TDS new section list for FY 2026-27 has become an important topic for taxpayers, business owners, accountants, payroll teams, and finance professionals across India. With the introduction of the new Income-tax Act, 2025, the government has reorganised many old TDS provisions into a simplified section-based table system, mainly under Section 393 and related provisions.
TDS New Section List FY 2026-27 PDF
| Code (Returns) | Old Section | Nature of Payment | New Section (IT Act 2025) | Rate | Threshold |
|---|---|---|---|---|---|
| 1005 | 194D | Commission or Brokerage – Insurance | 393(1) | 2% (Individual), 10% (Others) | ₹20,000 |
| 1006 | 194H | Commission or Brokerage – Others | 393(1) | 2% | ₹20,000 |
| 1008 | 194I(a) | Rent on Machinery etc. – Specified Person | 393(1) | 2% | ₹50,000 / Month |
| 1009 | 194I(b) | Rent Other Than Machinery – Specified Person | 393(1) | 10% | ₹50,000 / Month |
| 1012 | 194IA | Compensation on Acquisition of Immovable Property | 393(1) [T | 10% | ₹5 Lakh |
| 1019 | 193 | Interest on Securities | 393(1) | 10% | ₹10,000 |
| 1023 | 194C | Contract Payment – Individual / HUF Contractor | 393(1) | 1% / 2% | ₹30,000 Single / ₹1,00,000 Aggregate |
| 1026 | 194J(a) | Technical Services / Royalty / Call Centre | 393(1) | 2% | ₹50,000 |
| 1027 | 194J(b) | Professional Services | 393(1) | 10% | ₹50,000 |
| 1029 | 194 | Dividend Payment | 393(1) | 10% | ₹10,000 |
| 1031 | 194Q | Purchase of Goods | 393(1) | 0.1% | Above ₹50 Lakh |
| 1033 | 194R | Benefit / Perquisite from Business / Profession | 393(1) | 10% | ₹20,000 |
| 1035 | 194O | E-commerce Transactions | 393(1) | 0.1% | ₹5 Lakh |
| 1037 | 194S | Transfer of Virtual Digital Asset | 393(1) | 1% | ₹10,000 |
| 1058 | 194B | Lottery / Crossword / Gambling Winnings | 393(3) | 30% | ₹10,000 |
| 1060 | 194BA | Online Game Winnings | 393(3) | 30% | No Limit |
| 1067 | 194T | Salary / Commission / Bonus / Interest to Partner | 393(3) | 10% | ₹20,000 |
Download complete pdf list from below link.
https://www.tdsman.com/downloads/TDS_and_TCS-rate-chart-2027.pdf?srsltid=AfmBOorNA4ZbO-zbR3n9BR6mb9pNKWqdaJ-IhJD3TFZfEzT4DtWjXdJB
What Has Changed in TDS from FY 2026-27?
Earlier, TDS compliance was section-based.
For example:
-
- Contractor payments → Section 194C
- Professional fees → Section 194J
- Commission → Section 194H
- Rent → Section 194I
- Purchase of goods → Section 194Q
- E-commerce payments → Section 194O
Now, under the new law, these payments are grouped mainly under Section 393, with specific table serial numbers and reporting codes deciding the applicable TDS rate.
Read: New Tax Regime Exemption List PDF
Important TDS New Section List FY 2026-27
Here are some of the most commonly used new TDS provisions:
| Old Section | Nature of Payment | New Section | Rate |
|---|---|---|---|
| 194H | Commission / Brokerage | 393(1) Table Sl. No. 1(ii) | 2% |
| 194D | Insurance Commission | 393(1) Table Sl. No. 1(i) | 2% / 10% |
| 194I | Rent | 393(1) Table Sl. No. 2 | 2% / 10% |
| 194C | Contract Payments | 393(1) Table Sl. No. 6(i) | 1% / 2% |
| 194J | Professional / Technical Fees | 393(1) Table Sl. No. 6(iii) | 2% / 10% |
| 194 | Dividend | 393(1) Table Sl. No. 7 | 10% |
| 194Q | Purchase of Goods | 393(1) Table Sl. No. 8(ii) | 0.1% |
| 194R | Benefit / Perquisite | 393(1) Table Sl. No. 8(iv) | 10% |
| 194O | E-commerce Transactions | 393(1) Table Sl. No. 8(v) | 0.1% |
| 194S | Virtual Digital Asset | 393(1) Table Sl. No. 8(vi) | 1% |
TDS Rates Businesses Must Know
-
-
- Contract PaymentsPayments to contractors continue to remain a major TDS category.Applicable Rate:
- 1% in certain cases
- 2% in other applicable cases
Threshold:
- ₹30,000 single payment
- ₹1,00,000 aggregate yearly payment
- Professional FeesFor professionals like:
- CA
- Lawyer
- Architect
- Consultant
- Technical Advisor
TDS Generally Applies At:
- 10%
For technical services / call centre specified categories:
- 2% may apply
- Rent PaymentsRent deduction remains important for businesses.Rates:
- Machinery Rent → 2%
- Building / Land / Office Rent → 10%
Threshold:
- ₹50,000 per month
- Purchase of Goods – Big Compliance AreaOld Section 194Q now maps into the new table structure.Rate:
- 0.1%
Threshold:
- Above ₹50 lakh purchase value
This remains important for traders, wholesalers, distributors, and manufacturing companies.
- E-commerce PaymentsOnline sellers and digital marketplace transactions continue under TDS reporting.Rate:
- 0.1%
Threshold:
- ₹5 lakh (Individual / HUF cases)
This Affects:
- Marketplace Sellers
- Online Service Providers
- Digital Platforms
- Aggregators
- Contract PaymentsPayments to contractors continue to remain a major TDS category.Applicable Rate:
-
Highlights of TDS New Section List FY 2026-27
| Highlights | Details |
|---|---|
| Applicable Year | FY 2026-27 |
| Governing Law | New Income-tax Act, 2025 |
| Main TDS Section | Section 393 |
| Salary Related Section | Section 392 |
| Higher Deduction Rule | Section 397(2) |
| Return Filing | New code-based reporting |
| PAN Not Furnished | Higher TDS may apply |
| Covers | Salary, contract, rent, commission, professional fees, dividends, interest, e-commerce, VDA, winnings |
| Major Benefit | Simplified classification and reporting |
Read: Latest GST Reduction List -Updated New Lower Tax Rates on Goods and Services