Introduction
The Income Tax Act 2025 consolidates all TDS provisions under Section 392 (Salary and PF) and Section 393 (all other payments), replacing the scattered Sections 192 to 194S of the old Act. This simplifies compliance and makes TDS law more structured and reader-friendly. This chart maps old sections to new sections with updated rates, thresholds, and key notes — effective from 1st April 2026 (FY 2026-27 / AY 2027-28).
TDS Rate Comparison — Old Sections vs New Sections
| Nature of Payment | Old Sec (1961) | New Sec (2025) | TDS Rate | Threshold Limit | Key Notes |
|---|---|---|---|---|---|
| Salary Income | 192 | Sec 392 | Slab Rates | Basic exemption limit | Consolidated under Sec 392 along with PF provisions. No rate change. |
| Accumulated PF Balance — Premature Withdrawal | 192A | Sec 392 | 10% | Rs. 50,000 | Now under Sec 392 with salary. No rate or threshold change. |
| Interest on Securities | 193 | Sec 393 Tbl-1(5)(i) | 10% | Rs. 10,000 | Exempt: Govt securities, LIC, GIC. No change in rate. |
| Dividend from Company | 194 | Sec 393 Tbl-1(7) | 10% | Rs. 10,000 | Exempt: Dividend to REIT/InvIT business trust. No rate change. |
| Interest — Banks / Post Office (other than securities) | 194A | Sec 393 Tbl-1(5)(ii) | 10% | Sr. Citizen: Rs. 1,00,000; Bank/PO Others: Rs. 50,000; Others: Rs. 10,000 | Threshold for senior citizens doubled to Rs. 1 lakh. Major relief. |
| Lottery / Prize Winnings | 194B | Sec 393 Tbl-3(1) | 30% | Rs. 10,000 | No change in rate. Tax applied on net winnings. |
| Online Game Winnings | 194BA | Sec 393 Tbl-3(2) | 30% | No limit | No threshold. Tax on net winnings across FY. No change. |
| Horse Race Winnings | 194BB | Sec 393 Tbl-3(3) | 30% | Rs. 10,000 | No change in rate or threshold. |
| Payment to Contractors / Sub-contractors | 194C | Sec 393 Tbl-1(6)(i) | 1% (Ind/HUF) 2% (Others) | Single: Rs. 30,000 Aggregate: Rs. 1,00,000 | No change in rates or thresholds. |
| Insurance Commission | 194D | Sec 393 Tbl-1(1)(i) | 2% | Rs. 20,000 | Threshold raised from Rs. 15,000 to Rs. 20,000. Rate unchanged. |
| Life Insurance Policy Maturity Payment | 194DA | Sec 393 Tbl-1(8)(i) | 2% | Rs. 1,00,000 | Rate reduced from 5% to 2%. Applied on income component only. Major change. |
| Non-Resident Sportsmen / Entertainers | 194E | Sec 393 | 20% | No threshold | No change. Surcharge and cess applicable additionally. |
| Commission on Lottery Tickets | 194G | Sec 393 Tbl-3(4) | 2% | Rs. 20,000 | Threshold raised from Rs. 15,000 to Rs. 20,000. |
| Commission / Brokerage | 194H | Sec 393 Tbl-1(1)(ii) | 2% | Rs. 20,000 | Threshold raised from Rs. 15,000 to Rs. 20,000. BSNL/MTNL PCO franchise excluded. |
| Rent — Plant and Machinery | 194I(a) | Sec 393 Tbl-1(2)(ii) | 2% | Rs. 50,000 / month | Threshold changed from annual Rs. 2.4L to monthly Rs. 50,000 basis. |
| Rent — Land / Building / Furniture | 194I(b) | Sec 393 Tbl-1(2)(ii) | 10% | Rs. 50,000 / month | Monthly threshold replaces earlier annual limit of Rs. 2.4L. |
| Transfer of Immovable Property — Buyer TDS | 194IA | Sec 393 Tbl-1(3)(i) | 1% | Rs. 50 lakh | No change. Higher of consideration or stamp duty value applies. |
| Rent — Individual / HUF (not liable to tax audit) | 194IB | Sec 393 Tbl-1(2)(i) | 2% | Rs. 50,000 / month | Rate reduced from 5% to 2%. Significant relief for individual landlords and tenants. |
| Professional / Technical / Director Fees | 194J | Sec 393 Tbl-1(6)(iii) | 10% (Prof) 2% (Tech) | Rs. 50,000 / year (No limit for Director) | No change in rates. No threshold applicable for director remuneration. |
| Dividend from Specified Mutual Funds | 194K | Sec 393 Tbl-1(4)(i) | 10% | Rs. 10,000 | Applies to dividend income only from specified mutual funds. No change. |
| Compensation — Compulsory Acquisition of Property | 194LA | Sec 393 Tbl-1(3)(iii) | 10% | Rs. 5,00,000 | Threshold raised from Rs. 2.5L to Rs. 5L. Relief for landowners. |
| Income from Business Trust — REIT / InvIT | 194LBA | Sec 393 Tbl-1(4)(ii) | 10% | Nil | No change in rate or structure. |
| Income from Investment Fund | 194LBB | Sec 393 Tbl-1(4)(iii) | 10% | Nil | No rate change. |
| Income from Securitisation Trust | 194LBC | Sec 393 Tbl-1(4)(iv) | 10% | Nil | Rate made uniform at 10% for all resident investors. Earlier it was 25%/30%. Major change. |
| Contract / Commission / Prof. Fees — Ind/HUF | 194M | Sec 393 Tbl-1(6)(ii) | 2% | Rs. 50 lakh / FY | Covers payments where 194C / 194H / 194J not applicable. No change. |
| Cash Withdrawals from Bank / Post Office | 194N | Sec 393 Tbl-3(5) | 2% | Rs. 3 Cr (Co-op) Rs. 1 Cr (Others) | Higher TDS for non-ITR filers under Sec 206AB removed. Compliance simplified. |
| E-Commerce — Gross Sales to Participants | 194O | Sec 393 Tbl-1(8)(v) | 0.1% | Rs. 5 lakh (Ind/HUF) | Rate reduced from 1% to 0.1%. Major relief for sellers on online platforms. |
| Senior Citizens Age 75+ (Resident) — Bank TDS | 194P | Sec 393 Tbl-1(8)(iii) | Slab Rates | As per slab | No change. Bank deducts TDS on behalf of eligible senior citizens aged 75 and above. |
| Purchase of Goods — Buyer Side TDS | 194Q | Sec 393 Tbl-1(8)(ii) | 0.1% | Rs. 50 lakh | Buyer turnover more than Rs. 10 Cr. TCS under Sec 206C(1H) on seller removed to avoid overlap. |
| Benefits / Perquisites from Business or Profession | 194R | Sec 393 Tbl-1(8)(iv) | 10% | Rs. 20,000 / FY | No change. Covers gifts, free samples, and incentives from business or profession. |
| Virtual Digital Assets — Crypto, NFT etc. | 194S | Sec 393 Tbl-1(8)(vi) | 1% | Rs. 50,000 (specified) Rs. 10,000 (others) | No change. Buyer-side deduction on virtual digital asset transactions. |
| Partner Remuneration from Firm / LLP [NEW] | 194T (New) | Sec 393 Tbl-3(7) | 10% | Rs. 20,000 / FY | Newly introduced. Covers salary, bonus, commission, and interest paid by firm to partners. |
Note: Shaded rows in the original document indicate a change in rate, threshold, or structure under the new Act. All TDS rates exclude applicable Surcharge and Health and Education Cess at 4%.
9 Key Changes Effective 1st April 2026 — Summary
1. Structural Consolidation
All old Sections 192 to 194S are now unified under Section 392 (Salary and PF) and Section 393 (all other payments) with structured internal tables. This simplifies compliance significantly.
2. Rate Reduction — Sec 194IB (Rent by Individuals)
TDS on rent paid by Individual or HUF reduced from 5% to 2%. Significant relief for small landlords and individual tenants.
3. Rate Reduction — Sec 194DA (Life Insurance Maturity)
TDS on life insurance maturity proceeds reduced from 5% to 2%. Applied on the income component only and not the full amount.
4. Rate Reduction — Sec 194O (E-Commerce)
TDS on e-commerce participant sales reduced sharply from 1% to 0.1%. Major relief for sellers on platforms such as Amazon and Flipkart.
5. Uniform Rate — Sec 194LBC (Securitisation Trust)
TDS on income from securitisation trust made uniform at 10% for all resident investors. Earlier rates were 25% or 30% depending on investor type.
6. New Section — Sec 194T (Partners)
TDS at 10% newly introduced on remuneration paid by a firm or LLP to its partners exceeding ₹20,000 per financial year. Covers salary, bonus, commission, and interest.
7. Enhanced Thresholds
Senior citizen bank interest threshold increased from ₹50,000 to ₹1,00,000. Compulsory acquisition threshold raised from Rs. 2.5 lakh to Rs. 5 lakh. Insurance and brokerage commission threshold raised from Rs. 15,000 to Rs. 20,000. Rent now assessed on monthly basis.
8. Sections 206AB and 206CCA Removed
Higher TDS and TCS rates applicable to non-ITR filers have been removed. This reduces the compliance burden on deductors and simplifies verification requirements.
9. Section 206C(1H) Removed
TCS on sale of goods by seller removed to eliminate double deduction overlap with Section 194Q which already covers TDS by the buyer on purchase of goods.
Disclaimer
This document is published by Kunal R Mehta and Co., Chartered Accountants (KRM India) for general informational purposes only. TDS provisions are subject to change through amendments, CBDT notifications, and circulars. Readers are advised to verify all applicable provisions with the Income Tax Act 2025, relevant Rules, and official government sources before making any tax or financial decisions. KRM India shall not be liable for any reliance placed on this publication without seeking professional advice.