RATES TDS & SURCHARGE IN CASE OF COMPANIES
(Finance Bill, 2026)
[With effect from 1st April, 2026]
In every case in which under the provisions of sections 393(1) [Table: Sl. Nos. 1(i) and 5], 393(2) [Table: Sl. Nos. 7, 8, 9 and 17] and 393(3) [Table: Sl. Nos. 1, 2 and 3] of the Income Tax Act, 2025 (hereafter in this Part referred to as the said Act), tax is to be deducted at the rates in force; deduction shall be made from the income subject to the deduction at the following rates: –
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Rate of income-tax |
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| 2. | In the case of a company, — | |
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(a) where the company is a domestic company— |
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(i) on income by way of interest other than “Interest on securities” |
10% |
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(ii) on income by way of winnings from lotteries, puzzles, card games and other games of any sort (other than winnings from online games) |
30% |
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(iii) on income by way of winnings from horse races |
30% |
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(iv) on income by way of net winnings from online games |
30% |
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(v) on any other income |
10% |
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(b) where the company is not a domestic company— |
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(i) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games) |
30% |
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(ii) on income by way of winnings from horse races |
30% |
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(iii) on income by way of net winnings from online games |
30% |
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(iv) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2) [Table: Sl. Nos. 2 to 5] of the said Act) |
20% |
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(v) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book referred to in section 207(3)(a) of the said Act, to the Indian concern, or in respect of any computer software referred to in section 207(3)(b) of the said Act, to a person resident in India |
20% |
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(vi) on income by way of royalty [not being royalty of the nature referred to in item (b)(v)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in with that policy— |
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(A) where the agreement is made after the 31st March, 1961 but before the 1st April, 1976 |
50% |
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(B) where the agreement is made after the 31st March, 1976 |
20% |
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(vii) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy— |
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(A) where the agreement is made after the 29th February, 1964 but before the 1st April, 1976 |
50% |
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(B) where the agreement is made after the 31st March, 1976 |
20% |
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(viii) on income by way of short-term capital gains referred to in section 196 of the said Act |
20% |
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(ix) on income by way of long-term capital gains referred to in section 197(4) of the said Act |
12.5% |
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(x) on income by way of long-term capital gains referred to in section 198 of the said Act exceeding ₹ 125000 |
12.5% |
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(xi) on other income by way of long- term capital gains [not being long-term capital gains referred to in Schedule II [Table: Sl. Nos. 14 and 17 [to the extent it relates to section 10(36) of the Income-tax Act, 1961(43 of 1961)] of the said Act |
12.5% |
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(xii) on income by way of dividend, referred to in section 207(1) [Table: Sl. No. 2] of the said Act |
10% |
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(xiii) on income by way of dividend other than the income referred to in item (b)(xii) |
20% |
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| (xiv) on any other income |
35% |
Surcharge on income-tax
The amount of income-tax deducted as per the provisions of this Part, in the case of a person as specified in column B of the Table below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such tax.
| TABLE | ||
| Sl.
No. |
Person in respect of which deduction has to be made |
Rate of surcharge |
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A |
B |
C |
| 6. |
Every company, other than a domestic company. |
(i) Where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ₹1Cr but does not exceed ₹10Cr, at the rate of 2%; (ii) where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ₹10Cr, at the rate of 5%. |
