Clarification required on Section 393 & Reporting Code sections

Hi Experts,

Can someone help me to clarify my confusion? 

As per the Income Tax Act 2025, Section 393 Table Column B(Nature of income or sum), Fees for Pofessional services section is 393(1)(6)(iii)(b) and Fees for Technical Service Section is 393.6(iii)(b). 

But as per the TDS traces document, Fees for technical services Section is 393(1) [Table: Sl. No. 6(iii).D(a)] & Fees for professional services is 393(1) [Table: Sl. No. 6(iii).D(b)].  

And as per the new rules we need to consider payment section code 1026 - Fees for technical services and 1027 - Fees for professional services. This code now plays vital role in return filing. 

Under Form 131 under 'Nature of Payment' field what to fill? 26Q /27Q return (I am still waiting for the updated FVU file specification)
1. Payment code 1026 
2. Section 393(1)(6)(iii)(b) as per Table Column B of the Act or
3. Section as per the TDS Traces 393(1) [Table: Sl. No. 6(iii).D(b)]

Thank you 
AP

Replies (2)
Quick Summary
This discussion seeks clarification on discrepancies between the Income Tax Act 2025 and TDS TRACES documents regarding the reporting of professional and technical service fees under Section 393. The user is specifically asking for guidance on which section reference and payment code (1026 for technical, 1027 for professional) to use when filling out Form 131, given the differing information and the importance of these codes for return filing. The consensus leans towards prioritising the TRACES table structure and payment codes for accurate filing.

Qucik references below

https://www.incometaxindia.gov.in/income-tax-act-2025

https://www.tdsman.com/downloads/TDS_and_TCS-rate-chart-2027.pdf?srsltid=AfmBOoqgdIzX_KzvUsN-s3u9McloRnrOrak-d8o0lj_NtUyqG_UUtum4

 

For accurate return filing, prioritize the TRACES table structure and payment codes (1026 for Technical / 1027 for Professional) over literal statute sub-sections if the filing utility validates against master lookup tables.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details