tds and tcs rates are published by the income tax department. the official source is the most reliable.
for fy 2026-27, the rates and sections have changed. the income tax act, 2025 came into effect from april 1, 2026 . old sections like 194c and 206c are now under sections 392, 393, and 394 .
official government source
the income tax department’s website is the primary source. they publish updated tds rate charts for each financial year.
website: www.incometaxindia.gov.in
under the “tds rates” section, the complete list is available. this is the authoritative source .
key tds rates for fy 2026-27
here are the most common tds rates and thresholds under the new act .
| nature of payment | old section | new section | rate | threshold |
|---|---|---|---|---|
| salary | 192 | 392 | slab rate | as per slab |
| premature epf withdrawal | 192a | 392(7) | 10% | ₹50,000 |
| interest on securities | 193 | 393 | 10% | ₹10,000 |
| dividends | 194 | 393 | 10% | ₹10,000 |
| interest (senior citizens) | 194a | 393 | 10% | ₹1,00,000 |
| interest (others) | 194a | 393 | 10% | ₹50,000 |
| lottery/gambling winnings | 194b | 393 | 30% | ₹10,000 |
| online gaming winnings | 194ba | 393 | 30% | no limit |
| contract payments (individual/huf) | 194c | 393 | 1% | ₹30,000 per contract or ₹1,00,000 aggregate |
| contract payments (others) | 194c | 393 | 2% | ₹30,000 per contract or ₹1,00,000 aggregate |
| insurance commission (individual) | 194d | 393 | 2% | ₹20,000 |
| life insurance payout | 194da | 393 | 2% | ₹1,00,000 |
| commission or brokerage | 194h | 393 | 2% | ₹20,000 |
| rent (plant and machinery) | 194i(a) | 393 | 2% | ₹50,000 per month |
| rent (land, building, furniture) | 194i(b) | 393 | 10% | ₹50,000 per month |
| immovable property purchase | 194ia | 393 | 1% | ₹50 lakh |
| rent by individual/huf | 194ib | 393 | 2% | ₹50,000 per month |
| technical fees | 194j(a) | 393 | 2% | ₹50,000 |
| professional fees | 194j(b) | 393 | 10% | ₹50,000 |
| mutual fund income | 194k | 393 | 10% | ₹10,000 |
| payment by individual/huf | 194m | 393 | 2% | ₹50 lakh |
| cash withdrawal (non-filers) | 194n | 393 | 2%/5% | ₹20 lakh / ₹1 crore |
| e-commerce participants | 194o | 393 | 0.1% | ₹5 lakh (individual/huf) |
| purchase of goods | 194q | 393 | 0.1% | ₹50 lakh |
| business benefits/perquisites | 194r | 393 | 10% | ₹20,000 |
| virtual digital assets | 194s | 393 | 1% | ₹10,000 (₹50,000 for specified persons) |
| payment to partners | 194t | 393 | 10% | ₹20,000 |
key tcs rates for fy 2026-27
tcs provisions are now under section 394 of the new act . the most notable change is the reduction in rates for foreign remittances under the liberalised remittance scheme.
| nature of collection | rate | threshold |
|---|---|---|
| sale of scrap, timber, liquor | 2% | none |
| sale of motor vehicle | 1% | above ₹10 lakh |
| luxury goods | 1% | above ₹10 lakh |
| lrs – education/medical | 2% | above ₹10 lakh |
| lrs – other purposes | 20% | above ₹10 lakh |
| overseas tour package | 2% | none |
for education and medical remittances, the tcs rate was reduced from 5% to 2% in budget 2026 . overseas tour packages now attract a uniform 2% tcs, replacing the earlier 5% (below ₹10 lakh) and 20% (above ₹10 lakh) structure .
forms and reporting codes
the new act introduced code-based reporting .
| form (new) | form (old) | purpose |
|---|---|---|
| form 138 | form 24q | quarterly tds statement – salary |
| form 140 | form 26q | quarterly tds statement – resident, non-salary |
| form 144 | form 27q | quarterly tds statement – non-resident |
| form 143 | form 27eq | quarterly tcs statement |
| form 141 | forms 26qb, 26qc, 26qd, 26qe | challan-cum-statement |
| form 130 | form 16 | tds certificate – salary |
| form 131 | form 16a | tds certificate – non-salary |
| form 133 | form 27d | tcs certificate |
payment codes must be used when filing tds returns :
-
payment code 1031 for purchase of goods (old section 194q)
-
payment code 1035 for e-commerce transactions (old section 194o)
-
payment code 1037/1038 for virtual digital assets (old section 194s)
other useful sources
traces portal. https://www.tdscpc.gov.in
managed by the income tax department. used for filing tds and tcs returns. also for checking challan status.
private portals. taxguru and other professional tax sites publish updated rate charts . useful for understanding changes. always cross-check with the official source.
frequently asked questions
1. what is the deadline for filing tds returns ?
quarterly. q1 due 31 july, q2 due 31 october, q3 due 31 january, q4 due 31 may .
2. what is the penalty for late filing of tds return ?
late filing fees and interest apply. exact amount depends on the delay. refer to the new act provisions.
3. where can tds rates for non-residents be found ?
treaty rates may apply under dtaa. the income tax department website provides rates for non-residents . check the specific treaty for reduced rates.
4. what is the tcs rate on foreign remittances for education ?
2% on the amount exceeding ₹10 lakh. no tcs on the first ₹10 lakh. if funded by an education loan, tcs is nil .
5. what is the tds rate on purchase of goods ?
0.1% when the purchase value exceeds ₹50 lakh in a financial year .
