Back to Tools Hub*income tax act 1961 statutory tds rates fy 2026-27*

TDS Rate & Threshold Finder

Search official Tax Deducted at Source (TDS) rates, statutory threshold exemption limits, and calculate net vendor payments under Section 194C, 194J, 194I, 194Q, and Section 206AA.

100% Free Public UtilityUpdated for FY 2026-27 (AY 2027-28)Sec 206AA Higher Rate Calculator

TDS Computation Parameters

Threshold: ₹30,000 single / ₹1,00,000 aggregate per FY
If PAN is not furnished, Section 206AA mandates deduction at flat 20.0%.

Deduction & Net Payout Summary

Net Payment to Vendor
₹ 99,000
Gross Bill Amount₹ 1,00,000
Applicable TDS Rate1%
TDS Amount to Remit to Govt₹ 1,000
Statutory Deposit Due Date: TDS deducted in any calendar month must be deposited via Challan ITNS 281 before the 7th day of the subsequent month (or 30th April for March deductions).
Section 194C
1% with PAN20% no PAN

Payment to Contractors & Sub-contractors (Individual / HUF)

Includes advertising, broadcasting, catering, transport carriage of goods and passengers.

Payee: Individual / HUFThreshold: ₹30,000 single / ₹1,00,000 aggregate per FY
Section 194C
2% with PAN20% no PAN

Payment to Contractors & Sub-contractors (Company / Firm / Others)

No TDS on transport contractors if PAN is furnished and owns <= 10 goods carriages.

Payee: Company / Firm / LLPThreshold: ₹30,000 single / ₹1,00,000 aggregate per FY
Section 194J(a)
2% with PAN20% no PAN

Fees for Technical Services, Call Center, or BPO Operations

Reduced 2% rate applicable to technical services and call center operations.

Payee: Any ResidentThreshold: ₹30,000 per financial year
Section 194J(b)
10% with PAN20% no PAN

Fees for Professional Services or Royalty

Applies to legal, medical, engineering, architectural, accountancy, or movie artists.

Payee: Any ResidentThreshold: ₹30,000 per financial year
Section 194I(a)
2% with PAN20% no PAN

Rent of Plant, Machinery, or Industrial Equipment

Includes leasing of construction plant, manufacturing machinery, or servers.

Payee: Any ResidentThreshold: ₹2,40,000 per financial year
Section 194I(b)
10% with PAN20% no PAN

Rent of Land, Building, or Commercial Office Space

Commercial office rent, factory lease rent, or co-working space dedicated desk leases.

Payee: Any ResidentThreshold: ₹2,40,000 per financial year
Section 194Q
0.1% with PAN5% no PAN

Purchase of Goods Exceeding ₹50 Lakhs in a Financial Year

Buyer must have gross turnover > ₹10 Crores in preceding financial year.

Payee: Resident SellerThreshold: ₹50,00,000 in aggregate per FY
Section 194H
2% with PAN20% no PAN

Commission or Brokerage

Finance Act reduced rate from 5% to 2% for ease of doing business.

Payee: Any ResidentThreshold: ₹15,000 per financial year
Section 194A
10% with PAN20% no PAN

Interest other than Interest on Securities (Banks / NBFCs / Loans)

TDS on fixed deposits, unsecured corporate loans, and peer borrowings.

Payee: Any ResidentThreshold: ₹40,000 for Banks (₹50k Senior Citizens) / ₹5,000 others
Section 194R
10% with PAN20% no PAN

Benefit or Perquisite in respect of Business or Profession

Gifts, dealer incentive trips, free tech gadgets, or promotional perks provided to distributors.

Payee: ResidentThreshold: ₹20,000 per financial year
Section 194DA
5% with PAN20% no PAN

Payment in respect of Life Insurance Policy

Applicable on net income portion (payout minus premiums paid) where policy is taxable.

Payee: ResidentThreshold: ₹1,00,000 per financial year