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Common TDS rates and thresholds for business payments (FY 2026-27)
A quick reference of the most-used business TDS categories (contractor, professional/technical fees, rent, commission, purchase of goods) with old and new section references.
| Nature (old section) | New reference | Rate | Threshold |
|---|---|---|---|
| Contractor – individual/HUF (194C) | 393(1), code 1023 | 1% | ₹30,000 per contract / ₹1,00,000 aggregate in the year |
| Contractor – others (194C) | 393(1), code 1024 | 2% | same |
| Fees for technical services (194J) | 393(1), code 1026 | 2% | ₹50,000 in the year |
| Fees for professional services (194J) | 393(1), code 1027 | 10% | ₹50,000 in the year |
| Rent – plant/machinery (194-I(a)) | 393(1), code 1008 | 2% | ₹50,000 per month or part of a month |
| Rent – land/building/furniture (194-I(b)) | 393(1), code 1009 | 10% | ₹50,000 per month or part of a month |
| Commission/brokerage (194H) | 393(1), code 1006 | 2% | ₹20,000 in the year |
| Purchase of goods (194Q) | 393(1), code 1031 | 0.1% on amount above ₹50 lakh | Buyer's turnover above ₹10 crore in the preceding year |
- Higher rates generally apply where the deductee has no valid PAN.
- Thresholds reflect the Budget 2025 rationalisation carried into the 2025 Act as reported in published mapping tables. Verify against the Act/CBDT before relying on them.