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TDS & TCS Rate Chart
FY 2026-27

Complete TDS (Section 393) and TCS (Section 394) rate chart under the new Income Tax Act 2025 for FY 2026-27. Includes threshold limits, surcharge applicability, and Form 138/140 reporting.

📅 Updated: April 2026⏱ ~15 min read📊 ITA 2025 Sec. 393 & 394🏛 Finance Act 2025
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📌 ITA 2025 effective from FY 2026-27. TDS provisions now under Sec. 393; TCS under Sec. 394. Form 24Q/26Q replaced by Form 138 (resident TDS) and Form 140 (non-resident TDS). Quarterly filing deadlines remain the same.

TDS Rates — Section 393 (FY 2026-27)

Nature of PaymentITA 2025 Sec.Threshold (₹)Rate (%)Higher rate if PAN invalid
Salary393(1)(a)As per slabAs per slab20%
Premature EPF withdrawal (>5 yrs)393(1)(b)50,00010%20%
Winnings from lottery/crossword393(1)(c)10,00030%30%
Horse race winnings393(1)(d)10,00030%30%
Interest (other than bank)393(1)(f)5,00010%20%
Interest (bank/post office)393(1)(e)40,000 / 50,000 (senior)10%20%
Dividend393(1)(g)5,00010%20%
Winning from online games393(1)(h)NIL30%30%
Commission / Brokerage393(1)(i)15,0005%20%
Rent — Land & Building393(1)(r)2,40,000 p.a.10%20%
Rent — Plant & Machinery393(1)(r)2,40,000 p.a.2%20%
Professional / Technical fees393(1)(k)30,00010% / 2%20%
Contractor payment393(1)(j)30,000 / 1,00,000 p.a.2% (company) / 1%20%
Immovable property purchase393(1)(s)50,00,0001%20%
Cash withdrawal (>1 Cr)393(1)(t)1,00,00,0002%2%
Payment to NR / Foreign Company393(2)NILAs per DTAA / 40%N/A

TCS Rates — Section 394 (FY 2026-27)

Nature of TransactionThreshold (₹)TCS Rate (%)
Sale of alcoholic liquor for human consumptionNIL1%
Timber / Forest produceNIL2.5%
Minerals (coal, lignite, iron ore)NIL1%
Sale of motor vehicle (> ₹10 lakh)10,00,0001%
Foreign remittance — LRS (education loan)7,00,0000.5%
Foreign remittance — LRS (other)7,00,00020%
Overseas tour package7,00,00020%
Sale of goods (B2B, turnover > 10 Cr)50,00,0000.1%
Sale of bullion > ₹2 lakh2,00,0001%
Sale of jewellery > ₹5 lakh5,00,0001%

Surcharge & Health & Education Cess

DeducteeSurchargeH&E CessEffective Maximum Rate
Individual / HUF (income < ₹50 lakh)Nil4%Base rate × 1.04
Individual (₹50 lakh – ₹1 Cr)10%4%Base rate × 1.144
Individual (₹1 Cr – ₹2 Cr)15%4%Base rate × 1.196
Individual (> ₹2 Cr)25%4%Base rate × 1.30
Domestic company7% / 12%4%Varies
Foreign company2% / 5%4%Varies
Note: Surcharge NOT applicable on TDS for payments to non-residents under DTAA where DTAA rate applies without surcharge.

Key Compliance Deadlines

QuarterPeriodForm 138 / 140 Due Date
Q1Apr – Jun 202631 July 2026
Q2Jul – Sep 202631 October 2026
Q3Oct – Dec 202631 January 2027
Q4Jan – Mar 202731 May 2027

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