TDS Section Mapping: Income Tax Act 1961 vs 2025,The Income Tax Act, 2025 has restructured TDS and TCS provisions under entirely new section numbers. While no changes in rates or thresholds have been made, every section — from salary TDS to VDA payments — now has a new identity. This post is your complete, ready-reference mapping of old 1961 Act sections to the new 2025 Act sections, along with the new section codes (1001–1092) used in revised TDS/TCS forms.
📋 Table of Contents
- Why This Mapping Matters
- Part A: TDS on Payments to Residents (Sec. 192–194S)
- Part B: TDS on Payments to Non-Residents (Sec. 194E–196DA)
- Part C: Payments to Any Person — Winnings, Cash, Partners (Sec. 194B–194T)
- Part D: TCS Section Code Reference (Sec. 206C → Sec. 394)
- Budget 2026 TCS Rate Changes
- Key Notes for CAs and Finance Teams
Why This Mapping Matters
The Income Tax Act, 2025 is a comprehensive re-codification of the 1961 Act. It does not change TDS/TCS rates, thresholds, or the nature of payments — but it renumbers and reorganises every provision. The revised draft Forms 138, 140, and 141 now require new section codes (four-digit codes from 1001 to 1092) instead of the old 192/194/206C style references.
📌 What changes under the 2025 Act:
All TDS provisions move to Section 392 and 393; TCS provisions move to Section 394. The old section numbers (192, 194A, 194Q, 206C, etc.) are replaced with these new references and four-digit section codes.
All TDS provisions move to Section 392 and 393; TCS provisions move to Section 394. The old section numbers (192, 194A, 194Q, 206C, etc.) are replaced with these new references and four-digit section codes.
✅ What does NOT change:
TDS rates, threshold limits, exemptions, and the fundamental nature of each payment category remain exactly the same. This is a structural renaming, not a tax rate revision.
TDS rates, threshold limits, exemptions, and the fundamental nature of each payment category remain exactly the same. This is a structural renaming, not a tax rate revision.
This mapping is critical for:
- Updating accounting and ERP software to use new section codes in TDS returns
- Correctly selecting the new section when filing revised TDS/TCS returns under Act 2025
- Training accounts teams who are familiar only with the old section numbering
- Ensuring your TRACES/GSTN filings use the correct codes once final forms are notified
Part A: TDS on Payments to Residents-TDS Section Mapping: Income Tax Act 1961 vs 2025
Under the 2025 Act, payments to residents fall under Section 392 (salary) and Section 393(1) (all other resident TDS). Below is the complete mapping from the old 1961 sections to the new 2025 references and section codes.
| Nature of Payment | 1961 Act | 2025 Act | Code | Rate |
|---|---|---|---|---|
| Salary — Govt. employees (non-Union Govt.) | 192 | 392 / 1001 | 1001 | As per Slab |
| Salary — Non-Govt. employees | 192 | 392 / 1002 | 1002 | As per Slab |
| Salary — Indian Govt. employees | 192 | 392 / 1003 | 1003 | As per Slab |
| PF withdrawal (recognized PF / accumulated balance) | 192A | 392(7) / 1004 | 1004 | 10% |
| Insurance commission | 194D | 393(1) – Sl. 1(i) | 1005 | 5% |
| Commission / brokerage (other than insurance) | 194H | 393(1) – Sl. 1(ii) | 1006 | 2% |
| Rent — Indiv./HUF (₹50,000/month or more) | 194IB | 393(1) – Sl. 2(i) | 1007* | 2% |
| Rent (general) — land/building/furniture | 194I | 393(1) – Sl. 2(ii).D(a) | 1008 | 2% |
| Rent (general) — plant/machinery | 194I | 393(1) – Sl. 2(ii).D(b) | 1009 | 10% |
| Immovable property transfer — purchase | 194IA | 393(1) – Sl. 3(i) | 1010* | 1% |
| Immovable property — JDA payments | 194IC | 393(1) – Sl. 3(ii) | 1011 | 10% |
| Immovable property — compulsory acquisition | 194LA | 393(1) – Sl. 3(iii) | 1012 | 10% |
| Capital market — MF units | 194K | 393(1) Sl. 4(i) | 1013 | 10% |
| Capital market — Business trust / Inv. fund / Securitization trust | 194LBA / 194LBB / 194LBC | 393(1) Sl. 4(ii)/(iii)/(iv) | 1014–1018 | 10%–25% |
| Interest on securities | 193 | 393(1) – Sl. 5(i) | 1019 | 10% |
| Interest (Banks/PO) — Senior citizen | 194A | 393(1) – Sl. 5(ii) | 1020 | 10% |
| Interest (Banks/PO) — Others | 194A | 393(1) – Sl. 5(ii) | 1021 | 10% |
| Interest other than securities — Others (non-bank) | 194A | 393(1) – Sl. 5(iii) | 1022 | 10% |
| Contract payment — Individual/HUF contractor | 194C | 393(1) – Sl. 6(i) | 1023 | 1% |
| Contract payment — Other contractors | 194C | 393(1) – Sl. 6(i) | 1024 | 1% |
| Payments by Indiv./HUF (non-audit) — contractor/professional | 194M | 393(1) – Sl. 6(ii) | 1025* | 2% |
| Professional/technical fees, director fees, royalty — 2% category | 194J | 393(1) – Sl. 6(iii) | 1026 | 2% |
| Professional services / Director fees — 10% category | 194J | 393(1) Sl. 6(iii).D(b) | 1027/1028 | 10% |
| Dividend | 194 | 393(1) – Sl. 7 | 1029 | 10% |
| Life insurance proceeds (taxable portion) | 194DA | 393(1) – Sl. 8(i) | 1030 | 5% |
| Purchase of goods (buyer TDS) | 194Q | 393(1) – Sl. 8(ii) | 1031 | 0.1% |
| Specified senior citizen (bank deducts & files return) | 194P | 393(1) – Sl. 8(iii) | 1032 | As per Slab |
| Business perquisite/benefit — cash/convertible | 194R | 393(1) – Sl. 8(iv) | 1033 | 10% |
| Business perquisite/benefit — cash, kind or mixed | 194R | 393(1) – Sl. 8(iv) | 1034 | 10% |
| E-commerce operator | 194O | 393(1) – Sl. 8(v) | 1035 | 1% |
| VDA transfer — Indiv./HUF (non-auditee) | 194S | 393(1) – Sl. 8(vi) | 1036* | 1% |
| VDA transfer — Others | 194S | 393(1) – Sl. 8(vi) | 1037 | 1% |
| VDA transfer — Cash, kind or mixed | 194S | 393(1) – Sl. 8(vi) | 1038 | 1% |
* Codes 1007, 1010, 1025 and 1036 are inferred based on sequential pattern in Draft Forms. Subject to confirmation on final CBDT notification.
Part B: TDS on Payments to Non-Residents
Non-resident TDS provisions shift to Section 393(2) under the 2025 Act. The codes run from 1039 to 1057, covering everything from sportsman payments to FII income on securities.
| Nature of Payment | 1961 Act | 2025 Act | Code | Rate |
|---|---|---|---|---|
| Payment to non-resident sportsman / sports association | 194E | 393(2) – Sl. 1 | 1039 | 20% |
| Concessional interest — foreign currency borrowing / LT infra bonds | 194LC | 393(2) – Sl. 2 | 1040 | 5% |
| Interest on rupee denominated bonds | 194LD | 393(2) – Sl. 3 | 1041 | 5% |
| Interest on listed bonds/RDB in IFSC (issued 01-04-2020 to 30-06-2023) | 194LC (IFSC) | 393(2) – Sl. 4.E(a) | 1042 | 4% |
| Interest on listed bonds/RDB in IFSC (issued on or after 01-07-2023) | 194LC (IFSC) | 393(2) – Sl. 4.E(b) | 1043 | 9% |
| Interest paid by infrastructure debt fund | 194LB | 393(2) – Sl. 5 | 1044 | 5% |
| Business trust distribution — interest | 194LBA(a) | 393(2) – Sl. 6.E(a) | 1045 | 5% |
| Business trust distribution — dividend | 194LBA(b) | 393(2) – Sl. 6.E(b) | 1046 | 10% |
| Business trust distribution — rent | 194LBA(c) | 393(2) – Sl. 7 | 1047 | Rates in force |
| Investment fund income to non-resident unit holder | 194LBB | 393(2) – Sl. 8 | 1048 | Rates in force |
| Securitization trust income to non-resident investor | 194LBC | 393(2) – Sl. 9 | 1049 | Rates in force |
| MF units / specified company (non-resident) | 196A | 393(2) – Sl. 10 | 1050 | 20% |
| Offshore fund units — income | 196B | 393(2) – Sl. 11 | 1051 | 10% |
| Offshore fund units — LTCG | 196B | 393(2) – Sl. 12 | 1052 | 12.5% |
| Bonds / GDR — interest or dividend | 196C | 393(2) – Sl. 13 | 1053 | 10% |
| Bonds / GDR — LTCG | 196C | 393(2) – Sl. 14 | 1054 | 12.5% |
| FII income in respect of securities | 196D | 393(2) – Sl. 15 | 1055 | 20% |
| Specified fund income in respect of securities | 196DA | 393(2) – Sl. 16 | 1056 | 10% |
| Any other sum chargeable (non-resident) — general | 195 | 393(2) – Sl. 17 | 1057 | Rates in force |
Part C: Payments to Any Person — Winnings, Cash Withdrawal & Partner Payments
Section 393(3) of the 2025 Act covers TDS on winnings, online games, cash withdrawals, lottery commissions, NSS payments, and partnership firm partner payments. Codes run from 1058 to 1067.
| Nature of Payment | 1961 Act | 2025 Act | Code | Rate |
|---|---|---|---|---|
| Winnings — lottery/crossword/card games/betting | 194B | 393(3) – Sl. 1 | 1058 | 30% |
| Winnings — paid in kind or cash insufficient for tax | 194B | 393(3) – Sl. 1 | 1059 | 30% |
| Winnings from online games | 194BA | 393(3) – Sl. 2 | 1060 | 30% |
| Winnings from online games — any form | 194BA | 393(3) – Sl. 2 | 1061 | 30% |
| Winnings from horse race | 194BB | 393(3) – Sl. 3 | 1062 | 30% |
| Commission on lottery tickets | 194G | 393(3) – Sl. 4 | 1063 | 5% |
| Cash withdrawal — co-operative society deductee | 194N | 393(3) – Sl. 5 | 1064 | 2% |
| Cash withdrawal — others | 194N | 393(3) – Sl. 5 | 1065 | 2% |
| NSS / 80CCA payment | 194EE | 393(3) – Sl. 6 | 1066 | 10% |
| Payments to partners — salary/remuneration/interest | 194T | 393(3) – Sl. 7 | 1067 | 10% |
Part D: TCS Section Code Reference Table
TCS provisions are now consolidated under Section 394(1) of the Income Tax Act, 2025 (previously Section 206C of the 1961 Act). Section codes run from 1068 to 1092. Note the significant Budget 2026 rate changes highlighted below.
| Nature of Receipt / Payment | 1961 Act | 2025 Act | Code | Rate |
|---|---|---|---|---|
| Sale of alcoholic liquor for human consumption Budget 2026 | 206C(1) | 394(1) Sl. No. 1 | 1068 | 2% (was 1%) |
| Sale of tendu leaves Budget 2026 | 206C(1) | 394(1) Sl. No. 2 | 1069 | 2% (was 5%) |
| Sale of timber — forest lease | 206C(1) | 394(1) Sl. No. 3 | 1070 | 2% |
| Sale of timber — other than forest lease | 206C(1) | 394(1) Sl. No. 3 | 1071 | 2% |
| Sale of other forest produce (non-timber/tendu) | 206C(1) | 394(1) Sl. No. 3 | 1072 | 2% |
| Sale of scrap Budget 2026 | 206C(1) | 394(1) Sl. No. 4 | 1073 | 2% (was 1%) |
| Sale of minerals — coal, lignite or iron ore Budget 2026 | 206C(1) | 394(1) Sl. No. 5 | 1074 | 2% (was 1%) |
| Sale of motor vehicle (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(a) | 1075 | 1% |
| Sale of wrist watch (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1076 | 1% |
| Sale of art pieces / antiques / paintings (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1077 | 1% |
| Sale of collectibles — coins, stamps (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1078 | 1% |
| Sale of yacht, boat, canoe, helicopter (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1079 | 1% |
| Sale of sunglasses / bag / shoes / sportswear (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1080–1083 | 1% |
| Sale of home theatre system (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1084 | 1% |
| Sale of horse for racing / polo (exceeds ₹10 lakh) | 206C(1F) | 394(1) Sl. 6.D(b) | 1085 | 1% |
| LRS remittance — education / medical treatment Budget 2026 | 206C(1G) | 394(1) Sl. 7.D(a) | 1086 | 2% (was 5%) |
| LRS remittance — other purposes | 206C(1G) | 394(1) Sl. 7.D(b) | 1087 | 20% |
| Overseas tour programme — up to ₹10 lakh Budget 2026 | 206C(1G) | 394(1) Sl. 8.D(a) | 1088 | 2% (was 5%) |
| Overseas tour programme — above ₹10 lakh Budget 2026 | 206C(1G) | 394(1) Sl. 8.D(b) | 1089 | 2% (was 20%) |
| Use of parking lot / toll plaza / mine for business | 206C(1C) | 394(1) Sl. No. 9 | 1090–1092 | 2% |
Budget 2026 TCS Rate Changes — Summary
Several TCS rates have been revised under Budget 2026. These apply to the new Section 394 of the Income Tax Act, 2025 and are already incorporated in the table above.
⚡ Budget 2026 TCS Rate Changes at a Glance:
| Alcohol for consumption | 1% → 2% |
| Tendu leaves | 5% → 2% |
| Scrap | 1% → 2% |
| Coal / lignite / iron ore | 1% → 2% |
| LRS — education/medical | 5% → 2% |
| Overseas tour — up to ₹10L | 5% → 2% |
| Overseas tour — above ₹10L | 20% → 2% |
Key Notes for CAs and Finance Teams
- Rates unchanged: The 2025 Act is a re-codification exercise. All TDS rates, threshold limits, and exemptions remain identical to the 1961 Act unless specifically amended by Budget 2026.
- Four-digit section codes (1001–1092): These new codes will be required in revised TDS/TCS returns (Form 138, 140, 141). Update your accounting software accordingly once forms are finally notified.
- Inferred codes (1007, 1010, 1025, 1036): Four section codes appear to have been inadvertently omitted from Draft Forms 138/140/141. These are inferred based on the sequential pattern of the draft and should be confirmed once CBDT issues final notification.
- Individual/HUF personal payments: Sections marked with * relate to non-audit Individuals and HUFs making PAN-to-PAN payments. These follow a separate framework and are not covered under regular audit-case TDS.
- TCS under Section 394: All old 206C provisions (206C(1), 206C(1C), 206C(1F), 206C(1G)) consolidate into Section 394(1) of the 2025 Act, with Sl. No. references replacing the old sub-section lettering.
- Do not update systems yet: System and process changes should be finalized only after CBDT officially notifies the final rules and forms.
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Disclaimer: This article is based on the Income Tax Act, 2025 and draft rules/forms available as of the date of preparation. The new section codes and table references are as per draft rules and are subject to change upon formal CBDT notification. No change in TDS rates or threshold limits has been proposed as part of this structural reorganisation. System and process changes should be finalized only after official notification.