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INCOME TAX · COMPLIANCE AND COMMON MISTAKES

Company TDS on Vendors: Contractor, Professional and Goods-Purchase Mistakes

A practical control guide for classifying vendor payments, checking thresholds and fixing TDS errors.

By Vyapar Setu Online | Compliance and common mistakes · 28 October 2026

A procurement manager checking supplier invoices at a dispatch counter

Business Income Tax series · Compliance and common mistakes · Article 24 of 27

A company can pay an invoice correctly and still get TDS wrong. The most common cause is choosing the rate from the vendor’s name instead of examining the payment.

Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.

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