Reference · Updated for FY 2026–27

TDS rates for freelancers, FY 2026–27

Every section a freelancer's client is likely to deduct under — rate, threshold, and what it actually covers. Kept current against CBDT notifications.

Updated 08 Oct 2026Source: Income-tax Act · CBDT

The rate card

SectionWhat it coversThresholdRate

194JMost common section for freelance professional billings (10%)₹50K a year10% (professional) / 2% (technical services)

194CContract / works-contract payments (1% individuals, 2% others)₹30K per payment · ₹1L a year1% (individual/HUF) / 2% (company, firm, AOP)

194HCommission and brokerage payments (2%)₹20K a year2%

194OE-commerce platforms (Upwork-like Indian equivalents) deducting 0.1%₹5L a year (individuals)0.1%

195Cross-border payments to non-residents (varies, often 10-40%)From ₹1Varies (10-40%); often reduced under DTAA

194IRent paid for land, building, plant, or machinery₹50K a month10% (land/building) / 2% (plant/machinery/equipment)

194IBRent paid by individuals/HUFs above Rs. 50,000/month (2%)₹50K a month2%

194QBuyers with turnover above Rs. 10 crore deducting on goods purchases₹50L a year0.1%

194RBusiness benefits/perks given to recipients (10%)₹20K a year10%

194SCrypto and VDA transfer payments (1%)₹10K a year1%

194NBank cash withdrawals above Rs. 1 crore (2%)₹1 crore a year2% above Rs. 1 crore (non-filers: from Rs. 20L, up to 5%)

194DInsurance agent commission (2% post-Budget 2024)₹20K a year2%

⚑ No PAN (or an inoperative PAN) → generally 20%, or the section rate if higher; 5% for e-commerce (194-O) and goods purchases (194Q). Section 206AA up to FY 2025-26; s.397(2) from 1 April 2026.

Check a specific invoiceFree TDS calculator — amount and work type in, section and deduction out. No signup.

GST rates on freelance services

Since the GST 2.0 rate rationalisation of 22 September 2025, goods sit in two main slabs — but nearly all freelance services stay where they were: 18%. The exceptions that matter are below.

Exports of services under LUT — zero-rated, credits intact

Merit slab — a few transport & job-work services; rare for freelancers

18%

Standard rate — design, dev, consulting, writing, marketing: SAC 9983

40%

Demerit slab — sin & luxury goods only; never services

Registered and billing an Indian client? 18%. Billing a foreign client with an LUT on file? 0%. That one distinction is most of freelancer GST.

Rates as notified for FY 2026–27 and can change mid-year. This page is general information, not tax advice. Verify with the Income Tax Department's TDS rate chart or your CA before you file.

For the CA reading this

The deadline sheet you already send, with your name on it

Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.

Firm name (optional)Month

Download the image

The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.

Go deeper

Tax Guide

Section 194J TDS Explained for Freelancers — Budget 2025 Threshold Change

10 min read →Use Case

GST on Export of Services Without an LUT: What It Costs and What You Can Still Do

9 min read →Tax Guide

Your Client Deducted TDS and It's Not in Your 26AS

9 min read →

The right section, on every invoice

Stop memorising rate cards.

HourSlip tags each invoice with its TDS section, tracks what clients deposit, and flags 26AS mismatches before filing season.

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