A detailed comparative guide explaining the latest TCS provisions, revised section mapping, applicable rates, thresholds, and compliance changes under the Income-tax Act, 2025 for F.Y. 2026-27.
Khush Dharmeshkumar Trivedi | May 17, 2026 |
TDS and TCS Due Date Compliance Calendar and Rate Chart for Tax Year 2026-27
As a Tax Professional, you must be aware of the changes applicable from 1st April 2026, i.e., the Income Tax Act 1961 stands repealed and is replaced by the Income Tax Act 2025. Hence, there are various changes in the TDS/TCS filing of forms, and their names have also changed, so let’s get a brief of them.
COMPARISON OF OLD VS NEW
| Particulars | Income Tax Act, 1961 | Income Tax Act, 2025 |
| TDS on Salary | Section 192 | Section 392 |
| TDS on Non-Salary (Residents & NRs) | Sections 194C, 194J, 194I, 194H etc. | Section 393 (Consolidated Tables) |
| Tax Collected at Source (TCS) | Section 206C | Section 394 |
| Annual Salary TDS Certificate | Form 16 | Form 130 |
| Non-Salary TDS Certificate | Form 16A | Form 131 |
| TCS Certificate | Form 27D | Form 133 |
| Quarterly TDS RETURN-Salary | Form 24Q | Form 138 |
| Quarterly TDS RETURN – Non-Salary | Form 26Q | Form 140 |
| Quarterly TCS RETURN | Form 27EQ | Form 143 |
| Quarterly TDS RETURN- NON-RESIDENT | Form 27Q | Form 144 |
| PAN-based TDS (property, rent, VDA, contractors) | Form 26QB / 26QC / 26QD / 26QE | Form 141 |
It’s basically the 7th of next month, except March, as below
| Month of Deduction | Due Date |
| Apr-26 | 7th May 2026 |
| May-26 | 7th June 2026 |
| Jun-26 | 7th July 2026 |
| Jul-26 | 7th August 2026 |
| Aug-26 | 7th September 2026 |
| Sep-26 | 7th October 2026 |
| Oct-26 | 7th November 2026 |
| Nov-26 | 7th December 2026 |
| Dec-26 | 7th January 2027 |
| Jan-27 | 7th February 2027 |
| Feb-27 | 7th March 2027 |
| Mar-27 | 7th April 2027 for TCS 30th April 2027 for TDS |
Form 141 (the unified Challan-cum-Statement, replacing Forms 26QB/QC/QD/QE from April 1, 2026) must be filed within 30 days from the end of the month in which the tax deduction is made. Late filing attracts penalties of Rs. 200 per day. It covers TDS on property, rent, contracts, and virtual digital assets (VDA)
Quarterly TDS/TCS returns must be filed by the dates below. A late filing fee of Rs. 200 per day in applicable in case of delay.
| Quarter | Return Filing Due Date | Applicable Forms |
| Q1 — April to June 2026 | 31st July 2026 | 138/140/143/144 |
| Q2 — July to September 2026 | 31st October 2026 | 138/140/143/144 |
| Q3 — October to December 2026 | 31st January 2027 | 138/140/143/144 |
| Q4 — January to March 2027 | 15th May 2027 | 143 |
| Q4 — January to March 2027 | 31st May 2027 | 138/140/144 |
TDS certificates must be issued by deductors to deductees within 15 days of filing quarterly TDS returns or by specific statutory dates. Under the new Act, Form 16 becomes Form 130 (salary) and Form 16A becomes Form 131 (non-salary)
Following are the penalties:
| Nature of Default | Section (New Act) | Consequence |
| Late Deduction of TDS | Section 398(1) | Interest @ 1% per month from the due date to the actual deduction date |
| Late Deposit of TDS | Section 398(3) | Interest @ 1.5% per month from the deduction date to the deposit date |
| Late Filing of TDS/TCS Return | Section 427 | Rs. 200 per day — capped at total TDS/TCS amount |
| Non-Filing / Incorrect Filing | Section 461/ 462 | Penalty Rs. 10,000 to Rs. 1,00,000 (over & above 427 fee) |
| Non-Deduction (Expense Disallowance) | Section 35(b) | 30% of the payment is disallowed as a business expense where the payee is resident. 100% of the payment is disallowed as a business expense where the payee is Non- resident. |
For Payments to Resident
| Old Section (IT Act 1961) | Nature of Payment | New Section (IT Act 2025) | Rate | Threshold Limit | Remarks |
| SALARY & PF | |||||
| 192 | Payment of Salary to Employees | 392 | Slab Rates | Basic Exemption Limit | As per the applicable income tax slabs |
| 192A | Accumulated PF balance paid to employee (premature) | 392(7) | 10% | ₹50,000 | 10% if PAN furnished; else 20% (Sec 397) |
| RENT | |||||
| 194I(a) | Rent — Plant, Machinery, Equipment (Specified Person) | 393(1) [Sl. 2(ii).D(a)] | 2% | ₹50,000 p.m. | Specified person = company/ firm/ LLP etc. |
| 194I(b) | Rent — Land, Building, Furniture (Specified Person) | 393(1) [Sl. 2(ii).D(b)] | 10% | ₹50,000 p.m. | Specified person = company/ firm/ LLP etc. |
| 194-IB | Rent paid by Individual/HUF (not subject to audit) | 393(1) [Sl. 2(i)] | 2% | ₹50,000 p.m. | Applicable to Individuals/HUF payers |
| COMMISSION & BROKERAGE | |||||
| 194D | Commission/Brokerage — Insurance | 393(1) [Sl. 1(i)] | Rates in force | ₹20,000 | Rate as per Slab / applicable rate |
| 194H | Commission/Brokerage — Others | 393(1) [Sl. 1(ii)] | 2% | ₹20,000 | |
| IMMOVABLE PROPERTY | |||||
| 194-IA | Transfer of Immovable Property (buyer deducts) | 393(1) [Sl. 3(i)] | 1% | ₹50 Lakh | |
| 194IA | Compensation on Acquisition of Certain Immovable Property | 393(1) [Sl. 3(iii)] | 1% | ₹50 Lakh | Compulsory acquisition by Govt |
| 194IC | Payment under JDA (not in kind) u/s 67(14) | 393(1) [Sl. 3(ii)] | 10% | — | Joint Development Agreement payments |
| MUTUAL FUND / TRUST / INVESTMENT FUND | |||||
| 194K | Income from Mutual Fund Units / Specified Undertaking | 393(1) [Sl. 4(i)] | 10% | ₹10,000 | |
| 194LBA | Interest income from Business Trust units (Resident) | 393(1) [Sl. 4(ii)] | 10% | — | |
| 194LBA | Dividend income from Business Trust units (Resident) | 393(1) [Sl. 4(ii)] | 10% | — | |
| 194LBB | Income from Investment Fund units u/s 224 | 393(1) [Sl. 4(iii)] | 10% | — | Excludes exempt portion under Schedule V |
| 194LBC | Income from Securitisation Trust u/s 221 | 393(1) [Sl. 4(iv)] | 10% | — | |
| INTEREST | |||||
| 193 | Interest on Securities | 393(1) [Sl. 5(i)] | Rates in force | ₹10,000 | |
| 194A | Interest (other than on securities) — Senior Citizen | 393(1) [Sl. 5(ii).D(a)] | Rates in force | ₹1,00,000 | Higher threshold for senior citizens |
| 194A | Interest (other than on securities) — Others | 393(1) [Sl. 5(ii).D(b)] | Rates in force | ₹50,000 | |
| 194A | Any other interest (non-securities) | 393(1) [Sl. 5(iii)] | Rates in force | ₹10,000 | |
| CONTRACTS & PROFESSIONAL FEES | |||||
| 194C | Work Contract — Individual / HUF contractor | 393(1) [Sl. 6(i).D(a)] | 1% | ₹30,000 (Single) / ₹1 Lakh (Aggregate) | |
| 194C | Work Contract — Other than Individual/HUF | 393(1) [Sl. 6(i).D(b)] | 2% | ₹1 Lakh (Aggregate) | |
| 194M | Payments by Ind/HUF (not in audit) for Contract/Prof Fees | 393(1) [Sl. 6(ii)] | 2% | ₹50 Lakh | |
| 194J(a) | Fees for Technical Services (non-professional) / Royalty for films / Call Centre | 393(1) [Sl. 6(iii).D(a)] | 2% | ₹50,000 | |
| 194J(b) | Fees for Professional Services / Sum u/s 26(2)(h) | 393(1) [Sl. 6(iii).D(b)] | 10% | ₹50,000 | |
| 194J(b) | Remuneration / Fees / Commission to Director (non-salary) | 393(1) [Sl. 6(iii).D(b)] | 10% | — | No threshold |
| DIVIDENDS | |||||
| 194 | Dividends declared (including preference shares) — Resident | 393(1) [Sl. 7] | 10% | — | |
| LIFE INSURANCE / GOODS / E-COMMERCE / VDA | |||||
| 194DA | Life insurance policy maturity amount (net of exempt) | 393(1) [Sl. 8(i)] | 2% | ₹1 Lakh | On net amount (after Schedule II deduction) |
| 194Q | Purchase of Goods | 393(1) [Sl. 8(ii)] | 0.1% | In excess of ₹50 Lakh | Buyer deducts on purchase amount |
| 194R | Business Perquisite / Benefit (cash or kind) | 393(1) [Sl. 8(iv)] | 10% | ₹20,000 | |
| 194R | Perquisite in kind where cash is insufficient to cover tax | 393(1) [Sl. 8(iv)] | 10% | ₹20,000 | Tax must be paid before release (Note 3) |
| 194O | E-commerce: Sale of goods/services via an operator platform | 393(1) [Sl. 8(v)] | 0.1% | — | |
| 194S | VDA Transfer — by a person other than Ind/HUF | 393(1) [Sl. 8(vi)] | 1% | — | Crypto / Virtual digital assets |
| 194SP | VDA Transfer — any person (cash or kind, or partly) | 393(1) [Sl. 8(vi)] | 1% | — | Note 4 applies: tax before release |
| WINNINGS, LOTTERY / GAMES / HORSE RACE | |||||
| 194B | Winnings: Lottery, Crossword, Card Games, Gambling | 393(3) [Sl. 1] | Rates in force | ₹10,000 per transaction | |
| 194B | Above winnings – in kind/cash insufficient (tax paid first) | 393(3) [Sl. 1] | Rates in force | ₹10,000 per transaction | Note 1 |
| 194BA | Winnings from Online Games | 393(3) [Sl. 2] | Rates in force | Net winnings at year end | On the user account balance |
| 194BA | Online game winnings in kind/cash are insufficient | 393(3) [Sl. 2] | Rates in force | ₹10,000 per transaction | Note 2 |
| 194BB | Winnings from Horse Race | 393(3) [Sl. 3] | Rates in force | ₹10,000 per transaction | |
| LOTTERY COMMISSION / CASH WITHDRAWALS / PARTNERS / NSS | |||||
| 194G | Commission on Lottery Tickets (to stockists/distributors) | 393(3) [Sl. 4] | 2% | ₹20,000 | |
| 194N | Cash withdrawal by Co-operative Society from bank/PO | 393(3) [Sl. 5.D(a)] | 2% | ₹3 Crore | |
| 194N | Cash withdrawal by other persons from bank/PO | 393(3) [Sl. 5.D(b)] | 2% | ₹1 Crore | |
| 194EE | NSS Deposit withdrawal [Sec 80CCA(2)(a) of IT Act 1961] | 393(3) [Sl. 6] | 10% | ₹2,500 | |
| 194T | Payments to Partner — Salary, Remuneration, Commission, Bonus, Interest | 393(3) [Sl. 7] | 10% | ₹20,000 | New section in IT Act 2025 |
For Payments to Non-Resident
| Old Section (IT Act 1961) | Nature of Payment | New Section (IT Act 2025) | Rate | Remarks |
| 194E | Income of Non-Resident Sportsmen/Associations u/s 211 | 393(2) [Sl. 1] | 20% | |
| 194LC | Interest on foreign currency borrowings (loan/LT infra bond Jul 2012–Jun 2023; LT bond Oct 2014–Jun 2023 — Govt approved) | 393(2) [Sl. 2] | 5% | |
| 194LD | Interest on rupee-denominated bond issued before 1-Jul-2023 (borrowed outside India) | 393(2) [Sl. 3] | 5% | |
| 194LC | Interest on LT bond/rupee bond listed on IFSC exchange — issued 1-Apr-2020 to 30-Jun-2023 | 393(2) [Sl. 4.E(a)] | 4% | IFSC = International Financial Services Centre |
| 194LC | Interest on LT bond/rupee bond listed on IFSC exchange — issued on/after 1-Jul-2023 | 393(2) [Sl. 4.E(b)] | 9% | |
| 194LB | Interest from Infrastructure Debt Fund payable to Non-Resident | 393(2) [Sl. 5] | 5% | |
| 194LBA(a) | Distributed income of nature under Sch V [Sl. 3.B(a)] from Business Trust to NR | 393(2) [Sl. 6.E(a)] | 5% | |
| 194LBA(b) | Distributed income of nature under Sch V [Sl. 3.B(b)] from Business Trust to NR | 393(2) [Sl. 6.E(b)] | 10% | |
| 194LBC | Distributed income of nature under Sch V [Sl. 4] to NR | 393(2) [Sl. 7] | Rates in force | |
| 194LBB | Income from Investment Fund u/s 224 (excl. exempt portion u/s Sch V [Sl. 2]) | 393(2) [Sl. 8] | Rates in force | |
| 194LBC | Income from Securitisation Trust u/s 221 | 393(2) [Sl. 9] | Rates in force | |
| 195 | Income re: Mutual Fund units [Sch VII Sl. 20/21] or from the specified company | 393(2) [Sl. 10] | 20% | |
| 196B | Income from Offshore Fund unit’s u/s 208 | 393(2) [Sl. 11] | 10% | |
| 196B | LTCG on transfer of Offshore Fund unit’s u/s 208 | 393(2) [Sl. 12] | 12.5% | |
| 196C | Interest / Dividends on bonds or Global Depository Receipts u/s 209 | 393(2) [Sl. 13] | 10% | |
| 196C | LTCG on transfer of bonds or GDRs u/s 209 | 393(2) [Sl. 14] | 12.5% | |
| 196D | Income (not dividend/CG) of FIIs/FPIs from securities u/s 210(1) | 393(2) [Sl. 15] | 20% | |
| 196D | Dividend income of FIIs/FPIs from securities u/s 210(1) | 393(2) [Sl. 16] | 10% | |
| 195 | Any other interest/sum chargeable under the Act (not salary: not covered above) | 393(2) [Sl. 17] | Rates in force |
KEY COMPLIANCE CHANGES:
Section 194T (Now under section 393)
TDS @ 10% on Payment to Partner (Interest, remuneration, Bonus) if the amount exceeding 20,000 is now included under the new Income tax act.
Quoting Sections
From 01-04-2026, you shall mention the serial number of the section of the old section (like 194J, 194C…), not accepted on the portal.
Consolidation of Rates
The New Income tax simplified the rates on e-commerce transactions, certain rent payments, and insurance commission (reduced from 5% to 2%).
206AA (PAN non-compliance) → 397(2)
20% if no PAN for most sections & Lower 5% TDS rate for goods purchased and e-commerce where PAN is missing.
Here is TCS Rate Chart:
| Old Section (IT Act 1961) | Nature of Collection | New Section (IT Act 2025) | PERSON | TCS Rate | Threshold / Remarks |
| GOODS SPECIFIED CATEGORIES (Sec 394(1)) | |||||
| 206C(1) | Sale of Alcoholic Liquor for Human Consumption | 394(1) [Sl. 1] | SELLER | 2% | |
| 206C(1) | Sale of Tendu Leaves | 394(1) [Sl. 2] | SELLER | 2% | |
| 206C(1) | Sale of Timber obtained under Forest Lease | 394(1) [Sl. 3] | SELLER | 2% | |
| 206C(1) | Sale of Timber obtained by mode other than Forest Lease | 394(1) [Sl. 3] | SELLER | 2% | |
| 206C(1) | Sale of other Forest Produce (not timber or tendu leaves) | 394(1) [Sl. 3] | SELLER | 2% | |
| 206C(1) | Sale of Scrap | 394(1) [Sl. 4] | SELLER | 2% | |
| 206C(1) | Sale of Minerals — Coal, Lignite or Iron Ore | 394(1) [Sl. 5] | SELLER | 2% | |
| LUXURY GOODS (Sale consideration exceeding threshold — Sec 394(1) [Sl. 6]) | |||||
| 206C(1F) | Sale of Motor Vehicle | 394(1) [Sl. 6.D(a)] | SELLER | 1% | Threshold as notified, i.e., 10 Lakh |
| Notified Luxury Item | Sale of a wrist watch | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Art Pieces (Antiques, Paintings, Sculpture) | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Collectables (Coin, Stamp) | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Yacht, Rowing Boat, Canoe, Helicopter | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Pair of Sunglasses | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Bag (Handbag, Purse) | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Pair of Shoes | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Sportswear & Equipment (Golf Kit, Ski-wear) | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Home Theatre System | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| Notified Luxury Item | Sale of Horse (for racing in race clubs/polo) | 394(1) [Sl. 6.D(b)] | SELLER | 1% | Above threshold limit |
| LIBERALISED REMITTANCE SCHEME (LRS) & OVERSEAS TOURS | |||||
| 206C(1G) | LRS Remittance for Education / Medical Treatment (above threshold – 10 lakh) | 394(1) [Sl. 7.D(a)] | Authorized Dealer | 2% | |
| 206C(1G) | LRS Remittance for purposes other than Education / Medical | 394(1) [Sl. 7.D(b)] | Authorized Dealer | 20% | Higher rate for other LRS remittances |
| 206C(1G) | Sale of Overseas Tour Programme Package (any operator) | 394(1) [Sl. 8.D(a)] | Authorized Dealer | 2% | |
| 206C(1G) | Sale of Overseas Tour Package (another category) | 394(1) [Sl. 8.D(b)] | Authorized Dealer | 2% | |
| LEASING / USE RIGHTS (Section 394(1) [Sl. 9]) | |||||
| 206C(1C) | Use of Parking Lot (business purpose, excl. mineral oil mining) | 394(1) [Sl. 9] | Licensor or Lessor. | 2% | |
| 206C(1C) | Use of Toll Plaza (business purpose, excl. mineral oil mining) | 394(1) [Sl. 9] | Licensor or Lessor. | 2% | |
| 206C(1C) | Use of Mine or Quarry (business purpose, excl. mineral oil) | 394(1) [Sl. 9] | Licensor or Lessor. | 2% | |
PAN COMPLIANCE CHANGES: 206CC (TCS — PAN) → 397(2)
Higher of 2x rate or 5%
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