192Slab rate
Section 192 — TDS on Salary
Employer deducts tax on salary at the employee's slab rate (average rate of tax), computed on estimated annual income under the regime the employee opts for.
Rates, thresholds and examples →TDS compliance
TDS Rate Chart FY 2026-27
Section-wise TDS rates and thresholds for FY 2026-27 (AY 2027-28), incorporating the Finance (No. 2) Act 2024 rate cuts and the Finance Act 2025 threshold revisions. Every row links to a detailed section guide with the Income Tax Act 2025 mapping — from 1 April 2026, TDS provisions live in s.393 of the new Act.
Quick answer: the common rates for FY 2026-27 are 10% (interest u/s 194A, professional fees u/s 194J, partner payments u/s 194T), 2% (commission u/s 194H, technical fees u/s 194J, machinery rent u/s 194-I, individual rent u/s 194-IB), 1%/2% (contractors u/s 194C) and 0.1% (purchase of goods u/s 194Q). No PAN → 20% u/s 206AA. The non-filer higher rate (s.206AB) was removed w.e.f. 1 Apr 2025.
| Section (1961) | Nature of payment | Rate | Threshold | ITA 2025 |
|---|---|---|---|---|
| 192 | TDS on Salary | Slab rate | No fixed threshold — no TDS if estimated income is below the basic exemption / rebate level for the chosen regime | s.392 |
| 194A | TDS on Interest (Other Than Securities) | 10% | ₹50,000 p.a. for bank / co-operative society / post office interest (₹1,00,000 for resident senior citizens); ₹10,000 p.a. in any other case | s.393 |
| 194C | TDS on Payments to Contractors | 1% / 2% | ₹30,000 per single contract payment, or ₹1,00,000 aggregate in the FY | s.393 |
| 194H | TDS on Commission and Brokerage | 2% | ₹20,000 aggregate in the FY | s.393 |
| 194-I | TDS on Rent | 2% / 10% | ₹50,000 per month or part of a month | s.393 |
| 194-IB | TDS on Rent Paid by Individuals & HUF | 2% | ₹50,000 per month or part of a month | s.393 |
| 194J | TDS on Professional and Technical Fees | 2% / 10% | ₹50,000 aggregate per year, per category (professional fees and technical fees tested separately). No threshold for director sitting fees | s.393 |
| 194Q | TDS on Purchase of Goods | 0.1% | ₹50,00,000 aggregate purchases per seller per FY (TDS only on the excess) | s.393 |
| 194T | TDS on Payments to Partners | 10% | ₹20,000 aggregate per partner per FY | s.393 |
| 195 | TDS on Payments to Non-Residents | Rates in force / DTAA | No threshold — applies from ₹1 if the sum is chargeable to tax in India | s.393 |
Rates for payments to residents; no surcharge/cess except u/s 192 and 195. ITA 2025 mappings from the official CBDT concordance — full index at harunraaj.com/ita-2025.
Section-wise guides
194A10%
Section 194A — TDS on Interest (Other Than Securities)
10% TDS on interest other than interest on securities — bank FD/RD interest, inter-corporate loans, unsecured loan interest. Higher thresholds for bank interest and senior citizens from 1 Apr 2025.
Rates, thresholds and examples →194C1% / 2%
Section 194C — TDS on Payments to Contractors
1% (individual/HUF payee) or 2% (other payees) on payments for carrying out any work, including supply of labour, advertising, catering, and job-work.
Rates, thresholds and examples →194H2%
Section 194H — TDS on Commission and Brokerage
2% on commission or brokerage (other than insurance commission) above ₹20,000 per year. Rate cut from 5% to 2% on 1 Oct 2024; threshold raised to ₹20,000 on 1 Apr 2025.
Rates, thresholds and examples →194-I2% / 10%
Section 194-I — TDS on Rent
2% on rent for plant & machinery, 10% on rent for land, building, or furniture — where rent exceeds ₹50,000 per month or part thereof (from 1 Apr 2025).
Rates, thresholds and examples →194-IB2%
Section 194-IB — TDS on Rent Paid by Individuals & HUF
2% TDS by individuals/HUF (not covered by s.194-I) paying rent above ₹50,000 per month — deducted once a year from the last month's rent, no TAN needed.
Rates, thresholds and examples →194J2% / 10%
Section 194J — TDS on Professional and Technical Fees
10% on professional fees, royalty, and non-compete fees; 2% on technical services, call-centre payments, and film-distribution royalty — above ₹50,000 per year (from 1 Apr 2025).
Rates, thresholds and examples →194Q0.1%
Section 194Q — TDS on Purchase of Goods
0.1% on purchase consideration exceeding ₹50 lakh per seller per year — applies to buyers with turnover above ₹10 crore in the preceding FY. The parallel TCS u/s 206C(1H) was removed on 1 Apr 2025.
Rates, thresholds and examples →194T10%
Section 194T — TDS on Payments to Partners
10% TDS by firms and LLPs on salary, remuneration, commission, bonus, or interest paid to partners, above ₹20,000 per year. New section — effective 1 Apr 2025.
Rates, thresholds and examples →195Rates in force / DTAA
Section 195 — TDS on Payments to Non-Residents
TDS on any sum chargeable to tax in India paid to a non-resident — at the rates in force under the Act or the applicable DTAA, whichever is beneficial. No monetary threshold.
Rates, thresholds and examples →What changed for FY 2026-27
- From 1 Apr 2026, the Income Tax Act 2025 is in force — TDS provisions are consolidated into s.393 (s.392 for salary). Returns referencing old 1961 section labels for post-April-2026 payments are invalid.
- Finance Act 2025 threshold revisions (from 1 Apr 2025) continue: 194A bank interest ₹50,000 (₹1,00,000 senior citizens), 194H ₹20,000, 194-I ₹50,000/month, 194J ₹50,000.
- s.194T (partner payments, 10% above ₹20,000) applies for its second full year.
- s.206AB (higher TDS for non-filers) and s.206C(1H) (TCS on sale of goods) stand removed.