Income Tax

TDS Sections 192-194T Consolidated: New Section 392 & 393 Mapping Guide

CA Nikhil Gupta·June 2026·8 min readTDS · ACT 2025

Reviewed by CA Nikhil Gupta · Last reviewed 17 June 2026

If you've spent years citing Section 194C, 194J, or 194I on invoices and TDS certificates, brace for a change. From 1 April 2026, every TDS provision in the Income-tax Act, 1961 — more than 40 separate sections — is consolidated into just two sections of the Income-tax Act, 2025: Section 392 for salary and PF-related deductions, and Section 393 for everything else. Here's how the old section numbers map to the new structure.

Why Consolidate 40+ Sections Into Two?

The Income-tax Act, 1961 built up TDS provisions incrementally over six decades — Section 192 for salary, 193 for interest on securities, 194 for dividends, then an alphabet soup from 194A through 194T covering everything from rent (194-I) to virtual digital assets (194S) to e-commerce (194-O). Each new payment type got a new section letter, making the TDS chapter one of the most fragmented parts of the law.

The Income-tax Act, 2025 replaces this with a tabular approach: Section 392 covers TDS on salary and provident fund-related payments (the old Section 192 and 192A), while Section 393 covers TDS on virtually all other payments to residents and non-residents — interest, dividends, rent, professional fees, contractor payments, commission, and more. Within Section 393, each transaction type is identified by a numeric payment code from 1001 to 1092, referenced against a table (similar in spirit to how TCS already uses codes in some contexts).

How the Mapping Works in Practice

For any sum paid or credited on or after 1 April 2026, deductors must identify the applicable Section 393 table entry and quote the corresponding payment code in TDS returns (Form 26Q/24Q equivalents under the new Act), rather than the old section letter. For example, what was previously TDS on contractor payments under Section 194C is now reported as Section 393(1), Table Sl. No. 6(i), Payment Code 1017. The deduction rate, threshold, and underlying logic for contractor payments are unchanged — only the citation and the way it's reported in TDS software/returns has changed.

Common Old-to-New Reference Table

Old Section (1961 Act)	Payment Type	New Reference (2025 Act)
192	Salary	Section 392
192A	Premature EPF withdrawal	Section 392
193	Interest on securities	Section 393 (table entry, with code)
194	Dividends	Section 393 (table entry, with code)
194A	Interest other than securities (bank FDs, etc.)	Section 393 (table entry, with code)
194C	Payments to contractors	Section 393(1), Table Sl. No. 6(i), Code 1017
194-I	Rent	Section 393 (table entry, with code)
194J	Professional/technical fees	Section 393 (table entry, with code)
194Q	Purchase of goods	Section 393 (table entry, with code)
194S	TDS on virtual digital assets	Section 393 (table entry, with code)

⚠ What doesn't change: The actual TDS rates (1%, 2%, 10%, etc.), threshold limits for deduction, and the underlying economic activity covered remain the same as under the corresponding 1961 Act section. This is a citation and reporting-format change, not a rate change, for the vast majority of payment types.

What Businesses and Accountants Need to Do

Update accounting software: Most major tax/payroll software vendors (Tally, Zoho Books, etc.) are issuing updates to map old section codes to new Section 393 payment codes for transactions from 1 April 2026 onward.
Update invoice templates and TDS certificates: Internal templates that cite '194C' or '194J' should be updated to reference the applicable Section 393 table entry and code for transactions after 1 April 2026.
No action needed for FY 2025-26 transactions: Any TDS deducted on payments made before 1 April 2026 continues to be reported under the old section numbers (194C, 194J, etc.) since those transactions are governed by the 1961 Act.
Train accounts payable teams: The most common confusion will be vendors and accountants conflating the new numeric payment codes (1001-1092) with old section numbers — they serve a similar identification purpose but are not interchangeable.

TCS Follows a Similar Pattern

Tax Collected at Source (TCS) provisions — previously scattered across Section 206C and its many sub-clauses — are similarly consolidated, with deductors/collectors quoting the relevant table item of Section 394 of the Income-tax Act, 2025 for collections made on or after 1 April 2026.

Why This Matters for Salaried Employees and Freelancers

If you're a salaried employee, your employer's TDS on salary moves from Section 192 to Section 392 — this is largely invisible to you; your Form 16 (or its successor form) will simply cite the new section. If you're a freelancer or small business receiving payments with TDS deducted (e.g., professional fees previously under 194J), expect your Form 16A/26AS-equivalent statement to start showing Section 393 with a payment code from April 2026 onward, instead of '194J'. The TDS rate itself (typically 10% for professional fees) is unaffected.

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TDS rates are unchanged for nowUse our TDS calculator to estimate deductions — the rates under the old section numbers still apply to FY 2025-26 transactions.

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2026 current-law quick reference

Finin2min answer: Sections 392/393 consolidate the 2025 Act withholding framework, but reporting should use the actual Rules 2026 forms and official section codes—not invented “payment codes”. Current transition guidance maps salary, resident non-salary, non-resident and PAN-based challan statements to new forms.

2026 law transition: FY 2025–26 / AY 2026–27 remains under the Income-tax Act, 1961. Income of the tax year beginning 1 April 2026 is governed by the Income-tax Act, 2025 and the Income-tax Rules, 2026. Use the Department’s official comparison/transition tools before carrying an old section or form number into a post-1-April-2026 transaction.

What changes the answer?

What to check	What to do	Common mistake to avoid
Core classification	Sections 392/393 consolidate the 2025 Act withholding framework, but reporting should use the actual Rules 2026 forms and official section codes—not invented “payment codes”. Current transition guidance maps salary, resident non-salary, non-resident and PAN-based challan statements to new forms.	Do not decide from the label used on an invoice, agreement or bank narration alone.
Edge case	A familiar legacy section rate may continue economically, but the current form, section code and due process still need verification.	Recompute when the fact pattern crosses this boundary.
Evidence	Reconcile the documents below to the tax/regulatory return before filing.	A correct legal rule with an unreconciled evidence trail can still fail in assessment or audit.
Effective date	Apply the law/form/rate for the actual transaction, tax year or proceeding date.	Do not mix FY 2025–26/AY 2026–27 legacy references with post-1-April-2026 forms.

Worked practical example

For an April 2026 contractor payment, identify the section-393 table entry and current resident non-salary TDS form instead of copying a legacy 194C code into Form 26Q.

Evidence checklist

payment nature
section-393 table entry
current form instructions
challan
quarterly statement acknowledgement

Primary-source checks: Income Tax Department — Income-tax Act 2025 / Rules 2026 forms · Income Tax Department — transition FAQs

How to use this: This current-law summary reflects the latest position. Where it conflicts with an older rate, threshold, form or section reference elsewhere on the page, rely on the current, dated primary source above.

Frequently Asked Questions

Will my TDS rate change because of this section renumbering? ▼

No, for the vast majority of payment types the TDS rate and threshold limits remain the same — only the section citation and reporting code change. For example, TDS on contractor payments (formerly Section 194C) continues at the same rates (1% for individuals/HUF, 2% for others) but is now reported under Section 393 with payment code 1017. Any actual rate changes would come through annual Finance Act amendments, independent of this consolidation.

From when do I need to use the new Section 392/393 references? ▼

The new section references apply to sums paid or credited on or after 1 April 2026, since the Income-tax Act, 2025 takes effect from that date. TDS on payments made before 1 April 2026 continues to be reported under the old section numbers (192, 194C, 194J, etc.) as those transactions remain governed by the Income-tax Act, 1961.

Where can I find the complete list of payment codes 1001 to 1092? ▼

CBDT is expected to notify the complete schedule of payment codes under Section 393 as part of the rules and forms accompanying the Income-tax Act, 2025. Most accounting and TDS-filing software providers (Tally, Zoho Books, and others) have published or are publishing reference mapping tables that translate familiar old section numbers (194A, 194C, 194J, 194-I, etc.) to the corresponding new payment codes — check with your software vendor or CA for the version applicable to your transaction type.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category: Income Tax
Official starting point: www.incometaxindia.gov.in

Page source links

The prior page did not embed a page-specific external source. The category authority above is the minimum verification starting point; a specific instrument should be added when available.

Primary sources & related provisions

Statutory provisions referenced in this guide: