Income Tax Act, 2025 · F.Y. 2026-27
TDS Chart — Section 393
Complete TDS provisions · Rates · Thresholds · Exemptions · Payments to Residents & Non-Residents
35+
Categories
0.1%
Lowest Rate
20%
Highest Rate
19
Nil-TDS Cases
11
Sub-sections
Payments to Residents § 393(1)
Deduct on credit or payment, whichever is earlier
| Sl. | Nature of Payment | Payer | TDS Rate | Threshold Limit |
|---|---|---|---|---|
| 1(i) | Insurance Commission Remuneration / reward for soliciting or procuring insurance business, including continuance, renewal or revival of policies |
Any person | Rates in Force | ₹ 20,000 |
| 1(ii) | Commission or Brokerage Other than insurance commission above |
Specified person | 2% | ₹ 20,000 |
| 2(i) | Rent Any income by way of rent — payer is not a specified person |
Person other than specified person | 2% | ₹ 50,000 / monthDeducted in last month of tax year / tenancy |
| 2(ii) | Rent — Specified Person (a) Machinery / plant / equipment → 2% (b) Land / building (incl. factory) / furniture / fittings → 10% |
Specified person | 2% (a) 10% (b) |
₹ 50,000 / month |
| 3(i) | Transfer of Immovable Property Other than agricultural land. Rate on higher of: (a) consideration paid or (b) stamp duty value |
Any person (excluding 3(iii)) | 1% | ₹ 50 LakhAggregate of amounts from all transferees |
| 3(ii) | Consideration under § 67(14) Agreement Consideration (not in kind) under the specified agreement on immovable property |
Any person | 10% | NIL |
| 3(iii) | Compulsory Acquisition — Compensation Compensation or enhanced compensation / consideration on compulsory acquisition of immovable property (not agricultural land) under any law |
Any person | 10% | ₹ 5,00,000 |
| 4(i) | Income from Mutual Fund Units (a) MF (Sch. VII Sl. 20/21) (b) Units from Administrator of specified undertaking (c) Units from specified company |
Any person | 10% | ₹ 10,000 |
| 4(ii) | Business Trust — Distributed Income Distributed income u/s 223 (nature of Sch. V Sl. 3 & 4) payable to unitholder of Business Trust (REIT / InvIT) |
Any Business Trust | 10% | NIL |
| 4(iii) | Investment Fund Income — Unitholder Income (excluding exempt portion) in respect of units of an Investment Fund u/s 224 |
Investment Fund (§ 224) | 10% | NIL |
| 4(iv) | Securitisation Trust — Investor Income Income in respect of investment in Securitisation Trust u/s 221 |
Securitisation Trust (§ 221) | 10% | NIL |
| 5(i) | Interest on Securities Any income by way of interest on securities (bonds, debentures etc.) |
Any person | Rates in Force | ₹ 10,000 |
| 5(ii) | Interest — Bank / Co-op Bank / Post Office Interest other than on securities, paid by banking company, co-operative bank, or Post Office on notified scheme deposits |
Banking co. / Co-op bank / Post Office | Rates in Force | ₹ 1,00,000 (Senior Citizen)₹ 50,000 (Others) |
| 5(iii) | Interest — Other Specified Persons Interest other than on securities, paid by specified person (not bank/post office) |
Specified person (excl. 5(ii)) | Rates in Force | ₹ 10,000 |
| 6(i) | Contractors — Designated Person Any sum for carrying out work (incl. supply of labour) under contract with a designated person 1% — Individual / HUF contractor | 2% — Others |
Designated person | 1% (Individual/HUF) 2% (Others) |
₹ 30,000 (single payment)₹ 1,00,000 (aggregate) |
| 6(ii) | Individual / HUF Payments ≥ ₹50 Lakh Payments for (a) work / labour under contract, (b) professional fees, or (c) commission/brokerage — by an Individual or HUF whose turnover exceeds ₹50L/₹1Cr |
Individual / HUF (excluding 6(i), 6(iii), 1(ii)) | 2% | ₹ 50 Lakh |
| 6(iii) | Professional / Technical Fees, Royalty, Director Fees (a) 2%: Technical fees (non-professional), royalty for cinematographic films, call-centre payee (b) 10%: All other professional fees, royalty (other types), director remuneration / commission, sum u/s 26(2)(h) |
Specified person | 2% (a) 10% (b) |
₹ 50,000 (for a, b, d, e)NIL (director fees) |
| 7 | Dividend Any dividend (including on preference shares) declared by a domestic company. Deducted before distribution. |
Domestic Company | 10% | NIL |
| 8(i) | Life Insurance Policy Proceeds Sum under life insurance policy including bonus, excluding amounts exempt under Sch. II Sl. 2. TDS on income portion only. |
Any person | 2% on income | ₹ 1,00,000 |
| 8(ii) | Purchase of Goods Sum exceeding ₹50 lakh for purchase of any goods. TDS only on amount exceeding ₹50L. Not applicable if TDS/TCS already applies on that transaction. |
Any person (Buyer) | 0.1% | ₹ 50 LakhTDS only on excess over ₹50L |
| 8(iii) | Specified Senior Citizen — Total Income TDS TDS on total income of a specified senior citizen after allowable Chapter VIII deductions and rebate u/s 156. Overrides all other TDS provisions. |
Specified Bank | Rates in Force | As applicable |
| 8(iv) | Benefit or Perquisite from Business / Profession Any benefit or perquisite (whether convertible to money or not) arising from business or exercise of a profession of a resident. Includes cash and kind. |
Specified person | 10% of value | ₹ 20,000 |
| 8(v) | E-Commerce Payments to Participants Gross amount of sale / services by e-commerce participant facilitated by the operator. Takes precedence over other provisions. Direct payments by buyers are also included. |
E-commerce Operator | 0.1% of gross | NIL |
| 8(vi) | Virtual Digital Asset (VDA / Crypto) Consideration for transfer of any virtual digital asset. When payment is in kind, payer must ensure TDS is paid before releasing consideration. |
Any person | 1% | NIL |
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Payments to Non-Residents § 393(2)
TDS on all payments to NR / Foreign Companies — no threshold
| Sl. | Nature of Payment | Payee | Payer | TDS Rate |
|---|---|---|---|---|
| 1 | Sportsman / Entertainer Income Income referred to in § 211 — earned by NR sportsman (incl. athlete) or entertainer who is not a citizen of India, or NR sports association |
NR sportsman / entertainer / sports association | Any person | 20% |
| 2 | Interest on Foreign Currency Loan / Infra Bond Interest on moneys borrowed in foreign currency under loan agreement or long-term infrastructure bond (01-Jul-2012 to 01-Jul-2023), approved by Central Govt. |
NR (not a company) or Foreign Company | Indian company or Business Trust | 5% |
| 3 | Interest on Rupee Denominated Bond Borrowed from outside India by way of issue of rupee denominated bond before 01-Jul-2023 |
NR (not a company) or Foreign Company | Indian company or Business Trust | 5% |
| 4 | Interest on Long-Term Bond — IFSC Listed Bond listed only on recognised stock exchange in an IFSC. 4% → issued Apr 2020–Jul 2023 | 9% → issued from Jul 2023 |
NR (not a company) or Foreign Company | Indian company or Business Trust | 4% / 9% |
| 5 | Interest from Infrastructure Debt Fund Any income by way of interest paid by Infrastructure Debt Fund (Sch. VII Sl. 46) |
NR (not a company) or Foreign Company | Infrastructure Debt Fund | 5% |
| 6 | Business Trust — Distributed Income (Sch. V Sl. 3) Distributed income u/s 223 of nature in Sch. V Sl. 3 5% → Sch. V 3.B(a) | 10% → Sch. V 3.B(b) |
NR unitholder (not a company) or Foreign Company | Business Trust | 5% / 10% |
| 7 | Business Trust — Distributed Income (Sch. V Sl. 4) Distributed income u/s 223 of nature in Sch. V Sl. 4 |
NR unitholder (not a company) or Foreign Company | Business Trust | Rates in Force |
| 8 | Investment Fund Income — NR Unitholder Income (other than exempt portion) in respect of units of Investment Fund u/s 224 |
NR unitholder (not a company) or Foreign Company | Investment Fund (§ 224) | Rates in Force |
| 9 | Securitisation Trust — NR Investor Income in respect of investment in Securitisation Trust u/s 221 |
NR investor (not a company) or Foreign Company | Securitisation Trust (§ 221) | Rates in Force |
| 10 | Mutual Fund / Specified Company Units — NR Income from MF units (Sch. VII Sl. 20/21) or specified company units. Lower DTAA rate applicable if payee furnishes certificate u/s 159(8). |
NR (not a company) or Foreign Company | Any person | 20% |
| 11 | Offshore Fund — Unit Income (§ 208) Income in respect of units referred to in § 208 |
Offshore Fund | Any person | 10% |
| 12 | Offshore Fund — LTCG on Units (§ 208) Long-term capital gains on transfer of units referred to in § 208 |
Offshore Fund | Any person | 12.5% |
| 13 | GDR / Bonds — Interest & Dividends (§ 209) Income by way of interest or dividends on bonds or Global Depository Receipts referred to in § 209 |
Non-resident | Any person | 10% |
| 14 | GDR / Bonds — LTCG on Transfer (§ 209) Long-term capital gains arising from transfer of bonds or GDRs u/s 209 |
Non-resident | Any person | 12.5% |
| 15 | FII — Income from Securities (§ 210) Income in respect of securities u/s 210(1) Table Sl. 1. DTAA lower rate applies if certificate furnished. |
Foreign Institutional Investor (FII) | Any person | 20% |
| 16 | Specified Fund — Income from Securities (§ 210) Income in respect of securities u/s 210(1) Table Sl. 1 payable to Specified Fund (Sch. VI Note 1(g)) |
Specified Fund (Sch. VI Note 1(g)) | Any person | 10% |
| 17 | Any Other Chargeable Income to NR Interest (other than Sl. 2–5) or any other sum chargeable under the Act (excluding salary). Extends to any person, resident or non-resident, even without presence in India. |
NR (not a company) or Foreign Company | Any person | Rates in Force |
No matching results.
Payments to Any Person § 393(3)
Deducted at time of payment (not credit) — winnings, cash, partner payments
| Sl. | Nature of Payment | Payer | TDS Rate | Threshold Limit |
|---|---|---|---|---|
| 1 | Lottery / Crossword / Card Game / Gambling Winnings Winnings (other than from online games) from lottery, crossword puzzle, card game, or any form of gambling or betting |
Any person | Rates in Force | ₹ 10,000 (per transaction) |
| 2 | Online Game Winnings TDS on net winnings in user account at year-end. If any withdrawal during the year, TDS deducted on net winnings in withdrawal AND remaining balance at year-end. |
Any person | Rates in Force | Net winnings at year-end / withdrawal |
| 3 | Horse Race Winnings Winnings from horse races paid by bookmaker or licensed race-course operator |
Bookmaker / Licensed race-course operator | Rates in Force | ₹ 10,000 (per transaction) |
| 4 | Lottery Ticket — Commission / Prize Commission, remuneration or prize to persons engaged in stocking, distributing, purchasing or selling lottery tickets. Deducted at credit or payment, whichever is earlier. |
Any person | 2% | ₹ 20,000 |
| 5 | Cash Withdrawal Sum paid in cash from accounts maintained by any person at a bank / co-op bank / post office. Threshold is per account-holder (recipient) across all accounts. |
Banking co. / Co-op bank / Post Office | 2% | ₹ 3 Crore (Co-operative society)₹ 1 Crore (Others) |
| 6 | NSS / National Savings Scheme Withdrawal Amount referred to in § 124(2)(a) of ITA, 2025 — withdrawals from National Savings Scheme deposits (formerly § 80CCA(2)(a) of IT Act, 1961). Note: Individual withdrawals on or after 29-Aug-2024 are fully exempt from tax and TDS (CBDT Notification No. 27/2025). |
Any person | 10% | ₹ 2,500 |
| 7 | Payments to Partner of a Firm Salary, remuneration, commission, bonus or interest paid / credited to a partner of a firm (including capital account credit) |
Any person, being a Firm | 10% | ₹ 20,000 |
No matching results.
No Deduction at Source § 393(4)
19 cases where TDS is NIL despite the provision being triggered
| Sl. | Provision Triggering TDS | Condition — No TDS Required |
|---|---|---|
| 1 | Commission/Brokerage § 393(1) [1(ii)] | BSNL / MTNL Franchisees — Commission payable by BSNL or MTNL to their public call office (PCO) franchisees |
| 2 | Rent § 393(1) [2(ii)] | REIT (Business Trust) — Rent paid to a Business Trust for a real estate asset (Sch. V Sl. 4) owned directly by it |
| 3 | Compulsory Acquisition § 393(1) [3(iii)] | RFCTLARR Act, 2013 — Exempt Awards — Any award or agreement exempt from income-tax under § 96 of the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013 |
| 4 | MF Unit Income § 393(1) [4(i)] | Capital Gains Nature — If the income from MF units is in the nature of capital gains (not ordinary income) |
| 5 | Business Trust Income § 393(1) [4(ii)] | SPV Option Not Exercised — Income in Sch. V Sl. 3.B(b) if the special purpose vehicle (SPV) has not exercised the option under § 200 |
| 6 | Interest on Securities § 393(1) [5(i)] | Exempt Securities / Payees — (a) National Development Bonds; (b) notified debentures; (c) Central/State Govt. securities (except 8% Savings Bonds 2003, 7.75% Bonds 2018, Floating Rate Bonds 2020 Taxable); (d) Interest to LIC, GIC or any insurer on securities owned by them; (e) Interest to Business Trust from SPV (Sch. V Sl. 3) |
| 7 | Interest other than Securities § 393(1) [5(ii)/(iii)] | Exempt Interest Payments — (a) To banking co., co-op bank, financial corporation, LIC, UTI, insurance co., notified institution; (b) By co-op society to its members or another co-op; (c) Deposits with primary agricultural / credit society; (d) Certain interest paid by Central Govt. under notified scheme; (e) Zero-coupon bonds by infra/public sector entities; (f) Business Trust SPV interest; (g) Firm paying interest to partner |
| 8 | Payments to Contractors § 393(1) [6(i)] | Small Transporters / Personal Payments — (a) Contractor owning ≤10 goods carriages who furnishes a declaration with PAN; (b) Payment by Individual/HUF exclusively for personal purposes |
| 9 | Professional/Technical Fees § 393(1) [6(iii)] | Personal Payments by Individual / HUF — Payment for personal use of individual or any member of HUF |
| 10 | Dividend § 393(1) [7] | Exempt Dividend Recipients — (a) LIC on shares owned by it; (b) GIC and four public insurers; (c) Other insurers; (d) Business Trust (via SPV); (e) Notified persons; (f) Individual shareholder where dividend is non-cash and aggregate ≤ ₹10,000 |
| 11 | E-commerce Payments § 393(1) [8(v)] | Small E-commerce Sellers — Participant is an Individual/HUF, gross sales do not exceed ₹5 lakh in the tax year, and PAN/Aadhaar has been furnished |
| 12 | VDA / Crypto § 393(1) [8(vi)] | Small VDA Transactions — Aggregate consideration does not exceed: (a) ₹50,000 — Individual/HUF with no business income or turnover <₹1Cr/₹50L; (b) ₹10,000 — any other person |
| 13 | NR Business Trust § 393(2) [6] | SPV Option Not Exercised (NR) — Income in Sch. V Sl. 3.B(b) if the SPV has not exercised option under § 200 |
| 14 | NR Investment Fund § 393(2) [8] | Not Chargeable to Tax — Income not chargeable to tax under the Act |
| 15 | NR MF Units § 393(2) [10] | NRI / NR HUF — UTI Units — Payable to non-resident Indian or NR HUF on UTI units, subject to prescribed conditions |
| 16 | FII Securities § 393(2) [15] | FII Capital Gains Exempt — Income by way of capital gains from transfer of securities u/s 210, payable to a FII |
| 17 | Specified Fund § 393(2) [16] | Schedule VI Exempt Income — Income exempt as per Sch. VI Table Sl. Nos. 1 to 4 |
| 18 | Cash Withdrawal § 393(3) [5] | Exempt Recipients for Cash Withdrawal TDS — Payment to: (a) Government; (b) Banking company / co-op bank / post office; (c) Business Correspondent of a bank (as per RBI guidelines); (d) White Label ATM Operator (as per RBI authorisation) |
| 19 | NSS § 393(3) [6] | Payment to Heirs — NSS / § 124(2)(a) (ITA, 2025) payment made to the heirs of a deceased assessee |
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General Provisions § 393(5)–(11)
Absolute exemptions, nil declarations, grossing-up, suspense accounts
🚫 Sub-section (5) — Absolute Exemptions
- No TDS on any amount payable to the Government
- No TDS on payments to the Reserve Bank of India
- No TDS on payments to a Corporation (Central Act) exempt from income-tax
- No TDS on payments to a Mutual Fund (Sch. VII Sl. 20/21) by way of interest, dividend on securities/shares owned by it, or any other income
📋 Sub-section (6) — Nil TDS Declaration (Form 121)
- Who can furnish: Resident individuals (Form 121 — for those aged 60+ yrs as well as below 60 yrs — unified declaration replacing old Forms 15H and 15G); any person not being a company or firm
- What: Written declaration that estimated total income for the tax year shall be nil
- Covers: PF balance, insurance commission, rent, MF units, interest (securities / bank / other), life insurance, dividends
- Restriction: Cannot use if income exceeds basic exemption (except senior citizens aged 60+)
- Form 121 merges the old Forms 15G (below 60 yrs) and 15H (60+ yrs) into a single unified form under § 393(6) of ITA, 2025 read with IT Rules, 2026
- From 1-Apr-2027: Electronic declaration to Depository allowed for units/securities/dividends held with it (if listed on a recognised stock exchange)
📅 Sub-section (7) — Forwarding Declarations
- Payer must forward the Form 121 declaration received (or from Depository) to the prescribed income-tax authority
- Due date: 7th of the month following the end of each quarter in which declaration was received
🏦 Sub-section (8) — Offshore Banking Unit (OBU)
- No TDS on interest paid by an OBU on borrowings from or deposits made by a non-resident or RNOR
- Applies only to deposits / borrowings made on or after 1st April, 2005
🏛️ Sub-section (9) — NPS Trust
- No TDS on any payment made to a person for or on behalf of the New Pension System (NPS) Trust (Sch. VII Sl. 41)
🔢 Sub-section (10) — Grossing Up
- When the tax is to be borne by the payer under an agreement, the income must be grossed up
- Grossed-up amount ensures that after TDS deduction, the net amount paid equals the contracted amount
- Does not apply to TDS on salary (covered under § 392(2)(a))
📂 Sub-section (11) — Suspense Account = Credit to Payee
- Credit of any income or sum to a suspense account (or any account by any name) in the payer's books is deemed as credit to the payee's account
- All TDS obligations under this Chapter apply from the moment of such credit — no deferral
Source: Section 393, Income Tax Act, 2025 — as amended by Finance Act, 2026 (w.e.f. 1-4-2026 and 1-4-2027 where applicable) ·
Income Tax Department, Ministry of Finance, Government of India ·
incometaxindia.gov.in ↗
⚠️ This chart is for reference only. Always consult the original legislation or a qualified tax professional for specific advice. Rates given are without applicable surcharge and cess.
⚠️ This chart is for reference only. Always consult the original legislation or a qualified tax professional for specific advice. Rates given are without applicable surcharge and cess.
