TDS Challan Code

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Quick Summary

For royalty payments under Section 194J with TDS deducted at 10%, Challan Code 1027 is the correct code. No challan correction is required, provided the payment is correctly reported as royalty in the quarterly TDS return (Form 26Q).

Ch.Siva Nageswara Rao

Ch.Siva Nageswara Rao (Querist)

17 June 2026 Dear Sir,

We have made a new TDS payment using Challan Code 1026 for Professional Fees deducted at 2%.

However, the current payment pertains to Royalty under Section 194J, where TDS has been deducted at 10%. We noticed that the challan is showing Code 1027.

Kindly confirm whether Challan Code 1027 is correct for this payment or if any correction is required.

Thank you

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

17 June 2026 The user's use of Challan Code 1027 is correct for a Royalty payment under Section 194J. No correction is necessary; the user should simply ensure that the payment is correctly classified as "Royalty" when filing their quarterly TDS return (Form 26Q).

Ch.Siva Nageswara Rao

Ch.Siva Nageswara Rao (Querist)

18 June 2026 Thank You Sir, Thank for your Information

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