TDS Rates Chart 2026-27 Under Section 393: Complete Table (Income Tax Act 2025)

Section 393 of the Income-tax Act, 2025 is the single table that tells a payer when to deduct tax at source (TDS), at what rate and above what limit. Sub-section (1) covers payments to residents, sub-section (2) covers payments to non-residents, sub-section (3) covers winnings and a few other payments to any person, and sub-section (4) lists payments where no TDS applies. This guide puts the rates and thresholds from the Act, as amended by the Finance Act, 2026, into one chart for tax year 2026-27.

Salary is not in this table. TDS on salary sits in section 392. Everything below is taken from section 393, the related definitions in section 402, sections 397 and 398, and rule 218 of the Income-tax Rules, 2026. Where the Act says "rates in force", the rate is the one set by the Finance Act of the year, and this guide does not quote a figure for it.

How does section 393 work, in one picture?

Two rules in sub-section (1) apply to every row. Tax is deducted on the entire amount once the amount or the aggregate of amounts exceeds the threshold (section 393(1)(a)), and at the time of credit or payment, whichever is earlier (section 393(1)(c)). Credit to a "suspense account" or any similar account counts as credit to the payee (section 393(11)).

What are the TDS rates for payments to residents (section 393(1))?

Sl. No.	Payment	Payer	Rate	Threshold
1(i)	Insurance commission	Any person	Rates in force	Rs 20,000
1(ii)	Other commission or brokerage	Specified person	2%	Rs 20,000
2(i)	Rent	Person other than specified person	2%	Rs 50,000 for a month or part of a month
2(ii)	Rent	Specified person	2% machinery, plant, equipment; 10% land, building, furniture, fittings	Rs 50,000 for a month or part of a month
3(i)	Transfer of immovable property (not agricultural land)	Person other than those in 3(iii)	1% of the higher of consideration or stamp duty value	Rs 50 lakh (Note 3)
3(ii)	Consideration under the agreement in section 67(14), not in kind	Any person	10%	Nil
3(iii)	Compensation on compulsory acquisition of immovable property (not agricultural land)	Any person	10%	Rs 5,00,000
4(i)	Mutual fund units and similar units	Any person	10%	Rs 10,000
4(ii)	Distributed income to a business trust unitholder	Business trust	10%	Nil
4(iii)	Income from investment fund units	Investment fund (section 224)	10%	Nil
4(iv)	Income from a securitisation trust	Securitisation trust (section 221)	10%	Nil
5(i)	Interest on securities	Any person	Rates in force	Rs 10,000
5(ii)	Interest other than on securities	Bank, co-operative bank, post office (notified scheme)	Rates in force	Rs 1,00,000 senior citizen; Rs 50,000 others
5(iii)	Interest other than on securities	Specified person (other than 5(ii) payers)	Rates in force	Rs 10,000
6(i)	Contract work, including supply of labour	Designated person	1% individual or HUF contractor; 2% others	Rs 30,000 per sum, or Rs 1,00,000 aggregate
6(ii)	Contract work, professional fees, commission or brokerage	Individual or HUF not covered by 6(i), (iii), 1(ii)	2%	Rs 50 lakh
6(iii)	Professional fees, technical fees, director remuneration, royalty, section 26(2)(h) sums	Specified person	2% or 10% (see below)	Rs 50,000; Nil for director remuneration
7	Dividend, including on preference shares	Domestic company	10%	Nil
8(i)	Life insurance policy sum (the income part)	Any person	2% on the income in the sum	Rs 1,00,000
8(ii)	Purchase of goods	Buyer	0.1%	On the sum above Rs 50 lakh
8(iii)	Income of a specified senior citizen	Specified bank	Rates in force	As applicable
8(iv)	Business or professional benefit or perquisite	Specified person	10% of the value	Rs 20,000
8(v)	Sale of goods or services via an e-commerce platform	E-commerce operator	0.1% of gross amount	Nil
8(vi)	Transfer of a virtual digital asset	Any person	1%	Nil

Three finer points sit inside that table.

• Specified person (section 402(37)) means anyone who is not an individual or HUF, or an individual or HUF whose business turnover in the previous tax year exceeded Rs 1 crore or whose professional receipts exceeded Rs 50 lakh.
• Designated person (section 402(11)) for contract TDS covers the Government, local authorities, companies, co-operative societies, firms, trusts, societies and universities, among others. An individual or HUF is one only if the same Rs 1 crore or Rs 50 lakh turnover test is crossed.
• Sl. No. 6(iii) rates: 2% for technical fees, royalty on sale, distribution or exhibition of films, and payees engaged only in a call centre business. 10% for everything else in that row. Professional fees, technical fees, royalty and section 26(2)(h) sums have a Rs 50,000 threshold. Director remuneration has none.

Which payments to non-residents need TDS (section 393(2))?

Section 393(2) has 17 serial numbers. The rates that are fixed in the table are below. Many rows say "rates in force", or "as per Note 2" (20%, or a lower treaty rate if the payee holds the certificate under section 159(8)).

Sl. No.	Payment	Rate
1	Income under section 211 of a non-citizen sportsman, athlete or entertainer, or a non-resident sports association	20%
2, 3, 5	Specified interest on foreign-currency loans and bonds, rupee denominated bonds, and interest paid by an infrastructure debt fund	5%
4	Interest on bonds listed only on an IFSC exchange	4% (issued 1 April 2020 to 30 June 2023) or 9% (issued on or after 1 July 2023)
6	Business trust distributed income, Schedule V Sl. No. 3	5% for B(a); 10% for B(b)
7, 8, 9	Business trust, investment fund and securitisation trust income	Rates in force
10, 15	Mutual fund units (non-resident); Foreign Institutional Investor securities income	20%, or lower treaty rate (Note 2)
11	Offshore fund units income (section 208)	10%
12	Long-term capital gains on offshore fund units	12.5%
13	Interest or dividend on bonds or GDRs (section 209)	10%
14	Long-term capital gains on bonds or GDRs	12.5%
16	Specified fund under Schedule VI	10%
17	Any other interest or sum chargeable under the Act (not salary)	Rates in force

Under Note 3 to Sl. No. 17, the duty to deduct applies to all payers, whether or not the non-resident has a business connection or any other presence in India.

What are the TDS rates for winnings and other payments to any person (section 393(3))?

Sl. No.	Payment	Payer	Rate	Threshold
1	Winnings from lottery, crossword puzzle, card or other games, gambling or betting	Any person	Rates in force	Rs 10,000 for a single transaction
2	Winnings from online games	Any person	Rates in force	On net winnings (Note 1)
3	Winnings from horse races	Bookmaker or licensed race course operator	Rates in force	Rs 10,000 for a single transaction
4	Commission or prize to a lottery ticket seller	Any person	2%	Rs 20,000
5	Cash withdrawals	Bank, co-operative bank, post office	2%	Rs 3 crore (co-operative society recipient) or Rs 1 crore (others)
6	Amount referred to in section 80CCA(2)(a) of the 1961 Act	Any person	10%	Rs 2,500
7	Salary, remuneration, commission, bonus or interest to a partner	Firm	10%	Rs 20,000

When is no TDS deducted (section 393(4), (5) and (6))?

Section 393(4) lists conditions under which the Table rows do not apply. A few that matter in practice:

• Contract payments (Sl. No. 6(i)) to a goods-carriage contractor who owns ten or fewer goods carriages and gives a PAN declaration, subject to the payer furnishing the prescribed particulars.
• Contract payments and professional or technical fees (Sl. No. 6(i), 6(iii)) paid by an individual or HUF exclusively for personal purposes.
• Dividend to an individual shareholder paid by a mode other than cash, where the total for the year does not exceed Rs 10,000.
• E-commerce payments to an individual or HUF participant with gross sales up to Rs 5,00,000 who has given PAN or Aadhaar.
• Virtual digital asset consideration up to Rs 50,000 (qualifying individual or HUF payer) or Rs 10,000 (any other payer).
• Interest credited to a banking company, LIC, UTI or an insurer, and interest from specified deposits and securities (section 393(4), Sl. Nos. 6 and 7).

Section 393(5) bars TDS on amounts payable to the Government, the Reserve Bank of India, a Central Act corporation exempt from tax, and specified mutual funds. Under section 393(6), a resident individual (or a non-company, non-firm person) can give a written declaration that the tax on the estimated total income of the year will be nil, for the payments listed in that table. This relief does not apply where the aggregate of those payments exceeds the maximum amount not chargeable to tax, except for a resident individual aged 60 or more.

What if the payee has no PAN?

Section 397(2) requires the payee to give a valid PAN to the deductor. If the PAN is not furnished, tax is deducted at the highest of the table rate, the rate in force, or 20%. For Sl. No. 8(ii) and 8(v) the floor is 5% instead of 20%. For rent under Sl. No. 2(i), the extra deduction cannot exceed the rent for the last month of the tax year or of the tenancy (section 397(2)(e)). A declaration or an application for a lower-deduction certificate without a PAN is invalid (section 397(2)(f)).

Worked example 1: contract payments cross the aggregate limit

Assumptions (tax year 2026-27): Sharma Constructions Pvt Ltd (a company, so a designated person) pays Ravi, an individual interior contractor with a PAN. Because Ravi is an individual, the rate is 1% (Sl. No. 6(i)(a)). Threshold: Rs 30,000 per sum or Rs 1,00,000 in aggregate.

Date	Bill paid	Single sum above Rs 30,000?	Aggregate so far	TDS
June 2026	Rs 28,000	No	Rs 28,000	Nil
August 2026	Rs 27,000	No	Rs 55,000	Nil
October 2026	Rs 25,000	No	Rs 80,000	Nil
December 2026	Rs 25,000	No	Rs 1,05,000	1% x Rs 1,05,000 = Rs 1,050

The aggregate crosses Rs 1,00,000 with the December payment. Section 393(1)(a) says tax is deducted on the entire amount once the aggregate exceeds the threshold, so the tax is Rs 1,050 on Rs 1,05,000, not on the Rs 5,000 excess. The company deducts it from the December payment, so Ravi receives Rs 25,000 minus Rs 1,050 = Rs 23,950.

Worked example 2: professional and technical fees from a company

Assumptions (tax year 2026-27): Mehta Traders Pvt Ltd, a company, is a specified person because it is not an individual or HUF. It pays three resident payees in one year. Each is above its threshold.

Payee and payment	Row	Amount	Rate	TDS	Net paid
Chartered accountant, audit fee	6(iii)(a) of Col. B	Rs 80,000	10%	Rs 8,000	Rs 72,000
IT firm, technical services fee	6(iii)(b) of Col. B	Rs 1,20,000	2%	Rs 2,400	Rs 1,17,600
Director, commission	6(iii)(c) of Col. B	Rs 30,000	10%	Rs 3,000	Rs 27,000

The audit fee of Rs 80,000 is above the Rs 50,000 threshold, so 10% of Rs 80,000 is Rs 8,000. The technical fee is above Rs 50,000 and falls in the 2% slab for technical services, so 2% of Rs 1,20,000 is Rs 2,400. The director's commission has a nil threshold, so tax applies from the first rupee: 10% of Rs 30,000 is Rs 3,000. This assumes the director's remuneration is not already taxed under section 392.

Worked example 3: buying a flat

Assumptions (tax year 2026-27): Meena buys a resident seller's flat (not agricultural land). The agreement value is Rs 45,00,000. The stamp duty value is Rs 52,00,000. Sl. No. 3(i) applies.

1. Threshold test (Note 3): the consideration or the stamp duty value must be Rs 50 lakh or more. The stamp duty value is Rs 52,00,000, so TDS applies even though the agreement value is below Rs 50 lakh.
2. Base: 1% is charged on the higher of consideration and stamp duty value, which is Rs 52,00,000.
3. TDS: 1% x Rs 52,00,000 = Rs 52,000.

Under rule 218(3)(b), this tax is deposited within 30 days from the end of the month of deduction, with a challan-cum-statement in Form No. 141.

Worked example 4: interest for deducting late

Assumptions (tax year 2026-27): Tax of Rs 10,000 was deductible on 10 May 2026. It was deducted on 25 August 2026 and deposited on 5 September 2026. Section 398(3)(a) charges simple interest at 1% per month or part of a month from the date it was deductible to the date it is deducted, and at 1.5% per month or part of a month from deduction to payment.

Period	Months (part counts as full)	Rate	Interest
10 May to 25 August (not deducted)	3 full months to 10 August, plus part of a month = 4	1%	4 x 1% x Rs 10,000 = Rs 400
25 August to 5 September (deducted, not paid)	Part of 1 month = 1	1.5%	1 x 1.5% x Rs 10,000 = Rs 150
Total			Rs 550

Section 398(3)(b) requires this interest to be paid before the TDS statement is filed.

Real-life example: Priya, a freelance consultant

Priya is a freelance company-law consultant and bills a Bengaluru company Rs 90,000 for her professional fees. The company is a specified person, so Sl. No. 6(iii) applies. The Rs 90,000 is above the Rs 50,000 threshold, so the company deducts 10%, which is Rs 9,000, and pays her Rs 81,000. Priya claims the Rs 9,000 as credit when she files her return. Had she billed Rs 40,000 once in the year, no deduction would apply.

Real-life example: Anil's mother and her bank deposit

Anil's mother is a resident senior citizen with a fixed deposit that earns Rs 95,000 interest in the year. Her bank is a Sl. No. 5(ii) payer. The senior citizen threshold is Rs 1,00,000, so the bank deducts nothing. If the interest were Rs 1,10,000, the bank would deduct at the rate in force on the entire Rs 1,10,000. For a non-senior depositor, the Rs 50,000 threshold would already be exceeded at Rs 95,000. If her total tax for the year is nil, she can give the bank a section 393(6) declaration to stop deduction.

Real-life example: Imran forgets to share his PAN

Imran runs an interior firm (a partnership) and bills a company Rs 2,00,000 for contract work. He has not given his PAN. The normal rate for a non-individual contractor is 2% (Rs 4,000). Without a PAN, section 397(2)(b) uses the highest of the table rate, the rate in force and 20%, so the company deducts 20% of Rs 2,00,000, which is Rs 40,000. Imran receives Rs 1,60,000 and has to wait for credit in his return.

Can a payee get TDS deducted at a lower rate or not at all?

Yes. Under section 395(1), a payee whose total income justifies it can apply to the Assessing Officer for deduction at a lower rate or for no deduction. If the officer is satisfied, a certificate is issued, and the payer must then deduct at the certificate rate, or nothing, until the certificate's validity ends. Rule 213 sets the application procedure. For how to apply, see lower or nil TDS certificate.

Section 395(2) separately lets a payer of the non-resident sum in section 393(2), Sl. No. 17 apply to have only the taxable proportion of the sum determined, and tax is then deducted on that proportion only. Tax collected at source (TCS) is not part of this table; it sits in section 394.

When must the deducted tax be deposited?

Case	Deposit by	Rule
Deduction in any month other than March	7 days from the end of that month (the 7th of the next month)	218(2)(b)
Income or amount credited or paid in March	30 April	218(2)(a)
Rent under Sl. No. 2(i), immovable property under Sl. No. 3(i), contract work, professional fees, commission or brokerage under Sl. No. 6(ii), virtual digital asset consideration	30 days from the end of the month of deduction, with challan-cum-statement Form 141	218(3)
Government office paying without a challan	Same day	218(1)(a)
Quarterly payment permitted by the Assessing Officer (specified rows)	7 July, 7 October, 7 January, 30 April	218(4)

Rule 218(3)(e), inserted from 1 October 2026, also brings consideration for immovable property under section 393(2) Sl. No. 17 paid by a resident individual or HUF into the 30-day, Form 141 route.

What are the common mistakes with section 393?

• Deducting only on the excess. Once the threshold is crossed, the tax is on the whole amount, not only the part above it.
• Treating the threshold as per year when it is per month or per transaction. Rent is tested per month, winnings per single transaction, contract work against both a per-sum and an aggregate limit.
• Using the wrong rate because of "specified person". The status is decided by the previous tax year's turnover for an individual or HUF, so recheck it each April.
• Ignoring the no-PAN rule. A missing PAN pushes the rate to at least 20% (5% for Sl. No. 8(ii) and 8(v)).
• Missing the 30 April date for March. The March deposit date differs from the 7th that applies to other months.
• Forgetting the exemptions. Personal-purpose payments by an individual or HUF, and nil-tax declarations under section 393(6), can remove the duty to deduct.

Quick reference: limits, dates and interest

Item	Figure	Source
Interest, tax not deducted	1% per month or part of a month	Section 398(3)(a)(i)
Interest, tax deducted but not paid	1.5% per month or part of a month	Section 398(3)(a)(ii)
No PAN	Higher of table rate, rate in force, or 20% (5% for 8(ii), 8(v))	Section 397(2)(b)
Declaration delivery under 393(6)	7th day after the end of the quarter in which received	Section 393(7)
Correction of TDS statement	Within two years from the end of the tax year	Section 397(3)(f)
Tax borne by the payer	Income is grossed up so net equals the agreed amount	Section 393(10)

How can a CA firm keep track of TDS across clients?

The hard part of TDS for a practice is not the arithmetic. It is knowing which clients crossed a threshold this month, which are specified persons this year, and which deposits fall on the 7th, the 30th day or 30 April. Finexo's practice management software tracks due dates across your client book and reminds your team and your clients before they pass. It does not compute TDS or file statements for you. For rent, see the detailed guide on TDS on rent under the Income-tax Act, 2025.

Where this is in the Act

• Section 393(1), Table: payments to residents. Section 393(2), Table: payments to non-residents. Section 393(3), Table: winnings and other payments to any person.
• Section 393(4), (5), (6), (7): no deduction, declarations and their delivery. Section 393(10), (11): tax borne by payer, suspense account.
• Section 397(2): PAN. Section 397(3): payment, statements and corrections. Section 398(3): interest.
• Section 402(11), (37), (39), (47): designated person, specified person, specified senior citizen, work.
• Rule 218: time and mode of payment, including Form 141.

This article is general information on the Income-tax Act, 2025 as amended by the Finance Act, 2026. It is not tax advice. Check the current text and your facts before acting.