Extract of TDS Rates for the FY 2026-27
TDS Applicable to Regular Business/Profession (Turnover ≥ ₹1 Cr or Professional Receipts ≥ ₹50 Lakh)
| Nature of Payment | Old Section (ITA, 1961) | New Code | Rate of TDS | Threshold Limit |
| Commission or brokerage | 194H | 1006 | 2% of the amount of commission or brokerage | ₹20,000 or more in aggregate in a financial year |
| Rent of immovable property with furniture | 194I(b) | 1009 | 10% of the rent | ₹50,000 or more per month |
| Rent of Plant & Machinery | 194I(a) | 1008 | 2% of the rent | ₹50,000 or more per month |
| Interest payment (other than securities) | 194A | 1022 | 10% of the interest (if PAN is furnished; else higher) | ₹10,000 or more in aggregate in a financial year |
| Contractual payment (to contractor) | 194C | 1023 & 1024 | 1% if payee is Individual or HUF; 2% for others | ₹30,000 per bill or ₹1,00,000 in aggregate in a financial year, whichever is crossed |
| Professional fees | 194J | 1027 | 10% of the fees | ₹50,000 or more in aggregate in a financial year |
| Technical fees | 194J | 1026 | 2% of the technical fees | ₹50,000 or more in aggregate in a financial year |
| Sales promotion / reward to participant | 194R | 1034 | 10% of the value of benefit or perk | ₹20,000 or more in aggregate in a financial year
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| Fees or commission paid to director (other than salary) | 194J | 1028 | 10% of the fees/commission | Any payment (no monetary threshold, TDS applies on each payment) |
| Purchase of goods (by specified buyer) | 194Q | 1031 | 0.1% of the value of purchase | Annual purchase exceeding ₹50 lakh and total turnover more than ₹10 crore in the preceding year |
| Salary to Partner (in the case of a firm) | 194T | 1067 | 10% of the salary | ₹20,000 or more in aggregate in a financial year |
| Sale of Scrap (TCS) | 206C(1) | 1073 | 1% of Sale Consideration |
TDS Applicable to Persons Not Covered Above (e.g., Individual/HUF not having turnover ≥ ₹1 Cr or professional receipts ≥ ₹50 Lakh)
| Nature of Payment | Old Section (ITA, 1961) | Rate of TDS | Threshold Limit |
| Rent payment by Individual or HUF | 194IB | 2% of rent | ₹50,000 or more per month |
| Purchase of Immovable Property (by Individual/HUF) | 194IA | 1% of consideration | Agreement value more than ₹50 lakh (sale of immovable property) |
| Payment by Individual/HUF to contractor, professional or commission (aggregate) | 194M | 2% of payment | Total payments exceeding ₹50 lakh in a financial year |
Note: The above is not an exhaustive list of TDS rates. It is a summary of TDS rates that are generally applicable to regular business and professional transactions. Specific cases, exemptions, and special provisions may attract different rates or conditions as per the Income‑Tax Act and applicable notifications.