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Tax year 2026-27

Section 393(1) Sl. No. 8(iv) TDS: business perquisites

Earlier Section 194R · Codes 1033, 1034

From 1 April 2026, TDS on a benefit or perquisite arising from a business or profession is deducted under Section 393(1), Table Sl. No. 8(iv), of the Income-tax Act, 2025. It was earlier deducted under Section 194R of the Income-tax Act, 1961.

TDS calculator: Section 393(1) Sl. No. 8(iv)

Section 393(1) Sl. No. 8(iv) at a glance

PaymentNew sectionCodeRateThresholdOld section
Benefit or perquisite arising from business or profession393(1) Sl. No. 8(iv)10331034 if given in kind10%₹20,000194R

Rate, threshold and code

TDS is deducted at 10% where the value exceeds ₹20,000. The section code is 1033, or 1034 where the benefit is given in kind.

Worked example. On ₹50,000, TDS at 10% (code 1033) is ₹5,000, and ₹45,000 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

Benefit or perquisite arising from business or profession: Section 393(1) Sl. No. 8(iv) (code 1033). It was earlier Section 194R of the Income-tax Act, 1961.

10%. Rates are before any surcharge and cess.

₹20,000.

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. 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(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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