Short answer
From 1 April 2026, TDS on payments other than salary is deducted under Section 393 of the Income-tax Act, 2025. Rates and thresholds are mostly unchanged: 10% on professional fees above ₹50,000 a year, 1% or 2% on contractors, and 10% on rent for a building above ₹50,000 a month.
What changed is the paperwork. Each payment now has a four-digit code, and the returns have new numbers: 26Q is now Form 140 and 24Q is now Form 138. Deposit TDS by the 7th of the next month, or by 30 April for March.
How to use this TDS calculator
- 1Pick the nature of paymentChoose what you are paying for, such as professional fees, rent or contractor bills. The threshold for that payment shows below it.
- 2Choose the payee typeSome rates depend on who you pay. A contractor who is an individual attracts 1%, and a company attracts 2%.
- 3Enter this payment and earlier paymentsAdd what you already paid the same payee this year. Once the yearly threshold is crossed, TDS applies to the full total.
- 4Read the resultYou get the TDS, the net amount to pay, the Section 393 reference, the payment code, and the deposit and return due dates.
TDS rate chart for Tax Year 2026-27
Rates for payments to residents under the Income-tax Act, 2025. Search by the old section number if that is how your team knows it.
| Nature of payment | Old section | Section (2025 Act) | Threshold | Rate |
|---|---|---|---|---|
| Salary to employees | 192 | 392 | Taxable salary above the exemption limit | Slab rates |
| Professional fees (CA, lawyer, doctor, consultant, architect) | 194J(b) | 393(1) Sl. 6(iii) | Above ₹50,000 a year | 10% |
| Technical services, call centre, film royalty | 194J(a) | 393(1) Sl. 6(iii) | Above ₹50,000 a year | 2% |
| Director fees or commission (not salary) | 194J(b) | 393(1) Sl. 6(iii) | No threshold | 10% |
| Contractor or sub-contractor, incl. manpower supply · Individual or HUF | 194C | 393(1) Sl. 6(i) | Above ₹30,000 per bill or ₹1 lakh a year | 1% |
| Contractor or sub-contractor, incl. manpower supply · Company, firm, LLP or other | 194C | 393(1) Sl. 6(i) | Above ₹30,000 per bill or ₹1 lakh a year | 2% |
| Commission or brokerage | 194H | 393(1) Sl. 1(ii) | Above ₹20,000 a year | 2% |
| Insurance commission · Payee other than a company | 194D | 393(1) Sl. 1(i) | Above ₹20,000 a year | 2% |
| Insurance commission · Company | 194D | 393(1) Sl. 1(i) | Above ₹20,000 a year | 10% |
| Purchase of goods (buyer turnover above ₹10 crore last year) | 194Q | 393(1) Sl. 8(ii) | On the amount above ₹50 lakh a year | 0.1% |
| E-commerce operator paying a seller · Individual or HUF seller | 194O | 393(1) Sl. 8(v) | Above ₹5 lakh a year | 0.1% |
| E-commerce operator paying a seller · Other seller | 194O | 393(1) Sl. 8(v) | No threshold | 0.1% |
| Business perquisites or benefits | 194R | 393(1) Sl. 8(iv) | Above ₹20,000 a year | 10% |
| Salary, commission, bonus or interest to a partner | 194T | 393(3) Sl. 7 | Above ₹20,000 a year | 10% |
| Contract or professional fees paid by an individual/HUF not under audit | 194M | 393(1) · Form 141 | Above ₹50 lakh a year | 2% |
| Rent for land, building or furniture | 194I(b) | 393(1) Sl. 2(ii) | Above ₹50,000 a month | 10% |
| Rent for plant, machinery or equipment | 194I(a) | 393(1) Sl. 2(ii) | Above ₹50,000 a month | 2% |
| Rent paid by an individual/HUF not under tax audit | 194-IB | 393(1) Sl. 2(i) · Form 141 | Above ₹50,000 a month | 2% |
| Purchase of immovable property from a resident | 194-IA | 393(1) · Form 141 | ₹50 lakh or more | 1% |
| Compensation on compulsory acquisition of land | 194LA | 393(1) Sl. 3(iii) | Above ₹5 lakh a year | 10% |
| Bank, co-op bank or post office interest, payee below 60 | 194A | 393(1) Sl. 5(ii) | Above ₹50,000 a year | 10% |
| Bank, co-op bank or post office interest, senior citizen | 194A | 393(1) Sl. 5(ii) | Above ₹1 lakh a year | 10% |
| Other interest (loans, company or NBFC deposits) | 194A | 393(1) Sl. 5(iii) | Above ₹10,000 a year | 10% |
| Interest on securities (debentures, bonds) | 193 | 393(1) Sl. 5(i) | Above ₹10,000 a year | 10% |
| Dividend to a resident individual | 194 | 393(1) Sl. 7 | Above ₹10,000 a year | 10% |
| Income from mutual fund units | 194K | 393(1) Sl. 4(i) | Above ₹10,000 a year | 10% |
| Life insurance payout, taxable portion | 194DA | 393(1) Sl. 8(i) | Above ₹1 lakh a year | 2% |
| Transfer of crypto or other virtual digital asset | 194S | 393(1) Sl. 8(vi) | Above ₹10,000 a year | 1% |
| Lottery, crossword, card game or betting winnings | 194B | 393(3) Sl. 1 | Above ₹10,000 per transaction | 30% |
| Net winnings from online games | 194BA | 393(3) Sl. 2 | No threshold | 30% |
| Horse race winnings | 194BB | 393(3) Sl. 3 | Above ₹10,000 per transaction | 30% |
| Commission on sale of lottery tickets | 194G | 393(3) Sl. 4 | Above ₹20,000 a year | 2% |
| Cash withdrawal (deducted by the bank) · Account holder other than a co-op society | 194N | 393(3) Sl. 5 | On the amount above ₹1 crore a year | 2% |
| Cash withdrawal (deducted by the bank) · Co-operative society | 194N | 393(3) Sl. 5 | On the amount above ₹3 crore a year | 2% |
Without a valid PAN, deduct the higher of the listed rate or 20% (5% for purchase of goods and e-commerce). Rows marked "Form 141" are paid through a challan-cum-statement under the payer's PAN. No TAN is needed for them.
What changed in TDS from 1 April 2026?
The Income-tax Act, 2025 replaced the 1961 Act for every payment or credit made on or after 1 April 2026. Payments dated up to 31 March 2026 stay under the old Act and old forms, including any corrections for those quarters.
- One section for most TDS. Sections 193 to 196D now sit in the tables of Section 393. Salary TDS moved to Section 392.
- Payment codes in returns. Each deduction carries a code from 1001 to 1067. Using an old section number for a 2026-27 payment fails validation on the portal.
- 194J splits into three codes. Technical services are 2% (code 1026), professional fees are 10% (1027) and director fees are 10% (1028). Using 1026 where 1027 applies means you have under-deducted by 8%.
- Manpower supply is a contract. Supply of labour now falls under the contractor row at 1% or 2%, which settles the old 194C-or-194J dispute.
- No higher TDS for non-filers. Old Section 206AB was removed from 1 April 2025. You only need to check for a valid PAN.
How TDS is calculated: three worked examples
TDS is deducted on the earlier of two dates: when you credit the payee in your books, or when you pay. Check the threshold first, then apply the rate.
You paid ₹30,000 in May and pay ₹40,000 in August. The yearly total crosses ₹50,000 in August, so TDS covers both bills.
(₹30,000 + ₹40,000) × 10% = ₹7,000, deducted in August
A single bill of ₹45,000 is above the ₹30,000 per-bill limit, so TDS applies even though the yearly total is under ₹1,00,000.
₹45,000 × 2% = ₹900
Monthly rent of ₹60,000 is above the ₹50,000 monthly threshold, so TDS applies every month.
₹60,000 × 10% = ₹6,000 a month
TDS due dates and new form numbers
| What | Due date |
|---|---|
| Deposit TDS for April to February | 7th of the next month |
| Deposit TDS for March | 30 April |
| Form 141 (property, rent by individuals, 194M, crypto) | 30 days from the end of the month of deduction |
| Quarterly returns: Q1 / Q2 / Q3 / Q4 | 31 July / 31 October / 31 January / 31 May |
| Form 131 to vendors | 15 days from the return due date |
| Form 130 to employees | 15 June after the tax year |
| Purpose | 1961 Act | 2025 Act |
|---|---|---|
| Salary TDS return | Form 24Q | Form 138 |
| Non-salary TDS return, residents | Form 26Q | Form 140 |
| TDS return, non-residents | Form 27Q | Form 144 |
| TCS return | Form 27EQ | Form 143 |
| Property, rent, 194M, crypto | 26QB / 26QC / 26QD / 26QE | Form 141 |
| Salary and non-salary TDS certificates | Form 16 / 16A | Form 130 / 131 |
| No-TDS declaration | Form 15G / 15H | Form 121 |
Interest, late fee and penalty for TDS defaults
| Default | Consequence | 2025 Act | Earlier |
|---|---|---|---|
| TDS deducted late or not at all | 1% a month or part of a month | 398(3)(a)(i) | 201(1A) |
| TDS deposited late | 1.5% a month or part of a month, from the date of deduction | 398(3)(a)(ii) | 201(1A) |
| Return filed late | ₹200 a day, capped at the TDS in the return | 427 | 234E |
| Return not filed | Penalty of ₹10,000 to ₹1,00,000 | 461 | 271H |
| TDS deducted but never paid | Prosecution: 3 months to 7 years and a fine | 476 | 276B |
| TDS not deducted on a business expense | 30% of the expense disallowed until paid | — | 40(a)(ia) |
When is no TDS or lower TDS deducted?
- Below the threshold. No TDS is due until the payment or yearly total crosses the limit in the rate chart.
- Form 121 declaration. A resident whose total income is below the taxable limit can give Form 121 (earlier 15G or 15H) to stop TDS on interest, dividend and similar income.
- Lower or nil deduction certificate. The payee can apply to the Assessing Officer. Deduct at the rate on the certificate.
- Small transporters. No TDS on payments to a transporter who owns ten or fewer goods carriages and gives a declaration with PAN, under Section 393(4), Table Sl. No. 8.
Frequently asked questions
What is the TDS rate on professional fees for 2026-27?
10% once payments to the same professional cross ₹50,000 in the tax year. It is reported under Section 393(1), Table Sl. No. 6(iii), payment code 1027 (earlier Section 194J(b)). Fees for technical services and call centres are 2% under code 1026. Director fees are 10% with no threshold, under code 1028.
What is Section 393 of the Income-tax Act, 2025?
Section 393 holds almost every TDS provision other than salary, from 1 April 2026. It replaces Sections 193 to 196D of the 1961 Act with tables. Each row has a serial number, a rate, a threshold and a payment code. Salary TDS moved to Section 392, and TCS moved to Section 394.
What are the new codes for 194C and 194J?
Contractor payments (old 194C) use code 1023 for individual or HUF contractors at 1% and code 1024 for others at 2%. Old 194J splits three ways: 1026 for technical services at 2%, 1027 for professional fees at 10% and 1028 for director fees at 10%.
What is the TDS threshold for rent in 2026-27?
₹50,000 a month. Rent for land, building or furniture attracts 10% and rent for plant or machinery attracts 2%, for any month where rent is above ₹50,000. Individuals and HUFs not under tax audit deduct 2% on rent above ₹50,000 a month through Form 141, using their PAN.
Is TDS deducted on the invoice amount with GST?
No, when the invoice shows GST as a separate line, deduct TDS on the amount before GST, as per CBDT Circular 23/2017. If GST is not shown separately, deduct TDS on the full invoice value.
What is the TDS rate if the payee has no PAN?
The higher of the normal rate or 20%, under Section 397(2) of the Income-tax Act, 2025 (earlier Section 206AA). The floor is 5% for purchase of goods and e-commerce payments. The higher rate for non-filers of returns (old Section 206AB) no longer applies.
What is the due date to deposit TDS?
The 7th of the next month for deductions made in April to February, and 30 April for deductions made in March. TDS paid through Form 141 is due within 30 days from the end of the month in which it was deducted.
What is the late fee for filing a TDS return late?
₹200 for every day of delay under Section 427 (earlier Section 234E), capped at the TDS amount in that return. You pay it before the return is accepted. A penalty of ₹10,000 to ₹1,00,000 can also apply when the return is more than a month late.
What is the interest on late payment of TDS?
1% a month when TDS is not deducted or deducted late, and 1.5% a month when TDS is deducted but deposited late, under Section 398(3). Any part of a month counts as a full month.
Is TDS on manpower supply 1%, 2% or 10%?
1% or 2%. From 1 April 2026 the Act expressly treats supply of labour as work under the contractor row, Section 393(1) Table Sl. No. 6(i). Deduct 1% when the contractor is an individual or HUF and 2% for others.
How does TDS on partner remuneration work?
A firm or LLP deducts 10% on salary, remuneration, commission, bonus or interest paid or credited to a partner, once the total for that partner crosses ₹20,000 in the tax year. It is reported under Section 393(3), Table Sl. No. 7, code 1067 (earlier Section 194T).