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Tax year 2026-27

Section 393(1) Sl. No. 6(iii) TDS: professional and technical fees

Earlier Section 194J · Codes 1026–1028

From 1 April 2026, TDS on professional fees, technical fees, royalty and directors' fees is deducted under Section 393(1), Table Sl. No. 6(iii), of the Income-tax Act, 2025, with a separate section code for each payment. It was earlier deducted under Section 194J of the Income-tax Act, 1961.

TDS calculator: Section 393(1) Sl. No. 6(iii)

Section 393(1) Sl. No. 6(iii) at a glance

PaymentNew sectionCodeRateThresholdOld section
Fees for professional services (and sums under section 26(2)(h))393(1) Sl. No. 6(iii).D(b)102710%₹50,000194J(b)
Royalty (other than cinema film royalty)393(1) Sl. No. 6(iii).D(b)—10%₹50,000194J(b)
Fees for technical services, cinema film royalty, or a call-centre payee393(1) Sl. No. 6(iii).D(a)10262%₹50,000194J(a)
Director's remuneration, fees or commission (other than salary)393(1) Sl. No. 6(iii).D(b)102810%Nil194J(ba)

Professional or technical: the rate follows the service

Fees for professional services, such as those of a lawyer, doctor, chartered accountant, engineer, architect or interior designer, carry TDS at 10% under code 1027. Fees for technical services that are not a profession, cinema film royalty and payments to a call centre carry TDS at 2% under code 1026. Both apply above ₹50,000.

Remuneration, fees or commission paid to a company director, other than salary, carry TDS at 10% with no threshold, under code 1028. Royalty other than cinema film royalty is deducted at 10% above ₹50,000.

Fees paid by an individual or HUF

An individual or HUF that is not otherwise required to deduct TDS on professional fees deducts at 2% only where such payments exceed ₹50 lakh, under Section 393(1) Sl. No. 6(ii) (earlier Section 194M), and deposits it with Form 141. See the guide to Section 393(1) Sl. No. 6(ii).

Worked example. On ₹1,00,000, TDS at 10% (code 1027) is ₹10,000, and ₹90,000 is paid.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Fees for professional services (and sums under section 26(2)(h)): Section 393(1) Sl. No. 6(iii).D(b) (code 1027). Royalty (other than cinema film royalty): Section 393(1) Sl. No. 6(iii).D(b) (no separate code). Fees for technical services, cinema film royalty, or a call-centre payee: Section 393(1) Sl. No. 6(iii).D(a) (code 1026). Director's remuneration, fees or commission (other than salary): Section 393(1) Sl. No. 6(iii).D(b) (code 1028). It was earlier Section 194J of the Income-tax Act, 1961.

Fees for professional services (and sums under section 26(2)(h)): 10%; royalty (other than cinema film royalty): 10%; fees for technical services, cinema film royalty, or a call-centre payee: 2%; director's remuneration, fees or commission (other than salary): 10%. Rates are before any surcharge and cess.

Fees for professional services (and sums under section 26(2)(h)): ₹50,000; royalty (other than cinema film royalty): ₹50,000; fees for technical services, cinema film royalty, or a call-centre payee: ₹50,000; director's remuneration, fees or commission (other than salary): nil.

Fees of a chartered accountant are fees for professional services: Section 393(1) Sl. No. 6(iii).D(b), code 1027, at 10% above ₹50,000.

No. Where GST is shown separately on the invoice, TDS is worked out on the fee before GST.

Other TDS sections

Section 392Codes 1001–1004 · SalaryEarlier Section 192 Section 393(1) Sl. No. 1(i)Code 1005 · Insurance commissionEarlier Section 194D Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 2(ii)Codes 1008, 1009 · RentEarlier Section 194I Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 5Codes 1020–1022 · Interest other than on securitiesEarlier Section 194A Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 5Codes 1064, 1065 · Cash withdrawalsEarlier Section 194N Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

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