Fully updated for the New Income Tax Act 2025 — TDS calculation, payment, quarterly returns, certificates and reconciliation with the latest sections & payment codes.
The New Income Tax Act 2025 (effective FY 2026-27) renumbers all TDS sections under Section 393 with new Payment Codes. Here's the complete comparison for easy reference.
| Nature of Payment | Old Section | New Section (2025 Act) | Payment Code | TDS Rate | Threshold Limit (₹) |
|---|---|---|---|---|---|
| 👤 Salary (Accumulated Balance) | 192 | 392(1) | 1001/1002/1003 | Slab Rates | Basic Exemption Limit |
| 🏦 Premature EPF Withdrawal | 192A | 392(7) | 1004 | 10% | 50,000 |
| 📈 Interest on Securities | 193 | 393(1)[5(i)]> | 1019 | 10% | 10,000 |
| 🧑🦳 Interest – Senior Citizens | 194A | 393(1)[5(ii)] | 1020 | 10% | 1,00,000 |
| 🏛️ Interest – Others (Bank/PO) | 194A | 393(1)[5(i)] | 1021 | 10% | 50,000 |
| 💳 Interest – Other than Bank/PO | 194A | 393(1)[5(iii)] | 1022 | 10% | 10,000 |
| 👷 Contractors (Ind/HUF) | 194C | 393(1)[6(i)] | 1023 | 1% | 30,000 / 1,00,000 |
| 👷 Contractors (Others) | 194C | 393(1)[6(i)] | 1024 | 2% | 30,000 / 1,00,000 |
| 🛡️ Insurance Commission | 194D | 393(1)[1(i)] | 1005 | 2% | 20,000 |
| 🤝 Commission / Brokerage | 194H | 393(1)[1(iii)] | 1006 | 2% | 20,000 |
| ⚙️ Rent – Plant & Machinery | 194I(a) | 393(1)[2(i)] | 1008 | 2% | 50,000/month |
| 🏢 Rent – Land/Building | 194I(b) | 393(1)[2(ii)] | 1009 | 10% | 50,000/month |
| 🏠 Property Purchase | 194IA | 393(1)[3(i)] | 1010 | 1% | 50,00,000 |
| 🏠 Rent by Ind/HUF | 194IB | 393(1)[2(i)] | 1007 | 2% | 50,000/month |
| 💻 Technical Fees / Royalty | 194J(a) | 393(1)[6(iii)] | 1026 | 2% | 50,000 |
| 👔 Professional Fees | 194J(b) | 393(1)[6(iii)] | 1027 | 10% | 50,000 |
| 👔 Director Fees | 194J(b) | 393(1)[6(iii)] | 1028 | 10% | No Limit |
| 📈 Mutual Fund Income | 194K | 393(1)[4(i)] | 1013 | 10% | 10,000 |
| 🛡️ Property Compensation | 194LA | 393(1)[3(iii)] | 1012 | 10% | 5,00,000 |
| 🏧 Cash Withdrawal | 194N | 393(3)[5] | 1064/1065 | 2% | 1 Cr / 3 Cr |
| 👥 Partner Payment | 194T | 393(3)[7] | 1067 | 10% | 20,000 |
⚠️ Rates & thresholds as per New Income Tax Act 2025 — verified against official sources. Please confirm current rates at the time of deduction.
From monthly deduction to quarterly filing — we manage the entire TDS cycle under both the old and new Act provisions.
Correct deduction on salary, contractors, rent, professional fees and all applicable sections — mapped to new 2025 Act sections.
Timely challan payment with correct Payment Code (1001–1067 series) — no interest u/s 201(1A) ever.
Quarterly salary TDS return with employee-wise details, filed accurately on the TRACES/e-Filing portal.
Quarterly return for TDS on contractors, rent, professional fees and all non-salary payments.
TDS certificates generated and shared with employees/vendors within the official timeline.
Challan, deduction and 26AS matching so deductees get full credit — zero mismatch demands.
As per Income Tax Act & e-Filing portal — followed strictly for every client.
Send payment/salary details each month or quarter.
TDS calculated section-wise (old & new Act) with challans prepared.
Payment and quarterly returns filed before deadlines.
Form 16/16A issued & reconciliation shared with you. ✅
Correct sections, correct codes, on-time filing — zero notices.
