Corporate Compliance 17 September 2026
New TDS Rules for Professional Fees FY 2026-27 Explained
The Finance Ministry has released the TDS framework for professional fees applicable to FY 2026‑27, lowering the exemption threshold to INR 30,000 per annum and mandating quarterly deposits. Taxpayers must update their accounting software, follow the new compliance calendar, and ensure TDS is deducted at 10% before payment. Late filing attracts interest and penalties, and the revised rules emphasize accurate reporting and timely deposits to avoid sanctions.
Key Changes to TDS on Professional Fees (FY 2026‑27)
- Exemption threshold reduced to ₹30,000 per professional per year.
- TDS rate fixed at 10 % on payments exceeding the threshold.
- Mandatory quarterly deposit of deducted tax; same‑day filing of Form 26Q.
- Updated compliance calendar requires filing by 30 Sept for Q3 and 31 Dec for Q4.
- Accounting software must be configured to auto‑deduct and generate TDS certificates.
For full details see the original article.
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