Published Aug 20, 2026 4 Min Read

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The TDS rate chart for FY 2026–27 helps taxpayers understand applicable withholding rates and plan their tax obligations. TDS ensures tax is collected at the source when specified income is paid or credited. From 1 April 2026, TDS provisions are presented under the Income-tax Act, 2025, with rates and thresholds largely retained.


Taxpayers should check the applicable TDS rate, threshold and payment category before making or receiving payments. This approach can support timely compliance and reduce errors while planning finances. Bajaj Finance Fixed Deposit investors should also understand applicable TDS provisions on FD interest when estimating post-tax returns.


What is TDS rate chart?

TDS, or Tax Deducted at Source, is a system where tax is deducted by the payer at the time of making specific payments such as salary, interest, rent, or professional fees. The TDS rate chart outlines the applicable rates, threshold limits, and relevant sections under which tax is deducted.


Understanding the TDS rate chart is vital for individuals and businesses to ensure compliance, avoid penalties, and plan their finances effectively. For instance, if you are earning interest income from fixed deposits, knowing the applicable TDS rates can help you manage your tax liability efficiently.


Pro Tip: Bajaj Finance Fixed Deposits offer an attractive interest rate of up to 7.75% p.a. for senior citizens, providing a reliable way to grow your wealth while aligning with your tax planning strategy. Book FD. 

Current TDS Rate Chart for FY 2027-27

Here are the commonly applied TDS rates effective from FY 2026-27:

SectionNature of TransactionThreshold Limit (Rs.)TDS Rate
192SalaryBasic exemption limitSlab rates
192APremature EPF withdrawal50,00010%
193Interest on securities10,00010%
194Dividends10,00010%

194A



Interest on bank/post office deposits50,00010%
Interest for senior citizens1,00,00010%
Interest (others)10,00010%
194KDividend from mutual funds10,00010%
194BLottery, game shows, gambling winnings10,00030%
194BAOnline gaming winnings-30%
194BBWinnings from horse races10,000 (annual)30%
194CPayment to contractors/sub-contractors30,000 (single) / 1,00,000 (FY)1% (individual/HUF), 2% (others)
194DInsurance commission20,0002% (individual/HUF), 10% (others)
194DALife insurance payout1,00,0002%
194EENSS payments2,50010%
194GLottery commission20,0002%
194HCommission/brokerage20,0002%
194J(a)Technical services, royalty, call centre, films50,0002%
194J(b)Professional services (others)50,00010%
194I(a)Rent – plant & machinery50,0002%
194I(b)Rent – land/building/furniture50,00010%
194IATransfer of immovable property (non-agri)50,00,0001%
194IBRent payment by individual/HUF50,000 per month2%
194ICJoint development agreement payments-10%
194LACompensation for immovable property (non-agri)5,00,00010%
194LBInterest from infra debt fund (non-resident)-5%
194LBAIncome from business trust-10%
194LBBInvestment fund income-10% (residents), 30% (non-residents), 40% (foreign companies)
194LBCSecuritisation trust income-10% (resident), 40% (non-resident), 10% (individual/HUF)
194MPayments by individual/HUF for contract, brokerage, professional services50,00,0002%

194N



Cash withdrawalAbove 1 crore (3 crore for co-ops)2%
If ITR not filed (20L–1Cr)20,00,0002%
If ITR not filed (1Cr+)-5%
194OE-commerce participants5,00,0000.10%
194PSpecified senior citizens (75+)-Slab rates
194QPurchase of goods50,00,0000.10%
194RBusiness/professional perquisites20,00010%
194STransfer of virtual digital assets10,0001%
 Transfer of VDA by specified person50,0001%
194TPayment by partnership firms to partners20,00010%
194BGame/lucky draw/card game winningsUp to 10,000 (no TDS)30%
194ENon-resident sportsmen/entertainers-20%

194LBA(3)



Interest income distributed by business trust from SPV-5%
Dividend income from SPV-10%
Rental income distributed by business trust-40%

194LC



Interest on foreign currency loans/bonds-5%
Interest on long-term IFSC-listed bonds-4%
194LDInterest on rupee bonds to FIIs/QFIs-5%

195



Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii);Nil12.50%
Income by way of LTCG under section 112A;Nil12.50%
Income by way of STCG under section 111A;Nil20%
Any other income by way of LTCG;Nil12.50%
Interest payable on money borrowed by the government or Indian concern in foreign currency;Nil20%
Income by way of royaltyNil20%
Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy.Nil20%
Any other income.Nil35%

196B



Income from offshore fund units-10%
LTCG from offshore fund units-12.5%

196C



Income from foreign bonds/GDR-10%
LTCG from foreign bonds/GDR-12.5%
196DIncome of FIIs (non-dividend/non-capital gains)-20%

Note: The TDS rates mentioned above are subject to changes as per government regulations.


Why this matters: If you are earning interest income from fixed deposits, like those offered by Bajaj Finance, TDS is deducted at 10% if the interest exceeds Rs. 1,00,000 for senior citizens or Rs. 50,000 for others. This makes it essential to plan your investments and tax liabilities effectively. Bajaj Finance FDs offer assured returns with interest rates as high as 7.75% p.a., making them an excellent choice for securing your financial future. Start investing today!


Also Read: TDS Refund


TDS rates for non- residents FY 2026-27

Section referencePayment typeTDS rate
Section 192Payment of salaryNormal slab rate
Section 192APayment of accumulated provident fund balance taxable in the hands of an employee10%
Section 194BWinnings from lotteries, crossword puzzles, card games, gambling or betting30%
Section 194BAWinnings from online games30%
Section 194BBWinnings from horse races30%
Section 194EPayment to non-resident sportsmen or sports associations20%
Section 194EEPayment related to deposits under National Savings Scheme10%
Section 194FRepurchase of units by Mutual Fund or Unit Trust of India20%
Section 194GCommission on sale of lottery tickets2%
Section 194LBInterest payment on infrastructure debt fund5%
Section 194LBA(2)Payment referred to under Section 10(23FC)(a)5%
Section 194LBA(2)Payment referred to under Section 10(23FC)(b)10%
Section 194LBA(3)Payment under Section 10(23FCA) by business trust to unit holders30%
Section 194LBBIncome distributed by investment fund to unit holder (other than exempt income)30%
Section 194LBCIncome from investment in securitisation trust30%
Section 194LCInterest in foreign currency paid by an Indian company: (1) Long term bond or RDB listed on IFSC4%
Section 194LCBonds issued after 01-04-20239%
Section 194LDInterest on rupee denominated bonds or government securities paid to FII or QFIAs applicable
Section 194NCash withdrawal exceeding Rs.1 crore2%
Section 194NIf ITR not filed for preceding 3 years: exceeding Rs.20 lakh2%
Section 194NIf ITR not filed for preceding 3 years: exceeding Rs.1 crore5%
Section 194TPayment of salary, commission, bonus, remuneration or interest to a partner exceeding Rs.20,000 (effective 01-04-2025)10%
Section 195Income from investment by Non-resident Indian20%
Section 195Long term capital gains under Section 115E (NRI)20%
Section 195Long term capital gains under Section 112(1)(c)(iii)12.50%
Section 195Long term capital gains under Section 112A exceeding Rs.1,25,00012.50%
Section 195Short term capital gains under Section 111A12.50%
Section 195Other long term capital gains (excluding Sections 10(33), 10(36))20%
Section 195Dividend from IFSC units12.50%
Section 195Dividend income (other cases)10%
Section 195Interest on foreign currency borrowings payable by Government or Indian concern20%
Section 195Royalty for specified books or computer software under Section 115A20%
Section 195Other royalty income payable by Government or Indian concern20%
Section 195Fees for technical services under approved agreements or industrial policy20%
Section 195Any other income20%
Section 196AIncome in respect of units held by non-resident30%
Section 196BIncome from units under Section 115AB(1)(i)20%
Section 196BLong term capital gain on transfer of units under Section 115AB12.50%
Section 196CInterest or dividend income from bonds or GDR under Section 115AC12.50%
Section 196CLong term capital gain from transfer of bonds or GDR under Section 115AC12.50%
Section 196DIncome of Foreign Institutional Investors from securities (excluding dividend or capital gains)20%
Section 196D(1A)Income from securities payable to specified fund under Section 10(4D)10%

Note: Tax may be deducted at a lower rate if the Double Taxation Avoidance Agreement (DTAA) provides a lower applicable rate than the standard 20%. For specified funds under Section 196D(1A), surcharge and health and education cess are not applicable.

TDS Rate Changes FY 2026-27

The following updates to TDS provisions will apply IN FY 2026-27


The government has revised the threshold limits for TDS deduction across various sections. The updated limits are as follows:

SectionPrevious Threshold LimitModified Threshold Limit
193 – Interest on securitiesNilRs. 10,000
194A – Interest other than securities

(i) Rs. 50,000 (senior citizens) 


(ii) Rs. 40,000 (others – bank/co-op/post office) 


(iii) Rs. 5,000 (other cases)

(i) Rs. 1,00,000 (senior citizens) 


(ii) Rs. 50,000 (others – bank/co-op/post office) 


(iii) Rs. 10,000 (other cases)

194 – Dividend (individual shareholders)Rs. 5,000Rs. 10,000
194K – Mutual fund incomeRs. 5,000Rs. 10,000
194B & 194BB – Lottery, games, horse race winningsAggregate exceeding Rs. 10,000 in a FYRs. 10,000 per single transaction
194D – Insurance commissionRs. 15,000Rs. 20,000
194G – Lottery commission/prizesRs. 15,000Rs. 20,000
194H – Commission or brokerageRs. 15,000Rs. 20,000
194-I – RentRs. 2,40,000 (per FY)Rs. 6,00,000 (per FY)
194J – Professional/technical feesRs. 30,000Rs. 50,000
194LA – Enhanced compensationRs. 2,50,000Rs. 5,00,000
206C(1G) – LRS remittance & overseas tour packagesRs. 7,00,000Rs. 10,00,000
  • Additionally, Section 206AB — which earlier increased the compliance burden for TDS deductors — has been removed.
  • The TDS rate under Section 194LBC, relating to income received from investments in securitisation trusts by residents, has been reduced to 10%.
  • A new Section 194T has been introduced, requiring a 10% TDS deduction on remuneration paid to partners, effective 1st April 2025.

Also Read: NRI TDS Refund


How Bajaj Finance Fixed Deposits can enhance your financial planning?

Fixed deposits are a popular investment choice for individuals seeking stability and assured returns. Bajaj Finance FDs stand out as a reliable and tax-efficient option, offering several benefits:

  1. Attractive interest rates:

    Earn up to 7.75% p.a. on your investment, with higher rates for senior citizens.


  2. Flexible tenures:

    Choose a tenure between 12 and 60 months to align with your financial goals.


  3. Low minimum deposit:

    Start your investment journey with just Rs. 15,000


  4. High credit safety:

    Bajaj Finance FDs are rated CRISIL AAA/STABLE and [ICRA]AAA(Stable), ensuring the highest level of safety for your investment.


  5. Tax efficiency:

    By diversifying your portfolio with fixed deposits, you can optimise your taxable income, especially in light of the updated TDS provisions.


  6. Convenient online process:

    Open an FD account online in just a few clicks, making it easier to secure your financial future.

Conclusion

Understanding the latest TDS rates and their implications is crucial for effective tax planning and compliance. For FY 2026–27, the changes in threshold limits and new provisions provide opportunities to optimise your taxable income.


Complementing your tax planning with secure investments like Bajaj Finance Fixed Deposits can help you achieve financial stability and growth. With attractive interest rates, flexible tenures, and high credit safety, Bajaj Finance FDs are an ideal choice for both short-term and long-term financial goals.


Start your journey today: Open a Bajaj Finance FD account with just Rs. 15,000 and take the first step towards a secure financial future.

Frequently asked questions

What is the current TDS rate?

The Tax Deducted at Source (TDS) rates in India for FY 2025–26 (AY 2026–27) depend on the type and value of the transaction. For instance, interest income generally attracts 10% TDS (subject to thresholds), lottery winnings are taxed at 30%, and the sale of immovable property above Rs. 50 lakh is subject to 1% TDS.

There is no single new TDS rate for FY 2025-26. Rates vary by transaction, such as 10% on interest or dividends, 30% on lottery winnings, and new Section 194T applying 10% TDS on partner payments above Rs.20,000.

Threshold limits depend on the transaction type. For instance, the limit for interest on deposits is Rs. 1,00,000 for senior citizens and Rs. 50,000 for others.

Yes, TDS rates may vary. For example, payments to individuals under Section 194C attract a TDS rate of 1%, while payments to companies attract a rate of 2%.

No, the TDS rates and monetary thresholds for FY 2026–27 have been retained at existing levels. From 1 April 2026, the Income-tax Act, 2025 consolidates TDS provisions under Section 393, without changing the applicable rates. 

Budget 2026 continues the existing TDS rates for FY 2026–27 while shifting applicable provisions to the Income-tax Act, 2025. Payments or credits from 1 April 2026 follow the new Act, while earlier transactions remain governed by the previous Act. 

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

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