From tax year 2026-27, the familiar TDS sections such as 194C, 194J, 194-I and 194H sit together in one table under section 393 of the Income-tax Act, 2025. The rules most businesses use every month are largely the same; what changed is where to find them.
The thresholds most businesses meet
| Payment | When TDS applies |
|---|---|
| Contractors | A single payment over ₹30,000, or ₹1 lakh in the year |
| Professional and technical fees | Over ₹50,000 in the year |
| Rent | Over ₹50,000 a month |
| Commission | Over ₹20,000 in the year |
| Purchase of goods | Over ₹50 lakh from one seller, if your turnover last year was above ₹10 crore |
If the payee has no valid PAN, TDS is generally the higher of twice the normal rate or 20%; for purchase of goods it is 5%.
Deposit and return dates
- Deposit TDS by the 7th of the following month, and by 30 April for deductions made in March.
- File quarterly TDS returns by 31 July, 31 October, 31 January and 31 May.
- Issue TDS certificates to payees after filing each quarterly return.
Mistakes we see often
- Missing the yearly contractor limit. Once payments to one contractor cross ₹1 lakh in the year, TDS also applies to the earlier payments.
- Deducting on GST. Where GST is shown separately on the invoice, TDS is generally worked on the amount before GST.
- Wrong PAN or section code in the return, which leaves the payee without credit and brings notices.
- Old section numbers in software and vendor masters after April 2026.
Check any payment with our free TDS calculator.
Frequently asked questions
Rates and thresholds are largely the same. The main change is that non-salary TDS is now in one table under section 393.
By 30 April. For other months, by the 7th of the following month.
