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TDS & TCS rate chart
New section numbers under the Income-tax Act, 2025 (in force from 1 April 2026), with the old 1961 sections, limits and rates.
TDS – payments to residents
| Payment | New section | Old section | Limit (₹) | Individual / HUF | Others |
|---|---|---|---|---|---|
| Salary – Government employees (other than Union Government) | 392 | 192 | — | Slab rates | Slab rates |
| Salary – employees other than Government employees | 392 | 192 | — | Slab rates | Slab rates |
| Salary – Union Government employees | 392 | 192 | — | Slab rates | Slab rates |
| Accumulated balance due to an employee (provident fund) | 392(7) | 192A | 50,000 | 10% | 10% |
| Insurance commission or brokerage | 393(1) Sl. 1(i) | 194D | 20,000 | 2% | 10% |
| Commission or brokerage – others | 393(1) Sl. 1(ii) | 194H | 20,000 | 2% | 2% |
| Rent – plant, machinery or equipment | 393(1) Sl. 2(ii)D(a) | 194I(a) | 50,000 a month | 2% | 2% |
| Rent – land, building or furniture | 393(1) Sl. 2(ii)D(b) | 194I(b) | 50,000 a month | 10% | 10% |
| Payment under a joint development agreement (not in kind) | 393(1) Sl. 3(ii) | 194IC | — | 10% | 10% |
| Compensation on compulsory acquisition of immovable property | 393(1) Sl. 3(iii) | 194LA | 5 lakh | 10% | 10% |
| Income on mutual fund units (resident) | 393(1) Sl. 4(i) | 194K | 10,000 | 10% | 10% |
| Interest from business trust units (resident unit holder) | 393(1) Sl. 4(ii) | 194LBA | — | 10% | 10% |
| Dividend from business trust units (resident unit holder) | 393(1) Sl. 4(ii) | 194LBA | — | 10% | 10% |
| Rent income from REIT units (resident unit holder) | 393(1) Sl. 4(ii) | 194LBA | — | 10% | 10% |
| Income on investment fund units | 393(1) Sl. 4(iii) | 194LBB | — | 10% | 10% |
| Income from a securitisation trust | 393(1) Sl. 4(iv) | 194LBC | — | 10% | 10% |
| Interest on securities | 393(1) Sl. 5(i) | 193 | 10,000 | 10% | 10% |
| Interest other than on securities – senior citizen | 393(1) Sl. 5(ii)D(a) | 194A | 1,00,000 | 10% | 10% |
| Interest other than on securities – bank / post office / co-operative bank, others | 393(1) Sl. 5(ii)D(b) | 194A | 50,000 | 10% | 10% |
| Interest other than on securities – any other case | 393(1) Sl. 5(iii) | 194A | 10,000 | 10% | 10% |
| Payment to contractor – individual / HUF | 393(1) Sl. 6(i)D(a) | 194C | 30,000 a payment; 1,00,000 a year | 1% | 1% |
| Payment to contractor – others | 393(1) Sl. 6(i)D(b) | 194C | 30,000 a payment; 1,00,000 a year | 2% | 2% |
| Technical services (not professional), film royalty, call centre | 393(1) Sl. 6(iii)D(a) | 194J(a) | 50,000 | 2% | 2% |
| Professional fees, royalty, non-compete fees | 393(1) Sl. 6(iii)D(b) | 194J(b) | 50,000 | 10% | 10% |
| Remuneration, fees or commission to a company director | 393(1) Sl. 6(iii)D(b) | 194J(b) | — | 10% | 10% |
| Dividend (resident) | 393(1) Sl. 7 | 194 | 10,000 | 10% | 10% |
| Life insurance policy payout (income part) | 393(1) Sl. 8(i) | 194DA | 1 lakh | 2% | 2% |
| Purchase of goods | 393(1) Sl. 8(ii) | 194Q | Above 50 lakh a year | 0.1% | 0.1% |
| Specified senior citizen (bank deducts tax and files the return) | 393(1) Sl. 8(iii) | 194P | — | Slab rates | - |
| Benefit or perquisite of a business or profession | 393(1) Sl. 8(iv) | 194R | 20,000 | 10% | 10% |
| Sale of goods / services through an e-commerce operator | 393(1) Sl. 8(v) | 194O | 5 lakh (individual / HUF seller) | 0.1% | 0.1% |
| Transfer of a virtual digital asset | 393(1) Sl. 8(vi) | 194S | 10,000 | 1% | 1% |
| Winnings from lottery, crossword, card game, gambling | 393(3) Sl. 1 | 194B | 10,000 a transaction | 30% | 30% |
| Winnings from online games | 393(3) Sl. 2 | 194BA | — | 30% | 30% |
| Winnings from horse races | 393(3) Sl. 3 | 194BB | 10,000 a transaction | 30% | 30% |
| Commission on sale of lottery tickets | 393(3) Sl. 4 | 194G | 20,000 | 2% | 2% |
| Cash withdrawal – co-operative society | 393(3) Sl. 5D(a) | 194N | 3 crore | 2% | 2% |
| Cash withdrawal – others | 393(3) Sl. 5D(b) | 194N | 1 crore | 2% | 2% |
| Payment from National Savings Scheme deposits | 393(3) Sl. 6 | 194EE | 2,500 | 10% | 10% |
| Salary, remuneration, commission, bonus or interest to a partner | 393(3) Sl. 7 | 194T | 20,000 | 10% | 10% |
TDS – payments to non-residents
| Payment | New section | Old section | Limit (₹) | Rate |
|---|---|---|---|---|
| Accumulated balance due to an employee | 392(7) | 192A | — | 10% |
| Payments to non-resident sportsmen / sports associations | 393(2) Sl. 1 | 194E | — | 20% |
| Interest on foreign currency loans / bonds (1 Jul 2012 – 1 Jul 2023) | 393(2) Sl. 2 | 194LC | — | 5% |
| Interest on rupee-denominated bonds (before 1 Jul 2023) | 393(2) Sl. 3 | 194LD | — | 5% |
| Interest on IFSC-listed bonds issued 1 Apr 2020 – 1 Jul 2023 | 393(2) Sl. 4E(a) | 194LC | — | 4% |
| Interest on IFSC-listed bonds issued on or after 1 Jul 2023 | 393(2) Sl. 4E(b) | 194LC | — | 9% |
| Interest from an infrastructure debt fund | 393(2) Sl. 5 | 194LB | — | 5% |
| Income on investment fund units | 393(2) Sl. 8 | 194LBB | — | 35% (company); 30% (others) |
| Income from a securitisation trust | 393(2) Sl. 9 | 194LBC | — | 35% (company); 30% (others) |
| Income on mutual fund units | 393(2) Sl. 10 | 196A | — | 20% or treaty rate, whichever is lower |
| Long-term capital gains on units (offshore fund) | 393(2) Sl. 12 | 196B | — | 12.5% |
| Interest or dividend on GDRs / bonds | 393(2) Sl. 13 | 196C | — | 10% |
| Long-term capital gains on GDRs / bonds | 393(2) Sl. 14 | 196C | — | 12.5% |
| Income of foreign institutional investors from securities | 393(2) Sl. 15 | 196D | — | 20% |
| Any other sum to a non-resident (not salary) | 393(2) Sl. 17 | 195 | — | Rate in force (or treaty rate) |
| Winnings from lottery, crossword, card game, gambling | 393(3) Sl. 1 | 194B | — | 30% |
| Winnings from online games | 393(3) Sl. 2 | 194BA | — | 30% |
| Winnings from horse races | 393(3) Sl. 3 | 194BB | — | 30% |
| Payments to a partner | 393(3) Sl. 7 | 194T | — | 10% |
TCS – tax collected at source
| Payment | New section | Old section | Limit (₹) | Rate |
|---|---|---|---|---|
| Sale of alcoholic liquor for human consumption | 394(1) Sl. 1 | 206C | — | 2% |
| Sale of tendu leaves | 394(1) Sl. 2 | 206C | — | 2% |
| Sale of timber or other forest produce | 394(1) Sl. 3 | 206C | — | 2% |
| Sale of scrap | 394(1) Sl. 4 | 206C | — | 2% |
| Sale of coal, lignite or iron ore | 394(1) Sl. 5 | 206C | — | 2% |
| Sale of a motor vehicle | 394(1) Sl. 6D(a) | 206C(1F) | Above 10 lakh | 1% |
| Sale of luxury goods (watches, art, collectibles, yachts, sunglasses, bags, shoes, sportswear, home theatre, horses) | 394(1) Sl. 6D(b) | 206C(1F) | Above 10 lakh | 1% |
| Foreign remittance (LRS) for education or medical treatment | 394(1) Sl. 7D(a) | 206C(1G) | Above 10 lakh | 2% |
| Foreign remittance (LRS) for other purposes | 394(1) Sl. 7D(b) | 206C(1G) | Above 10 lakh | 20% |
| Overseas tour package | 394(1) Sl. 8 | 206C(1G) | — | 2% |
| Lease of parking lot, toll plaza, mine or quarry | 394(1) Sl. 9 | 206C(1C) | — | 2% |
Points to note
- From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act: TDS is in sections 392 (salary) and 393 (other payments), TCS in section 394. The old 1961 section is shown beside each entry.
- Without a PAN, tax is deducted at the higher rate – generally 20% (5% for purchase of goods and e-commerce sales); TCS without a PAN is twice the rate or 5%, up to 20%.
- Rates are before surcharge and cess. For non-residents, the treaty (DTAA) rate applies when lower and the documents are on record.
- Always check the rate for your case against the Act or with our team before deducting.
Updated 21 May 2026. Official text: Income Tax Department.
What are the new TDS sections from 1 April 2026?
The Income-tax Act, 2025 puts TDS on salary in section 392, TDS on all other payments in section 393 (residents, non-residents and some payments to anyone) and TCS in section 394. The rates are largely as before; the table shows the old 1961 section beside each one.
What if the payee has no PAN?
Tax is deducted at a higher rate – generally 20% (5% for purchase of goods and e-commerce sales). For TCS it is twice the rate or 5%, up to 20%.