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Calculate Tax Deducted at Source (TDS) for FY 2026-27 under the Income-tax Act, 2025 (Section 393) and legacy 1961 Act (194X). Instant deduction breakdown and net vendor payout calculation.
Works contract, transportation, advertising, manufacturing, catering
Single bill limit is ₹30,000. If multiple bills total > ₹1,00,000 in the year, TDS applies to all payments.
Payment qualifies for TDS under Section 393(1), Table Sl. No. 6(i) (Single payment exceeded ₹30,000). Quote Section 393(1) Sl. 6(i) in Form 26Q returns.
ManTech ERP seamlessly supports the Income-tax Act, 2025 transition. Automatically map vendor ledger deductions to Section 393 items, verify PAN status, and export filing-ready Form 26Q reports.
Explore ManTech ERP for TDS & GSTThis calculator is for estimation and informational purposes only and does not constitute statutory tax advice. With effect from 1 April 2026, transactions are governed by the Income-tax Act, 2025 (Section 393(1) Table), replacing legacy sections of the Income-tax Act, 1961. Please verify with a qualified Chartered Accountant or the Income Tax Department before filing statutory Form 26Q/24Q returns. (Last verified: September 2, 2026)
Effective 1 April 2026, direct tax withholding across India is governed by the Income-tax Act, 2025. Under this legislation, legacy sections (such as 194C for contractors, 194J for professionals, 194I for rent, 194H for commission, 194A for interest, 194Q for goods, and 194O for e-commerce) are unified into the comprehensive Section 393(1) Consolidated Schedule. Quoting the correct Section 393 Table Item in quarterly Form 26Q TDS returns is mandatory to avoid return validation notices.
| 2025 Act (Sec 393) | Former 1961 Sec | Nature of Payment | Statutory Threshold | Standard Rate | Missing PAN Rate |
|---|---|---|---|---|---|
| Table Sl. No. 6(i) | Sec 194C | Contractor / Works contract payments | ₹30,000 (single) / ₹1,00,000 (annual) | 1% (Ind/HUF) | 2% (Others) | 20% |
| Table Sl. No. 6(iii) | Sec 194J | Professional vs Technical / IT fees | ₹50,000 / year | 10% (Prof) | 2% (Tech/IT) | 20% |
| Table Sl. No. 2 | Sec 194I / 194IB | Rent (Building, Land, Machinery, Residential) | > ₹50,000 / month or part | 10% (Building) | 2% (Machinery / Ind) | 20% |
| Table Sl. No. 1(ii) | Sec 194H | Commission or Brokerage | ₹20,000 / year | 2% | 20% |
| Table Sl. No. 1(i) | Sec 194A | Interest (Bank deposits / Private loans) | ₹50k/₹1L (Bank) | ₹10k (Private Loans) | 10% | 20% |
| Table Sl. No. 8(ii) | Sec 194Q | Purchase of Goods (> ₹50 Lakh) | ₹50,00,000 / year (excess only) | 0.1% on excess | 5% (Capped) |
| Table Sl. No. 8(v) | Sec 194O | E-Commerce Seller Payout | NIL (all qualifying payouts) | 0.1% | 20% |
Single invoice exceeds ₹30,000 threshold. Payee is an individual with valid PAN.
Annual professional fee exceeds ₹50,000 threshold under Section 393(1) (10% rate applies).
TDS applies strictly on excess of ₹20,00,000 over ₹50 Lakh threshold at 0.1%.
With effect from 1 April 2026 (governing FY 2026-27 and AY 2027-28 onwards), direct tax withholding across India is governed by the Income-tax Act, 2025. All legacy withholding sections (such as 194C for contractors, 194J for professionals, 194I for rent, 194H for commission, 194A for interest, 194Q for goods, and 194O for e-commerce) have been consolidated into Section 393(1). Under official Income Tax Department guidelines, quoting the correct Section 393 Table Item in Form 26Q returns is essential to ensure valid processing without return mismatches.
Under Section 393(1) Table Sl. No. 2 of the Income-tax Act, 2025, the statutory threshold for rent is specified as ₹50,000 for a month or part of a month. The applicable rate is 10% for land, building, furniture, or fittings, and 2% for plant, industrial machinery, or equipment (as well as rent paid by non-audited individuals/HUFs).
Under Section 393(1) Table Sl. No. 8(v), e-commerce operators must deduct TDS at 0.1% on all qualifying gross sales or service payouts made to e-commerce sellers. The threshold under Section 393 for e-commerce transactions is NIL.
Section 393(1) Table Sl. No. 1(i) provides a dual threshold for interest other than securities: ₹50,000 per year for general payees and ₹1,00,000 for Senior Citizens (age 60+) when paid by banking companies, co-operative banks, or post offices. For other private loans, unsecured business loans, or trade interest, the statutory threshold is ₹10,000 per financial year (10% rate).
Under the higher withholding rules of the Income-tax Act, 2025 (Chapter XIX / Section 393 compliance), if a resident payee fails to furnish a valid PAN, TDS must be deducted at a flat rate of 20%. The statutory exception is the purchase of goods exceeding ₹50 lakh (Section 393(1) Item 8(ii) / former 194Q), where the higher rate is capped at 5%.
Under Section 393(1) Table Sl. No. 6(i) (former Section 194C), TDS applies if a single contract payment exceeds ₹30,000 OR if total aggregate payments to the contractor in the financial year exceed ₹1,00,000. The rate is 1% for resident Individual/HUF contractors and 2% for Companies, Partnership Firms, and LLPs.