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Complete TDS & TCS Rate Chart FY 2026-27 (AY 2027-28) with Section-wise Comparison

By AMIT SIDDHI AND ASSOCIATES · 05 May 2026

TDS/TCS

Complete TDS & TCS Rate Chart FY 2026-27 (AY 2027-28) with Section-wise Comparison

AMIT SIDDHI AND ASSOCIATES 05 May 2026 5 min read
Complete TDS & TCS Rate Chart FY 2026-27 (AY 2027-28) with Section-wise Comparison

If you are searching for the latest TDS rate chart FY 2026-27 with section comparison, you are not alone. Many taxpayers and businesses in Ghaziabad and Noida are confused due to the shift from old sections like 194C, 194J to the new structure under the Income-tax Act 2025.

Whether you are a business owner, professional, or looking for an income tax consultant near me, understanding section-wise mapping, rates, and thresholds is essential to avoid errors in TDS compliance.

 

Latest Update

As per the verified chart updated on 08.04.2026:

·         All TDS provisions are now structured under Section 393

·         TCS provisions are under Section 394

·         Section-wise codes introduced for return filing

·         Rates remain largely unchanged

If no further notification is issued:
➡️ No recent official update found as of today

 

Category-wise TDS Section Comparison (Old vs New – IT Act 2025)

 

🔹 1. Salary & Employee Related

Old Section

New Section

Nature

Rate

Threshold

192A

392(7)

EPF Withdrawal

As applicable

NA

👉 No major structural change, only section renumbering.

 

🔹 2. Interest Income

Old Section

New Section

Nature

Rate

Threshold

193

393(1)

Interest on securities

10%

₹10,000

194A

393(1)

Interest (Senior Citizen)

10%

₹1,00,000

194A

393(1)

Interest (Others)

10%

₹50,000 / ₹10,000

 

🔹 3. Contract & Business Payments

Old Section

New Section

Nature

Rate

Threshold

194C

393(1)

Contractor (Individual/HUF)

1%

₹30K / ₹1L

194C

393(1)

Contractor (Others)

2%

₹30K / ₹1L

 

🔹 4. Professional & Technical Services

Old Section

New Section

Nature

Rate

Threshold

194J(b)

393(1)

Professional Fees

10%

₹50,000

194J(a)

393(1)

Technical Services

2%

₹50,000

194J

393(1)

Director Remuneration

10%

No limit

 

🔹 5. Commission & Brokerage

Old Section

New Section

Nature

Rate

Threshold

194H

393(1)

Commission/Brokerage

2%

₹20,000

194D

393(1)

Insurance Commission

2% / 10%

₹20,000

 

🔹 6. Rent & Property Transactions

Old Section

New Section

Nature

Rate

Threshold

194I(a)

393(1)

Rent – Machinery

2%

₹50K/month

194I(b)

393(1)

Rent – Land/Building

10%

₹50K/month

194IA

393(1)

Property Purchase

10%

₹5 lakh

 

🔹 7. Investment & Securities Income

Old Section

New Section

Nature

Rate

Threshold

194K

393(1)

Mutual Funds

10%

₹10,000

194LBA

393(1)

Business Trust

10%

NA

194LBB

393(1)

Investment Fund

10%

NA

194LBC

393(1)

Securitisation Trust

10%

NA

194

393(1)

Dividend

10%

₹10,000

 

🔹 8. Business Transactions & New Age Economy

Old Section

New Section

Nature

Rate

Threshold

194Q

393(1)

Purchase of Goods

0.1%

₹50 lakh

194O

393(1)

E-commerce

0.1%

₹5 lakh

194R

393(1)

Benefits/Perquisites

10%

₹20,000

 

🔹 9. Digital Assets (Crypto, etc.)

Old Section

New Section

Nature

Rate

Threshold

194S

393(1)

Virtual Digital Assets

1%

₹10,000

 

🔹 10. Insurance & Special Payments

Old Section

New Section

Nature

Rate

Threshold

194DA

393(1)

Insurance Payout

2%

₹1 lakh

194EE

393(3)

NSS Payment

10%

₹2,500

 

🔹 11. Winnings & Gambling (Special Category)

Old Section

New Section

Nature

Rate

Threshold

194B

393(3)

Lottery/Games

30%

₹10,000

194BA

393(3)

Online Gaming

30%

₹10,000

194BB

393(3)

Horse Race

30%

₹10,000

 

🔹 12. Cash & Partner Payments

Old Section

New Section

Nature

Rate

Threshold

194N

393(3)

Cash Withdrawal

2%

₹1–3 Cr

194T

393(3)

Partner Remuneration

10%

₹20,000

 

🔹 13. Foreign Payments (Non-Residents)

Old Section

New Section

Nature

Rate

195

393(2)

Foreign Income

20% / DTAA

194LC

393(2)

Foreign Loan Interest

4% / 5% / 9%

194LD

393(2)

Bonds

5%

196B/C/D

393(2)

Securities/GDR

10% / 12.5% / 20%

 

🔹 14. TCS (Tax Collected at Source)

Old Section

New Section

Nature

Rate

206C (basic goods)

394(1)

Scrap, liquor, etc.

2%

206C(1F)

394(1)

Motor vehicle

1%

Luxury Goods

394(1)

High-value items

1%

206C(1G)

394(1)

Foreign Remittance

2% / 20%

Tour Packages

394(1)

Overseas travel

2%

 

Practical Explanation

🔍 What Actually Changed?

·         Section numbers → Changed

·         Rates → Same

·         Compliance complexity → Increased due to mapping

🧾 Example

A freelancer in Vaishali (201019) receives ₹1,00,000:

·         Old Section: 194J

·         New Section: 393(1)

·         TDS: ₹10,000

A trader in Vasundhra (201012) buys goods worth ₹70 lakh:

·         TDS applies on ₹20 lakh

·         Rate: 0.1% → ₹2,000

 

Step-by-Step Compliance

1.      Identify payment type

2.      Map old section to new section

3.      Check threshold

4.      Apply rate

5.      Deduct & deposit TDS

6.      File return using new codes

 

FAQ

1. Are TDS rates changed in new law?

No, mostly unchanged.

2. Why new sections introduced?

To simplify structure under Income-tax Act 2025.

3. Is section 194J still applicable?

Conceptually yes, but now under section 393(1).

4. What is TDS on crypto?

1% under section 194S.

5. What if PAN not provided?

Higher TDS under section 397(2).

 

Conclusion

The TDS rate chart FY 2026-27 with section-wise comparison clearly shows that while rates remain same, understanding new section mapping is critical for compliance.

If you are searching for a tax consultant near me, GST services near me, or company registration consultant near me in Ghaziabad (201010), Noida, or Delhi NCR, professional support can help you avoid errors and penalties.

For expert guidance on this topic, contact your tax professional today.

 

️ Disclaimer

This content is for educational and knowledge purposes only. For verification and applicability to your case, please consult your tax professional.

 

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Tags: #TDS Chart 2026 #Section 393 #TCS Rates #Income Tax Update #Tax Compliance
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