TDS under new income tax act 2025 camparison guide FY 2026-27.
In This Chart Old TDS Section vs New TDS Sections, New Payment Codes.
Old TDS Sections vs New TDS Sections, New Payment Codes (1023, 1024, 1067, 1019, 1026, 1027, etc.), Updated Threshold Limits, Applicable TDS Rates, Reclassified provisions under Section 393, Partner Remuneration provisions, High-value sales transactions, Salary, Contractors, Professional Fees, Rent, Interest, Property Purchase, Commission, Cash Withdrawal and more
| Sl. no. | Nature of payment | Old section (old act) | New section (new act, 2025) | Payment code (as per ITD system) | Old TDS rate | New TDS rate | Threshold limit (₹) (new act) |
|---|---|---|---|---|---|---|---|
| 1. | Salary (Accumulated Balance) | 192 | 392(1) | 1001/1002/1003 | Slab Rates | Slab Rates | Basic Exemption Limit |
| 2. | Premature EPF Withdrawal | 192A | 392(7) | 1004 | 10% | 10% | 50,000 |
| 3. | Interest on Securities | 193 | 393(1)[5(i)] | 1019 | 10% | 10% | 10,000 |
| 4. | Interest – Senior Citizens | 194A | 393(1)[5(ii)] | 1020 | 10% | 10% | 1,00,000 |
| 5. | Interest – Others (Bank/PO) | 194A | 393(1)[5(i)] | 1021 | 10% | 10% | 50,000 |
| 6. | Interest – Other than Bank/PO | 194A | 393(1)[5(iii)] | 1022 | 10% | 10% | 10,000 |
| 7. | Contractors (Ind/HUF) | 194C | 393(1)[6(i)] | 1023 | 1% | 1% | 30,000 / 1,00,000 |
| 8. | Contractors (Others) | 194C | 393(1)[6(i)] | 1024 | 2% | 2% | 30,000 / 1,00,000 |
| 9. | Insurance Commission | 194D | 393(1)[1(i)] | 1005 | 2% | 2% | 20,000 |
| 10. | Commission/Brokerage | 194H | 393(1)[1(iii)] | 1006 | 2% | 2% | 20,000 |
| 11. | Rent – Plant & Machinery | 194I(a) | 393(1)[2(i)] | 1008 | 2% | 2% | 50,000 / month |
| 12. | Rent – Land/Building | 194I(b) | 393(1)[2(ii)] | 1009 | 2% | 2% | 50,000 / month |
| 13. | Property Purchase | 194IA | 393(1)[3(i)] | 1010 | 1% | 1% | 50,00,000 |
| 14. | Rent by Ind/HUF | 194IB | 393(1)[2(i)] | 1007 | 2% | 2% | 50,000 / month |
| 15. | Technical Fees / Royalty | 194J(a) | 393(1)[6(iii)] | 1026 | 2% | 2% | 50,000 |
| 16. | Professional Fees | 194J(b) | 393(1)[6(iii)] | 1027 | 10% | 10% | 50,000 |
| 17. | Director Fees | 194J(b) | 393(1)[6(iii)] | 1028 | 10% | 10% | No Limit |
| 18. | Mutual Fund Income | 194K | 393(1)[4(i)] | 1013 | 10% | 10% | 10,000 |
| 19. | Property Compensation | 194LA | 393(1)[3(iii)] | 1012 | 10% | 10% | 5,00,000 |
| 20. | Cash Withdrawal | 194N | 393(3)[5] | 1064/1065 | 2% | 2% | 1 Cr / 3 Cr |
| 21. | Partner Payment | 194T | 393(3)[7] | 1067 | 10% | 10% | 20,000 |
| 22. | Specified Payments (Reclassified) | Various (194C/194J/194H/194I etc.) | 393 | As per respective sections | As per respective sections | As per respective sections | As per respective provisions |
| 23. | Reporting / Information Compliance (TDS Statement) | Not Applicable | 393(2) | N/A (Statement) | Not Applicable | Not Applicable | As notified by CBDT |
| 24. | Partner’s Remuneration (NEW SECTION) | Not Applicable | 193B | 1024 | Not Applicable | 10% | 20,000 or 50,000 per payment |
| 25. | Sale of Goods (High Value) (NEW SECTION) | Not Applicable | 206C(1H) | 27EQ | Not Applicable | 0.1% | Sale exceeding 50,00,000 per FY |
Read Also: TDS & TCS Rate Chart for FY 2026–27 And AY 2027-28
General TDS Rule Applicable to all TDS Section
TDS PAYMENT DUE DATE: Within 7 days from end of the month in which deduction is made.
TDS RETURN FORM (WITH CODE): As mentioned in the chart above (e.g., 24Q (1024), 26Q (1067), 26QC (1106), 27EQ (1212) etc.)
TDS RETURN DUE DATE: 31st May of the next financial year (30th June for Form 26QC).
INTEREST FOR LATE DEDUCTION: 1% per month or part thereof from the date on which deduction was deductible to the date of actual deduction.
INTEREST FOR LATE PAYMENT: 1.5% per month or part thereof from the date of deduction to the date of payment.
PENALTY / LATE FEE: 200 per day of default in filing TDS return (u/s 234E), subject to maximum amount in accordance with provisions.
KEY REMARKS / PRACTICAL IMPACT: Rates remain largely the same; alignment of sections with new Act, new reporting codes introduced, and enhanced compliance & reporting requirements.
IMPORTANT NOTES:
- Provisions are per Finance Act, 2025 and effective for Tax Year 26-27 (ΑΥ 2026-27).
- Section numbers are as per the new Income-tax Act, 2025.
- TDS return codes (e.g., 1024, 1067, 1106, 1108, 1111, 1212) are as per CBDT notifications.
- Threshold limits are subject to change via notification.
- Always refer to latest CBDT circulars /notifications for any updates.
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