IT Act 1961 → 2025 / TDS and TCS rates
TDS and TCS rate chart: old vs new sections
Every common TDS and TCS provision of the 1961 Act next to its section in the Income-tax Act, 2025, with the rate and the threshold below which no tax is deducted or collected, both old and new. Rows are listed by how often they come up in practice; sort by section number with the buttons.
Old: FY 2025-26 (Finance Act 2025) · New: tax year 2026-27 (Income-tax Act, 2025 as amended by Finance Act 2026)
1961 Act columns2025 Act columns
TDS — tax deducted at source
| Description | Old section (1961) | Old rate | New section (2025) | New rate | Old limit (no TDS/TCS up to) | New limit (no TDS/TCS up to) |
|---|---|---|---|---|---|---|
| Salary paid by an employer | 192 | Slab rates (average rate on estimated salary) | 392(1) | Slab rates (average rate on estimated salary) | No fixed limit — TDS only if tax is payable on estimated salary after the rebate (old 87A, new 156) | Same |
| Fees for professional or technical services, royalty, director remuneration (by a specified person) | 194J | 2% — technical services, film royalty, call centre; 10% — professional fees, other royalty, director fees, non-compete fee | 393(1) Sl. 6(iii) | 2% / 10% (same split) | ₹50,000 a year for each type; director fees: no limit | Same |
| Payments to contractors and sub-contractors, including supply of labour — from 1 April 2026 'work' expressly includes supply of manpower (s.402(47)(f)) | 194C | 1% — individual/HUF contractor; 2% — others | 393(1) Sl. 6(i) | 1% / 2% Manpower supply now covered | ₹30,000 single payment or ₹1,00,000 in the year | Same |
| Interest on deposits paid by a bank, co-operative bank or post office | 194A | 10% (rates in force) | 393(1) Sl. 5(ii) | 10% (rates in force) | ₹50,000 a year; ₹1,00,000 for senior citizens | Same |
| Interest other than on securities — paid by other payers (companies, NBFCs etc.; interest to partners is under 194T) | 194A | 10% (rates in force) | 393(1) Sl. 5(iii) | 10% (rates in force) MACT interest relief | ₹10,000 a year | Same; interest on motor accident claim (MACT) compensation: no TDS for individuals, ₹50,000 for others |
| Rent paid by businesses and other specified persons | 194-I | 2% — plant, machinery, equipment; 10% — land, building, furniture, fittings | 393(1) Sl. 2(ii) | 2% / 10% | ₹50,000 for a month or part of a month | Same |
| Commission or brokerage (other than insurance commission) | 194H | 2% | 393(1) Sl. 1(ii) | 2% | ₹20,000 a year | Same |
| Purchase of goods by a buyer whose turnover exceeded ₹10 crore in the previous year | 194Q | 0.1% of the amount above ₹50 lakh | 393(1) Sl. 8(ii) | 0.1% of the amount above ₹50 lakh | ₹50 lakh of purchases from a seller in the year | Same |
| Interest, royalty, technical fees and other sums paid to non-residents (not salary) | 195 | Rates in force, or DTAA rate if lower | 393(2) Sl. 17 | Rates in force, or DTAA rate if lower | No threshold | No threshold |
| Purchase of immovable property (other than agricultural land) from a resident | 194-IA | 1% of consideration or stamp duty value, whichever is higher | 393(1) Sl. 3(i) | 1% of consideration or stamp duty value, whichever is higher | No TDS if both consideration and stamp duty value are below ₹50 lakh | Deduct if consideration or stamp duty value is ₹50 lakh or more |
| Rent paid by individuals and HUFs not covered by 194-I (e.g. salaried tenants) | 194-IB | 2% | 393(1) Sl. 2(i) | 2% | ₹50,000 for a month or part of a month | Same |
| Salary, remuneration, commission, bonus or interest paid by a firm to its partners | 194T | 10% | 393(3) Sl. 7 | 10% | ₹20,000 a year | Same |
| Dividend paid by a domestic company to a resident | 194 | 10% | 393(1) Sl. 7 | 10% | ₹10,000 a year for an individual shareholder paid other than in cash | Same — now an exclusion in 393(4) Sl. 10 |
| Interest on securities (debentures, bonds) | 193 | 10% (rates in force) | 393(1) Sl. 5(i) | 10% (rates in force) | ₹10,000 a year | Same |
| Income from mutual fund units (not capital gains) | 194K | 10% | 393(1) Sl. 4(i) | 10% | ₹10,000 a year | Same |
| Insurance commission | 194D | 2% — payee other than a company; 10% — domestic company (rates in force) | 393(1) Sl. 1(i) | 2% / 10% (rates in force) | ₹20,000 a year | Same |
| Taxable sum received under a life insurance policy (including bonus) | 194DA | 2% of the income portion | 393(1) Sl. 8(i) | 2% of the income portion | ₹1,00,000 a year | Same |
| Benefit or perquisite given to a resident in the course of business or profession | 194R | 10% of value | 393(1) Sl. 8(iv) | 10% of value | ₹20,000 a year | Same |
| E-commerce operator paying e-commerce sellers and service providers | 194-O | 0.1% of gross amount | 393(1) Sl. 8(v) | 0.1% of gross amount | ₹5 lakh gross sales for an individual/HUF seller who gives PAN or Aadhaar | Same — now in 393(4) Sl. 11 |
| Transfer of virtual digital assets (crypto) | 194S | 1% | 393(1) Sl. 8(vi) | 1% | ₹50,000 a year when paid by a specified individual/HUF; ₹10,000 for others | Same — now in 393(4) Sl. 12 |
| Contract, professional fees or commission paid by individuals/HUFs not covered elsewhere | 194M | 2% | 393(1) Sl. 6(ii) | 2% | ₹50 lakh a year | Same |
| Cash withdrawals from a bank, co-operative bank or post office | 194N | 2%; non-filers: 2% above ₹20 lakh and 5% above ₹1 crore | 393(3) Sl. 5 | 2% Non-filer slab dropped | ₹1 crore (₹3 crore for a co-operative society); non-filers: ₹20 lakh | ₹1 crore (₹3 crore for a co-operative society); no separate non-filer slab |
| Winnings from lottery, crossword, card games, betting | 194B | 30% (rates in force) | 393(3) Sl. 1 | 30% (rates in force) | ₹10,000 in a single transaction | Same |
| Winnings from online games | 194BA | 30% on net winnings (rates in force) | 393(3) Sl. 2 | 30% on net winnings (rates in force) | No threshold — computed on net winnings | Same |
| Winnings from horse races | 194BB | 30% (rates in force) | 393(3) Sl. 3 | 30% (rates in force) | ₹10,000 in a single transaction | Same |
| Taxable withdrawal of EPF accumulated balance | 192A | 10% | 392(7) | 10% | Below ₹50,000 — no TDS | Same |
| Compensation on compulsory acquisition of immovable property | 194LA | 10% | 393(1) Sl. 3(iii) | 10% | ₹5 lakh a year | Same |
| Monetary consideration under a joint development agreement | 194-IC | 10% | 393(1) Sl. 3(ii) | 10% | No threshold | No threshold |
| Commission on sale of lottery tickets | 194G | 2% | 393(3) Sl. 4 | 2% | ₹20,000 a year | Same |
| Withdrawal from National Savings Scheme deposits | 194EE | 10% | 393(3) Sl. 6 | 10% | ₹2,500 a year | Same |
| Specified senior citizens aged 75+ with only pension and bank interest | 194P | Slab rates — bank computes tax | 393(1) Sl. 8(iii) | Slab rates (rates in force) | As applicable | As applicable |
| Distributions by REITs and InvITs to resident unitholders | 194LBA | 10% (resident unitholder) | 393(1) Sl. 4(ii) | 10% | No threshold | No threshold |
| Income from units of an investment fund (AIF) to residents | 194LBB | 10% (resident unitholder) | 393(1) Sl. 4(iii) | 10% | No threshold | No threshold |
| Income from a securitisation trust to resident investors | 194LBC | 10% (resident investor) | 393(1) Sl. 4(iv) | 10% | No threshold | No threshold |
| Non-resident sportsmen, entertainers and sports associations | 194E | 20% | 393(2) Sl. 1 | 20% | No threshold | No threshold |
| Interest on specified foreign currency loans and bonds paid to non-residents | 194LC | 5%; IFSC-listed bonds: 4% (issued Apr 2020–Jun 2023) or 9% (on or after 1 Jul 2023) | 393(2) Sl. 2, 3, 4 | 5%; IFSC-listed bonds: 4% or 9% | No threshold | No threshold |
| Interest paid by an infrastructure debt fund to non-residents | 194LB | 5% | 393(2) Sl. 5 | 5% | No threshold | No threshold |
| Income from mutual fund units to non-residents | 196A | 20%, or DTAA rate if lower | 393(2) Sl. 10 | 20%, or DTAA rate if lower | No threshold | No threshold |
| Income from units (old 115AB, new 208) payable to an offshore fund | 196B | 10%; long-term capital gains 12.5% | 393(2) Sl. 11, 12 | 10%; long-term capital gains 12.5% | No threshold | No threshold |
| Income from foreign currency bonds or GDRs | 196C | 10%; long-term capital gains 12.5% | 393(2) Sl. 13, 14 | 10%; long-term capital gains 12.5% | No threshold | No threshold |
| Income of Foreign Institutional Investors from securities (not capital gains) | 196D | 20%, or DTAA rate if lower; specified fund 10% | 393(2) Sl. 15, 16 | 20%, or DTAA rate if lower; specified fund 10% | No threshold | No threshold |
TCS — tax collected at source
| Description | Old section (1961) | Old rate | New section (2025) | New rate | Old limit (no TDS/TCS up to) | New limit (no TDS/TCS up to) |
|---|---|---|---|---|---|---|
| Foreign remittance under LRS for education or medical treatment | 206C(1G) | 5% of the amount above ₹10 lakh; nil if remitted out of an education loan | 394(1) Sl. 7(a) | 2% of the amount above ₹10 lakh; nil if remitted out of an education loan Rate cut 5% → 2% | ₹10 lakh a year | Remittances exceeding ₹10 lakh in the tax year |
| Foreign remittance under LRS for other purposes (investment, gifts, family support) | 206C(1G) | 20% of the amount above ₹10 lakh | 394(1) Sl. 7(b) | 20% of the amount above ₹10 lakh | ₹10 lakh a year | Remittances exceeding ₹10 lakh in the tax year |
| Sale of an overseas tour programme package | 206C(1G) | 5% up to ₹10 lakh; 20% above ₹10 lakh | 394(1) Sl. 8 | 2% flat Rate cut to 2% flat | No threshold | No threshold |
| Sale of a motor vehicle, or notified luxury goods (watches, handbags, art etc.) | 206C(1F) | 1% | 394(1) Sl. 6 | 1% | Sale value above ₹10 lakh | Same |
| Sale of scrap | 206C(1) | 1% | 394(1) Sl. 4 | 2% Rate up 1% → 2% | No threshold | No threshold |
| Sale of alcoholic liquor for human consumption | 206C(1) | 1% | 394(1) Sl. 1 | 2% Rate up 1% → 2% | No threshold | No threshold |
| Sale of coal, lignite or iron ore | 206C(1) | 1% | 394(1) Sl. 5 | 2% Rate up 1% → 2% | No threshold | No threshold |
| Lease or licence of a parking lot, toll plaza, mine or quarry (not mineral oil) | 206C(1C) | 2% | 394(1) Sl. 9 | 2% | No threshold | No threshold |
| Sale of timber (under a forest lease or otherwise), or other forest produce (not tendu leaves) under a forest lease | 206C(1) | 2% | 394(1) Sl. 3 | 2% | No threshold | No threshold |
| Sale of tendu leaves | 206C(1) | 5% | 394(1) Sl. 2 | 2% Rate cut 5% → 2% | No threshold | No threshold |
Read with
- The 1961 Act columns show FY 2025-26 (as amended by Finance Act 2025). The 2025 Act columns apply from 1 April 2026 (tax year 2026-27), as amended by Finance Act 2026.
- For TDS, the Act is decided by when the deduction falls due — the earlier of credit or payment (payment alone for items such as salary, winnings and cash withdrawals). If that is on or after 1 April 2026, deduct and report under section 392/393/394.
- "Rates in force" means the rates in Part II of the First Schedule to the Finance Act of the year.
- LRS TCS: the 1961 Act expressly charged only the amount above ₹10 lakh. Section 394 Sl. 7 states the rate for remittances "exceeding ten lakh rupees"; the chart follows the same above-₹10-lakh basis.
- Interest on MACT compensation (393(4) Sl. 7(c)(iv), Finance Act 2026): no TDS when paid to an individual; for others no TDS up to ₹50,000 a year. Under the 1961 Act, the ₹50,000 limit applied to all payees.
- Resident payees: TDS and TCS are at the flat rate shown. No surcharge or cess is added, except on salary (and 194P), where tax is worked out at slab rates. For non-residents, surcharge (where applicable) and 4% cess are added.
- No PAN or Aadhaar: a higher rate applies under section 397(2) (old 206AA/206CC).
- TCS on sale of goods above ₹50 lakh (206C(1H)) stopped from 1 April 2025 and has no equivalent in section 394. The buyer (where its turnover exceeds ₹10 crore) deducts TDS under 393(1) Sl. 8(ii) (old 194Q) instead.
- Form 15G/15H declarations (old 197A) are now under section 393(6). Lower or nil deduction certificates (old 197) are under section 395.
Frequently asked
What is the new section for TDS under the Income-tax Act, 2025?
TDS on salary is under section 392 and almost all other TDS is in the tables of section 393: 393(1) for most payments to residents (old 193, 194, 194A, 194C to 194DA, 194H to 194M, 194-O to 194S, and the resident parts of 194LBA/LBB/LBC), 393(2) for non-residents (old 195, 196A to 196D, 194E, 194LB, 194LC and the non-resident parts of 194LBA/LBB/LBC) and 393(3) for payments to any person (old 194B, 194BA, 194BB, 194G, 194N, 194EE, 194T). 192A is 392(7). TCS (old 206C) is section 394.
Have TDS rates changed under the new Income-tax Act?
Most TDS rates and thresholds carry over unchanged from FY 2025-26. The changes: the separate non-filer slab for cash withdrawals (old 194N: ₹20 lakh, up to 5%) does not appear in section 393(3); interest on motor accident claim compensation paid to an individual is free of TDS (Finance Act 2026); and supply of manpower is expressly 'work' for contractor TDS at 1%/2%.
What changed in TCS rates from 1 April 2026?
Finance Act 2026 set TCS at 2% on liquor, scrap, coal/lignite/iron ore (up from 1%) and tendu leaves (down from 5%). TCS on LRS remittances for education or medical treatment is cut from 5% to 2%, and overseas tour packages now attract a flat 2% instead of 5%/20%.
What is the new section for 194J and 194C?
194J (professional and technical fees) is section 393(1), Table Sl. No. 6(iii). 194C (contractors) is section 393(1), Table Sl. No. 6(i). Rates and thresholds are unchanged: 2%/10% above ₹50,000 (director fees: no threshold) and 1%/2% above ₹30,000 or ₹1 lakh.
Which section applies to TDS deducted in April 2026?
If the deduction falls due on or after 1 April 2026 — the earlier of credit or payment, or payment alone for items like salary and winnings — the Income-tax Act, 2025 applies, so the deduction is under section 392 or 393 and the TCS under 394.