Complete guide to TDS section mapping from Income Tax Act 1961 to 2025. All rates, limits, and applicability explained.
From April 1, 2026, when filing TDS returns, you MUST use new section numbers. Quoting old sections like 194C, 194J, or 194H will cause system-level validation errors. This guide provides the complete mapping you need.
The Income Tax Act 2025 brings the biggest structural change to TDS in India's tax history. Over 60 separate TDS sections have been consolidated into just 3 sections. But the rates? They stay the same.
For decades, TDS compliance in India meant navigating through a maze of sections — Section 192 for salary, 194C for contractors, 194J for professional fees, 194IA for property, and the list went on. Each section had its own format, thresholds, and exceptions.
The Income Tax Act 2025 changes all of this by consolidating all TDS provisions into three simple sections:
Separate TDS Sections
Section 192 to Section 194T
Consolidated Sections
Section 392 • 393 • 394
Replaces: Section 192 of Income Tax Act 1961
Applicability: All salary payments by employers
What Changed: Only the section number. Everything else — calculation method, exemptions, deduction timing — remains identical.
When filing TDS returns for salaries paid from April 1, 2026 onwards, use Section 392 instead of Section 192. Your Form 16 (now Form 116) will also reference Section 392.
Replaces: Sections 193 to 194T (over 60 sections!)
Applicability: All payments other than salaries
Structure: Organized in THREE tables:
Each entry in the table has a Serial Number that you'll quote in TDS returns.
M/s XYZ Industries makes a payment to a contractor on April 5, 2026.
Old system: Quote "Section 194C"
New system: Quote "Section 393(1) [Table 1, Sl. No. X]"
Replaces: Sections 206C and related TCS provisions
Applicability: All tax collection at source scenarios
What Changed: Consolidated into one section with table-based structure similar to Section 393.
Here's the comprehensive mapping of all TDS sections from the old Act to the new Act:
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Change in Rate? | Payment Code |
|---|---|---|---|---|---|
| Section 192 | Section 392 | Salaries | As per slab | ❌ No change | 1001,1002,1003 |
| Section 192A | Section 393(3) [Sl. No. TBD] | Premature withdrawal from EPF | 10% | ❌ No change | 1004 |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Threshold Limit | Payment Code |
|---|---|---|---|---|---|
| Section 193 | Section 393(1) [Table 1 sl no. 5(i)] | Interest on securities | 10% | ₹10,000 (unified threshold) | 1019 |
| Section 194 | Section 393(1) [Table 1 sl no. 7] | Dividend | 10% | NIL | 1029 |
| Section 194A | Section 393(1) [Table 1] | Interest other than securities | |||
| Section 393(1) [Table 1 sl no. 5(ii)(iii)] | Interest other than securities from banks/co-op/post office | 10% | ₹50,000 (₹1,00,000 for seniors) | 1020, 1021 | |
| Section 393(1) [Table 1 sl no. 5(iii)] | Interest other than securities from others | 10% | ₹10,000 | 1022 |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Threshold Limit | Payment Code |
|---|---|---|---|---|---|
| Section 194C | Section 393(1) [Table 1 sl no.6(i)] | Payments to contractors(individual, HUF) | 1% | ₹30,000 (single), ₹1,00,000 (aggregate) | 1023 |
| Section 393(1) [Table 1 sl no.6(i)] | Payments to contractors(other than individual & HUF) | 2% | ₹30,000 (single), ₹1,00,000 (aggregate) | 1024 | |
| Section 194D | Section 393(1) [Table 1 slno. 1(i)] | Insurance commission | 2% | ₹20,000 | 1005 |
| Section 194H | Section 393(1) [Table 1 sl no. 1(ii)] | Commission or brokerage | 2% | ₹20,000 | 1006 |
| Section 194J | Section 393(1) [Table 1 sl no.6(iii)] | Professional/technical services | |||
| Technical fees | 2% | ₹50,000 | 1026 | ||
| Professional fees | 10% | ₹50,000 | 1027 | Director Payment(other than salary) | 10% | No limit | 1028 |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Threshold Limit | Payment Code |
|---|---|---|---|---|---|
| Section 194-I | Section 393(1) [Table 1 sl no. 2(ii)] | Rent - Plant & machinery | 2% | ₹50,000 pm | 1008 |
| Section 194-I | Section 393(1) [Table 1 sl no. 2(ii)] | Rent - Land, building, furniture | 10% | ₹50,000 pm | 1009 |
| Section 194-IA | Section 393(1) [Table 1 sl no.3(i)] | Purchase of immovable property | 1% | ₹50,00,000 | NA |
| Section 194-IB | Section 393(3) [Table 1 sl no.2(i)] | Rent by individuals/HUF(not being under audit limit) | 2% | ₹50,000/month |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Threshold Limit | Payment Code |
|---|---|---|---|---|---|
| Section 194B | Section 393(3) [Table 3] | Lottery, crossword, etc. | 30% | ₹10,000 | 1060 |
| Section 194BA | Section 393(3) [Table 3] | Horse race winnings | 30% | ₹10,000 | 1062 |
| Section 194BB | Section 393(3) [Table 3] | Online gaming winnings | 30% | Net winnings | 1063 |
| Section 194S | Section 393(3) [Table Sl no.8(vi)] | Virtual Digital Assets (crypto) | 1% | Nil | 1037 |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate | Threshold Limit | Payment Code |
|---|---|---|---|---|---|
| Section 194M | Section 393(3) [Table 1 sl no.8(ii)] | Payments by individuals/HUF (no audit) for services | 2% | ₹50,00,000 (aggregate) | |
| Section 194N | Section 393(3) [Table 3 sl no.5] | Cash withdrawals | 2% | ₹1 crore | 1065 |
| Section 194O | Section 393(3) [Table 1 sl no.8] | E-commerce participants | 0.1% | NIL | 1035 |
| Section 194Q | Section 393(3) [Table 1 sl no.8(ii)] | Purchase of goods | 0.1% | ₹50,00,000 | 1031 |
| Section 194R | Section 393(3) [Table 1 sl no.8(iv)] | Benefits/perquisites | 10% | ₹20,000 | 1033 |
| Old Section (1961 Act) | New Section (2025 Act) | Description | TDS Rate |
|---|---|---|---|
| Section 195 | Section 393(2) [Table 2] | Other sums to non-residents | As per DTAA / Act |
| Section 196A | Section 393(2) [Table 2] | Income from foreign currency bonds | Specific rates |
| Section 196B | Section 393(2) [Table 2] | Income from units to non-residents | Specific rates |
| Section 196C | Section 393(2) [Table 2] | Income from foreign currency assets | Specific rates |
| Section 196D | Section 393(2) [Table 2] | Income of FIIs from securities | 20% |
The governing principle is based on the date of payment or credit, whichever is earlier.
✅ Professional fees credited in books on March 25, 2026, but paid on April 10, 2026
→ Apply Section 194J (1961 Act) because credit happened in March
✅ Contractor payment made on April 5, 2026 (no prior credit)
→ Apply Section 393(1) (2025 Act) because payment happened in April
Any payment/credit made on or before this date:
Any payment/credit made on or after this date:
Due date for TDS deducted in March 2026:
First TDS return under new Act:
A certificate issued under Section 197 of the Income Tax Act 1961 for lower/nil TDS deduction will remain valid for payments made on or after April 1, 2026.
Example: You have a Section 197 certificate valid for TY 2026-27 issued in March 2026 under the old Act.
Result: This certificate continues to apply for all payments in TY 2026-27, even though they're now governed by Section 393 instead of Section 194J.
TDS Certificate (Form 16): Now called Form 116
Annual TDS Statement (Form 26AS): Now called Form 126AS
All quarterly TDS returns will have new form numbers and format from Q1 TY 2026-27 onwards.
Our CA experts handle all TDS calculations, return filing, and compliance under Income Tax Act 2025. Stay error-free during the transition.
View TDS Services Talk to Expert✓ New Act Experts • ✓ Quarterly TDS Returns • ✓ 100% Compliance
The consolidation of 60+ TDS sections into just 3 sections is a monumental simplification. Yes, there's a learning curve during the transition, but once you get familiar with the new structure, TDS compliance will actually become easier.
Key Takeaways:
The Income Tax Department has provided a dual-track system during transition, so you won't be left stranded. The e-filing portal supports both old and new sections simultaneously.
Remember: When in doubt about which section to use, always check the date of payment/credit. That's your North Star during this transition.
This guide is for educational purposes based on Income Tax Act 2025 and official government notifications. TDS laws and rules are subject to updates and clarifications. Always consult with a qualified Chartered Accountant before making TDS decisions. E Tax Expert is not responsible for decisions made based on this information.
All 15 major changes from the new Act explained with examples.
Read Guide →