/td> \u2013<\/td> \u2013<\/td><\/tr> 1005<\/td> 194D<\/td> Commission or brokerage \u2013 insurance<\/td> 393(1) [Table: Sl. No. 1(i)]<\/td> 2% in case for Individual
10% in case for Others<\/td>\u20b9 20,000<\/td><\/tr> 1006<\/td> 194H<\/td> Commission or Brokerage \u2013 others<\/td> 393(1) [Table: Sl. No. 1(ii)]<\/td> 2%<\/td> \u20b9 20,000<\/td><\/tr> 1008<\/td> 194I(a)<\/td> Rent on machinery etc.- specified person<\/td> 393(1) [Table: Sl. No. 2(ii).D(a)]<\/td> 2%<\/td> \u20b9 50,000 per month<\/td><\/tr> 1009<\/td> 194I(b)<\/td> Rent other than machinery etc.- specified person<\/td> 393(1) [Table: Sl. No. 2(ii).D(b)]<\/td> 10%<\/td> \u20b9 50,000 per month<\/td><\/tr> 1011<\/td> 194IC<\/td> Payment on any consideration, not being consideration in kind, under the agreement referred to in section 67(14)<\/td> 393(1) [Table: Sl. No. 3(ii)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1012<\/td> 194IA<\/td> Payment of Compensation on Acquisition of Certain Immovable Property<\/td> 393(1) [Table: Sl. No. 3(iii)]<\/td> 10%<\/td> \u20b9 5 Lakh<\/td><\/tr> 1013<\/td> 194K<\/td> 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<\/td> 393(1) [Table: Sl. No. 4(i)]<\/td> 10%<\/td> \u20b9 10,000<\/td><\/tr> 1014<\/td> 194LBA<\/td> Certain income in the form of interest from units of a business trust to a resident unit holder<\/td> 393(1) [Table: Sl. No. 4(ii)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1015<\/td> 194LBA<\/td> Certain income in the form of dividend from units of a business trust to a resident unit holder<\/td> 393(1) [Table: Sl. No. 4(ii)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1017<\/td> 194LBB<\/td> 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.<\/td> 393(1) [Table: Sl. No. 4(iii)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1018<\/td> 194LBC<\/td> Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor.<\/td> 393(1) [Table: Sl. No. 4(iv)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1019<\/td> 193<\/td> Any income by way of Interest on securities<\/td> 393(1) [Table: Sl. No. 5(i)]<\/td> 10%<\/td> \u20b9 10,000<\/td><\/tr> 1020<\/td> 194A<\/td> Any income by way of interest other than interest on securities, in case of deductee\/payee is a senior citizen<\/td> 393(1) [Table: Sl. No. 5(ii).D(a)]<\/td> 10%<\/td> \u20b9 1,00,000<\/td><\/tr> 1021<\/td> 194A<\/td> Any income by way of interest other than interest on securities, in case of deductee\/payee is other than senior citizen<\/td> 393(1) [Table: Sl. No. 5(ii).D(b)]<\/td> 10%<\/td> \u20b9 50,000<\/td><\/tr> 1022<\/td> 194A<\/td> Any income being interest other than interest on securities<\/td> 393(1) [Table: Sl. No. 5(iii)]<\/td> 10%<\/td> \u20b9 10,000<\/td><\/tr> 1023<\/td> 194C<\/td> 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 \u2013 if contractor is individual or Hindu undivided family<\/td> 393(1) [Table: Sl. No. 6(i).D(a)]<\/td> 1% in case for Individual
2% in case for Others<\/td>(a) \u20b9 30000 for any such sum; and
(b) \u20b9 100000 in case of aggregate of such sums.<\/td><\/tr>1024<\/td> 194C<\/td> 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 \u2013 if contractor is a person other than individual or Hindu undivided family<\/td> 393(1) [Table: Sl. No. 6(i).D(b)]<\/td> 1% in case for Individual
2% in case for Others<\/td>(a) \u20b9 30000 for any such sum; and
(b) \u20b9 100000 in case of aggregate of such sums.<\/td><\/tr>1026<\/td> 194J(a)<\/td> Any sum by way of \u2013 (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<\/td> 393(1) [Table: Sl. No. 6(iii).D(a)]<\/td> 2%<\/td> \u20b9 50,000<\/td><\/tr> 1027<\/td> 194J(b)<\/td> Any sum by way \u2013 (a) fees for professional services; or (b) any sum referred to in section 26(2)(h)<\/td> 393(1) [Table: Sl. No. 6(iii).D(b)]<\/td> 10%<\/td> \u20b9 50,000<\/td><\/tr> 1028<\/td> 194J(b)<\/td> 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<\/td> 393(1) [Table: Sl. No. 6(iii).D(b)]<\/td> 10%<\/td> \u2013<\/td><\/tr> 1029<\/td> 194<\/td> Any dividends (including on preference shares) declared.<\/td> 393(1) [Table: Sl. No. 7]<\/td> 10%<\/td> \u20b9 10,000 (Individual)<\/td><\/tr> 1030<\/td> 194DA<\/td> 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]<\/td> 393(1) [Table: Sl. No. 8(i)]<\/td> 2%<\/td> \u20b9 1 lakh<\/td><\/tr> 1031<\/td> 194Q<\/td> Any sum for purchase of any goods<\/td> 393(1) [Table: Sl. No. 8(ii)]<\/td> 0.1%<\/td> in excees of \u20b9 50 lakh<\/td><\/tr> 1033<\/td> 194R<\/td> Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident.<\/td> 393(1) [Table: Sl. No. 8(iv)]<\/td> 10%<\/td> \u20b9 20,000<\/td><\/tr> 1034<\/td> 194R<\/td> 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.<\/td> 393(1) [Table: Sl. No. 8(iv)] Note 6<\/td> 10%<\/td> \u20b9 20,000<\/td><\/tr> 1035<\/td> 194O<\/td> 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. \u2013 any e commerce operator<\/td> 393(1) [Table: Sl. No. 8(v)]<\/td> 0.1%<\/td> \u20b9 5 Lakh (Individual\/HUF)<\/td><\/tr> 1037<\/td> 194S<\/td> Any sum by way of consideration for transfer of a virtual digital asset by other than Individual or Hindu Undivided Family<\/td> 393(1) [Table: Sl. No. 8(vi)]<\/td> 1%<\/td> \u20b9 10,000<\/td><\/tr> 1038<\/td> 194SP<\/td> 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.<\/td> 393(1) [Table: Sl. No. 8(vi)] Note 6<\/td> 1%<\/td> \u20b9 10,000<\/td><\/tr> 1058<\/td> 194B<\/td> Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from \u2013 (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<\/td> 393(3) [Table: Sl. No. 1]<\/td> 30%<\/td> \u20b9 10,000 in case of a single transcations<\/td><\/tr> 1059<\/td> 194B<\/td> Any income by way of winnings (other than winnings from Sl. No. 2 of the table at section 393(3)) from\u2013\u2013 (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<\/td> 393(3) [Table: Sl. No. 1] Note 2<\/td> 30%<\/td> \u20b9 10,000 in case of a single transcations<\/td><\/tr> 1060<\/td> 194BA<\/td> Any income by way of winnings from online game.<\/td> 393(3) [Table: Sl. No. 2]<\/td> 30%<\/td> \u2013<\/td><\/tr> 1061<\/td> 194BA<\/td> 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<\/td> 393(3) [Table: Sl. No. 2] Note 2<\/td> 30%<\/td> \u20b9 10,000 in case of a single transcations<\/td><\/tr> 1062<\/td> 194BB<\/td> Any income by way of winnings from any horse race.<\/td> 393(3) [Table: Sl. No. 3]<\/td> 30%<\/td> \u20b9 10,000 in case of a single transcations<\/td><\/tr> 1063<\/td> 194G<\/td> 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<\/td> 393(3) [Table: Sl. No. 4]<\/td> 2%<\/td> \u20b9 20,000<\/td><\/tr> 1064<\/td> 194N<\/td> Payment of certain amounts in cash by bank\/ post office \/ co-operative society to a deductee being a co-operative society<\/td> 393(3) [Table: Sl. No. 5.D(a)]<\/td> 2%<\/td> \u20b9 3 Crore<\/td><\/tr> 1065<\/td> 194N<\/td> Payment of certain amounts in cash by bank\/ post office \/ co-operative society to a deductee being a person other than co-operative society<\/td> 393(3) [Table: Sl. No. 5.D(b)]<\/td> 2%<\/td> \u20b9 1 Crore<\/td><\/tr> 1066<\/td> 194EE<\/td> Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961).<\/td> 393(3) [Table: Sl. No. 6]<\/td> 10%<\/td> \u20b9 2,500<\/td><\/tr> 1067<\/td> 194T<\/td> 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).<\/td> 393(3) [Table: Sl. No. 7]<\/td> 10%<\/td> \u20b9 20,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Section 397(2)
Old Section \u2013 206AA<\/td>(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;<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"