The New Income Tax Act 2025 has completely overhauled India’s TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) framework. Effective from Tax Year 2026-27, all old TDS sections (like 192, 194A, 194C, 194J etc.) are now renumbered and reorganised under new sections 392, 393, and 394. This is the most comprehensive restructuring of TDS/TCS provisions since the Income Tax Act 1961.
In this blog post, we present the complete and updated TDS TCS Master Table FY 2026-27 for Tax Year 2026-27, covering all payment categories, new section numbers, applicable rates, threshold limits, and the new form numbers under the new Income Tax Act 2025. Whether you are a CA, accountant, tax professional, or individual taxpayer — this master reference will help you stay fully compliant.
⚠️ IMPORTANT: This table is based on the New Income Tax Act 2025 (effective Tax Year 2026-27). The old section numbers (192, 194A, etc.) are replaced by new sections (392, 393, 394). Always refer to the official Act for compliance.
1. What is TDS (Tax Deducted at Source)?
TDS stands for Tax Deducted at Source. It is a mechanism under the Income Tax Act where the payer (deductor) deducts a specified percentage of tax from the payment made to the payee (deductee) and deposits it with the Government of India. The deductee can claim credit for TDS deducted while filing their Income Tax Return (ITR).
TDS applies to a wide variety of payments including salaries, interest, rent, professional fees, contract payments, commission, dividends, lottery winnings, and more. Under the New Income Tax Act 2025, all TDS provisions are now consolidated under Section 392 and 393.
What is TCS (Tax Collected at Source)?
TCS stands for Tax Collected at Source. Unlike TDS (deducted by payer), TCS is collected by the seller from the buyer at the time of sale of specified goods or services. Common examples include sale of scrap, timber, minerals, motor vehicles above ₹10 lakh, and remittances under Liberalised Remittance Scheme (LRS). Under the new Act, TCS provisions are covered under Section 394.
2. Key Changes in TDS/TCS Under New Income Tax Act 2025
The New Income Tax Act 2025 has introduced sweeping changes to how TDS and TCS are structured. Here are the most critical changes every taxpayer and professional must know:
- Complete renumbering of all TDS/TCS sections – Old sections 192 to 206C are now replaced by Sections 392, 393, and 394.
- New unique transaction codes (1001 to 1092) assigned to each type of payment for easier identification and e-filing.
- New TDS return forms introduced – Old Forms 24Q, 26Q, 27Q, 26EQ, 27EQ are replaced by new Forms 138, 140, 141, 143, 144.
- Section 393(1) covers domestic TDS on payments to residents; Section 393(2) covers TDS on payments to NRIs.
- Section 393(3) covers TDS on payments to any person (lottery, online gaming, horse races, cash withdrawals, NSS, partner payments).
- The threshold for senior citizen bank interest has been raised to ₹1,00,000 (previously ₹50,000).
- TCS on overseas tour packages now unified at 2% regardless of amount (Finance Act 2026 amendment).
- New TCS categories added for luxury goods like wristwatches, sunglasses, handbags, home theatre above ₹10 lakh.
- Section 194T (TDS on Payment to Partners) is now codified at 10% above ₹20,000 threshold.
- VDA/Crypto TDS (originally Section 194S) continues at 1% under new Section 393(1), with separate treatment for individuals/HUF and others.
3. New Section Numbers: Old vs New Mapping
Here is a quick reference table mapping old TDS/TCS sections to the new sections under the Income Tax Act 2025:
| Old Section | New Section | Category |
| 192 (Salary) | 392 | TDS on Salary |
| 192A (PF Withdrawal) | 392 | TDS on PF Withdrawal |
| 193 (Interest on Securities) | 393(1) | Interest Income |
| 194A (Interest from Banks) | 393(1) | Interest Income |
| 194C (Contracts) | 393(1) | Contract Payments |
| 194D (Insurance Commission) | 393(1) | Commission |
| 194H (Other Commission) | 393(1) | Commission |
| 194-I (Rent) | 393(1) | Rent |
| 194-IA (Immovable Property) | 393(1) | Immovable Property |
| 194J (Professional/Technical) | 393(1) | Professional & Technical |
| 194K (Mutual Fund) | 393(1) | Specified Mutual Fund |
| 194M (Contract/Professional – Large Payments) | 393(1) | Contract/Professional |
| 194N (Cash Withdrawal) | 393(3) | Payment to any person |
| 194O (TDS by ECO) | 393(1) | Others |
| 194P (Specified Senior Citizen) | 393(1) | Others |
| 194Q (Purchase of Goods) | 393(1) | Others |
| 194R (Perquisite/Benefit) | 393(1) | Others |
| 194S (VDA/Crypto) | 393(1) | Others |
| 194T (Payment to Partner) | 393(3) | Payment to any person |
| 194B (Lottery) | 393(3) | Payment to any person |
| 194BA (Online Gaming) | 393(3) | Payment to any person |
| 206C (TCS) | 394 | TCS |
4. TDS Master Table – Salary & PF Withdrawal (Section 392)
Salary TDS and PF withdrawal TDS now fall under the umbrella of Section 392 of the new Income Tax Act 2025. The applicable rates remain based on average slab rates for salary, and 10% for PF withdrawal above the threshold.
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 392 (Old: 192) | 1001 | TDS on Salary | Govt Employee (non-union) | Average Rate (Slab) | As per slab | Form 138 (Old: 24Q) |
| 392 (Old: 192) | 1002 | TDS on Salary | Private Employee | Average Rate (Slab) | As per slab | Form 138 |
| 392 (Old: 192) | 1003 | TDS on Salary | Indian Govt Employee | Average Rate (Slab) | As per slab | Form 138 |
| 392 (Old: 192A) | 1004 | TDS on PF Withdrawal | PF Withdrawal | 10% | ₹50,000 | Form 140 (Old: 26Q) |
Key point: For salary TDS, the employer must consider the employee’s regime choice (New or Old Tax Regime) while computing average TDS rate. No change in this process under the new Act.
5. TDS Master Table – Commission & Rent (Section 393(1))
TDS on commission and rent continues with largely the same rates but is now governed by Section 393(1) with new transaction codes.
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194D] | 1005 | Commission | Insurance Commission | 2% | ₹20,000 | Form 140 |
| 393(1) [194H] | 1006 | Commission | Other than Insurance | 2% | ₹20,000 | Form 140 |
| 393(1) [194-IB] | 1007 | Rent – Individual/HUF | Rent by Individual/HUF | 2% | ₹50,000 pm | Form 141 |
| 393(1) [194-IB] | 1008 | Rent – Specified Person | Plant & Machinery | 2% | ₹50,000 pm | Form 140 |
| 393(1) [194-I] | 1009 | Rent – Specified Person | Building | 10% | ₹50,000 pm | Form 140 |
TDS on Rent – Individual/HUF (Form 141): When an individual or HUF pays rent exceeding ₹50,000 per month, TDS @ 2% is deducted. This is deposited using Form 141 (previously Form 26QC). No TAN required for individuals/HUF paying rent.
6. TDS Master Table – Immovable Property (Section 393(1))
TDS on purchase and transfer of immovable property is an important compliance requirement for homebuyers. The rates and thresholds under the new Act are as follows:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194-I] | 1010 | Immovable Property | Transfer of Immovable Property (Non-agricultural) | 1% | ₹50 Lakh | Form 141 (Old: 26QB) |
| 393(1) [194-IA] | 1011 | Immovable Property | Joint Development Agreement | 10% | No threshold | Form 140 |
| 393(1) [194-IC] | 1012 | Immovable Property | Compensation / Enhanced Compensation | 10% | ₹5 Lakh | Form 140 |
Homebuyers Note: If you are buying a property worth ₹50 lakh or more, you must deduct TDS @ 1% from the sale consideration and deposit it using Form 141. The seller’s PAN is mandatory.
7. TDS Master Table – Interest Income (Section 393(1))
TDS on interest income has been updated with higher thresholds for senior citizens under the New Income Tax Act 2025. Here is the complete picture:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [193] | 1019 | Interest Income | Interest on Securities | 10% | ₹10,000 | Form 140 |
| 393(1) [194A] | 1020 | Interest Income | Interest – Bank/PO/Co-op (Senior Citizen) | 10% | ₹1,00,000 | Form 140 |
| 393(1) [194A] | 1021 | Interest Income | Interest – Bank/PO/Co-op (Non-Senior Citizen) | 10% | ₹50,000 | Form 140 |
| 393(1) [194A] | 1022 | Interest Income | Interest – Other than Banks | 10% | ₹10,000 | Form 140 |
Senior Citizen Benefit: The threshold for TDS on bank/post office/co-operative society interest for senior citizens has been raised to ₹1,00,000 per year — a significant relief. For others, it remains ₹50,000 (applicable to banks, post offices & co-operative societies).
8. TDS Master Table – Contract, Professional & Technical Services (Section 393(1))
This is one of the most widely applicable TDS categories. It covers contracts, technical services, professional fees, royalties, and director remuneration. Careful attention to the 1% vs 2% vs 10% rate distinction is essential:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194C] | 1023 | Contract | Contract – Individual/HUF | 1% | ₹30k (Single) / ₹1L (FY) | Form 140 |
| 393(1) [194C] | 1024 | Contract | Contract – Other than Individual/HUF | 2% | ₹30k (Single) / ₹1L (FY) | Form 140 |
| 393(1) [194M] | 1025 | Contract/Professional | Any Contract/Professional/Commission (Large Payments) | 2% | ₹50,00,000 | Form 140 |
| 393(1) [194J] | 1026 | Technical Service | Technical Service/Royalty/Film Distribution/Call Centre | 2% | ₹50,000 | Form 140 |
| 393(1) [194J] | 1027 | Professional Service | Professional Service (Other) | 10% | ₹50,000 | Form 140 |
| 393(1) [194J] | 1028 | Director Remuneration | Director Remuneration (Non-Salary) | 10% | No threshold | Form 140 |
The critical distinction between 2% and 10% under the new equivalent of Section 194J:
- 2% rate applies to: Technical services, royalty for software, film distribution/exhibition, call centre services.
- 10% rate applies to: Professional services (CA, doctor, lawyer, architect, engineer, etc.), director remuneration (non-salary).
- Section 194M equivalent (Code 1025) applies only to individuals/HUF who are not liable to tax audit but make contract/professional/commission payments exceeding ₹50,00,000 in a year.
9. TDS Master Table – Capital Market (Mutual Funds, REIT, Business Trust)
Capital market investments are subject to TDS under Section 393(1). Here are all the applicable provisions:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194K] | 1013 | Specified Mutual Fund | Specified Mutual Fund Income | 10% | ₹10,000 | Form 140 |
| 393(1) [194LBA] | 1014 | Business Trust | Interest from Business Trust | 10% | No threshold | Form 140 |
| 393(1) [194LBA] | 1015 | Business Trust | Dividend from Business Trust | 10% | No threshold | Form 140 |
| 393(1) [194LBA] | 1016 | Business Trust | Rent from Business Trust | 10% | No threshold | Form 140 |
| 393(1) [194LBA] | 1017 | Capital Market | REIT Income | 10% | No threshold | Form 140 |
| 393(1) [194LBC] | 1018 | Capital Market | Securitisation Trust Income | 10% | No threshold | Form 140 |
10. TDS Master Table – Dividend (Section 393(1))
Post the abolition of Dividend Distribution Tax (DDT), TDS on dividends is a key compliance requirement for companies and investors alike:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194] | 1029 | Dividend | Dividend from Domestic Company | 10% | No threshold (each payment) | Form 140 |
Note: Companies must deduct TDS @ 10% on any dividend paid to resident shareholders. No minimum threshold applies — even ₹1 of dividend is technically subject to TDS (though in practice companies aggregate annual payments).
11. TDS Master Table – Other Payments (Section 393(1) & 393(3))
Several important TDS provisions fall under the ‘Others’ category. These include payments for purchase of goods, LIC maturity, perquisites, VDA (Virtual Digital Assets / Cryptocurrency), and more:
| New Section | Code | Category | Nature of Payment | Rate | Threshold | New Form |
| 393(1) [194DA] | 1030 | LIC Payment | LIC Maturity Payment | 2% | ₹1,00,000 | Form 140 |
| 393(1) [194Q] | 1031 | Purchase of Goods | Purchase of Goods by Buyer | 0.10% | ₹50,00,000 (for Individual, otherwise NIL) | Form 140 |
| 393(1) [194P] | 1032 | Senior Citizen | Specified Senior Citizen (Bank TDS) | Slab Rate | As per slab | Form 138 |
| 393(1) [194R] | 1033 | Perquisite (Cash) | Perquisite/Benefit in Cash | 10% | ₹20,000 | Form 140 |
| 393(1) [194R] | 1034 | Perquisite (Kind) | Perquisite/Benefit in Kind | 10% | ₹20,000 | Form 140 |
| 393(1) [194O] | 1035 | E-Commerce (ECO) | TDS by E-Commerce Operator | 0.10% | ₹5,00,000 (Individual/HUF) | Form 140 |
| 393(1) [194S] | 1036 | VDA/Crypto | VDA – Individual/HUF (Cash or Kind) | 1% | No threshold | Form 141 |
| 393(1) [194S] | 1037 | VDA/Crypto | VDA – Other than Individual (Cash) | 1% | No threshold | Form 140 |
| 393(1) [194S] | 1038 | VDA/Crypto | VDA – Other than Individual (Kind) | 1% | No threshold | Form 140 |
| 393(3) [194B] | 1058 | Lottery/Gambling (Cash) | Lottery, Puzzle, Card Game, Gambling | 30% | ₹10,000 | Form 140 |
| 393(3) [194BA] | 1060 | Online Gaming (Cash) | Online Gaming – Net Winnings | 30% | No threshold | Form 140 |
| 393(3) [194BB] | 1062 | Horse Race | Horse Race Winnings | 30% | ₹10,000 | Form 140 |
| 393(3) [194G] | 1063 | Lottery Commission | Commission on Lottery Ticket Sale | 2% | ₹20,000 | Form 140 |
| 393(3) [194N] | 1064 | Cash Withdrawal | TDS – Co-operative Society | 2% | ₹3 Crore | Form 140/144 |
| 393(3) [194N] | 1065 | Cash Withdrawal | TDS – Other Banks | 2% | ₹1 Crore | Form 140/144 |
| 393(3) [194EE] | 1066 | NSS Withdrawal | NSS Withdrawal | 10% | ₹2,500 | Form 140/144 |
| 393(3) [194T] | 1067 | Partner Payment | Payment to Partner (Salary/Interest/Commission) | 10% | ₹20,000 | Form 140/144 |
12. TDS Master Table – NRI Payments (Section 393(2))
Payments to Non-Resident Indians (NRIs) attract TDS under Section 393(2) and must be reported using Form 144 (old Form 27Q). Key NRI TDS provisions are:
| New Section | Code | Category | Nature of Payment | Rate | Threshold |
| 393(2) [194E] | 1039 | NRI – Sports | Payment to Sportsperson/Sports Assoc. (NRI) | 20% | No threshold |
| 393(2) [194LC] | 1040 | NRI – Interest | Interest on Foreign Currency Borrowing | 5% | No threshold |
| 393(2) [194LC] | 1041 | NRI – Interest | Interest on Rupee Denominated Bond | 5% | No threshold |
| 393(2) [194LB] | 1042 | NRI – Interest | Interest – IFSC Bond (listed before 1 Jul 2023) | 4% | No threshold |
| 393(2) [194LBA] | 1043 | NRI – Interest | Interest – IFSC Bond (listed on/after 1 Jul 2023) | 9% | No threshold |
| 393(2) [194LBA] | 1044 | NRI – Interest | Interest by Infrastructure Debt Fund (NRI) | 5% | No threshold |
| 393(2) [196D] | 1047 | NRI – Securities | Distributed Income (Schedule V Table Sl. No. 4) | 12.50% | No threshold |
| 393(2) [195] | 1049 | NRI – Securitisation | Securitisation Trust Income (Sec 221) | 12.50% | No threshold |
| 393(2) [195] | 1050 | NRI – MF Units | Units of MF / Specified Company | 20% | No threshold |
| 393(2) [196B] | 1054 | NRI – LTCG | Long-term Capital Gains – Bonds/GDR (Sec 209) | 12.50% | No threshold |
| 393(2) [196C] | 1055 | NRI – Securities | Securities (Sec 210(1) Table Sl. No. 1) | 20% | No threshold |
| 393(2) [195] | 1057 | NRI – Other Income | Interest or Other Sum (not being Salary) | Rate in force | No threshold |
All NRI TDS payments must be filed using Form 144 (replacing old Form 27Q). NRI payees can apply for a lower TDS certificate (under new Act provisions) if their actual tax liability is lower.
13. TCS Master Table – Section 394 (Tax Collected at Source)
TCS is collected by the seller/collector at the time of sale. Under the New Income Tax Act 2025, all TCS provisions are now covered under Section 394. TCS returns must be filed using Form 143 (replacing old Form 27EQ).
13A. TCS on Sale of Goods & Forest Products
| New Section | Code | Category | Nature of Collection | Rate | Threshold | New Form |
| 394 [206C(1)] | 1068 | TCS – Goods | Sale of Alcoholic Liquor for Human Consumption | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1069 | TCS – Goods | Sale of Tendu Leaves | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1070 | TCS – Forest | Timber – Forest Lease | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1071 | TCS – Forest | Timber – Other than Forest Lease | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1072 | TCS – Forest | Other Forest Products | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1073 | TCS – Scrap | Sale of Scrap | 2% | No threshold | Form 143 |
| 394 [206C(1)] | 1074 | TCS – Minerals | Sale of Minerals (Coal, Lignite, Iron Ore) | 2% | No threshold | Form 143 |
13B. TCS on Luxury Goods (Section 394 – 206C(1F))
A major new addition under the New Income Tax Act 2025 is TCS on high-value luxury goods. If the sale value exceeds ₹10 lakh, TCS @ 1% is applicable:
| New Section | Code | Category | Nature of Collection | Rate | Threshold | New Form |
| 394 [206C(1F)] | 1075 | Luxury Goods | Motor Vehicle | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1076 | Luxury Goods | Wristwatch | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1077 | Luxury Goods | Art Piece | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1078 | Luxury Goods | Coin/Stamp | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1079 | Luxury Goods | Yacht/Boat/Helicopter | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1080 | Luxury Goods | Sunglasses | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1081 | Luxury Goods | Handbag/Purse | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1082 | Luxury Goods | Shoes | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1083 | Luxury Goods | Sportswear & Sports Equipment | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1084 | Luxury Goods | Home Theatre | 1% | > ₹10 Lakh | Form 143 |
| 394 [206C(1F)] | 1085 | Luxury Goods | Horse | 1% | > ₹10 Lakh | Form 143 |
13C. TCS on LRS Remittances & Overseas Tour Packages
| New Section | Code | Category | Nature of Collection | Rate | Threshold | New Form |
| 394 [206C(1G)] | 1086 | TCS – LRS | Remittance under LRS – Education/Medical | 2% | > ₹10 Lakh | Form 143 |
| 394 [206C(1G)] | 1087 | TCS – LRS | Remittance under LRS – Other Purposes | 20% | > ₹10 Lakh | Form 143 |
| 394 [206C(1G)] | 1088* | TCS – Tour | Overseas Tour Package | 2% | No threshold* | Form 143 |
| 394 [206C(1C)] | 1090 | TCS – Parking | Parking Lot | 2% | No threshold | Form 143 |
| 394 [206C(1C)] | 1091 | TCS – Toll | Toll Plaza | 2% | No threshold | Form 143 |
| 394 [206C(1C)] | 1092 | TCS – Mine | Mine or Quarry (except oil mining) | 2% | No threshold | Form 143 |
*Overseas tour package (Code 1088): Finance Act 2026 has unified the rate to 2%. However, as both codes 1088 and 1089 exist in the system, pending form update, either code may be used for the 2% rate.
14. New TDS/TCS Forms Under Income Tax Act 2025
The New Income Tax Act 2025 has introduced completely new form numbers for TDS/TCS return filing. Here is the complete mapping:
| New Form | Old Form | Purpose |
| Form 138 | Form 24Q | Quarterly TDS return for Salary (Section 392) |
| Form 140 | Form 26Q | Quarterly TDS return for Resident (Non-Salary) Payments |
| Form 141 | Form 26QB / 26QC | TDS on Immovable Property purchase / Rent by Individual/HUF |
| Form 143 | Form 27EQ | Quarterly TCS return |
| Form 144 | Form 27Q | Quarterly TDS return for NRI Payments |
Important: The transition to new forms is phased. Until the new forms are officially notified and activated on the portal, the old forms may continue to be used. Always check the Income Tax e-filing portal for the latest status.
15. TDS Threshold Limits at a Glance
Below is a quick reference for commonly applicable TDS threshold limits for Tax Year 2026-27:
| Nature of Payment | TDS Threshold | Rate |
| Salary (Section 392) | As per slab (basic exemption limit) | Avg Slab Rate |
| PF Withdrawal | ₹50,000 | 10% |
| Insurance Commission | ₹20,000 | 2% |
| Other Commission | ₹20,000 | 2% |
| Rent – Individual/HUF | ₹50,000 per month | 2% |
| Rent – Building (Specified Person) | ₹50,000 per month | 10% |
| Immovable Property Purchase | ₹50 Lakh | 1% |
| Compensation on Property | ₹5 Lakh | 10% |
| Interest on Securities | ₹10,000 | 10% |
| Bank Interest – Senior Citizen | ₹1,00,000 | 10% |
| Bank Interest – Others | ₹50,000 | 10% |
| Interest – Other Sources | ₹10,000 | 10% |
| Contract – Individual/HUF | ₹30,000 (single) / ₹1,00,000 (FY) | 1% |
| Contract – Others | ₹30,000 (single) / ₹1,00,000 (FY) | 2% |
| Professional Services (194J equiv.) | ₹50,000 | 10% |
| Technical Services (194J equiv.) | ₹50,000 | 2% |
| Dividend | No threshold (each payment) | 10% |
| LIC Maturity | ₹1,00,000 | 2% |
| Purchase of Goods (194Q equiv.) | ₹50,00,000 for Individual | 0.10% |
| Perquisite/Benefit | ₹20,000 | 10% |
| VDA/Crypto | No threshold | 1% |
| E-Commerce (ECO) | ₹5,00,000 (Individual/HUF) | 0.10% |
| Online Gaming (Net Winnings) | No threshold | 30% |
| Lottery/Gambling | ₹10,000 | 30% |
| Cash Withdrawal (Banks) | ₹1 Crore | 2% |
| Cash Withdrawal (Co-op Society) | ₹3 Crore | 2% |
| Payment to Partner | ₹20,000 | 10% |
| NSS Withdrawal | ₹2,500 | 10% |
16. How to Use This TDS/TCS Master Table for Compliance
Whether you are a deductor (employer, business, individual paying rent) or a CA filing TDS returns, here is a step-by-step compliance approach:
- Step 1 – Identify the nature of payment: Salary, rent, professional fee, contract, interest, etc.
- Step 2 – Find the applicable new section under the Income Tax Act 2025 (Section 392, 393, or 394).
- Step 3 – Check the transaction code (1001–1092) assigned to that type of payment.
- Step 4 – Verify if the payment crosses the threshold limit for TDS applicability.
- Step 5 – Apply the correct TDS/TCS rate (1%, 2%, 10%, 20%, 30%, etc.).
- Step 6 – Deduct TDS at the time of payment or credit, whichever is earlier.
- Step 7 – Deposit TDS challan by the 7th of the following month (31st March for March deductions, with extended deadline).
- Step 8 – File TDS return using the applicable new form (138, 140, 141, 143, or 144) within the due date.
- Step 9 – Issue TDS certificate (Form 16 for salary, Form 16A for others) to the deductee.
- Step 10 – Reconcile TDS with Form 26AS / AIS of the deductee to avoid mismatches.
Higher TDS for Non-PAN / Non-Aadhaar Deductees: If the deductee fails to furnish PAN or Aadhaar, TDS must be deducted at double the applicable rate or 20%, whichever is higher (subject to Act provisions).
17. Frequently Asked Questions (FAQ) TDS TCS Master Table FY 2026-27
What is the difference between old and new TDS sections under Income Tax Act 2025?
Under the New Income Tax Act 2025, the old TDS sections (like 192, 194A, 194C, 194J, 194-I etc.) have been replaced by new sections 392, 393, and 394. Section 392 covers salary TDS, Section 393 covers all other TDS (both residents and NRIs), and Section 394 covers TCS. The actual rates and thresholds remain largely the same, but the section numbers and form numbers have completely changed.
What are the new TDS forms under Income Tax Act 2025?
Old Form 24Q → New Form 138 (Salary TDS), Old Form 26Q → New Form 140 (Non-salary domestic TDS), Old Form 26QB/26QC → New Form 141 (Immovable property/Rent), Old Form 27EQ → New Form 143 (TCS), Old Form 27Q → New Form 144 (NRI TDS).
What is the TDS rate on professional services for FY 2026-27?
TDS on professional services (CA, doctor, lawyer, architect, etc.) is 10% above the threshold of ₹50,000 under the new Section 393(1) equivalent of old Section 194J. For technical services, royalties, and call centres, the rate is 2%.
Is TDS applicable on cryptocurrency or VDA transactions in 2026-27?
Yes. TDS on Virtual Digital Assets (VDA) including cryptocurrency continues at 1% under new Section 393(1) (code 1036/1037/1038), equivalent to old Section 194S. For individuals/HUF, it is filed via Form 141; for others, Form 140.
What is the TDS rate on online gaming winnings?
TDS on net winnings from online gaming is 30% with no threshold limit, under new Section 393(3) (code 1060/1061), equivalent to old Section 194BA. Both cash and kind winnings are covered.
What is TCS on scrap sale?
TCS on sale of scrap is 2% under new Section 394 (code 1073), equivalent to old Section 206C(1). No threshold applies — TCS is applicable on every rupee of scrap sale.
What is the TDS rate on rent under the new Income Tax Act 2025?
TDS on rent depends on who is paying. Individuals/HUF paying rent above ₹50,000 per month must deduct 2% TDS using Form 141 (no TAN required). For specified persons paying rent for buildings above ₹50,000 per month, TDS is 10% via Form 140 with TAN. For plant & machinery rent above ₹50,000 per month, TDS is 2%.
What is the TDS on purchase of property in 2026-27?
TDS on purchase of immovable property (other than agricultural land) is 1% when the consideration is ₹50 lakh or more. This is under new Section 393(1) (code 1010), and filed using Form 141 (replacing old Form 26QB). The buyer must deduct TDS and cannot use the seller’s TAN.
What is Section 194T equivalent in the new Act? TDS on Payment to Partners?
Section 194T (TDS on payment to partners — salary, interest, commission, bonus) is now covered under Section 393(3) (code 1067) with a TDS rate of 10% above ₹20,000 threshold. This applies to all partnership firms and LLPs paying remuneration to partners.
What is TCS on LRS remittance for overseas tour package?
As per Finance Act 2026, TCS on overseas tour packages is now unified at 2% (codes 1088/1089). Earlier there were different rates based on amount. For other LRS remittances (other than education/medical), TCS is 20% above ₹10 lakh.
18. Conclusion
The TDS & TCS Master Table for Tax Year 2026-27 under the New Income Tax Act 2025 represents a complete structural overhaul of how India manages tax deduction and collection at source. While the core rates remain largely unchanged, the renumbering of sections (392, 393, 394), introduction of transaction codes (1001–1092), and new form numbers (138, 140, 141, 143, 144) require every taxpayer, employer, accountant, and CA to update their knowledge and compliance systems.
Key takeaways from this master table:
- Section 392 = Salary TDS (old Section 192)
- Section 393(1) = Domestic TDS on payments to residents (old 193, 194A–194S series)
- Section 393(2) = TDS on NRI payments (old 194E, 194LC, 195, 196A–D series)
- Section 393(3) = TDS on lottery, online gaming, horse races, cash withdrawal, partner payments
- Section 394 = All TCS provisions (old 206C series)
- New forms 138, 140, 141, 143, 144 replace old 24Q, 26Q, 26QB/QC, 27EQ, 27Q respectively
Bookmark this page and download the PDF version for quick reference during return filing. For more GST, income tax, and personal finance guides tailored for Indian CA professionals, accountants, and individual taxpayers, visit Finance and Tax Guide.
📌 Disclaimer: This TDS & TCS Master Table is compiled from the New Income Tax Act 2025 and Finance Act 2026 for informational purposes. Always refer to the official Act and CBDT notifications for compliance. The author and Finance and Tax Guide shall not be liable for any errors or omissions. Consult your CA or tax advisor for advice specific to your situation.
