TDS & TCS Under Income Tax Act 2025: Complete Old vs New Section Mapping

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If you are a business owner, employer, or accountant, TDS (Tax Deducted at Source) is something you deal with every month. With the Income Tax Act 2025 replacing the old Act from 1st April 2026, the entire TDS and TCS framework has been restructured. The rates and thresholds are mostly unchanged, but the section numbers, forms, and filing structure are completely new.

This article provides a complete old-to-new mapping of TDS/TCS provisions (टीडीएस नवीन कलम), covering every section, form, and challan that deductors need to know. Whether you are a contractor (ठेकेदार), a landlord, a professional, or a corporate deductor, this guide will help you transition smoothly.

The Biggest Structural Change in TDS: Under the old Act, each type of TDS payment had its own section (194A for interest, 194C for contractors, 194J for professionals, and so on). Under the new Act,all non-salary TDS is consolidated under Section 393, with rates and thresholds specified in a single table within that section. Think of it as one master section with a detailed schedule, rather than 30+ individual sections. (ठेकेदार TDS, व्याज TDS, भाडे TDS — सर्व आता एकाच कलम 393 अंतर्गत.)

1. TDS on Salary — Section 192 to Section 392

Salary TDS continues to be the most significant TDS category. Here is the mapping:

Aspect	Old Act (ITA 1961)	New Act (ITA 2025)	What Changed
TDS on Salary	Section 192	Section 392(1)	Same obligation; employer deducts at average rate on estimated total income
Salary TDS Return	Form 24Q	Form 138	New form number; quarterly filing continues
TDS Certificate (Salary)	Form 16	Form 130	Annual certificate; same purpose, new format

Action for Employers from 1 April 2026: Employers mustreset the salary TDS computation from 1 April 2026. For the period April 2026 onwards, the TDS must be calculated under Section 392(1) of the new Act, referencing the new tax slabs under Section 202 (default new regime). If an employee has opted out of the new regime, the employer must apply the old slab rates as preserved under the new Act's provisions. Update your payroll software and coordinate with your CA. (नियोक्त्यांनी 1 एप्रिल 2026 पासून नवीन कलम 392(1) अंतर्गत TDS गणना पुन्हा सुरू करावी.)

2. Non-Salary TDS — The Master Table Under Section 393

This is where the biggest simplification has happened. Instead of memorising 30+ different section numbers, all non-salary TDS provisions are now in a single consolidated table under Section 393(1). Here is the complete mapping of the most commonly used TDS provisions:

2.1 Key TDS Provisions — Old to New Mapping

Nature of Payment	Old Section	New Section	Rate	Threshold
Interest (other than on securities)	194A	393(1) Table	10%	Rs 40,000 (bank) / Rs 5,000 (others)
Contractor payments (ठेकेदार TDS)	194C	393(1) Table	1% (Indv/HUF) / 2% (Others)	Rs 30,000 single / Rs 1,00,000 aggregate
Commission / Brokerage	194H	393(1) Table	5%	Rs 15,000
Rent — Plant & Machinery	194I	393(1) Table	2%	Rs 2,40,000 p.a.
Rent — Land / Building	194I	393(1) Table	10%	Rs 2,40,000 p.a.
Professional / Technical Fees	194J	393(1) Table	2% (technical) / 10% (professional)	Rs 30,000
Purchase of Goods	194Q	393(1) Table	0.1%	Rs 50 lakh
E-commerce Operator Payments	194-O	393(1) Table	1%	—
Rent by Individual/HUF (tenant TDS)	194-IB	393(1) Table / Form 141	5%	Rent exceeds Rs 50,000/month

What This Means in Practice: You no longer need to cite "Section 194C" or "Section 194J" in your TDS entries. All references now point toSection 393(1)with the specific nature of payment identified from the table. Your accounting software and TRACES portal will be updated to reflect this new structure. The rates and thresholds remain the same — so your day-to-day deduction amounts will not change. (दर आणि मर्यादा तशाच आहेत — फक्त कलम क्रमांक बदलले आहेत.)

3. TCS Provisions — Section 206C to Section 394

Tax Collected at Source (TCS) provisions have similarly been consolidated:

Aspect	Old Act (ITA 1961)	New Act (ITA 2025)	What Changed
TCS — all provisions	Section 206C (multiple sub-sections)	Section 394	Consolidated TCS provisions; sale of goods, LRS, foreign tour packages etc. all under one section
TCS Return	Form 27EQ	Form 143	New form number; quarterly filing continues

For businesses collecting TCS on scrap, minerals, forest produce, overseas remittances (LRS), or foreign tour packages, the collection rates and thresholds remain unchanged. Only the section reference moves from 206C to Section 394.

4. New Forms — Complete Replacement Chart

One of the most practical changes for accountants and businesses is the complete replacement of TDS/TCS forms. Here is the full mapping:

4.1 TDS/TCS Returns (Quarterly Statements)

Purpose	Old Form	New Form	Filing Frequency
Salary TDS Return	Form 24Q	Form 138	Quarterly
Non-Salary TDS Return	Form 26Q	Form 140	Quarterly
TDS on Non-Resident Payments	Form 27Q	Form 144	Quarterly
TCS Return	Form 27EQ	Form 143	Quarterly

4.2 TDS/TCS Certificates

Purpose	Old Form	New Form	Notes
Salary TDS Certificate	Form 16	Form 130	Annual; issued to employees
Non-Salary TDS Certificate	Form 16A	Form 131	Quarterly; issued to deductees

4.3 Challans & Other Forms

Purpose	Old Form	New Form	Notes
TDS Payment Challan	Challan 281 / Form 280	Form 141 (Challan-cum-Statement)	Combined challan + statement for certain categories
Lower / NIL Deduction Certificate	Form 197 / 197A	Form 128	Single form for lower deduction applications
Self-declaration for no TDS (Senior Citizens, etc.)	Form 15G / Form 15H	Form 121	Merged into one form; same purpose

For Business Owners and Accountants (व्यवसाय मालक आणि लेखापालांसाठी): If you are running a business, make sure your accountant updates the TDS software to generate the new form numbers from Q1 of TY 2026-27 (April–June 2026). The first quarterly return under the new forms is due by31 July 2026. Form 15G and 15H declarations received from vendors/depositors will now need to referenceForm 121.

5. Transition Rules — Old Act vs New Act: Which Applies?

The transition date is clear-cut, but it is important to understand how it applies to TDS specifically:

Scenario	Date of Credit	Date of Payment	Which Act Applies	Practical Example
Credit & Payment both before 31 March 2026	28 March 2026	30 March 2026	Old Act (ITA 1961)	Contractor bill credited 28 March, paid 30 March — TDS u/s 194C, Challan 281, Form 26Q for Q4 FY 2025-26
Credit before 31 March, Payment after 1 April 2026	25 March 2026	5 April 2026	Old Act (ITA 1961) — credit date governs	Professional fee credited 25 March, paid 5 April — TDS u/s 194J at time of credit, Challan 281, Form 26Q for Q4 FY 2025-26
Credit & Payment both from 1 April 2026	2 April 2026	10 April 2026	New Act (ITA 2025)	Same contractor bill credited 2 April, paid 10 April — TDS u/s 393(1), Form 141, Form 140 for Q1 TY 2026-27
Salary for March 2026, paid in April 2026	31 March 2026	7 April 2026	Old Act for March salary; New Act for April salary onwards	March 2026 salary paid 7 April — TDS u/s 192 for March component, Challan 281; April 2026 salary onwards — TDS u/s 392(1), Form 141

TDS Deposit Timeline — No Change: The due date for depositing TDS remains7th of the following month(e.g., TDS deducted in April 2026 must be deposited by 7 May 2026). For March deductions, the deadline continues to be 30 April. This timeline is unchanged under the new Act. (TDS जमा करण्याची अंतिम तारीख — पुढील महिन्याचा 7 तारीख — बदललेली नाही.)

The key principle: the date of payment or credit to the payee's account determines which Act applies. If you are making a payment on 31 March 2026, the old section numbers apply. If the same payment is made on 1 April 2026, the new section numbers apply. Ensure your accounts team is aware of this cutoff, especially for invoices processed around the transition date.

6. Summary: Quick Reference Cheat Sheet

Here is a consolidated reference for the most commonly needed mappings:

What You Need	Old Reference	New Reference
Salary TDS section	Sec 192	Sec 392(1)
Non-salary TDS (all types)	Sec 194A/C/H/I/J/Q/O/IB	Sec 393(1) Table
TCS (all types)	Sec 206C	Sec 394
Salary TDS return	Form 24Q	Form 138
Non-salary TDS return	Form 26Q	Form 140
TDS on NR payments return	Form 27Q	Form 144
TCS return	Form 27EQ	Form 143
Salary TDS certificate	Form 16	Form 130
Non-salary TDS certificate	Form 16A	Form 131
TDS payment challan	Challan 281	Form 141
Lower/NIL deduction cert	Form 197	Form 128
No-TDS self-declaration	Form 15G/15H	Form 121

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