Income-tax Act, 2025
TDS Rate Applicable from the Financial Year 2026-27
Comparition with New Section with Old Section (Applicable with effect from 01.04.2026)
Old Section
New Sec. 393 TDS payment
Sr. No. Nature of Payment (Income-tax Rate Threshold
Ref Code
Act, 1961)
Form 138 Salary (Earlier Form 24Q)
1 Salary — Government employees (other than Union Govt.) 392 192 1001 As per Slab As per Slab
2 Salary — Employees other than Government Employees 392 192 1002 As per Slab As per Slab
3 Salary — Indian Government employees (Union Govt.) 392 192 1003 As per Slab As per Slab
EPF Withdrawal — accumulated balance due to employee (EPF Scheme 1952).
4 392(7) 192A 1004 10% Nil
Also applicable for non-resident employees in Form 144.
Old Section
New Sec. 393 TDS payment
Sr. No. Nature of Payment (Income-tax Rate Threshold
Ref Code
Act, 1961)
Form 140 Other Than Salary (Earlier Form 26Q)
5 Insurance Commission 393(1) – 1(i) 194D 1005 2% ₹20,000
6 Commission/Brokerage (Other Than Insurance) 393(1) – 1(ii) 194H 1006 2% ₹20,000
7 Rent (Individual/HUF) 393(1) – 2(i) 194IB 1007 2% ₹50,000/month
8 Rent (Others)
- Plant and Machinery 393(1) – 2(ii) 194I 1008 2% ₹50,000/month
- Land and Building (including
Office Building) 393(1) – 2(ii) 194I 1009 10% ₹50,000/month
9 Sale of Immovable Property 393(1) – 3(i) 194IA 1010 1% ₹50 lakh
10 Compensation on compulsory acquisition of immovable property 393(1) – 3(iii) 194LA 1012 10% ₹5 lakh
Income from units of specified Mutual Fund / Administrator of specified
11 393(1) – 4(i) 194K 1013 10% ₹10,000
undertaking / specified company
12 Income from units of Business Trust — Rent (REIT, to resident unit holder) 393(1) – 4(ii) 194LBA 1016 10% Nil
Income from AIF (Category I or II, Section 224) to resident unit holders — non-
13 393(1) – 4(iii) 194LBB 1017 10% Nil
exempt portion
14 Income from Securitisation Trust (Section 221) to resident investors 393(1) – 4(iv) 194LBC 1018 10% Nil
15 Interest on Securities 393(1) – 5(i) 193 1019 10% ₹10,000
16 Bank Interest 393(1) – 5(ii) 194A 1020/1021 10% ₹50K / ₹1L
Interest by other specified payers — not a Bank or Post Office (non-bank
17 393(1) – 5(iii) 194A 1022 10% ₹10,000
interest)
18 Contractor Payment
- Individual and HUF 393(1) – 6(i) 194C 1023 1% ₹30,000 Single Transaction
- Others 393(1) – 6(i) 194C 1024 2% and Agreegate ₹ 1,00,000
19 Professional/Technical Fees
- Technical Services/Royalty/
393(1) – 6(iii) 194J 1026 2% ₹50,000
operation of call centre;
- Professional Fees 393(1) – 6(iii) 194J 1027 10% ₹50,000
20 Director Remuneration 393(1) – 6(iii)(c) 194J 1028 10% Nil
21 Dividends declared by a domestic company (including on Preference Shares) 393(1) – 7 194 1029 10% Nil
22 Life Insurance Payout 393(1) – 8(i) 194DA 1030 2% ₹1,00,000
23 Purchase of Goods 393(1) – 8(ii) 194Q 1031 0.10% ₹50 lakh
24 Business Perquisite 393(1) – 8(iv) 194R 1033/1034 10% ₹20,000
25 Sales by e-commerce participant through e-commerce operator platform 393(1) – 8(v) 194O 1035 0.10% Nil
26 Virtual Digital Asset 393(1) – 8(vi) 194S 1037/1038 1% Nil
27 Salary, remuneration, commission, bonus or interest paid to a partner 393(3) – 7 194T 1067 10% ₹20,000