TDS Rate Chart for FY 2023-24

The TDS rate chart for FY 2023-24 captured the new tax regime defaults for Section 192 salary TDS and the prevailing rates and thresholds under Sections 194A, 194C, 194H, 194I, 194J, 194Q, 194R and 195. In FY 2026-27, several of these thresholds have been revised by Finance Act 2026 and the latest CBDT notifications, so deductors must use a chart updated for AY 2027-28, validate PAN status to avoid 206AA higher TDS, and reconcile deductions with Form 26AS and the AIS.

Mayank Wadhera

Published: 5 Apr 2023

Updated: 16 May 2026

4 min read

A clean, accurate TDS rate chart is the most-used reference document in any Indian finance team. The FY 2023-24 chart was particularly important as it captured the new tax regime defaults and revised Section 194 thresholds. As we operate in FY 2026-27, this guide refreshes the FY 2023-24 baseline and points to the 2026 updates that finance teams must apply today.

Why TDS Rate Charts Need Annual Refresh

TDS sections, thresholds and rates change with every Finance Act. Using an outdated chart causes under-deduction, interest under Section 201, disallowance under Section 40(a)(ia) for the payer and mismatch in Form 26AS for the deductee. The 2023-24 chart was the first to fully reflect the new regime default and the Section 194R perquisite TDS framework introduced in 2022.

Key TDS Sections Frequently Referenced

Section 192 — TDS on salaries at applicable slab rates
Section 194A — TDS on interest other than securities
Section 194C — TDS on contractor payments
Section 194H — TDS on commission and brokerage
Section 194I — TDS on rent
Section 194J — TDS on professional and technical fees
Section 194Q — TDS on purchase of goods above ₹50 lakh
Section 194R — TDS on benefits or perquisites in business or profession
Section 194S — TDS on transfer of virtual digital assets
Section 195 — TDS on payments to non-residents

Indicative Rates Frequently Asked About

Section 192 follows slab rates and the chosen regime. Section 194A typically applies at 10 percent on interest above the prescribed threshold. Section 194C applies at 1 percent for individuals and HUFs and 2 percent for others above the threshold. Section 194J applies at 10 percent for professional fees and 2 percent for technical services and call centre fees. Section 194Q applies at 0.1 percent above ₹50 lakh of purchases. Always confirm the exact threshold and rate from the prevailing CBDT notification for FY 2026-27 before applying.

What Has Changed Since FY 2023-24

Finance Act 2026 has rationalised several TDS thresholds and rates, particularly under Sections 194A, 194I, 194-IB, 194C and 194D. The CBDT continues to publish a consolidated TDS rate chart each year, and the Income Tax portal pre-fills relevant rates in Form 26Q. Aadhaar-based PAN inoperative status now triggers higher TDS under Section 206AA, and AIS-based mismatches lead to faster notices.

Best Practices for TDS Compliance in 2026

Use a TDS rate chart updated for FY 2026-27 / AY 2027-28
Validate the deductee's PAN status using the Income Tax portal API
File quarterly Form 24Q, 26Q and 27Q on time to avoid Form 16 / 16A delays
Reconcile TDS deducted with Form 26AS and AIS quarterly
Maintain TDS workings in a digital audit-trail format with supporting invoices

Section 194R, 194S and 194-O — The Newer Sections

Section 194R requires deduction at 10 percent on benefits or perquisites provided in the course of business or profession, above the prescribed threshold. Section 194S requires deduction at 1 percent on transfer of virtual digital assets above the prescribed threshold. Section 194-O requires e-commerce operators to deduct TDS on payments to e-commerce participants. These newer sections, which gained prominence around FY 2023-24, are now mainstream and applied widely in FY 2026-27.

Quarterly TDS Compliance Calendar

Q1 (April-June) — deposit by 7th of each month; Form 24Q / 26Q / 27Q by 31 July
Q2 (July-September) — deposit monthly; statements by 31 October
Q3 (October-December) — deposit monthly; statements by 31 January
Q4 (January-March) — deposit by 7 April; statements by 31 May with Annexure II for Form 24Q
Form 16 / 16A to be issued within 15 days of due date of TDS return

Form 26AS, AIS and TDS Mismatches

Even after correct deduction, mismatches in Form 26AS and AIS are a common source of taxpayer pain. Wrong PAN entry in Form 24Q / 26Q, late filing of TDS return, or section code errors all cause TDS not to reflect in the deductee's Form 26AS. Deductors should run a quarterly reconciliation between the TDS deducted in books, the TDS deposited via challan, and the TDS reflected in Form 26AS for each deductee. Early correction through revised Form 24Q / 26Q saves both sides from year-end disputes during ITR filing in AY 2027-28.

Conclusion

The FY 2023-24 TDS rate chart marked the new tax regime transition and several Section 194 refinements. In FY 2026-27, refresh your charts to the latest CBDT figures, validate PAN status before every payment, and reconcile TDS with AIS each quarter. A correctly applied TDS rate chart prevents costly interest, disallowances and notices later in the year.

Frequently Asked Questions

Why is a TDS rate chart needed every financial year?

Because TDS sections, thresholds and rates are revised by every Finance Act. Using a current-year chart ensures correct deduction, avoids interest under Section 201, prevents disallowance under Section 40(a)(ia) and keeps the deductee's Form 26AS accurate. Outdated charts are one of the most common causes of TDS notices.

What is Section 194Q and 194O TDS?

Section 194Q requires buyers with turnover above ₹10 crore to deduct TDS at 0.1 percent on purchases of goods above ₹50 lakh from any seller in a financial year. Section 194O requires e-commerce operators to deduct TDS at the prevailing rate on payments made to e-commerce participants. Both continue to apply in FY 2026-27 with the latest CBDT-notified thresholds.

What happens if the deductee's PAN is inoperative?

Where the deductee's PAN is not linked with Aadhaar and is therefore inoperative, Section 206AA applies and the deductor must deduct TDS at the higher of the specified rate, the rate in force, or 20 percent. Always validate PAN status on the Income Tax portal before processing payments.

Can I use an FY 2023-24 TDS chart now?

No. Several thresholds and rates have been revised under Finance Act 2026 and subsequent CBDT notifications. Using an FY 2023-24 chart in FY 2026-27 will cause incorrect deductions and interest exposure. Download the latest TDS chart for AY 2027-28 from a reliable source and verify against the CBDT website.