Below is a practical FY 2026-27 TDS/TCS rate chart for reference. Old section numbers are shown for convenience, while any new-act reporting references are included only where applicable and should be verified with the latest official notification or portal guidance.
TDS Rate Chart & Payment Codes for Resident Indians (Tax Year 2026-27)
Welcome to the fully overhauled and unified TDS (Tax Deducted at Source) master guide for Resident Individuals and corporate entities. Effective for **Tax Year 2026-27**, this matrix structures all deductions under the statutory provisions of the new Income Tax Act, 2025, replacing the old section designations from the 1961 Act.
Important: Under the unified Act, the traditional concept of an “Assessment Year” has been replaced by the direct “Tax Year” format. These provisions apply to all taxable amounts credited or paid to a resident on or after 1st April 2026.
🔹 Consolidated TDS Matrix: Sections, Payment Codes & Rates
| New Law Ref. (Old Section) | Return Code | Nature of Payment / Remuneration Types | Statutory Threshold (₹) | TDS Rate |
|---|---|---|---|---|
| Sec. 392(1) (Old 192) | 1001 | Salary Income | As per income tax slab | Slab Rate |
| Sec. 392(7) (Old 192A) | 1002 | EPF Premature Withdrawal (before 5 years of service) | > ₹50,000 | 10% |
| Sec. 393(1) [Sl.5(i)] (Old 193) | 1019 | Interest on Securities | > ₹10,000 | 10% |
| Sec. 393(1) [Sl.7] (Old 194) | 1029 | Any Dividends (other than specific corporate exemptions) | > ₹10,000 | 10% |
| Sec. 393(1) [Sl.5(ii)] (Old 194A) | 1020 | Interest other than Securities (Payee is a Senior Citizen) | > ₹1,00,000 | 10% |
| Sec. 393(1) [Sl.5(ii)] (Old 194A) | 1021 | Interest other than Securities (Payee is non-senior) | > ₹50,000 | 10% |
| Sec. 393(1) [Sl.5(iii)] (Old 194A) | 1022 | Other Interest types (Unsecured loans, non-specified deposits) | > ₹10,000 | 10% |
| Sec. 393(3) [Sl.1] (Old 194B) | 1058 | Winnings from Lotteries, Crosswords, Card games, or Gambling | > ₹10,000 (Per transaction) | 30% |
| Sec. 393(3) [Sl.2] (Old 194BA) | 1060 | Net Winnings from Online Games | No Threshold (At tax year end) | 30% |
| Sec. 393(3) [Sl.3] (Old 194BB) | 1061 | Winnings from Horse Races | > ₹10,000 (Per transaction) | 30% |
| Sec. 393(1) [Sl.6(i)] (Old 194C) | 1023 | Payments to Contractors / Explicit Manpower Supply (Individual/HUF) | > ₹30,000 single / > ₹1,00,000 aggregate | 1% |
| Sec. 393(1) [Sl.6(i)] (Old 194C) | 1024 | Payments to Contractors / Explicit Manpower Supply (Others/Corporate) | > ₹30,000 single / > ₹1,00,000 aggregate | 2% |
| Sec. 393(1) [Sl.1(i)] (Old 194D) | 1003 | Insurance Commission payouts | > ₹20,000 | 2% (Indi & HUF), 10% (other) |
| Sec. 393(1) [Sl.8(i)] (Old 194DA) | 1030 | Maturity Proceeds of Life Insurance Policy (on taxable element) | > ₹1,00,000 | 2% |
| Sec. 393(1) [Sl.4(i)] (Old 194EE) | 1004 | Payments in respect of Deposits under National Savings Scheme | > ₹2,500 | 10% |
| Sec. 393(1) [Sl.1(iv)] (Old 194G) | 1008 | Commission on Sale of Lottery Tickets | > ₹20,000 (increased from ealrier 15000) | 2% (reduced from earlier 5%) |
| Sec. 393(1) [Sl.1(ii)] (Old 194H) | 1006 | General Commission or Brokerage fees | > ₹20,000 | 2% |
| Sec. 393(1) [Sl.10] (Old 194I) | 1010 | Rent (Land, Building, Furniture, or Plant & Machinery) | > ₹6,00,000 (or ₹50,000 per month) | 2% (Plant/Mach), 10% (Immovable) |
| Sec. 393(1) [Sl.3(i)] (Old 194IA) | 1012 | Transfer consideration of Immovable Property (Non-agricultural) | > ₹50,00,000 (Higher of price/stamp value) | 1% |
| Sec. 393(1) [Sl.2(i)] (Old 194IB) | 1011 | Rent paid by non-audit Individuals/HUFs | > ₹50,000 per month | 2% |
| Sec. 393(1) [Sl.3(ii)] (Old 194IC) | 1013 | Monetary payments under Joint Development Agreements (JDA) | No Threshold | 10% |
| Sec. 393(1) [Sl.6(iii)] (Old 194J) | 1026 | Fees for Technical Services, Call Centres, or Film Royalties | > ₹50,000 | 2% |
| Sec. 393(1) [Sl.6(iii)] (Old 194J) | 1027 | Fees for Professional Services (Doctors, Lawyers, Accountants, etc.) | > ₹50,000 | 10% |
| Sec. 393(1) [Sl.6(iii)] (Old 194J) | 1028 | Remuneration / Sitting Fees paid to Directors (excluding regular salary) | > ₹50,000 | 10% |
| Sec. 393(1) [Sl.4(i)] (Old 194K) | 1013 | Payment of dividend by mutual Funds | > ₹10,000 | 10% |
| Sec. 393(1) [Sl.3(iii)] (Old 194LA) | 1014 | Payment of Compensation on Acquisition of Certain Immovable Property | > ₹5,00,000 | 10% |
| Sec. 393(1) [Sl.9(i)] (Old 194LBA) | 1037 | Business Trust payment to Resident Unit Holders | No Threshold | 10% |
| Sec. 393(1) [Sl.9(ii)] (Old 194LBB) | 1038 | Investment Fund income payment to Unit Holders | No Threshold | 10% |
| Sec. 393(1) [Sl.9(iii)] (Old 194LBC) | 1039 | Income from Investment in Securitization Trust | No Threshold | 10% |
| Sec. 393(1) [Sl.6(ii)] (Old 194M) | 1025 | Contract/Professional/Commission spend by specific non-audit Indiv/HUFs | > ₹50,00,000 | 2% |
| Sec. 393(3) [Sl.5] (Old 194N) | 1065 | Cash Withdrawal in excess of thresholds (Regular ITR Filers) | > ₹1,00,00,000 | 2% (Exceeding 20 Lakhs for Non-Filers: 2% up to 1 Cr, 5% above 1 Cr) |
| Sec. 393(1) [Sl.8(v)] (Old 194O) | 1035 | E-commerce operators paying E-commerce participants | > ₹5,00,000 (Individual/HUF only) | 0.1% |
| Sec. 393(1) [Sl.8(iii)] (Old 194P) | 1032 | Specified Senior Citizens (Age 75+ with only Pension/Interest) (ITR not required) | As per income tax slab | Slab Rate (Computed by Bank) |
| Sec. 393(1) [Sl.8(ii)] (Old 194Q) | 1031 | Purchase of physical goods exceeding statutory limits | > ₹50,00,000 (On the excess amount) | 0.1% |
| Sec. 393(1) [Sl.8(iv)] (Old 194R) | 1033 | Business or Professional Benefits/Perquisites (In kind or cash) | > ₹20,000 | 10% |
| Sec. 393(1) [Sl.8(vi)] (Old 194S) | 1036 | Transfer of Virtual Digital Assets (VDA / Crypto) | > ₹50,000 (Specified Person) / > ₹10,000 (Others) | 1% |
| Sec. 393(1) [Sl.1(iii)] (Old 194T) | 1007 | Remuneration to Partners (Interest, Salary, Bonus, Commission by Firm/LLP) | > ₹20,000 (Aggregate in Tax Year) | 10% |
📌 Key Compliance Directives & Notes
- Structural Consolidation: Under the 2025 Act framework, individual standalone deduction sections are consolidated. Deductors write out single master returns mapping to the code framework displayed above.
- Explicit Inclusion of Manpower Supply: Under Section 393 (the contractor threshold equivalent to old 194C), contract labour and manpower deployment are explicitly specified under the “works” umbrella, eliminating past litigation positions. Rate remains 1% for Individuals/HUF and 2% for Corporate entities.
- Motor Accident Claims Tribunal (MACT) Interest: Complete exemption applies from this tax year onwards. No TDS is to be deducted on compensation interest paid to a natural person, doing away with the old ₹50,000 cell limitation.
- Higher Rate under Section 206AA: Failure to provide a valid Permanent Account Number (PAN) will attract an automated default higher deduction of 20% or twice the standard statutory percentage, whichever evaluates higher.
- Omission of Non-Filer Verification: The previous friction points of checking active non-filer lists via old mechanisms (Sections 206AB and 206CCA) remain omitted to simplify the quarterly return processing workload for tax teams.
Disclaimer: This refreshed TDS matrix is prepared for tracking and information management purposes based on the finalized structural text of the Income Tax Act, 2025 and corresponding administrative rules. Users are strictly urged to verify transaction-specific classifications and localized notifications issued by the Central Board of Direct Taxes (CBDT) before processing statutory financial remittances.
NRI TDS Rate Chart for Tax Year 2026-27
This is the newly overhauled master TDS (Tax Deducted at Source) framework for Non-Resident Indians (NRIs) applicable for **Tax Year 2026-27**, effective for all payments or credits made on or after 1st April 2026. This layout is structured according to the clean-slated statutory provisions of the unified Income Tax Act, 2025.
DTAA Superiority Rule: Under the new Act, the core treatment of Double Taxation Avoidance Agreements (DTAA) remains unchanged. If a tax treaty between India and the NRI’s country of residence offers a more competitive rate than the domestic statutory rate, the lower treaty rate must be applied—subject to filing a valid Tax Residency Certificate (TRC) and Form 10F.
🔹 Complete NRI TDS Rate Table (Tax Year 2026-27)
| New Law Ref. (Old Section) | Nature of Payment | Threshold Limit (₹) | Applicable TDS Rate (+ Surcharge & Cess) |
|---|---|---|---|
| Sec. 392(1) (Old 192) | Salary (if service is physically rendered in India) | As per income slab | Slab Rate |
| Sec. 392(7) (Old 192A) | EPF Premature Withdrawal (before 5 years of service) | > ₹50,000 | 10% |
| Sec. 393(3) [Sl.1] (Old 194B) | Winnings from Lottery, Crossword Puzzle, Card Games, etc. | > ₹10,000 (per transaction) | 30% |
| Sec. 393(3) [Sl.2] (Old 194BA) | Net Winnings from Online Games | No Threshold (on net year-end winnings) | 30% |
| Sec. 393(3) [Sl.3] (Old 194BB) | Winnings from Horse Races | > ₹10,000 (per transaction) | 30% |
| Sec. 394(1) (Old 194C) | Payments to Contractors / Explicit Manpower Supply | No Threshold for NRIs | 1% (Indiv/HUF), 2% (Corporate) (if PE exists in India) |
| Sec. 394(1) (Old 194DA) | Payment in respect of Life Insurance Policy Maturity | > ₹1,00,000 | 2% (on the taxable component) |
| Old Sec. 194EE | Withdrawal from National Savings Scheme (NSS) | — | [Removed w.e.f. 01-04-2026 under Income Tax Act, 2025] |
| Sec. 394(2) (Old 194IA) | Purchase of Immovable Property from an NRI seller | No Threshold for NRIs | 20% for Long Term / 30% for Short Term Capital Gain (u/s 394 standard path) |
| Sec. 394(1) (Old 194IB) | Rent paid to an NRI by certain Individuals/HUFs | No Threshold for NRIs | 30% (Standard Non-Resident general rate path) |
| Sec. 394(1) (Old 194IC) | Payments under Joint Development Agreement (JDA) to an NRI | No threshold | 10% |
| Sec. 394(1) (Old 194J) | Fees for Professional Services, Technical Services, or Royalties | No Threshold for NRIs | 10% or 2% (based on asset categorization or DTAA) |
| Sec. 394(1) (Old 194LA) | Government Compensation on compulsory acquisition of property | No Threshold for NRIs | 10% |
| Old Sec. 194LB | Interest from Infrastructure Debt Fund | — | [Removed / Merged into General Master Non-Resident Sec. 394 w.e.f. 01-04-2026] |
| Sec. 394(3) (Old 194LBA) | Distribution of business trust income to non-resident unit holders | No threshold | 10% |
| Sec. 394(3) (Old 194LBB) | Income from Units of an Investment Fund (AIFs) | No threshold | 10% |
| Sec. 394(3) (Old 194LBC) | Income from Securitisation Trust payouts | No threshold | 30% (Foreign Corporate) / 25% (Non-Corporate) |
| Old Sec. 194LC | Interest from Indian Company on foreign currency loans/bonds | — | [Removed / Concessional window sunsetted w.e.f. 01-04-2026] |
| Old Sec. 194LD | Interest on specified Rupee Denominated Bonds/Govt Securities | — | [Removed / Sunsetted w.e.f. 01-04-2026] |
| Sec. 393(1) [Sl.8(v)] (Old 194O) | Payments by Indian E-commerce Operators to NRI participants | No Threshold for NRIs | 1% |
| Sec. 393(1) [Sl.8(ii)] (Old 194Q) | Purchase of Goods from an NRI seller (having an Indian PE) | > ₹50,00,000 | 0.1% |
| Sec. 393(1) [Sl.8(vi)] (Old 194S) | Transfer of Virtual Digital Assets (VDA / Crypto) to an NRI | > ₹10,000 | 1% |
| Sec. 394(1) (Old 195) | Master Omnibus Clause: Any other Indian-sourced revenue (including specific Capital Gains, Royalties, and FTS) | No Threshold | Rates vary by income class (mapped inside the sub-schedules below) |
| Sec. 394(4) (Old 196A) | Income from Units of Mutual Funds payable to Non-Residents | No threshold | 20% (or DTAA rate) |
| Sec. 394(4) (Old 196B) | Income from Off-shore Fund Units (including associated LTCG) | No threshold | 10% |
| Sec. 394(4) (Old 196C) | Income from Foreign Currency Bonds or GDRs of Indian Companies | No threshold | 10% |
| Sec. 394(5) (Old 196D) | Income of Foreign Institutional Investors (FIIs) from securities | No threshold | 20% |
| Sec. 393(1) [Sl.1(iii)] (New Code) | New Code Provision: Remuneration, Interest, or Commission paid by an Indian Firm/LLP to a Non-Resident Partner | > ₹20,000 | 10% |
Rates for Capital Gains for NRIs (Under the Unified Section 394 Matrix)
These baseline statutory rates do not include applicable surcharges and health/education cess. Deductors can access lower tax treatments only if a valid tax clearance certificate is obtained or clear DTAA compliance is maintained.
| Nature of Capital Gain Transaction | Statutory Baseline TDS Rate |
|---|---|
| Short-Term Capital Gains (STCG) on Listed Equity Shares / Equity Mutual Funds | 20% |
| Long-Term Capital Gains (LTCG) on Listed Equity Shares / Equity Mutual Funds | 12.5% (on the total long-term gain element) |
| Long-Term Capital Gains (LTCG) on Unlisted Shares, Properties, or Bonds | 12.5% (Standardized flat rate; indexation benefits stand removed) |
| Short-Term Capital Gains (STCG) on all other capital assets | 30% (Standard individual/corporate highest bracket path) |
📌 Important Compliance Notes for NRI Taxpayers & Deductors
- Removal of Indexation: For all asset classes sold by an NRI after the enforcement of the Income Tax Act, 2025, long-term capital gains are computed at a clean **12.5%** without indexation adjustments.
- PAN-Aadhaar Linkage & Higher Deduction (Sec. 206AA): If the NRI possesses an inoperative PAN or fails to yield verified documentation, the deduction automatically accelerates to **20%** or double the base rate, whichever scales higher.
- Surcharge Cap for Individuals: Under the unified tax rates, the maximum surcharge applicable on income matching dividend or capital gain pools is capped at **15%**. For general income structures, the progressive surcharges are:
- Total Income > ₹50 Lakhs to ₹1 Crore: 10%
- Total Income > ₹1 Crore to ₹2 Crore: 15%
- Total Income > ₹2 Crore: 25% (Maximum rate threshold)
- Health & Education Cess: An unalterable addition of **4%** is stacked directly atop the sum of the baseline income tax and calculated surcharge for all non-resident transactions.
Disclaimer: This NRI TDS Rate Chart is published by CACube (www.cacube.in) for reference and academic use. The layout is drafted according to the codified updates of the Income Tax Act, 2025. Because cross-border transactions require tracing multi-lateral tax instruments, users are requested to consult our professional international taxation panels at CACube before executing formal financial transactions.
TCS Rate Chart for Tax Year 2026-27 (FY 2026-27)
Welcome to the consolidated master guide for **Tax Collected at Source (TCS)** in India, valid for **Tax Year 2026-27**, effective for all applicable transactions starting 1st April 2026. Under the modern statutory blueprint of the Income Tax Act, 2025, the legacy provisions under Section 206C have been entirely streamlined into the unified **Section 396** sequence.
Compliance Note: Traditional terminology has moved forward. The system operates directly on the “Tax Year” standard. All collections map directly to the standardized numeric filing paths detailed in the table below.
🔹 Master TCS Rate Table (Tax Year 2026-27)
| New Law Ref. (Old Section) | Nature of Receipt / Asset Category | Threshold Limit (₹) | Statutory TCS Rate |
|---|---|---|---|
| Sec. 396(1)(a) (Old 206C(1)) | Alcoholic liquor for human consumption | No threshold | 1% |
| Sec. 396(1)(b) (Old 206C(1)) | Tendu leaves | No threshold | 5% |
| Sec. 396(1)(c) (Old 206C(1A)) | Timber obtained under a forest lease | No threshold | 2% |
| Sec. 396(1)(d) (Old 206C(1A)) | Timber obtained by any mode other than a forest lease | No threshold | 2% |
| Sec. 396(1)(e) (Old 206C(1A)) | Any other forest produce (excluding tendu leaves and timber) | No threshold | 2% |
| Sec. 396(1)(f) (Old 206C(1B)) | Scrap materials sale | No threshold | 1% |
| Sec. 396(1)(g) (Old 206C(1C)) | Parking lot, toll plaza, mining, and quarrying leases | No threshold | 2% |
| Sec. 396(1)(h) (Old 206C(1E)) | Minerals (including coal, lignite, and iron ore) | No threshold | 1% |
| Sec. 396(2) (Old 206C(1F)) | Sale of Motor Vehicles | Value exceeding ₹10 Lakhs | 1% (Per individual sale transaction) |
| Sec. 396(3) (Old 206C(1)) | Cash sale of commercial goods (excluding bullion/jewelry) | Cash receipt exceeding ₹2 Lakhs | 1% (Applies to single-day aggregates) |
| Sec. 396(5) (Old 206C(1G)) | Remittances under Liberalised Remittance Scheme (LRS) and Overseas Tour Packages | As per LRS Schedule below | See detailed breakdown matrix below |
| Old Sec. 206C(1H) | General sale of goods exceeding ₹50 Lakhs (Turnover > ₹10 Crore) | — | [Removed w.e.f. 01-04-2025 to eliminate 194Q TDS overlap] |
| Old Sec. 206CCA | Higher TCS penalty provisions for ITR non-filers | — | [Removed w.e.f. 01-04-2025 to reduce corporate compliance friction] |
✅ Detailed Breakdown of LRS & Overseas Tour Packages (Section 396(5))
The tiered threshold framework applies on an aggregate basis per Permanent Account Number (PAN) across the entirety of the current Tax Year:
| Nature of Outbound Remittance | Statutory Threshold (Per Tax Year via PAN) | Effective TCS Rate | Operational Guidelines |
|---|---|---|---|
| Educational Remittance (Funded by a recognized banking loan u/s 80E equivalent) | Exceeding ₹10 Lakhs | 0% | Fully exempt from collection across all transaction volumes. |
| Educational Outflows (Self-funded / Family remittances) | Exceeding ₹10 Lakhs | 5% | Applicable strictly on the quantum exceeding the ₹10 Lakh threshold line. |
| Medical Treatment Overseas (Including patient lodging and auxiliary care travel) | Exceeding ₹10 Lakhs | 5% | Applicable strictly on the quantum exceeding the ₹10 Lakh threshold line. |
| Overseas Tour Packages (Commercial operators booking international itineraries) | Up to ₹10 Lakhs Exceeding ₹10 Lakhs |
5% 20% |
Dual tiered rate structure: 5% up to the threshold, escalating to 20% flat on all excess amounts. |
| Other LRS Channels (Foreign equity/property investments, offshore gifts, maintenance of relatives) | Exceeding ₹10 Lakhs | 20% | Deduction hits 20% on the excess sum past the aggregate ₹10 Lakh mark. |
📌 Key Compliance Directives for Accounts Teams
- Unified Filing Layout: Under the modern 2025 Act codification, standard operations omit the separate verification step for non-filers. The regular base rate is collected directly without parsing retrospective filing registries.
- PAN Non-Furnishing Consequences: If a buyer or remitter fails to furnish a valid PAN or yields an inoperative link, the collection rate automatically scales up to **twice the base rate or 5%**, whichever calculates higher. For high-tier LRS categories where the base rate is 20%, it applies flat at 20%.
- Vehicle Sales Isolation Rule: The ₹10 Lakh trigger for motor vehicles applies strictly to individual invoice parameters. It does not look at aggregate fleet acquisitions compiled across a prolonged tax calendar by a corporate buyer.
Disclaimer: This statutory reference matrix is hosted by CACube (www.cacube.in) for instructional and information tracking use. It reflects the codified architecture of the Income Tax Act, 2025. Because commercial background variations alter specific transaction obligations, businesses must evaluate updates against CBDT administrative circulars prior to collecting statutory financial adjustments.