Friends,
We are providing TDS provisions for 2026-27 which NGOs normally use for their operaitons. This will help you in applying TDS for day to day work on your desk.
| S. No. | Nature of Payment | Old Section | New Section under Income Tax Act 2025 | Payment Code | Threshold | TDS Rate |
|---|---|---|---|---|---|---|
| 1 | Payment to Contractors/Sub-Contractors | |||||
| A) Individual or HUF | 194C | 393(1) [Sl.6(i).D(a)] | 1023 | ₹30,000 per contract or ₹1,00,000 aggregate in tax year | 1% | |
| B) Other than Individual or HUF | 194C | 393(1) [Sl.6(i).D(b)] | 1024 | ₹30,000 per contract or ₹1,00,000 aggregate in tax year | 2% | |
| 2 | Commission or brokerage | 194H | 393(1) [Sl.1(ii)] | 1006 | ₹20,000 in a Financial Year | 2% |
| 3 | Rent | |||||
| A) Plant, Machinery | 194I(a) | 393(1) [Sl.2(ii).D(a)] | 1008 | ₹50,000 per month or part of month | 2% | |
| B) Land, Building & Furniture | 194I(b) | 393(1) [Sl.2(ii).D(b)] | 1009 | ₹50,000 per month or part of month | 10% | |
| 4 | Fees for | |||||
| A) Technical Services | 194J | 393(1) [Sl.6(iii).D(a)] | 1026 | ₹50,000 in a Financial Year | 2% | |
| B) Professional Services | 194J | 393(1) [Sl.6(iii).D(b)] | 1027 | ₹50,000 in a Financial Year | 10% | |
| C) Remuneration, fees or commission paid to a Director of a company | 194J | 393(1)[Sl.6(iii).D(b)] | 1028 | ₹50,000 in a Financial Year | 10% | |
| 5 | Business/Profession Perquisite or Benefit | |||||
| A) Cash | 194R | 393(1)[Sl.8(iv)] | 1034 | ₹20,000 per transaction | ||
| B) in kind, or partly in cash and partly in kind | 194R | 393(1)[Sl.8(iv)] Note 6 | 1035 | ₹20,000 per transaction | 10% | |
| 6 | Purchase of goods (buyers) | 194Q | 393(1) [Sl.8(ii)] | 1031 | ₹50 lakh in a Financial Year | 0.1% |
| 7 | Sale of Scrap | 206C (l) | 394(1)[Sl.4] | 1073 | Nil | 1% |
CS Sharad Bhargav