Every common section with its FY 2026-27 rate and threshold — including the 2025 rationalisation (194H at 2%, rent at ₹50,000/month, 194J at ₹50,000) and the Income Tax Act 2025 transition: the old section labels survive in practice, but the operative law from 1 April 2026 is Sec 392 (salary) and Sec 393 (everything else).
| Section | Nature of payment | Rate | Threshold |
|---|---|---|---|
| 192 | Salary Now Sec 392, Income Tax Act 2025 | Slab rates | Basic exemption |
| 192A | EPF premature withdrawal | 10% | ₹50,000 |
| 193 | Interest on securities | 10% | ₹10,000 |
| 194 | Dividend | 10% | ₹10,000 |
| 194A | Interest (banks / co-op / post office) ₹10,000 for other payers | 10% | ₹50,000 · ₹1,00,000 senior citizen |
| 194B / 194BB | Lottery, games, horse races | 30% | ₹10,000 per single transaction |
| 194C | Contractor / sub-contractor | 1% individual/HUF · 2% others | ₹30,000 single · ₹1,00,000 aggregate |
| 194D | Insurance commission | 2% | ₹20,000 |
| 194DA | Life insurance payout (taxable) | 2% on income portion | ₹1,00,000 |
| 194H | Commission / brokerage | 2% | ₹20,000 |
| 194-I(a) | Rent — plant & machinery | 2% | ₹50,000 per month |
| 194-I(b) | Rent — land, building, furniture | 10% | ₹50,000 per month |
| 194-IA | Purchase of immovable property On the full consideration once crossed | 1% of consideration | ₹50 lakh |
| 194-IB | Rent paid by individual/HUF (no audit) Deduct once, in the last month | 2% | > ₹50,000 per month |
| 194J | Professional fees / royalty | 10% | ₹50,000 |
| 194J | Technical services / call centre | 2% | ₹50,000 |
| 194N | Cash withdrawal Non-filers: 2% above ₹20 L, 5% above ₹1 Cr | 2% | > ₹1 crore (₹3 crore co-op) |
| 194-O | E-commerce operator to participant | 0.1% | ₹5 lakh (individual/HUF) |
| 194Q | Purchase of goods Buyer turnover > ₹10 Cr; interplay with 206C(1H) | 0.1% | > ₹50 lakh from a seller |
| 194S | Virtual digital assets (crypto) | 1% | ₹50,000 (specified) / ₹10,000 |
| 194T | Partner remuneration / interest / commission Firms paying partners — live since 1 Apr 2025 | 10% | ₹20,000 |
| 195 | Payments to non-residents Form 15CA/15CB discipline applies | Per Act / DTAA | No threshold |
No PAN → deduct at 20% (or the higher applicable rate) under Sec 397(2) of the Income Tax Act 2025 (old Sec 206AA). Rates last verified 18 July 2026 — always confirm against the current Finance Act before deducting on a borderline payment.
Two waves reshaped this chart. The 2024-25 rationalisation cut rates (194H, 194D, 194-IB to 2%) and raised thresholds (194-I to ₹50,000 a month, 194J to ₹50,000, 194A to ₹50,000 for bank interest). Then the Income Tax Act 2025 renumbered the law itself from 1 April 2026 — returns, notices and software now reference Sec 392/393, even though practitioners still say “194C”. In an audit, the substance is unchanged: match each expense head to its row, and test deduction, deposit and reporting.
Work expense-head-first: for each ledger head (contractors, professional fees, rent, commission, interest), find the matching section, then test three things — was tax deducted at the right rate, was the threshold correctly applied (single-payment and aggregate limits differ under 194C), and was the deduction deposited by the 7th of the following month (30 April for March).
From 1 April 2026 the Income Tax Act 2025 consolidates salary TDS into Sec 392 and all other TDS into Sec 393, with the no-PAN rate in Sec 397(2). The familiar labels (194C, 194J) survive as sub-provisions and common usage — this chart keys rows by the old labels because that is how books, software and challans still describe them.
Consequences of failure sit in the audit: expense disallowance of 30% under Sec 40(a)(ia) for non-deduction, interest at 1%/1.5% per month under old-241 equivalents, late-filing fees per day for returns — and Form 3CD clause 34 requires the full deduction-wise disclosure either way.
A company pays a marketing agency ₹9 lakh in the year: ₹6 lakh for campaign execution under a contract, and ₹3 lakh as commission on leads generated.
