TDS Rates Chart

The second point is that the threshold applies per payer per financial year, not per bill. Four payments of ₹15,000 from the same payer are treated together, not separately.

What are the TDS rates and thresholds for FY 2026-27?

Financial year 2026-27, assessment year 2027-28. Source: incometax.gov.in, as of 17 August 2026.

What do people get wrong when reading this chart?

Three things. The first is the threshold, covered above. Crossing it pulls the whole payment into deduction, not just the part above the line.

The second is section 194C, which has two thresholds working together. A single bill of ₹30,000 triggers it. So does ₹1,00,000 in aggregate across the year, even if no single bill reaches ₹30,000.

The third is section 206AA. Without a valid PAN, the rate becomes 20% flat regardless of what the section above would have said. Collect the PAN before you make the payment, not at year end.

Is tax deducted at source the tax you actually owe?

No. TDS is a collection mechanism, not a final tax. It is a payment on account against your total liability for the year.

So the two numbers rarely match. A 10% deduction on interest income means nothing if your slab rate is 30%. You owe the difference, usually as advance tax.

The reverse is also common. If your total income is below the taxable limit, tax was still deducted and you have to claim it back by filing a return. Use our income tax calculator to see where you land.

How do you stop TDS being deducted when you owe no tax?

File the right declaration at the start of the financial year. Form 15G is for those below 60, and Form 15H is for senior citizens.

You file it with each payer separately. A bank cannot act on a form given to another bank, and each branch may need its own copy.

Do it in April. A form filed in February does not undo deductions already made. Those come back only through a refund. Our TDS on FD calculator shows when a deposit crosses the interest threshold.

How do you check what has been deducted against your PAN?

Log in to the income tax portal and open Form 26AS and the Annual Information Statement. Both list tax deducted against your PAN by every payer.

Check them before you file, not after. If a deductor has not deposited or has quoted the wrong PAN, the credit will not appear and your return will not reconcile.

Fixing it means going back to the deductor to revise their statement. That takes weeks, which is why checking early matters.

What does the payer risk by not deducting?

Real money. Interest runs on the amount not deducted or not deposited, and a separate fee applies for late filing of the quarterly statement.

There is also disallowance. Expenditure on which tax should have been deducted can be partly disallowed when computing business income. That converts a compliance slip into a tax cost.

If you deduct tax as a business, keep it on the same monthly calendar as your GST returns. Both are payer obligations with dates that do not move.

Common questions

What is the TDS rate on fixed deposit interest?

Section 194A applies at 10%, with a threshold of ₹50,000 of interest in the financial year, or ₹1,00,000 for senior citizens. The threshold is per bank, aggregated across your branches. Without a valid PAN, section 206AA raises the rate to 20% flat. Compare deposit rates on our best FD rates page.

Is TDS deducted on rent paid by an individual?

Yes, under section 194-IB, at 2% where monthly rent reaches ₹50,000. This applies to individuals not otherwise required to audit their accounts, and the deduction is made once in the year. Section 194I, at 10%, applies to businesses paying rent above ₹2,40,000 a year.

How do I claim a TDS refund?

File your income tax return. The tax deducted appears in Form 26AS and the Annual Information Statement, and the return computes your actual liability. If the tax deducted exceeds it, the excess is refunded to your pre-validated bank account. There is no way to claim it without filing.

What happens if I do not give my PAN?

Section 206AA applies a flat 20% rate, overriding the rate that would otherwise apply. Since 194C on an individual contractor would be 1%, this is a twentyfold difference. Give the PAN and confirm the deductor has recorded it correctly.

Does TDS apply to senior citizens on SCSS interest?

Yes. Interest from the Senior Citizen Savings Scheme is fully taxable, and section 194A deducts 10% once interest crosses ₹1,00,000 in the year for a senior citizen. If your total income is below the taxable limit, file Form 15H in April to prevent the deduction.