Old vs New TDS Sections Mapping under Income-tax Act, 2025: A Detailed Analysis for FY 2026

The transition to the new Income-tax framework introduced by the Finance Act, 2026 has brought significant structural changes, including the renumbering and rationalisation of Tax Deducted at Source (TDS) provisions. While the core principles governing TDS remain largely unchanged, the reclassification of sections under the new Income-tax Act, 2025 has created confusion among taxpayers, deductors, and professionals.

Shift from Old to New TDS Framework

Under the earlier Income-tax Act, 1961, TDS provisions were primarily governed under Chapter XVII-B, covering sections such as 192 (salary), 194C (contract payments), 194J (professional fees), among others. With the implementation of the new Act, these provisions have been reorganised into a new numbering system to simplify compliance and improve structural clarity.

The objective behind this restructuring is to create a more logical grouping of provisions, reduce redundancy, and align the law with modern compliance systems, including faceless and digital tax administration.

Sl. No.	Old Section (Income-tax Act 1961)	Nature of Payment	New Section (IT Act 2025)	Nature Code	Standard Rate	Threshold Limit
1	192	Salary	392	S01	Slab rate	Nil
2	192A	EPF withdrawal	392	S04	10%	₹50,000
3	192B	Perquisites / ESOP	392	S02	Slab rate	Nil
4	193	Interest on securities	393	NS16	10%	₹10,000
5	194	Dividend	393	NS08	10%	₹5,000
6	194A	Interest (other than securities)	393	NS07	10%	₹40,000 / ₹50,000
7	194B	Lottery / game winnings	393	NS19	30%	₹10,000
8	194BB	Horse race winnings	393	NS21	30%	₹10,000
9	194C	Contract / Work	393	NS01	1% / 2%	₹30,000 / ₹1,00,000
10	194D	Insurance commission	393	NS10	5%	₹15,000
11	194DA	Life insurance pay-out	393	NS22	5%	₹1,00,000
12	194E	Payment to non-resident sportsman	393	NS23	20%	Nil
13	194EE	NSS withdrawal	393	NS24	10%	₹2,500
14	194F	Mutual fund repurchase	393	NS25	20%	Nil
15	194G	Lottery commission	393	NS26	5%	₹15,000
16	194H	Commission / Brokerage	393	NS04	5%	₹15,000
17	194I	Rent	393	NS05 / NS06	10% / 2%	₹2,40,000
18	194IA	Purchase of immovable property	393	NS27	1%	₹50,00,000
19	194IB	Rent by Individual / HUF	393	NS28	5%	₹50,000 per month
20	194IC	Joint development agreement	393	NS29	10%	Nil
21	194J	Professional / Technical fees	393	NS02 / NS03	10%	₹30,000
22	194K	Income from mutual fund units	393	NS30	10%	₹5,000
23	194LA	Land acquisition compensation	393	NS17	10%	₹2,50,000
24	194LB	Infrastructure debt fund	393	NS31	5%	Nil
25	194LC	Foreign currency borrowing	393	NS32	5%	Nil
26	194M	Payment by Individual / HUF (contract / professional)	393	NS33	5%	₹50,00,000
27	194N	Cash withdrawal	393	NS20	2% / 5%	₹1 crore
28	194O	E-commerce participant	393	NS13	1%	₹5,00,000
29	194Q	Purchase of goods	393	NS12	0.1%	₹50,00,000
30	194R	Benefits / Perquisites	393	NS14	10%	₹20,000
31	194S	Virtual digital asset	393	NS15	1%	₹50,000 / ₹10,000
32	195	Payment to non-resident	393	NS18	As per Act	Nil
33	196A	Income of non-resident units	393	NS34	20%	Nil
34	196B	Offshore fund income	393	NS35	10%	Nil
35	196C	Foreign company income	393	NS36	10%	Nil
36	196D	Foreign institutional investor	393	NS37	20%	Nil

Key Features of the New TDS Regime

One of the major highlights of the new system is the consolidation of similar provisions. Payments of a similar nature are now grouped together under broader categories, reducing fragmentation. Additionally, descriptive section headings have been introduced to improve readability and ease of interpretation.

The government has also aimed to align TDS provisions with evolving business practices, including digital transactions, cross-border payments, and automated compliance systems.

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Practical Implications for Taxpayers and Deductors

Despite being largely a renumbering exercise, the transition has practical implications. Deductors must ensure that they use the correct section codes while filing TDS returns, making payments, and issuing TDS certificates. Incorrect mapping between old and new sections may lead to compliance errors, notices, or mismatches in tax credit.

Professionals have also highlighted that ERP systems, accounting software, and return filing utilities need to be updated to reflect the revised section codes. Any delay in such updates may lead to operational disruptions.

Continued Applicability of Existing Procedures

It is important to note that while section numbers have changed, the underlying compliance framework—such as deduction timelines, deposit rules, and return filing requirements—continues to remain substantially the same unless specifically amended.

Taxpayers are therefore advised not to assume a change in liability merely due to renumbering, and instead focus on understanding the corresponding provisions under the new law.

Need for Clear Mapping and Awareness

Given the scale of transition, a clear mapping between old and new TDS sections is critical. Such mapping helps in ensuring continuity, especially in cases involving ongoing contracts, long-term payments, or assessments spanning multiple financial years.

Tax authorities are expected to issue detailed guidance and updated utilities to facilitate a smooth transition. However, professionals have stressed the need for greater awareness and training to avoid inadvertent non-compliance.

Conclusion

The restructuring of TDS provisions under the Income-tax Act, 2025 represents a step towards simplification and modernisation of tax laws. However, the success of this transition depends on how effectively taxpayers and professionals adapt to the new framework.

Until systems stabilise and familiarity increases, careful attention to section mapping, compliance procedures, and official notifications will remain essential to avoid errors and litigation.