From 1 April 2026, the Income-tax law simplifies TDS provisions by merging old sections into fewer ones. Key new sections are:
| New Section | Nature of Provision | Notes |
| 392 | TDS on Salary | Tax deducted by employer from employee salary. |
| 393 | TDS other than Salary | TDS on payments like interest, commission, rent, professional fees, etc. |
| 394 | Tax Collected at Source | Tax collected on specified goods/services. |
| 395 | Certificates | TDS/TCS certificates like Form 16, 16A. |
| 396 | Tax deducted is treated as income received | If tax is deducted, it is considered as income received by the payee. |
| 397 | Compliance & Reporting | Filing TDS returns, statements and other reporting duties. |
| 398 | Consequences of failure | Interest, penalty and disallowance if TDS/TCS is not deducted or paid. |
| 399 | Processing | Processing of TDS returns by the department. |
| 400 | Power to relax provisions | Government can relax rules in genuine hardship cases. |
| 401 | Bar against direct demand on assessee | If TDS was deductible, department should not directly demand tax from recipient. |
| 402 | Interpretation | Explains how to interpret this chapter. |
Note
You must use this new section numbers while paying TDS challans.
TDS Chart For Tax Year 2026–27
| Section | Description | Rate | Threshold |
| 192 | Salary | Basic exemption limit of employee | As per slab rate |
| 192A | Premature PF withdrawal | 10% | 50,000 (No TDS if 5 years continuous service completed.) |
| 193 | Interest on securities | 10% | 10,000 |
| 194 | Dividends | 10% | 10,000 |
| 194A | Interest other than securities | 10% | 50,000 (non-senior), 1L(seniors); 10,000 (non-bank). |
| 194B | Lottery/Game Winnings | 30% | 10,000 |
| 194BA | Online gaming net winnings | 30% | None |
| 194BB | Lottery/horse race winnings | 30% | 10,000 (Aggregate winnings during a financial year not single transaction) |
| 194C | Payments to Contractors/sub-contractors | 1% (individual/HUF), 2% (others) | Single contract 30,000,aggregate 1,00,000 in a FY |
| 194D | Insurance commission | 2% | 20,000 |
| 194DA | Life insurance maturity/surrender | 2% | 1,00,000 |
| 194E | Non-resident sports persons | 20% | No threshold |
| 194EE | Payment received – National Savings Scheme (NSS) | 10% | 2,500 |
| 194G | Commission on sale of lottery ticket | 2% | 20,000 |
| 194H | Brokerage/commission | 2% (specified person) | 20,000 |
| 194I | Rent | Plant or machinery 2% u/s 194I(a), land or building 10% u/s 194I(b) | 50,000 |
| 194-IA | Immovable property (non-agriculture) | 1% | 50,00,000 |
| 194-IB | Rent by individual/HUF | 2% | 50,000/month (Only for Ind/HUF not liable to tax audit.) |
| 194J | Professional/Technical Fees | (2% for call centers, Royalty, Distribution or Exhibition of Cinematography Films, no threshold for directors) (10% on Fees for all other Professional Services) | 50,000 |
| 194K | Payment of dividend by Mutual Funds | 10% | 10,000 |
| 194M | Payment made for Contracts, Brokerage or Professional Fees etc. by individual/HUF | 2% | 50,00,000 |
| 194N | Cash withdrawal | 2% or 5% | ITR Filers 2% above ₹1Cr, ITR non filers 20 lakh to 1 Cr – 2%, ITR non filers above 1 cr – 5% |
| 194-O | E-commerce | 0.1% | 5L (individual/HUF) |
| 194P | Senior citizens | As per slab rate | 75 yrs age or above, only pension/interest; bank deducts at slab, no ITR needed |
| 194Q | Goods purchase | 0.1% | 50,00,000 |
| 194R | Perquisites | 10% | 20,000 |
| 194S | Virtual digital assets | 1% | 10,000 other than specified person, 50,000 (specified person) |
| 194T | Firm payments to partners | 10% | 20,000 |
You must check for new section codes and focus on thresholds and exemptions for specified persons to ensure seamless compliance.
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