New Income-tax Act, 2025: TDS Payment Mapping from April 2026 — Old Sections to New Sections & Payment Codes
New Income-tax Act, 2025: TDS Payment Mapping from April 2026 — Old Sections to New Sections & Payment Codes
Overview
The Income-tax Act, 2025 comes into force from 1 April 2026, replacing the earlier section structure under the Income-tax Act, 1961. The new law reorganises TDS provisions mainly under Section 392 for salary-related TDS and Section 393 for other TDS payments, while TCS is covered under Section 394.
For businesses and finance teams, the key operational change is that TDS workings may continue to be prepared using familiar old sections such as 192, 194C, 194J, 194I, 194Q, etc., but payment and return reporting for Tax Year 2026-27 should be mapped to the new sections and new payment codes. The mapping below is based on the attached TDS old-vs-new section workbook.
Why this change matters from April 2026
April 2026 is the first month of TDS compliance under the new Income-tax Act, 2025. The official tax calendar lists the due date for deposit of tax deducted/collected for April 2026 as 6 May 2026, and government offices paying without challan are required to deposit on the same day.
This means the April 2026 TDS payment file should not be reviewed only with old sections. Teams should validate:
- Old TDS section used in accounting or ERP
- New section under the Income-tax Act, 2025
- Correct payment code
- Correct form mapping
- Correct threshold and rate
- Resident / non-resident classification
- Whether the transaction falls under regular TDS payment or challan-cum-statement route
Practical insight for April 2026 TDS payment
For April 2026, many organisations may still generate TDS reports using old section logic from ERP/SAP because vendor master, GL mapping and tax codes may not yet be fully updated. Therefore, the recommended approach is:
Step 1: Prepare TDS working as usual using old sections
Prepare the monthly TDS working based on the existing process:
- 194C – contractor payments
- 194J – professional / technical fees
- 194I – rent
- 194H – commission or brokerage
- 194A – interest
- 194Q – purchase of goods
- 192 – salary
- 195 – non-resident payments
Step 2: Map old sections to new sections
Once the old section-wise TDS working is complete, map each line item to the new section under the Income-tax Act, 2025. For example:
- Section 192 maps to Section 392
- Section 194C maps to Section 393(1), Table Sl. No. 6
- Section 194J maps to Section 393(1), Table Sl. No. 6(iii)
- Section 194Q maps to Section 393(1), Table Sl. No. 8(ii)
- Section 195 maps to Section 393(2), Table Sl. No. 17
Step 3: Use the correct payment code
The most important compliance control is the payment code. For example, contractor payments under old section 194C may require code 1023 or 1024, depending on whether the contractor is an individual/HUF or other than individual/HUF.
Step 4: Validate before payment
Before making April 2026 TDS payment, review the following:
| Checkpoint | Action |
|---|---|
| Old section | Confirm old section used in ERP/TDS working |
| New section | Map to new section under Income-tax Act, 2025 |
| Payment code | Use correct code from mapping table |
| Rate | Validate rate based on nature of payment |
| Threshold | Ensure threshold has been crossed |
| Form | Confirm applicable form — 138, 140, 141 or 144 |
| Vendor status | Confirm resident/non-resident status |
| PAN / documentation | Validate PAN, lower deduction certificate, DTAA, etc., wherever applicable |
TDS Old Section vs New Section and Payment Code Mapping
The table below focuses on TDS payment codes relevant for deduction and deposit.
| Old Section | New Section | Payment Code | Nature of Payment | Base Rate | Threshold | Form |
|---|---|---|---|---|---|---|
| 192 | 392 | 1001 | Salary to Government employees other than Union Government employees | Slab rates | As per regime opted | 138 |
| 192 | 392 | 1002 | Salary to employees other than Government employees | Slab rates | As per regime opted | 138 |
| 192 | 392 | 1003 | Salary to Indian Government employees | Slab rates | As per regime opted | 138 |
| 192A | 392(7) | 1004 | EPF accumulated balance payment | 10% resident / 20% non-resident | ₹50,000 or more | 140, 144 |
| 194D | 393(1) Table Sl. No. 1(i) | 1005 | Insurance commission | 2% resident / 20% non-resident | ₹20,000 | 140 |
| 194H | 393(1) Table Sl. No. 1(ii) | 1006 | Commission or brokerage — others | 2% | ₹20,000 | 140 |
| 194-IB | 393(1) Table Sl. No. 2(i) | 1007 | Rent paid by person other than specified person | 2% | ₹50,000 per month | 141 |
| 194-I(a) | 393(1) Table Sl. No. 2(ii).D(a) | 1008 | Rent on machinery, plant or equipment | 2% | ₹50,000 per month | 140 |
| 194-I(b) | 393(1) Table Sl. No. 2(ii).D(b) | 1009 | Rent on land, building, furniture or fittings | 10% | ₹50,000 per month | 140 |
| 194-IA | 393(1) Table Sl. No. 3(i) | 1010 | Transfer of immovable property other than agricultural land | 1% | ₹50,00,000 | 141 |
| 194-IC | 393(1) Table Sl. No. 3(ii) | 1011 | Payment under specified development agreement | 10% | Nil | 140 |
| 194LA | 393(1) Table Sl. No. 3(iii) | 1012 | Compensation on compulsory acquisition of immovable property | 10% | ₹5,00,000 | 140 |
| 194K | 393(1) Table Sl. No. 4(i) | 1013 | Income from units of mutual fund / specified company | 10% | ₹10,000 | 140 |
| 194LBA | 393(1) Table Sl. No. 4(ii) | 1014 | Interest from units of business trust | 10% | Nil | 140 |
| 194LBA | 393(1) Table Sl. No. 4(ii) | 1015 | Dividend from units of business trust | 10% | Nil | 140 |
| 194LBA | 393(1) Table Sl. No. 4(ii) | 1016 | Renting income from REIT units | 10% | Nil | 140 |
| 194LBB | 393(1) Table Sl. No. 4(iii) | 1017 | Income from units of investment fund | 10% | Nil | 140 |
| 194LBC | 393(1) Table Sl. No. 4(iv) | 1018 | Income from securitisation trust | 10% | Nil | 140 |
| 193 | 393(1) Table Sl. No. 5(i) | 1019 | Interest on securities | 10% | ₹10,000 | 140 |
| 194A | 393(1) Table Sl. No. 5(ii).D(a) | 1020 | Bank/post office interest — senior citizen | 10% resident / 20% non-resident | ₹1,00,000 | 140 |
| 194A | 393(1) Table Sl. No. 5(ii).D(b) | 1021 | Bank/post office interest — other deductee | 10% resident / 20% non-resident | ₹50,000 | 140 |
| 194A | 393(1) Table Sl. No. 5(iii) | 1022 | Other interest | 10% resident / 20% non-resident | ₹10,000 | 140 |
| 194C | 393(1) Table Sl. No. 6(i).D(a) | 1023 | Contract work — individual/HUF contractor | 1% | ₹30,000 per payment / ₹1,00,000 aggregate | 140 |
| 194C | 393(1) Table Sl. No. 6(i).D(b) | 1024 | Contract work — contractor other than individual/HUF | 2% | ₹30,000 per payment / ₹1,00,000 aggregate | 140 |
| 194M | 393(1) Table Sl. No. 6(ii) | 1025 | Contract/professional/commission paid by individual or HUF | 2% | ₹50,00,000 | 141 |
| 194J | 393(1) Table Sl. No. 6(iii).D(a) | 1026 | Technical services / royalty for films / call centre | 2% | ₹50,000 | 140 |
| 194J | 393(1) Table Sl. No. 6(iii).D(b) | 1027 | Professional services | 10% | ₹50,000 | 140 |
| 194J | 393(1) Table Sl. No. 6(iii).D(b) | 1028 | Director remuneration / fees / commission | 10% | Nil | 140 |
| 194 | 393(1) Table Sl. No. 7 | 1029 | Dividend | 10% | Nil | 140 |
| 194DA | 393(1) Table Sl. No. 8(i) | 1030 | Life insurance policy payment including bonus | 2% on income portion | ₹1,00,000 | 140 |
| 194Q | 393(1) Table Sl. No. 8(ii) | 1031 | Purchase of goods | 0.1% | ₹50,00,000 | 140 |
| 194P | 393(1) Table Sl. No. 8(iii) | 1032 | Specified senior citizen payment | Slab rates | As per regime opted | 138 |
| 194R | 393(1) Table Sl. No. 8(iv) | 1033 | Benefit/perquisite in kind from business or profession | 10% | ₹20,000 | 140 |
| 194R | 393(1) Table Sl. No. 8(iv) Note 6 | 1034 | Benefit/perquisite in cash or kind | 10% | ₹20,000 | 140 |
| 194-O | 393(1) Table Sl. No. 8(v) | 1035 | E-commerce transaction | 0.1% | Nil | 140 |
| 194S | 393(1) Table Sl. No. 8(vi) | 1037 | Transfer of virtual digital asset | 1% | Nil | 140 |
| 194S | 393(1) Table Sl. No. 8(vi) Note 6 | 1038 | VDA transfer in cash or kind | 1% | Nil | 140 |
| 194E | 393(2) Table Sl. No. 1 | 1039 | Non-resident sportsman / entertainer / sports association | 20% | — | 144 |
| 194LC | 393(2) Table Sl. No. 2 | 1040 | Interest on foreign currency borrowing | 5% | — | 144 |
| 194LC | 393(2) Table Sl. No. 3 | 1041 | Interest on rupee denominated bond before 1 July 2023 | 5% | — | 144 |
| 194LC | 393(2) Table Sl. No. 4.E(a) | 1042 | Interest on IFSC listed bond before July 2023 | 4% | — | 144 |
| 194LC | 393(2) Table Sl. No. 4.E(b) | 1043 | Interest on IFSC listed bond on/after July 2023 | 9% | — | 144 |
| 194LB | 393(2) Table Sl. No. 5 | 1044 | Interest from infrastructure debt fund | 5% | — | 144 |
| 194LBA | 393(2) Table Sl. No. 6.E(a) | 1045 | Distributed income — business trust | 5% | — | 144 |
| 194LBA | 393(2) Table Sl. No. 6.E(b) | 1046 | Distributed income — business trust | 10% | — | 144 |
| 194LBA | 393(2) Table Sl. No. 7 | 1047 | Distributed income — business trust, rates in force | 30% / 40% | — | 144 |
| 194LBB | 393(2) Table Sl. No. 8 | 1048 | Investment fund income — non-resident | 30% / 40% | — | 144 |
| 194LBC | 393(2) Table Sl. No. 9 | 1049 | Securitisation trust income — non-resident | 30% / 40% | — | 144 |
| 196B | 393(2) Table Sl. No. 10 | 1050 | Mutual fund units / specified company income — non-resident | 20% or DTAA lower | — | 144 |
| 196C | 393(2) Table Sl. No. 11 | 1051 | Offshore fund units income | 10% | — | 144 |
| 196C | 393(2) Table Sl. No. 12 | 1052 | LTCG on offshore fund units | 12.5% | — | 144 |
| 196C | 393(2) Table Sl. No. 13 | 1053 | Interest/dividend on bonds or GDRs | 10% | — | 144 |
| 196C | 393(2) Table Sl. No. 14 | 1054 | LTCG on bonds or GDRs | 12.5% | — | 144 |
| 196D | 393(2) Table Sl. No. 15 | 1055 | FII income on securities | 20% or DTAA lower | — | 144 |
| 196D | 393(2) Table Sl. No. 16 | 1056 | Specified fund income on securities | 10% | — | 144 |
| 195 | 393(2) Table Sl. No. 17 | 1057 | Interest or other sum chargeable to non-resident | Rates in force | — | 144 |
| 194B | 393(3) Table Sl. No. 1 | 1058 | Lottery / crossword / gambling winnings | 30% | ₹10,000 per transaction | 140, 144 |
| 194B | 393(3) Table Sl. No. 1 Note 2 | 1059 | Winnings in kind / insufficient cash | 30% | ₹10,000 per transaction | 140, 144 |
| 194BA | 393(3) Table Sl. No. 2 | 1060 | Online game winnings | 30% | Net winnings | 140, 144 |
| 194BA | 393(3) Table Sl. No. 2 Note 2 | 1061 | Online game winnings in kind | 30% | Net winnings | 140, 144 |
| 194BB | 393(3) Table Sl. No. 3 | 1062 | Horse race winnings | 30% | ₹10,000 per transaction | 140, 144 |
| 194G | 393(3) Table Sl. No. 4 | 1063 | Lottery ticket commission / prize | 2% | ₹20,000 | 140, 144 |
| 194N | 393(3) Table Sl. No. 5.D(a) | 1064 | Cash withdrawal — co-operative society | 2% | ₹3,00,00,000 | 140, 144 |
| 194N | 393(3) Table Sl. No. 5.D(b) | 1065 | Cash withdrawal — others | 2% | ₹1,00,00,000 | 140, 144 |
| 194EE | 393(3) Table Sl. No. 6 | 1066 | Amount under section 80CCA(2)(a) | 10% | ₹2,500 | 140, 144 |
| 194T | 393(3) Table Sl. No. 7 | 1067 | Partner salary / remuneration / commission / bonus / interest | 10% | ₹20,000 | 140, 144 |
Recommended control for April 2026 TDS payment file
Add the following columns in your April 2026 TDS working file:
| Existing Column | New Column to Add |
|---|---|
| Vendor Name | Payee Type |
| PAN | Resident / Non-resident |
| Old TDS Section | New TDS Section |
| TDS Rate | Payment Code |
| Taxable Base | Applicable Form |
| TDS Amount | Remarks / exception |
| Lower Deduction Certificate | Form 15G/15H / DTAA / Nil deduction basis |
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