TDS Rate Chart FY 2026-27

TDS Rate Chart – FY 2026–27

Comprehensive Guide to Tax Deduction at Source

Sec 192 Salary As per Slab Based on estimated total income
Sec 194J Professional / Tech Fees 2% / 10% Threshold: ₹50,000
Sec 194C Contractor Payments 1% / 2% ₹30k (Single) / ₹1L (Aggregate)
Sec 194I Rent (Machinery/Land) 2% / 10% Threshold: ₹50,000 / month
Sec 194H Commission / Brokerage 2% Threshold: ₹20,000
Sec 194Q Purchase of Goods 0.10% Value > ₹50 Lakh
Sec 194T Payment to Partners 10% Remuneration & Interest > ₹20k
Sec 194B/BA/BB Winnings (Lottery/Games) 30% No basic exemption benefit
🚨 Important Practical Points
Timing of Deduction Earlier of Payment or Credit. Mere provision in books triggers TDS liability.
PAN Mandatory (Sec 206AA) Non-availability of PAN leads to deduction at a higher rate (usually 20%).
194Q vs 206C(1H) If 194Q (TDS) applies, then 206C(1H) (TCS) is not applicable. Priority goes to TDS.
Impact of Non-Compliance Interest (1% - 1.5%), 30% Expense Disallowance, and potential penalties.