TDS Rates Chart for FY 2026-27 (AY 2027-28): Thresholds & Sections Matrix

टीडीएस दरें एवं सीमा सूची (वित्तीय वर्ष 2026-27)

Complete statutory TDS rate chart for FY 2026-27 under the Income Tax Act: Section 192 (Salary), 194C (Contractors), 194J (Professional fees), 194I (Rent), 194H (Commission), 194A (Bank interest), 194Q (Purchase of goods), and Section 206AA penal rates.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Section 194J: 10% on professional fees (Doctors, CAs, Lawyers, Consultants); 2% on technical services and BPO/call centers (Threshold: ₹30,000/yr).

Section 194C: 1% for Individual/HUF contractors, 2% for Companies/LLPs (Threshold: ₹30k single bill / ₹1L aggregate).

Section 194I: 10% on land/building rent, 2% on plant/machinery (Threshold: ₹2,40,000/yr).

Section 194H: 2% on brokerage/commission exceeding ₹15,000/yr.

Section 194Q: 0.1% on purchase of goods exceeding ₹50 Lakh for large buyers (turnover > ₹10 Cr).

Section 206AA: Mandatory 20% flat TDS rate if the payee fails to furnish a valid PAN.

Who is Eligible & When Does it Apply?

Applicability #1

All deductors (Companies, LLPs, Firms, and Individuals/HUFs liable to tax audit u/s 44AB).

Step-by-Step Procedure & Compliance Roadmap

Identify Transaction Nature & Statutory Section

Match the payment nature with the corresponding TDS section.

Check Annual Threshold Exemption Limit

If cumulative payments in the FY exceed the threshold, deduct tax on the entire/incremental amount.

Verify Payee PAN on IT Portal

Confirm PAN validity and active status under Section 206AB before applying normal rates.

Deposit TDS by 7th of Following Month

Remit deducted tax via Challan ITNS 281 on the Income Tax e-filing portal.

Mandatory Documents Checklist

Vendor Invoices, Valid PAN of Vendor, Challan ITNS 281 payment receipts

Common Mistakes & Compliance Risks to Avoid

•Applying 10% on technical services instead of the reduced 2% rate under Section 194J.

•Deducting normal rate when vendor has not provided PAN.

Frequently Asked Questions

Is an individual tenant required to deduct TDS on house rent?

Yes, under Section 194-IB, an individual tenant paying monthly rent exceeding ₹50,000 must deduct 5% TDS once a year (in the last month of tenancy) without requiring a TAN number.

Interactive Tax Calculators

TDS Calculator

Related Tax Knowledge

TDS on Professional Fees (194J)Quarterly TDS Returns

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.