FY 2025-26 TDS Rates For Companies

For FY 2025-26, the TDS rates and thresholds for domestic private limited companies are as follows: -

*194J Technical Services and Professional Services*: The TDS rate is 10% if the payment exceeds ₹30,000 in a financial year.¹ -

 *194C (Contractors and Sub-Contractors)*: The TDS rate is 1% for contracts and 2% for sub-contracts, if the payment exceeds ₹2,50,000 in a financial year for contractors and ₹50,000 for sub-contractors. -

 *194I (Rent)*: The TDS rate is 10% if the rent paid to an individual exceeds ₹2,40,000 in a financial year.

 Additionally, the threshold limits for TDS have been increased from April 1, 2025, as per the Budget 2025 announcements.

Hi,

194J technical is it 2% or 10%. Also threshold is 50000 or 30000.

194I - is it 50000 per month or 240000 per year 

Please reply

TDS Rates and Thresholds for 194J and 194I *194J Technical Services* - *TDS Rate*: 2% for technical services, 10% for professional services - *Threshold*: ₹30,000 per financial year *194I Rent Payments* - *TDS Rate*: 2% for individuals/HUFs, 10% for others - *Threshold*: ₹50,000 per month for individuals/HUFs, ₹2,40,000 per year for others Key Considerations - *PAN Requirement*: If the payee doesn't provide a PAN, the TDS rate increases to 20% - *Applicability*: Section 194J applies to payments for professional and technical services, royalties, and non-compete fees - *Compliance*: Failure to comply with TDS regulations can result in penalties and interest charges.

For FY 2026-27 (April 2026 onwards), the rates themselves have not changed but the section codes have. Contractor payments (earlier 194C) now go under Section 393 SN 6, professional fees (earlier 194J) under Section 393 SN 11, and salary (earlier 192) under Section 392. You must select Income Tax Act 2025 on the TDS portal to access the new codes, otherwise the challan will be filed under the old Act which creates a mismatch. Note that payments credited or made up to March 31, 2026 still use the old 1961 Act codes. This [practical guide to April 2026 tax changes](https://taxgarden.in/blog/april-2026-financial-changes-practical-guide-sme) walks through all the changes that kicked in from April 1.