From 1 April 2026, TDS is deducted under section 393 of the Income-tax Act, 2025, and the quarterly statements and certificates have new form numbers. This guide lists the rates and limits businesses use most, with the old section numbers for reference.
Who must deduct
A “specified person” must deduct TDS on business payments. That means anyone other than an individual or HUF, and also an individual or HUF whose turnover in the previous tax year was above ₹1 crore (business) or ₹50 lakh (profession).
An individual or HUF outside that definition must still deduct 2% on rent above ₹50,000 a month, and 2% on contract work, professional fees or commission above ₹50 lakh. Contract or professional fees an individual or HUF pays purely for personal purposes need no TDS.
Rates and thresholds
| Payment | Earlier section | Rate | Threshold |
|---|---|---|---|
| Contractors | 194C | 1% to an individual or HUF, 2% to others | ₹30,000 for one payment or ₹1,00,000 in aggregate |
| Professional fees | 194J | 10% | ₹50,000 |
| Technical services, certain royalties, call centres | 194J | 2% | ₹50,000 |
| Commission or brokerage (not insurance) | 194H | 2% | ₹20,000 |
| Rent of land, building or furniture | 194-I | 10% | ₹50,000 a month |
| Rent of plant, machinery or equipment | 194-I | 2% | ₹50,000 a month |
| Rent paid by other individuals and HUFs | 194-IB | 2% | ₹50,000 a month |
| Purchase of goods by a buyer with turnover above ₹10 crore | 194Q | 0.1% | On the amount above ₹50 lakh |
| Contract work, professional fees or commission paid by other individuals and HUFs | 194M | 2% | ₹50 lakh |
Directors’ fees have no threshold. Section 393(1) now holds all of these in one table; the earlier section numbers are shown only to help you match them with older records.
Due dates
| What | Due date |
|---|---|
| Deposit of TDS (non-government deductors) | 7th of the next month; for March, 30 April |
| Deposit by individuals and HUFs who are not specified persons, on rent, contract or professional fees, with Form 141 | Within 30 days from the end of the month |
| Quarterly statements: Form 138 for salary (was 24Q), Form 140 for other payments (was 26Q) | 31 July, 31 October, 31 January and 31 May |
| Form 130, the salary certificate (was Form 16) | 15 June after the tax year |
| Form 131, other TDS certificates (was Form 16A) | 15 August, 15 November, 15 February and 15 June |
Late fees and interest
- Late statement fee (section 427): ₹200 a day until the statement is filed, up to the amount of TDS. It must be paid before filing.
- Interest (section 398(3)): 1% a month, or part of a month, for not deducting, and 1.5% a month from the date of deduction until the tax is deposited.
What to do now
- Check whether you were a specified person in 2025-26, based on last year’s turnover.
- Update your accounting software to the section 393 rates and the new form numbers.
- Diary the deposit date (7th) and the statement dates, and issue Form 131 certificates on time.
Common questions
I pay ₹60,000 a month as rent for my home. Do I deduct TDS?
Yes. Rent paid by an individual above ₹50,000 a month attracts 2% TDS, deducted once, in the last month of the tax year or of the tenancy, and deposited within 30 days with Form 141.
What replaced Form 16?
Form 130, due by 15 June after the tax year. Form 16A has been replaced by Form 131.
What is the penalty for filing a TDS statement late?
A fee of ₹200 a day under section 427, up to the amount of TDS, and interest under section 398(3) if the tax itself was deposited late.
We file TDS and TCS statements and issue certificates: see TDS / TCS returns. Buying property? Use the TDS on property calculator. For the wider changes, read what the Income-tax Act, 2025 changes.
Sources: Income-tax Act, 2025, sections 393, 398, 402 and 427; Income-tax Rules, rules 215, 218 and 219; Income Tax Department FAQs on Forms 130 to 133.