Income Tax 2 October 2026
New FY 2026‑27 Contractor TDS Rules Unveiled
The Income‑Tax Act 2025 introduces Section 393 as the governing provision for contractor TDS in FY 2026‑27. Updated rates and thresholds are outlined, along with detailed examples and a compliance checklist to help taxpayers avoid penalties and claim timely ITR refunds for AY 2026‑27.
Key updates for FY 2026‑27 Contractor TDS
- Section 393 replaces earlier provisions, setting new TDS rates and deduction limits for contractors.
- Revised rate slabs now range from 1% to 5% based on contract value and nature of services.
- Mandatory quarterly filings and electronic challan submissions are enforced.
- Detailed examples illustrate how to calculate tax, apply exemptions, and avoid interest penalties.
- A step‑by‑step compliance guide helps businesses prepare accurate returns and claim ITR refunds for AY 2026‑27.
For full details, see the [official guide](
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