What is the TDS rate on professional fees?

Under section 194J, 10% on professional fees (2% for technical services / call centres), once payments cross ₹50,000 in the financial year.

What is the TDS rate for a contractor?

Under 194C, 1% if the payee is an individual/HUF and 2% otherwise, once a single payment exceeds ₹30,000 or the FY aggregate exceeds ₹1,00,000.

What happens if the payee has no PAN?

Section 206AA applies a higher rate — commonly 20% — instead of the normal section rate.

Are these rates current?

They reflect FY 2025-26 from a published CA chart. TDS rates change by Budget, so confirm the current rate for your case with your CA.

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TDS section & rate finder

Paying a vendor, contractor or landlord? Pick the nature of payment to get the TDS section, threshold and rate — and whether TDS is even triggered for your amount. (FY 2025-26)

Nature of payment

Payee is

Payment amount (₹)

Payee has not given a PAN (section 206AA)

Threshold: ₹50,000 (per FY).

Section 194J · rate

10%

TDS applies?: Yes
Estimated TDS: ₹10,000.00

Rates: FY 2025-26.

This is an estimate from the general statutory rule, not tax or legal advice. Rates, thresholds and due dates change by notification and can vary by case. Confirm the exact amount and date with your CA, CS, or lawyer before acting.

How to read this

TDS is deducted only once a payment crosses the section's threshold (some per financial year, some per month, some per single transaction — shown alongside). The ratecan depend on whether the payee is an individual/HUF or a company/firm (e.g. contractor TDS is 1% vs 2%), and if the payee hasn't given a PAN, section 206AA applies a higher rate (commonly 20%).

Rates and thresholds change with each Budget. These reflect FY 2025-26 (TDS/TCS chart FY 2025-26 (Ambalal Patel & Co LLP)); confirm the current rate for your exact case with your CA before deducting.

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A worked example

Paying ₹1,00,000 of professional fees (194J) to a consultancy: TDS is 10% = ₹10,000. If the consultant hadn't given a PAN, it would be 20% = ₹20,000.

Frequently asked questions

What is the TDS rate on professional fees?: Under section 194J, 10% on professional fees (2% for technical services / call centres), once payments cross ₹50,000 in the financial year.
What is the TDS rate for a contractor?: Under 194C, 1% if the payee is an individual/HUF and 2% otherwise, once a single payment exceeds ₹30,000 or the FY aggregate exceeds ₹1,00,000.
What happens if the payee has no PAN?: Section 206AA applies a higher rate — commonly 20% — instead of the normal section rate.
Are these rates current?: They reflect FY 2025-26 from a published CA chart. TDS rates change by Budget, so confirm the current rate for your case with your CA.

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