New Delhi, Oct. 4 -- If you have hired a contractor to repair, renovate, design, or build your house, office, or business premises, you need to know whether TDS applies before making the payment.

For payments made on or after 1 April 2026, TDS on contractor payments is governed by Section 393(1) of the Income-tax Act, 2025.

So, when do you need to deduct TDS on payments to a contractor, what rate applies, and when is TDS not required? Here's what you need to know.

The person making the payment to the contractor is responsible for deducting TDS.

For payments covered under Section 393(1), Table Sl. No. 6(i), the payer must be a "designated person" covered by the law. This includes specified entities such as companies, firms, government ...