Understanding Tax Deducted at Source (TDS) is essential for every business owner, professional, and taxpayer. The government has specified different TDS rates based on the nature of payment under various sections of the Income Tax Act. For the financial year 2026–27, staying updated with the latest TDS rates helps ensure compliance and avoid penalties.
Here is the horizontal comparison format (easy for website or Excel use):
TDS Rate Comparison (FY 2026–27)
| Section | Payment Type | Rate | Threshold Limit |
|---|---|---|---|
| 192 | Salary | Slab Rate | As per income tax |
| 194D | Insurance Commission (Individual) | 5% | ₹20,000 |
| 194D | Insurance Commission (Company) | 10% | ₹20,000 |
| 194H | Commission/Brokerage | 2% | ₹20,000 |
| 194I | Rent (Plant & Machinery) | 2% | ₹50,000/month |
| 194I | Rent (Land/Building/Furniture) | 10% | ₹50,000/month |
| 194IB | Rent (Individual/HUF) | 2% | ₹50,000/month |
| 194IA | Immovable Property Transfer | 1% | ₹50,00,000 |
| 194A | Interest (Senior Citizen) | 10% | ₹1,00,000 |
| 194A | Interest (Others) | 10% | ₹50,000 |
| 194A | Other Interest | 10% | ₹10,000 |
| 194C | Contractor (Individual/HUF) | 1% | ₹30,000 / ₹1,00,000 |
| 194C | Contractor (Others) | 2% | ₹30,000 / ₹1,00,000 |
| 194J | Technical Services | 2% | ₹50,000 |
| 194J | Professional Fees | 10% | ₹50,000 |
| 194J | Director Fees | 10% | No limit |
| 194 | Dividend | 10% | ₹10,000 |
| 194DA | Life Insurance | 2% | ₹1,00,000 |
| 194Q | Purchase of Goods | 0.10% | ₹50,00,000 |
| 194R | Perquisite/Benefit | 10% | ₹20,000 |
| 194B | Lottery/Winnings | 30% | ₹10,000 |
| 194BA | Online Games | 30% | No limit |
| 194BB | Horse Race | 30% | ₹10,000 |
| 194T | Partner Payment | 10% | ₹20,000 |
TDS compliance is not just a legal requirement but a crucial part of financial discipline. Keeping track of the latest TDS rates for FY 2026–27 ensures smooth business operations and avoids unnecessary penalties.
