TDS Rates Chart for FY 2026-27 (AY 2027-28): Thresholds & Sections Matrix
टीडीएस दरें एवं सीमा सूची (वित्तीय वर्ष 2026-27 / कर निर्धारण वर्ष 2027-28)
Complete statutory TDS rate chart for FY 2026-27 (AY 2027-28) under the Income Tax Act: Section 192 (Salary), 194A (Bank Interest), 194C (Contractors), 194J (Professional & Technical fees), 194I (Rent), 194-IB (Individual Rent), 194H (Commission), 194Q (Purchase of Goods), and Section 206AA penal rates.
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Key Statutory Highlights (FY 2026-27 (AY 2027-28))
Who is Eligible & When Does it Apply?
All deductors (Companies, LLPs, Firms, and Individuals/HUFs liable to tax audit u/s 44AB, plus non-audit tenants u/s 194-IB).
Step-by-Step Procedure & Compliance Roadmap
Distinguish Financial Year vs Assessment Year
Tax is deducted at source during Financial Year 2026-27 and claimed in return filing for Assessment Year 2027-28.
Identify Transaction Nature & Statutory Section
Match the payment nature (salary, contractor, professional fee, rent, commission) with the corresponding TDS section.
Check Annual Threshold Exemption Limit
If cumulative payments in the FY exceed the specified threshold, deduct tax on the applicable amount.
Verify Payee PAN Status
Confirm PAN validity and active status on the Income Tax e-filing portal before applying standard rates; apply 20% u/s 206AA if PAN is missing.
Deposit TDS & File Quarterly Return
Remit deducted tax by 7th of the following month via Challan ITNS 281 and file quarterly returns (Form 24Q / 26Q).
Mandatory Documents Checklist
Common Mistakes & Compliance Risks to Avoid
Frequently Asked Questions
What is the difference between Financial Year (FY 2026-27) and Assessment Year (AY 2027-28) for TDS?
TDS is deducted at source during the Financial Year (FY 2026-27) when income is paid or credited. The tax credit is claimed by the payee in their Income Tax Return filed during Assessment Year (AY 2027-28).
What is the difference between Section 194J professional fees (10%) and technical services (2%)?
Under Section 194J, professional services (CAs, doctors, lawyers, architects) attract 10% TDS, whereas technical services, IT maintenance, call center services, and film distribution royalty attract a reduced 2% TDS rate (threshold: ₹30,000 per FY).
What happens to the TDS rate if the vendor does not furnish a PAN?
Under Section 206AA of the Income Tax Act, if the deductee fails to furnish a valid PAN to the deductor, TDS must be deducted at a mandatory higher penal rate of 20% (or the applicable statutory rate, whichever is higher).
Is an individual tenant required to deduct TDS on house rent?
Yes. Under Section 194-IB, an individual or HUF tenant paying monthly rent exceeding ₹50,000 must deduct 5% TDS once a year (in the last month of tenancy or financial year) without requiring a TAN number.
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