Free tool | FY 2026-27
TDS Rate Chart
Complete TDS rate reference under the Income Tax Act 2025. Pick a payment type, see the rate, threshold and PAN-absent rule, and find your old Section 194X mapped to the new Section 393 payment code.
What changed in 2026
Section 194-series → Section 393 payment codes
Effective 1 April 2026, the Income Tax Act 2025 consolidates all non-salary TDS into Section 393. Salary TDS sits under Section 392; TCS under Section 394. The familiar Section 194 series (194A, 194C, 194J, 194I, 194H, 194Q, 194R, 194O, 194S, 194T, 194B, 194BA, 194N, etc.) is now identified by numeric payment codes (1004–1067) within Section 393.
Rates and thresholds for FY 2026-27 are largely unchanged from the 194-series, the renaming is structural, not substantive. Use the old → new mapping table below to find your section.
Section 194 → Section 393 mapping (FY 2026-27)
All 24 non-salary TDS payment codes under Section 393. Old section reference shown alongside for the transition period.
| Legacy Section | New Section (IT Act 2025) | Nature of Payment | Rate | Threshold (FY 2026-27) | No PAN |
|---|---|---|---|---|---|
| 192A | 392 (PF clause) | EPF Withdrawal, accumulated balance of provident fund | 10% | ₹50,000 | 20% |
| 193 | 393(1) · Sl. 5(i) | Interest on Securities | 10% | ₹10,000 | 20% |
| 194 | 393(1) · Sl. 7 | Domestic Dividend (by domestic company) | 10% | ₹10,000 | 20% |
| 194A | 393(1) · Sl. 5(ii) | Bank Interest, Senior Citizen | 10% | ₹1,00,000 | 20% |
| 194A | 393(1) · Sl. 5(ii) | Bank Interest, Non-Senior | 10% | ₹50,000 | 20% |
| 194A | 393(1) · Sl. 5(iii) | Non-Bank Interest | 10% | ₹10,000 | 20% |
| 194B | 393(3) · Sl. 1 | Lottery / Crossword / Card Game Winnings · Surcharge applicable | 30% | ₹10,000 | 30% |
| 194BA | 393(3) · Sl. 2 | Online Game Winnings · Surcharge applicable | 30% | No threshold | 30% |
| 194C | 393(1) · Sl. 6(i) | Contract, Individual / HUF | 1% | ₹30,000 single / ₹1,00,000 aggregate | 20% |
| 194C | 393(1) · Sl. 6(ii) | Contract, Other (Company / Firm) | 2% | ₹30,000 single / ₹1,00,000 aggregate | 20% |
| 194D | 393(1) · Sl. 1(i) | Insurance Commission | 5% | ₹20,000 | 20% |
| 194H | 393(1) · Sl. 1(ii) | Commission / Brokerage (non-insurance) | 2% | ₹20,000 | 20% |
| 194I(a) | 393(1) · Sl. 2 | Rent, Plant, Machinery or Equipment | 2% | ₹6,00,000 / FY | 20% |
| 194I(b) | 393(1) · Sl. 2 | Rent, Land, Building or Furniture | 10% | ₹6,00,000 / FY | 20% |
| 194J | 393(1) · Sl. 6(iii) | Technical Services / Call Centre / Film Royalty | 2% | ₹50,000 | 20% |
| 194J | 393(1) · Sl. 6(iii) | Professional Services | 10% | ₹50,000 | 20% |
| 194J | 393(1) · Sl. 6(iii) | Director Remuneration / Fees / Commission | 10% | No threshold | 20% |
| 194K | 393(1) · Sl. 4(i) | Mutual Fund Income | 10% | ₹10,000 | 20% |
| 194N | 393(3) · Sl. 5 | Cash Withdrawal (above threshold) | 2% | ₹1,00,00,000 | 20% |
| 194O | 393(1) · Sl. 8(v) | E-Commerce Sales (operator → participant) | 1% | ₹5,00,000 | 20% |
| 194Q | 393(1) · Sl. 8(ii) | Purchase of Goods (payer turnover > ₹10 Cr) | 0.1% | ₹50,00,000 / vendor / FY | 20% |
| 194R | 393(1) · Sl. 8(iv) | Business Perquisite (cash benefit in business / profession) | 10% | ₹20,000 | 20% |
| 194S | 393(1) · Sl. 8(vi) | VDA Transfer (virtual digital asset, cash) | 1% | ₹50,000 | 20% |
| 194T | 393(3) · Sl. 7 | Partner Remuneration (salary / interest paid to partner) | 10% | ₹20,000 | 20% |
| 195 | 393(2) · Sl. 17 | Non-Resident Payments (general) · DTAA may apply | 20% | No threshold | 20% |
Rates and thresholds shown for FY 2026-27 (CBDT notifications to April 2026). Surcharge and 4% Health & Education cess applicable per the Income Tax Act. Salary TDS (Section 192 → Section 392) is slab-computed on annual income, not shown here. Section 393 structure: 393(1) for residents, 393(2) for non-residents, 393(3) for special categories (lottery, gaming, partner, cash withdrawal). Sl. = Serial number in the Section 393 schedule table.
Calculator
TDS Calculator
Pick the section / payment type, enter the amount and PAN status, and get the rate, threshold check and TDS due.
Fees for professional services (legal, medical, engineering, etc.).
Legacy
194J
New (IT Act 2025)
393(1) · Sl. 6(iii)- Threshold
- ₹50,000
- Above threshold?
- Yes, TDS applies
- Applicable rate
- 10%
- TDS to deduct
- ₹ 10,000
Add 4% Health & Education cess on top, plus surcharge per slab. For lower-deduction certificates, beneficial DTAA rates and special rules, consult your tax advisor.
How TDS works under the Income Tax Act 2025
Tax Deducted at Source (TDS) sits in Sections 392-394 of the Income Tax Act 2025 (Section 392 salary, Section 393 non-salary, Section 394 TCS). When a specified payment is made, the payer deducts a percentage and deposits it with the government on behalf of the payee. Quarterly returns (Form 24Q for salary, Form 26Q for non-salary residents, Form 27Q for non-residents) and TDS certificates (Form 16 / 16A) flow from the deduction.
Why the renaming? The 1961 Act had over 25 standalone non-salary TDS sections accumulated over six decades. The 2025 Act consolidates them under one section (393) with numeric payment codes, easier to amend, easier to extend, cleaner for technology systems. The substantive law (rate, threshold, payee class) is unchanged for FY 2026-27.
Section thresholds matter. Most payment codes only trigger above a minimum value. Some (like contractor payments under code 1023/1024 / legacy 194C) have both a single-payment threshold and an annual aggregate threshold, once aggregate is crossed, every prior payment in the FY becomes subject to TDS retroactively.
PAN matters. If the payee does not furnish a valid PAN, the TDS rate is the higher of the section rate, 20% or the rate-in-force (the equivalent of the old Section 206AA rule). The calculator factors this in when you uncheck the PAN box.
TDS FAQ
Common questions
Is Section 194C still valid?
194C (and the entire 194-series) is the section name from the Income Tax Act 1961. Effective 1 April 2026, the Income Tax Act 2025 supersedes the 1961 Act, and 194C is now Section 393 payment code 1023 (Individual/HUF) or 1024 (Other). The substantive rate and threshold are unchanged, it's a structural rename, not a rate change. Returns filed for FY 2026-27 onwards reference the new payment codes.
What happens to legacy 194 references in my contracts and TDS challans?
Legacy contracts referencing 194-series sections remain valid, the substantive obligation is preserved. New TDS challans, returns and certificates from FY 2026-27 onwards use Section 393 + payment code. Most ERP / TDS software (including OneFinOps) auto-maps legacy section to new payment code so no migration work is needed for ongoing payments.
Why payment codes instead of section numbers?
The 1961 Act accumulated 25+ standalone TDS sections over six decades, leading to numbering gaps and amendment complexity. The 2025 Act consolidates them under one section (393) with numeric codes, easier to amend (CBDT can add a new code without a new section), easier for software systems to enumerate, and cleaner for return filing where every payment fits a code.
How do I find the right payment code for my payment?
Match the nature of payment to the description in the chart above. Common ones: contractor work → 1023/1024 (legacy 194C), professional services → 1027 (legacy 194J), rent on building → 1009 (legacy 194I(b)), commission → 1006 (legacy 194H), interest from bank → 1021 (legacy 194A). When in doubt, your CA can confirm, using the wrong code causes a TRACES mismatch.
194Q vs 206C(1H), when does which apply?
Both cover high-value goods transactions. Code 1031 (legacy 194Q) is buyer-side TDS at 0.1% (when buyer's previous-year turnover > ₹10 Cr). 206C(1H), now under Section 394, is seller-side TCS at 0.1% (when seller's previous-year turnover > ₹10 Cr). When both could apply, CBDT clarification (June 2021, carried into the 2025 Act) says buyer's TDS takes precedence, the seller does not collect TCS on the same transaction.
What if the payee has no PAN?
Under the Income Tax Act 2025 (equivalent of the old Section 206AA), the TDS rate becomes the higher of the section rate, 20% or the rate-in-force. So a 1027 (Professional Services) payment without PAN is at 20%, not 10%. The calculator applies this when you uncheck the PAN box.
What about lower-deduction certificates?
If the payee has a lower-deduction certificate (the equivalent of the old Section 197), the rate in the certificate applies for the period and payments covered. The calculator does not factor in certificates; apply the certificate rate manually for those payees, or use OneFinOps which honours certificate rates per vendor.
How do I file TDS returns under the new act?
Quarterly: Form 24Q (salary), Form 26Q (non-salary residents), Form 27Q (non-residents). The form structure now requires payment code (1004-1067) per row instead of the legacy section. Due dates: 31 July (Q1), 31 October (Q2), 31 January (Q3), 31 May (Q4). Form 16 (annual) for salary by 15 June; Form 16A (quarterly) within 15 days of return filing. OneFinOps automates the whole quarterly cycle including the new payment code mapping.
Free download
TDS rate chart FY 2026-27 (PDF).
The full chart with all legacy Section 194 sub-sections mapped to new Section 393 payment codes. Includes thresholds, PAN-absent rates, and quarterly TDS return form mapping. Print and stick on the AP team wall.
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Run TDS on OneFinOps.
Auto-deduction at the line item with the new Section 393 payment codes, challan reconciliation, vendor TDS tracking and Form 16/16A in bulk. From bill to TRACES, automated.