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How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
Common TDS rates (FY 2025-26 & Tax Year 2026-27)
| Payment | Old section | Threshold | Rate |
|---|---|---|---|
| Contractor — individual / HUF | 194C | ₹30,000 single / ₹1 lakh a year | 1% |
| Contractor — others | 194C | ₹30,000 / ₹1 lakh | 2% |
| Professional fees | 194J | ₹50,000 a year | 10% |
| Technical services, royalty for films | 194J | ₹50,000 a year | 2% |
| Commission / brokerage | 194H | ₹20,000 a year | 2% |
| Rent — land, building, furniture | 194-I | ₹50,000 a month | 10% |
| Rent — plant & machinery | 194-I | ₹50,000 a month | 2% |
| Rent paid by individuals not under audit | 194-IB | ₹50,000 a month | 2% |
| Purchase of immovable property | 194-IA | ₹50 lakh | 1% |
| Interest (bank, non-senior) | 194A | ₹50,000 a year | 10% |
| Interest (bank, senior citizen) | 194A | ₹1,00,000 a year | 10% |
| Dividend | 194 | ₹10,000 a year | 10% |
| Purchase of goods | 194Q | ₹50 lakh a year | 0.1% |
| Partners' salary, interest, commission | 194T | ₹20,000 a year | 10% |
| Virtual digital assets | 194S | ₹50,000 / ₹10,000 | 1% |
Deductor's calendar
- Deposit by the 7th of the next month (30 April for March)
- Quarterly statements: 31 July, 31 October, 31 January, 31 May — Form 26Q is now Form 140
- Issue certificates (Form 16A → Form 131) within 15 days of the statement due date
- Late statement fee ₹200 a day (234E → 427) and interest at 1% / 1.5% a month for late deduction / deposit
Worked example
Example
Example: A firm pays a consultant ₹80,000 in the year. TDS under 194J (section 393) at 10% = ₹8,000, deposited by the 7th of the following month.
Common mistakes
- Missing 194-IB on rent above ₹50,000 a month paid by a salaried person
- Deducting under 194C instead of 194J for professional services
- Ignoring 194T on payments to partners from April 2025
Frequently asked questions
The 2025 Act consolidates the sections into a table; the rates and thresholds shown here continued into Tax Year 2026-27. Check the table in section 393 for special cases.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
