TDS Rate Finder

What TDS is, and how the code, rate and threshold interact

Tax Deducted at Source (TDS) requires the person making certain specified payments — salary, rent, professional fees, contractor payments, and dozens of others — to deduct tax before paying the recipient, and deposit it with the government. Under the Income Tax Act 2025, three moving parts decide the outcome for any given payment: the payment code (which pins down the exact rate and threshold within Section 393's consolidated table), the threshold (below which no TDS applies at all), and whether the payee has furnished a valid PAN (which can raise the rate under Section 393's higher-of rule, the successor to the old Section 206AA).

Getting any one of these three wrong has real consequences: under-deduction triggers interest, and quoting the wrong code or the old 194-number on a Tax Year 2026-27 return can make the return defective at the CPC processing stage, not just wrong in substance.

How to use this TDS rate finder

Type a payment into the search box — plain language works: 'lawyer fee', 'FD interest', 'partner salary', 'contractor payment' — and the finder matches it against the correct code using both the formal description, the new payment code, and the old 194-label people still search by habit. Quick-pick chips cover the highest-intent payment types if you'd rather not type.

Every result shows the rate with PAN and without PAN side by side, the exact threshold in plain English, and the deposit due date and form. The built-in calculator below each result lets you enter an actual payment amount, PAN status, and payee type (for the split contractor codes) to get the exact TDS figure — not just the rate.

The new payment-code system (1001–1092) and the old 194-section mapping

The Income Tax Act 2025 replaces the standalone 194-series with a consolidated table under Section 393, where every non-salary payment is identified by a numeric payment code rather than a lettered section. Salary and EPF sit separately under Section 392 (codes 1001–1004), and TCS moves to Section 394 (codes roughly 1068–1092).

Not every code has been officially notified yet. Where CBDT has confirmed a code, this tool shows it as the primary identifier with the old 194-label as a secondary reference — for example, "Section 393 · Code 1027 (formerly Section 194J(b))". Where a code hasn't been confirmed, the tool shows the section alone (e.g. "Section 393(1)") rather than guessing a number; codes 1007, 1010, 1025 and 1036 in particular are known gaps in the numbering sequence that aren't part of any notified schedule we could confirm.

Section 194J splits into three codes — 1026 vs 1027 vs 1028

The old single Section 194J now splits into three distinct payment codes, which is a genuine structural change, not just a renumbering. Code 1026 covers technical services, call-centre operations, and royalty for the sale/distribution/exhibition of films, at 2%. Code 1027 covers professional services (legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, advertising) and other royalty, at 10%. Code 1028 is new as a standalone code for director remuneration, fees, or commission — also at 10%, but with no minimum threshold at all, unlike Code 1027's ₹50,000 threshold.

In practice: a lawyer, doctor, chartered accountant, or architect is Code 1027 at 10%. An IT support contract or call-centre engagement is Code 1026 at 2%. A non-executive director's sitting fee is Code 1028, taxable from the first rupee.

Section 194C splits into two codes by payee type — 1023 vs 1024

The old Section 194C contractor provision splits into two payment codes based on who the contractor is. Code 1023 applies to Individual/HUF contractors at 1%. Code 1024 applies to companies, firms, LLPs, and other non-individual contractors at 2%. Both share the same dual threshold — ₹30,000 for a single payment, or ₹1,00,000 in aggregate during the Tax Year, whichever is crossed first.

Manpower and labour supply arrangements are now explicitly classified as "work" under this section, making TDS mandatory on such contracts from 1 April 2026 — a point that previously carried some ambiguity in practice.

Section 194T / Code 1067 — partner payments

Section 393(3), Code 1067 (formerly Section 194T, effective 1 April 2025) is a genuinely new obligation with no direct predecessor: firms and LLPs must deduct 10% TDS on payments to partners — salary, remuneration, commission, bonus, and interest on capital or loan — once combined payments to a partner cross ₹20,000 in the Tax Year.

The threshold is checked per partner, in aggregate across every covered payment type for the year, not per individual payment. TDS triggers at the earlier of crediting the amount (including credit to the partner's capital account, even without an actual cash transfer) or paying it. Profit share and capital account drawings are excluded entirely from both the threshold and the deduction.

The no-PAN rule under Section 393

If the deductee doesn't furnish a valid PAN, Section 393's higher-of rule (the successor to the old Section 206AA) requires TDS at the higher of 20% or the section's own rate. Most codes follow this flat 20% rule, but a few carry their own specific no-PAN rate instead: property purchase stays at 20% (the same as the standard rule in this case), while Code 1035 (e-commerce) and Code 1031 (purchase of goods) both use a lower 5% no-PAN rate, and virtual digital assets stay at 20%. This finder encodes each code's actual no-PAN rate rather than assuming a flat 20% everywhere.

Due dates and the new form numbers

TDS deducted in a month is due for deposit by the 7th of the following month, with one exception: TDS deducted in March is due by 30 April. Property, certain rent, and a few other sections instead follow a 30-days-from-month-end rule via the new unified Form 141 challan-cum-statement (replacing the old Forms 26QB/26QC/26QD/26QE).

Quarterly TDS returns are due 31 July, 31 October, 31 January, and 31 May, filed via Form 138 (salary, formerly Form 24Q), Form 140 (non-salary resident, formerly Form 26Q), Form 144 (non-resident, formerly Form 27Q), or Form 143 (TCS, formerly Form 27EQ). Late filing attracts a fee of ₹200 per day, capped at the TDS amount for that return. TDS certificates are now Form 130 (formerly Form 16) and Form 131 (formerly Form 16A); Form 26AS is now Form 168.

What changed under the Income Tax Act 2025 and Finance Act 2026

From 1 April 2026, the Income Tax Act 2025 consolidates the entire 194-series into three sections: Section 392 for salary, Section 393 for all non-salary payments (via numeric payment codes), and Section 394 for TCS. The applicable law for any payment is decided by the earlier of date of payment or date of credit — up to 31 March 2026, the 1961 Act's 194-series applies; from 1 April 2026 onwards, the 2025 Act's Section 392/393/394 framework applies.

Finance Act 2026 carries forward several rate cuts first introduced in earlier Finance Acts (rent under Code 1009's predecessor cut to 2%, life insurance payout under Code 1030 cut to 2%, e-commerce under Code 1035 cut to 0.1%) and adds new changes of its own: Section 206C(1H) (TCS on sale of goods) is removed, superseded entirely by the buyer-side purchase-of-goods provision (Code 1031); TCS on several items (scrap, alcohol, coal, minerals, tendu leaves, overseas tour packages) is rationalised to a flat 2%; a new luxury-goods TCS band (codes 1076–1085, at 1%) covers items like watches, art, and yachts above notified thresholds; and interest on Motor Accident Claims Tribunal awards to a natural person is now fully exempt from TDS, with the old ₹50,000 ceiling removed entirely. Section 206AB (higher TDS for non-filers) remains removed, as it has been since 1 April 2025.

Common TDS mistakes

Confusing Code 1026 technical services (2%) with Code 1027 professional services (10%) is the single most frequent error — the two were split from the same old Section 194J and are easy to mix up. Missing the dual threshold under contractor Codes 1023/1024 is another common gap — a ₹35,000 single invoice triggers TDS immediately, even if annual payments haven't crossed ₹1,00,000 yet. Firms also commonly overlook that Code 1028 (director remuneration) has no threshold at all, unlike the ₹50,000 threshold on the neighbouring Code 1027, and that the Code 1067 partner-payment threshold is tested in aggregate per partner across the year, not per individual payment. Quoting the old 194-number instead of the new Section 393 code on a Tax Year 2026-27 challan or return is a new, purely administrative mistake that can get a return flagged as defective even when the underlying tax computation is correct.

Frequently asked questions