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Rules 2026

TDS Rate Chart — Section-wise Rates

Every TDS rate under the Income-tax Rules 2026 — from salary to e-commerce. Here is the full chart with section numbers, nature of payment, rate, and exemption threshold.

Introduction

The Income-tax Rules 2026 set out TDS rates for every type of payment. The rate depends on the section under which the payment falls, the amount involved, and whether the recipient has quoted their PAN. Below is the complete rate chart.

TDS rates at a glance

Section Nature of payment TDS rate Exemption threshold
192 Salary Slab rates As per new-regime slabs
193 Interest on securities 10% ₹10,000 per year
194 Dividends 10% ₹5,000 per year
194A Interest from banks / post offices 10% ₹40,000 per year (₹50,000 for seniors)
194B Winnings from lottery or horse race 30% ₹10,000 per win
194C Payments to contractors / freelancers 1% (individual) / 2% (other) ₹30,000 per payment or ₹1,00,000 annual
194D Insurance commission 5% ₹20,000 per year
194H Commission or brokerage 5% ₹15,000 per year
194I Rent — land, building, or furniture 2% (building) / 10% (plant/machinery) ₹2,40,000 per year
194J Professional fees, technical services, royalty 2% (certain services) / 10% ₹30,000 per payment
194K Income from mutual funds, UTI, etc. 10% ₹5,000 per year
194O E-commerce operator payments to sellers 1% ₹500,000 per year
194Q Purchase of goods (TCS on buyer's side) 0.1% ₹50,00,000 per year

Key notes

Higher rate without PAN

If the recipient does not provide PAN, TDS is deducted at 20% under Section 206AA — the higher rate. Always provide your PAN to the deductor.

Concessional rate with PAN + Form 15E

Certain payments to non-residents qualify for a concessional TDS rate if the recipient provides PAN and a valid tax residency certificate. File Form 10E for treaty benefits.

Frequently asked questions

What is the TDS rate on salary?
There is no fixed TDS rate on salary. Your employer calculates TDS on salary using the Income Tax Act 2025 slab rates — the same rates you use when filing your ITR. The employer applies the standard deduction of ₹75,000 and then deducts tax at the applicable slab rates.

Is TDS rate 5% or 10% for professional fees?
Section 194J TDS on professional fees is 10% for most professional and technical services. However, for fees paid to call centres, TPV agents, and certain domestic support services under Rule 128, the rate is 2%. The-pan rate under Section 206AA is 20% if PAN is not quoted.

What happens if TDS is deducted at a higher rate?
If your deductor deducted TDS at a rate higher than applicable, you can claim a refund when you file your ITR. The excess TDS will be credited to your account and refunded. You can also apply for a TDS correction certificate from the deductor if the error was in the rate applied.

Do senior citizens get a higher TDS exemption threshold on interest income?
Yes. Under Section 194A, the TDS threshold on interest income is ₹50,000 per year for senior citizens (aged 60 and above), compared to ₹40,000 for others. No TDS is deducted if your total interest from all sources stays below this threshold.

Can I avoid TDS by submitting Form 15G or 15H?
Form 15G (for individuals under 60) and Form 15H (for senior citizens) are self-declarations that you submit to the deductor declaring that your total tax liability is nil. If your income is below the taxable limit and you submit the correct form, the deductor will not deduct TDS. The forms must be submitted afresh each financial year.

Sources

Last reviewed by FinWiz24 Research Desk.