TL;DR: From 1 April 2026, old sections 193 to 196D collapse into section 393 of the Income-tax Act 2025, and salary TDS (old 192) moves to section 392. Rates and thresholds did not change; the Finance Act 2026 adjusted a few exemptions and the declaration procedure. What changed is the label: for any payment or credit on or after 1 April 2026 you quote the s.393 table row, for example 393(1) Sl. No. 6(i) for contractors, and not 194C. Returns move to Forms 138, 140, 144 and 143, certificates to Forms 130 and 131, deposit stays at the 7th of the next month. This post carries the old-to-new map, the dates, and a November 2026 worked example.
Section 393 is a set of tables, not a list of sections, and every non-salary TDS payment made since 1 April 2026 maps to a row in it. The CBDT's own transition FAQs say all of old sections 192 to 194T are "consolidated under two sections, section 392 and section 393"[1]. Rates and thresholds are "largely the same"[1], and a later answer drops the hedge: no change in rates or monetary thresholds for any category[1]. The risk is clerical. Quote 194C on a May payment and the return can fail validation. Below: how the section is built, the full map with a confidence mark on every row, the rows where sources disagree, the form changes, a dates table, and a Nov 2026 example for a small company.
For the amount on one payment, use the TDS calculator; this post tells you which row to quote.
How section 393 is built
The department describes s.393 as "3 Tables applicable to three broad categories of Payees": residents, non-residents and any person. Each table lists the nature of income, the payer, the threshold and the rate[1]. The Act text, as amended by the Finance Act 2026, adds the rest[2]:
393(1): payments to residents, eight serial numbers with lettered sub-rows. Deduction is on the entire amount once the threshold is crossed, at the earlier of credit or payment.
393(2): payments to non-residents, 17 serial numbers, no thresholds.
393(3): payments to any person, 7 serial numbers (winnings, cash withdrawals, partner payments).
393(4): a table of 19 no-deduction cases lifted from the old provisos.
393(5): payees who never suffer TDS (old 196).
393(6): the nil-tax declaration, old 197A, now Form 121.
"Sl. No. 6(i)" means table row 6, clause (i); the CBDT's own quoting form is "Section 393(1) [Table: Sl. No. 6(i)]"[1]. TCS is not here; it moved to section 394[1].
Did rates or thresholds change?
No, with one nuance on timing. The CBDT FAQ says thresholds and rates were retained "as they are under the Income-tax Act, 1961" and that the consolidation is "a simplified tabular presentation and not a change in TDS rates or tax policy"[1]. What carried over is the 1961 Act as it stood after Finance Act 2025, which had already lifted several limits from 1 April 2025. The Act text shows the carried-over figures[2]:
| Payment | Threshold now | Where |
|---|
| Commission or brokerage (old 194H) | ₹20,000 a year | 393(1) Sl. 1(ii) |
| Rent (old 194-I, 194-IB) | ₹50,000 for a month or part of a month | 393(1) Sl. 2 |
| Professional or technical fees (old 194J) | ₹50,000 a year; nil for director fees | 393(1) Sl. 6(iii) |
| Bank interest (old 194A) | ₹50,000; ₹1,00,000 for senior citizens | 393(1) Sl. 5(ii) |
| Contractors (old 194C) | ₹30,000 a payment or ₹1,00,000 a year | 393(1) Sl. 6(i) |
| Mutual fund units (old 194K) | ₹10,000 | 393(1) Sl. 4(i) |
| Partner payments by a firm (old 194T) | ₹20,000 | 393(3) Sl. 7 |
The rent row deserves a flag. Many posts say the rent limit is ₹6,00,000 a year. The statutory words, in both the old s.194-I text and the new row, test the rent for "a month or part of a month" against ₹50,000[2]. A tenant paying ₹49,000 a month crosses ₹5.88 lakh and owes nothing. One month at ₹52,000 can trigger it. Test monthly.
The Finance Act 2026 (Act No. 4 of 2026) amended section 393 in five places[2]. (1) Note 3 to the Table in sub-section (1) now ties the ₹50 lakh test to row 3(i) instead of 3(iii). (2) Co-operative banks, including co-operative land mortgage banks, join the interest no-deduction list in sub-section (4), row 7(a)(i). (3) Interest on Motor Accidents Claims Tribunal compensation is exempt without a cap for an individual and capped at ₹50,000 a year for anyone else, row 7(c)(iv). (4) Declarations under sub-section (7) are forwarded quarterly, by the 7th of the month after each quarter, instead of monthly. (5) From 1 April 2027, sub-section (6)(b) lets declarations go electronically to a depository.
The old-to-new map
Every row below was checked against the Act text as amended by the Finance Act 2026[2], and the CBDT FAQ[1] where it speaks to the row. The Act prints no old section numbers, so the old-to-new link is by content. "Specified person" is anyone other than an individual or HUF, plus an individual or HUF above ₹1 crore business turnover or ₹50 lakh professional receipts in the preceding year[2].
| Old section | New location | Nature of payment | Threshold | Rate | Payer | Status |
|---|
| 192 | s.392(1) | Salary | Slab based | Slab rates | Employer | P |
| 193 | 393(1) Sl. 5(i) | Interest on securities | ₹10,000 | Rates in force (10%) | Any person | P |
| 194 | 393(1) Sl. 7 | Dividend | Nil; see 393(4) | 10% | Domestic company | P |
| 194A | 393(1) Sl. 5(ii) | Interest from bank, co-op bank, post office | ₹50,000 / ₹1,00,000 senior | Rates in force (10%) | Bank, co-op bank, post office | P |
| 194A | 393(1) Sl. 5(iii) | Other interest | ₹10,000 | Rates in force (10%) | Specified person | P |
| 194B | 393(3) Sl. 1 | Lottery, puzzle, card game winnings | ₹10,000 a transaction | 30% | Any person | P |
| 194BA | 393(3) Sl. 2 | Net online game winnings | None | 30% | Any person | P |
| 194BB | 393(3) Sl. 3 | Horse race winnings | ₹10,000 a transaction | 30% | Bookmaker or race course | P |
| 194C | 393(1) Sl. 6(i) | Contractor, including labour supply | ₹30,000 a payment or ₹1,00,000 a year | 1% individual or HUF; 2% others | Designated person | P |
| 194D | 393(1) Sl. 1(i) | Insurance commission | ₹20,000 | Rates in force (2%; 10% for a domestic company payee) | Any person | P |
| 194DA | 393(1) Sl. 8(i) | Life insurance payout (taxable part) | ₹1,00,000 | 2% of income part | Any person | P |
| 194EE | 393(3) Sl. 6 | NSS withdrawals | ₹2,500 | 10% | Any person | P |
| 194G | 393(3) Sl. 4 | Lottery ticket commission | ₹20,000 | 2% | Any person | P |
| 194H | 393(1) Sl. 1(ii) | Commission or brokerage | ₹20,000 | 2% | Specified person | P |
| 194-I | 393(1) Sl. 2(ii) | Rent | ₹50,000 a month | 2% plant and machinery; 10% land, building, furniture | Specified person | P |
| 194-IA | 393(1) Sl. 3(i) | Immovable property transfer | ₹50 lakh | 1% of higher of price or stamp value | Transferee | P |
| 194-IB | 393(1) Sl. 2(i) | Rent by non-specified person | ₹50,000 a month | 2%, once, for the last month | Individual or HUF not specified | P |
| 194-IC | 393(1) Sl. 3(ii) | Joint development agreement | Nil | 10% | Any person | P |
| 194J | 393(1) Sl. 6(iii) | Professional and technical fees, director fees, royalty | ₹50,000; nil for director fees | 2% technical, film royalty, call centre; 10% others | Specified person | P |
| 194K | 393(1) Sl. 4(i) | Mutual fund units | ₹10,000 | 10% | Any person | P |
| 194LA | 393(1) Sl. 3(iii) | Compulsory acquisition compensation | ₹5,00,000 | 10% | Any person | P |
| 194LBA, LBB, LBC (resident) | 393(1) Sl. 4(ii) to (iv) | Business trust, investment fund, securitisation trust | Nil | 10% | The trust or fund | P |
| 194M | 393(1) Sl. 6(ii) | Contract, professional fees, commission by individual or HUF | ₹50 lakh | 2% | Individual or HUF not covered elsewhere | P |
| 194N | 393(3) Sl. 5 | Cash withdrawals | ₹1 crore; ₹3 crore for co-op societies | 2% | Bank, co-op bank, post office | P |
| 194-O | 393(1) Sl. 8(v) | E-commerce participant payments | Nil; ₹5 lakh exemption in 393(4) | 0.1% | E-commerce operator | P |
| 194P | 393(1) Sl. 8(iii) | Specified senior citizen (75+) | As applicable | Rates in force | Specified bank | P |
| 194Q | 393(1) Sl. 8(ii) | Purchase of goods | Above ₹50 lakh, on the excess | 0.1% | Buyer, as defined in s.402(6): turnover above ₹10 crore in the preceding tax year | P |
| 194R | 393(1) Sl. 8(iv) | Business benefit or perquisite | ₹20,000 | 10% of value | Specified person | P |
| 194S | 393(1) Sl. 8(vi) | Virtual digital asset transfer | Nil; small-payer limits in 393(4) | 1% | Any person | P |
| 194T | 393(3) Sl. 7 | Partner salary, bonus, interest | ₹20,000 | 10% | Firm | P |
| 195 | 393(2) Sl. 17 | Other sums to non-residents | None | Rates in force or treaty rate | Any person | P |
| 194E | 393(2) Sl. 1 | Non-resident sportsmen, entertainers, sports bodies | None | 20% | Any person | P |
| 194LC | 393(2) Sl. 2 to 4 | Interest on specified foreign currency and rupee bonds | None | 5%; 4% or 9% for IFSC-listed bonds | Indian company or business trust | P |
| 194LB | 393(2) Sl. 5 | Infrastructure debt fund interest | None | 5% | Infrastructure debt fund | P |
| 194LBA (non-resident) | 393(2) Sl. 6 to 7 | Business trust distributions | None | 5% / 10%; rates in force | Business trust | P |
| 194LBB, 194LBC (non-resident) | 393(2) Sl. 8 and 9 | Investment fund and securitisation trust income | None | Rates in force | The fund or trust | P |
| 196A | 393(2) Sl. 10 | Mutual fund units | None | 20% or treaty rate | Any person | P |
| 196B, 196C | 393(2) Sl. 11 to 14 | Offshore fund units; bonds and GDRs | None | 10% / 12.5% | Any person | P |
| 196D | 393(2) Sl. 15 and 16 | FII and specified fund securities income | None | 20% or treaty rate; 10% | Any person | P |
All 32 rows checked against the Act text as amended by the Finance Act 2026. The non-resident rows are matched by content, because the Act prints no old section numbers.
Related provisions that moved with it
| 1961 Act | 2025 Act | Subject | Status |
|---|
| 197 | s.395(1) | Lower or nil deduction certificate | P[1] |
| 197A, Forms 15G/15H | s.393(6), Form 121 | Nil-tax declaration | P[1] |
| 195(6), Forms 15CA/15CB | s.397(3)(d), Forms 145/146 | Foreign remittance information | P[1] |
| 201(1A) | s.398(3)(a) | Interest: 1% a month for non-deduction, 1.5% for late deposit | P[1] |
| 40(a)(ia) | s.35(b) | 30% disallowance for non-deduction or late deposit | P[1] |
| 234E | s.427 | Late fee on TDS statements, ₹200 a day | P[2] |
| 206C (TCS) | s.394 | Tax collected at source | P[1] |
Where published mappings disagree
The department runs a section-comparison utility on its Act 2025 page[5]. It is a script-driven tool, so I could not export its rows and cannot tell you which of them differ from the Act. What I can show is where commercial mapping tables disagree with the Act text or the CBDT FAQ. These are the ones to watch.
Contractors. One mapping puts 194C at "Serial 8". The CBDT FAQ gives 393(1) [Table: Sl. No. 6(i)] twice, in its quoting example and its monthly-contract example[1]. Use 6(i). The likely origin of the wrong number is sub-section (4) row 8, the no-deduction row for small transporters under 6(i).
Professional fees. Some sites write the row as "6(iii).D(a)" and "6(iii).D(b)" for the 2% and 10% rates[4]. In the Act text 6(iii) is one row with the two rates in column D[2]. Quote 6(iii) and pick the rate by the nature of the service. Reporting a professional fee at the 2% technical rate is the error to avoid.
Professional fee threshold. One payment-code reference lists ₹30,000 for professional and technical fees. The Act text says ₹50,000[2].
Number of tables. Section 393 has five: the three payee tables, the sub-section (4) no-deduction table and the sub-section (6) declaration table[2]. The CBDT counts the three payee tables[1]. A TaxGuru explainer says six[3], which the Act does not support.
Rent. The ₹6 lakh a year versus ₹50,000 a month point above.
Purchase of goods. The row's payer column reads only "buyer". The ₹10 crore test sits in the definition of "buyer" in s.402(6): turnover above ₹10 crore in the preceding tax year[2]. Commercial tables that state it in the payer column are right on substance.
Forms and certificates
The CBDT FAQ lists the replacements for the deductor-side forms[1]:
| Purpose | 1961 Act | 2025 Act |
|---|
| Salary TDS return | 24Q | Form 138 |
| Non-salary TDS return | 26Q | Form 140 |
| Non-resident TDS return | 27Q | Form 144 |
| TCS return | 27EQ | Form 143 |
| Challan-cum-statement | 26QB, 26QC, 26QD, 26QE | Form 141, one form for all four cases |
| Salary TDS certificate | Form 16 | Form 130 |
| Non-salary TDS certificate | Form 16A | Form 131 |
| Lower deduction application | Form 13 | Form 128 |
| Nil-tax declaration | 15G, 15H | Form 121 |
| Annual statement for taxpayers | AIS | Form 168 from tax year 2026-27 |
Form 123 replaces Form 12BA for perquisites, as covered in the Diwali gifts post. TAN stays: the FAQ says the Tax Deduction Account Number, faceless assessment and similar frameworks "shall continue" under the new Act[1]. New TAN applications use Form 134 (government) or 135 (others).
Tax year, financial year, assessment year
A "tax year" is "a period of twelve months contained in a financial year" and replaces the "previous year"[1]. There is no assessment year for income from 1 April 2026. On the portal, challans for FY 2025-26 liabilities still use AY 2026-27 and challans for FY 2026-27 use Tax Year 2026-27, and the FAQ warns that a wrong pick sends the credit to the wrong year[1].
Dates that matter
| Item | Date | Basis |
|---|
| Deposit of TDS deducted in a month (non-government payer) | 7th of the next month | Rule 218, Income-tax Rules 2026[6] |
| Deposit for March deduction | 30 April | Same rule, same timeline as old Rule 30[1] |
| Challan-cum-statement cases (property, rent by individuals, 6(ii) payments, VDA) | 30 days from end of the month of deduction. Rule 218(3) adds a fifth case: property bought by a resident individual or HUF from a non-resident, 393(2) Sl. 17 | CBDT FAQ[1], Rule 218[6] |
| Form 140/138/144/143 for Jul to Sep 2026 | 31 October 2026 | CBDT FAQ[1] |
| Form 131 for Jul to Sep 2026 | 15 days after the return due date, so 15 November 2026 (a Sunday) | Derived from FAQ pattern[1] |
| Form 140 for Oct to Dec 2026 | 31 January 2027 (a Sunday) | Rule 219 table: 31 Jul, 31 Oct, 31 Jan, 31 May[7] |
| Form 130 for tax year 2026-27 salary | 15 June 2027 | CBDT FAQ[1] |
| Interest, non-deduction / late deposit | 1% / 1.5% per month or part month | s.398(3)(a)[1] |
Transition checklist for October 2026 to March 2027
The CBDT test is the earlier of credit or payment. Earlier on or before 31 March 2026 means the 1961 Act; on or after 1 April 2026 means s.393[1]. Everything in your current six-month window is under the new Act. A working list:
Payroll and ERP masters. The FAQ states systems "are required to be updated" to the new numbering[1]. Replace 194x labels in vendor masters with the row from the map above.
Challans. Select Tax Year 2026-27. Old-Act challans stay only for deductions on payments made up to 31 March 2026[1].
Returns. Q3 of the tax year goes in the new Form 140 and its siblings. Quoting 194C after 1 April "may result in system-level validation errors" and a correction statement[1].
Corrections for FY 2025-26 and earlier still use the old forms[1].
Lower-deduction certificates. A s.197 certificate stays valid for 2026-27 payments if it covers projected receipts for tax year 2026-27[1]. New applications use Form 128.
Vendor declarations. Collect Form 121; forwarding is quarterly, not monthly[2].
Worked example: a small company in November 2026
A private limited company (a specified person) pays three bills in November 2026, all to resident payees with PAN, GST shown separately and excluded here.
| Payment | Amount | Row to quote | Rate | TDS |
|---|
| Monthly office rent to an individual landlord (building) | ₹80,000 | 393(1) Sl. 2(ii) | 10% | ₹8,000 |
| Chartered accountant's fee, first invoice of the year | ₹1,20,000 | 393(1) Sl. 6(iii) | 10% | ₹12,000 |
| Interior fit-out contractor, a company | ₹2,50,000 | 393(1) Sl. 6(i) | 2% | ₹5,000 |
| Total | | | | ₹25,000 |
Rent clears the monthly ₹50,000 test, so the 10% applies from the first rupee. The CA fee exceeds ₹50,000, so tax runs on the whole ₹1,20,000. The contractor payment exceeds both ₹30,000 a payment and ₹1,00,000 a year; if the contractor were a sole proprietor the rate drops to 1% and the TDS to ₹2,500.
Deposit ₹25,000 by Monday, 7 December 2026, using a Tax Year 2026-27 challan. Report all three in Form 140 for October to December 2026 under the rows above. Miss the deposit and interest runs at 1.5% a month from the date of deduction; skip the deduction and the 30% disallowance in s.35(b) applies to the expense, which on the three bills is ₹1.35 lakh of disallowed cost (30% of ₹4.5 lakh)[1]. For a figure on a different amount, run the TDS calculator, and for the payee's side see the income tax calculator.
Frequently Asked Questions
Do I quote 194C or 393 on a payment made in April 2026 for March work?
It depends on the earlier of credit or payment. If you credited the bill in March 2026, the 1961 Act governs and 194C is correct. If both credit and payment fell on or after 1 April, quote 393(1) Sl. 6(i)[1]. The CBDT's housekeeping-contract example splits the same contract at that date.
Is Form 26Q gone?
For periods from April 2026, yes: the non-salary return is Form 140[1]. Form 26Q remains the form for FY 2025-26 and earlier periods, including corrections filed later.
Did the TDS deposit date change?
No. It is still the 7th of the following month, with 30 April for March, now set by Rule 218 of the Income-tax Rules 2026[1]. Interest remains 1% and 1.5% a month under s.398(3)(a).
Does my old Section 197 lower-deduction certificate still work?
Yes, if it was issued for projected receipts of tax year 2026-27[1]. A certificate valid only up to 31 March 2026 covers payments made on or before that date. Apply fresh in Form 128 under s.395(1).
Is the department's mapping utility enough to rely on?
Treat it as a finder, not the authority. The utility states "for reference purposes only" and tells users to verify against official sources[5]. The Act text and the CBDT FAQ are what you cite. Where you see a serial that differs, such as 194C at "Serial 8", go to the Table.
What if I already deducted under the wrong section?
The deduction stands if rate and amount were right. The FAQ says wrong section references may need a correction statement[1], and a mismatch in the payee's credit is fixed by a revised return from the deductor[1]. Correct them before certificates go out.
Sources
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for advice specific to your situation.
Originally published at wowhow.cloud
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