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Tax year 2026-27

Section 393(1) Sl. No. 6(ii) TDS: payments by individuals and HUFs

Earlier Section 194M · Form 141

From 1 April 2026, TDS on contract work, professional fees or commission paid by an individual or HUF not otherwise required to deduct is deducted under Section 393(1), Table Sl. No. 6(ii), of the Income-tax Act, 2025. It was earlier deducted under Section 194M of the Income-tax Act, 1961.

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

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

PaymentNew sectionCodeRateThresholdOld section
Contract work, professional fees or commission paid by an individual or HUF not otherwise required to deduct393(1) Sl. No. 6(ii)Form 1412%₹50 lakh194M

Rate, threshold and deposit

TDS is deducted at 2% where such payments exceed ₹50 lakh, and is deposited with Form 141. It typically concerns contractors, builders, architects, interior designers and other professionals billing an individual or HUF, such as a homeowner.

Worked example. On ₹60,00,000, TDS at 2% (Form 141) is ₹1,20,000, and ₹58,80,000 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

Contract work, professional fees or commission paid by an individual or HUF not otherwise required to deduct: Section 393(1) Sl. No. 6(ii) (deposited with Form 141). It was earlier Section 194M of the Income-tax Act, 1961.

2%. Rates are before any surcharge and cess.

₹50 lakh.

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(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J 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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