For tax year 2026-27, a designated person pays a resident contractor for carrying out work under section 393(1), Table item 6(i), of the Income-tax Act, 2025. Up to which limits is no tax deducted…

Item 6(i) of the Table in section 393(1) sets two thresholds for payments to contractors: ₹30,000 for any single sum and ₹1,00,000 for the aggregate of such sums in the tax year. Tax is deductible once either limit is exceeded, at 1% for an individual or HUF contractor and 2% for others. ₹50,000 is the threshold for professional or technical fees under item 6(iii), not for contract work.