| Payment Type | Return Code |
Old Section (IT Act 1961) |
Section (IT Act 2025) |
Sec 393 Sl. No. |
Threshold | TDS Rate | No-PAN Rate | Deductor |
|---|---|---|---|---|---|---|---|---|
Salary — Regular Payments Basic salary, dearness allowance, HRA, and all regular salary components Salary |
1001 | S. 192 | S. 392 | — | Basic exemption limit (₹2.5L / ₹3L / ₹5L) | Slab Rate | Slab rate | Employer |
Salary — Perquisites Monetary perquisites: rent-free accommodation value, car perk, ESOP, club facilities Salary |
1002 | S. 192 | S. 392 | — | Basic exemption limit (₹2.5L / ₹3L / ₹5L) | Slab Rate | Slab rate | Employer |
Salary — Arrears / Profits in Lieu of Salary Arrears of salary, payments on retirement, VRS compensation, salary in lieu of notice Salary |
1003 | S. 192 | S. 392 | — | Basic exemption limit (₹2.5L / ₹3L / ₹5L) | Slab Rate | Slab rate | Employer |
Provident Fund — Premature Withdrawal Taxable accumulated PF balance paid before 5 years of continuous service Salary |
1004 | S. 192A | S. 392(7) | — | ₹50,000 | 10% | 20% | Trustees of PF / EPFO |
Interest on Securities Debentures, bonds, government securities — interest paid by company/entity Interest |
1019 | S. 193 | S. 393 | Sl.5(i) | ₹10,000 | 10% | 20% | Company / entity issuing securities |
Interest — Banking & Co-op Banks FD, RD, savings interest from scheduled banks, co-operative banks Interest |
1020 | S. 194A | S. 393 | Sl.5(ii) | ₹50,000 (general) ₹1,00,000 (senior citizen) |
10% | 20% | Bank / Co-op bank |
Interest — Post Office Schemes Interest from post office savings schemes (NSC, KVP, MIS, time deposits) Interest |
1021 | S. 194A | S. 393 | Sl.5(ii) | ₹50,000 (general) ₹1,00,000 (senior citizen) |
10% | 20% | Post office |
Interest — Other (Non-Banking) Interest paid by companies, firms, individuals (other than banks/post office) Interest |
1022 | S. 194A | S. 393 | Sl.5(iii) | ₹10,000 | 10% | 20% | Specified person |
Rent — Land / Building / Furniture Office rent, factory building, residential premises, furniture & fittings Rent |
1009 | S. 194I(b) | S. 393 | Sl.2(ii)(b) | ₹50,000 per month (or part) | 10% | 20% | Specified person |
Rent — Plant / Machinery / Equipment Machinery hire charges, equipment rental, plant on lease Rent |
1008 | S. 194I(a) | S. 393 | Sl.2(ii)(a) | ₹50,000 per month (or part) | 2% | 20% | Any person / Specified person |
Rent — by Individual / HUF (Non-Audit) Rent paid by an Individual/HUF whose turnover does not exceed ₹1 crore (business) or ₹50 lakh (profession) — not required to deduct u/s 194-I Rent |
1010 | S. 194-IB | S. 393 | Sl.2(i) | ₹50,000 per month (or part) | 2% | 20% | Individual / HUF |
Transfer of Immovable Property Purchase of land or building (not agricultural land). Applies when consideration OR stamp duty value ≥ ₹50 lakh Property |
1012 | S. 194IA | S. 393 | Sl.3 | ₹50 lakh (consideration or stamp duty value) | 1% | 20% | Buyer (transferee) |
Contract Work — Payee is Individual / HUF Payment to Individual/HUF contractor for work contract, labour supply, sub-contract Contractor |
1023 | S. 194C | S. 393 | Sl.6(i) | ₹30,000 (single) ₹1,00,000 (annual) |
1% | 20% | Specified person |
Contract Work — Payee is Company / Firm / AOP Payment to company, firm, AOP, or BOI contractor for work contract, labour supply, sub-contract Contractor |
1024 | S. 194C | S. 393 | Sl.6(i) | ₹30,000 (single) ₹1,00,000 (annual) |
2% | 20% | Specified person |
Contract / Professional Fees — Individual/HUF Deductor Where an Individual or HUF (not required to deduct u/s 194C or 194J) makes payments for contracts or professional services Contractor |
1025 | S. 194M | S. 393 | Sl.6(ii) | ₹50 lakh (aggregate in year) | 2% | 20% | Individual / HUF |
Professional Fees Fees to doctors, lawyers, CAs, architects, engineers, interior decorators & similar professionals Professional |
1026 | S. 194J | S. 393 | Sl.6(iii) | ₹50,000 | 10% | 20% | Any person |
Technical / Consultancy / Managerial Services Fees for technical services, managerial services, consultancy fees, royalty (not professional services) Professional |
1027 | S. 194J | S. 393 | Sl.6(iii) | ₹50,000 | 2% | 20% | Any person |
Director Fees / Non-Executive Director Remuneration Sitting fees, commission, or remuneration to non-executive or independent directors (where S.392/salary TDS is not applicable) Professional |
1028 | S. 194J | S. 393 | Sl.6(iii) | Nil | 10% | 20% | Any person |
Insurance Commission Commission to insurance agents for procuring / renewing / reviving policies Commission |
1005 | S. 194D | S. 393 | Sl.1(i) | ₹20,000 | 2% 10% when recipient is a domestic company |
20% | Any person |
Commission / Brokerage (Non-Insurance) Brokerage on sales, marketing commission, goods/services commission (excluding insurance) Commission |
1006 | S. 194H | S. 393 | Sl.1(ii) | ₹20,000 | 2% | 20% | Specified person |
Dividend — Domestic Company Dividend declared/paid by domestic company to resident shareholders Capital Market |
1029 | S. 194 | S. 393 | — | ₹10,000 (individual shareholder) ₹5,000 (other shareholder) |
10% | 20% | Company |
Income from Mutual Fund / Units Income in respect of units of mutual fund, UTI successor, specified company Capital Market |
1013 | S. 194K | S. 393 | Sl.4(i) | ₹10,000 | 10% | 20% | Any person (AMC/fund) |
REIT / InvIT — Interest Component Interest income distributed by Business Trust (REIT/InvIT) to resident unitholders Capital Market |
1014 | S. 194LBA | S. 393 | Sl.4(ii) | Nil | 10% | 20% | Business Trust |
REIT / InvIT — Dividend Component Dividend income distributed by Business Trust (REIT/InvIT) to resident unitholders Capital Market |
1015 | S. 194LBA | S. 393 | Sl.4(ii) | Nil | 10% | 20% | Business Trust |
REIT / InvIT — Other Distributed Income Other income (not interest/dividend) distributed by Business Trust (REIT/InvIT) to resident unitholders Capital Market |
1016 | S. 194LBA | S. 393 | Sl.4(ii) | Nil | 10% | 20% | Business Trust |
Lottery / Crossword / Card Game Winnings (Offline) Prizes from offline lottery, crossword puzzles, card games, TV game shows Lottery / Games |
1058 | S. 194B | S. 393 | Sl.7(i) | ₹10,000 (aggregate) | 30% | 30% | Organiser / operator |
Online Game Winnings Winnings from online games, fantasy sports platforms, online gaming apps Lottery / Games |
1060 | S. 194BA | S. 393 | Sl.7(i) | ₹10,000 (aggregate) | 30% | 30% | Online gaming operator |
Winnings from Horse Race Prize money paid to any person on winnings from horse races Lottery / Games |
1062 | S. 194BB | S. 393 | Sl.7(ii) | ₹10,000 | 30% | 30% | Book maker / turf club |
VDA Transfer — Via Exchange / Operator Transfer of VDA (crypto/NFT) through an exchange or online gaming intermediary where exchange deducts TDS VDA |
1037 | S. 194S | S. 393 | Sl.8(ii) | Nil | 1% | 20% | Exchange / operator (specified person) |
VDA Transfer — P2P / Direct (Buyer Deducts) Direct transfer of VDA (crypto/NFT) between parties where buyer is responsible for TDS deduction VDA |
1038 | S. 194S | S. 393 | Sl.8(ii) | ₹50,000 (for Ind/HUF P2P transactions) | 1% | 20% | Buyer (transferee) |
Business Benefit / Perquisite (Cash) Cash benefit or payment arising from business or profession — cash gifts, cash incentives, dealer trips reimbursed Perquisite |
1033 | S. 194R | S. 393 | Sl.8(iv) | ₹20,000 | 10% | 20% | Any person providing benefit |
Business Benefit / Perquisite (Non-Cash / Kind) Non-monetary benefit — goods, vouchers, gold coins, sponsored trips, free products given in business context Perquisite |
1034 | S. 194R | S. 393 | Sl.8(iv) | ₹20,000 | 10% | 20% | Any person providing benefit |
Purchase of Goods (Buyer Deducts) Buyer deducts TDS when purchase value from a seller exceeds ₹50 lakh in FY (where TCS under S.394 is not applicable) Goods |
1036 | S. 194Q | S. 393 | Sl.8(ii) | ₹50,00,000 (per seller, per FY) | 0.1% | 5% | Buyer (specified person) |
E-Commerce Participant Payments Payments to sellers/service providers facilitating sale of goods/services through an e-commerce platform E-Commerce |
1035 | S. 194O | S. 393 | Sl.8(v) | ₹5,00,000 (for Ind/HUF participant) | 0.1% | 5% | E-commerce operator |
Partner's Salary / Remuneration / Interest Salary, remuneration, commission, bonus or interest paid by a partnership firm to its partners Partnership |
1067 | S. 194T | S. 393 | Sl.8(iii) | ₹20,000 | 10% | 20% | Partnership firm / LLP |
Cash Withdrawal — Individual / Non-Co-op Cash withdrawals exceeding ₹1 crore in a financial year (other than co-operative society) Banking |
1064 | S. 194N | S. 393 | Sl.9 | ₹1 crore | 2% | 2% | Bank / Co-op bank / Post office |
Cash Withdrawal — Co-operative Society Cash withdrawals exceeding ₹3 crore in a financial year by a co-operative society Banking |
1065 | S. 194N | S. 393 | Sl.9 | ₹3 crore | 2% | 2% | Bank / Co-op bank / Post office |
No-PAN / No-Aadhaar Rate
If the payee fails to furnish PAN or Aadhaar, TDS must be deducted at the higher of the applicable rate or 20%. This provision (equivalent to old S. 206AA) continues under IT Act 2025. Ensure you have the payee's PAN before making any payment.
Section 206AB — Omitted
Section 206AB, which required higher TDS for persons who had not filed ITR for two preceding years, has been omitted with effect from 1 April 2025. It is no longer applicable. No need to check ITR-filing compliance of payees for TDS rate purposes from FY 2025-26 onwards.
Non-Resident Payments
Payments to non-residents are covered under Section 393(2) (equivalent to old S. 195). The rate is "rates in force" under the Finance Act or DTAA rates, whichever is more beneficial. Always obtain a Tax Residency Certificate (TRC) and Form 10F for DTAA benefit.
New TDS Return Forms
From 1 April 2026, new forms apply: Form 140 replaces Form 26Q (non-salary TDS), Form 141 replaces Form 27Q (non-resident TDS), and Form 168 replaces Form 26AS (tax credit statement). TDS challans now use 4-digit payment codes instead of section numbers.
TDS Payment Deadlines
TDS deducted must be deposited to the government: by 7th of the next month (general), except for March deductions which must be deposited by 30 April. Late deposit attracts interest at 1.5% per month under Section 398 (old S. 201(1A)). Late filing of TDS returns attracts ₹200/day fee under Section 427 (old S. 234E).
"Specified Person" Defined
Under IT Act 2025, "specified person" generally means persons required to get their accounts audited under Section 63 (old S. 44AB), including companies, firms with turnover above audit threshold, and individuals/HUFs whose turnover exceeds ₹1 crore (business) or ₹50 lakh (professional). Individual/HUF below audit threshold are "non-specified."
Important: Rates above are as per IT Act 2025 and Finance Act 2026. Surcharge and Health & Education Cess (4%) are applicable on TDS on non-residents and in certain cases for residents. For payments to non-residents, always verify DTAA provisions for reduced rates. This table is for guidance — verify with official CBDT notifications for any recent changes.
TCS — Tax Collected at Source
Under IT Act 2025, Tax Collected at Source (TCS) provisions are consolidated under Section 394 (replacing old Section 206C). Key TCS transactions include:
| Nature of Transaction | Old Section | New Reference | Rate |
|---|---|---|---|
| Sale of alcoholic liquor for human consumption | S. 206C(1) | S. 394 Sl.1 | 2% |
| Sale of tendu leaves | S. 206C(1) | S. 394 Sl.2 | 2% |
| Sale of timber / forest produce (under lease or otherwise) | S. 206C(1) | S. 394 Sl.3 | 2% |
| Sale of scrap | S. 206C(1) | S. 394 Sl.4 | 2% |
| Sale of minerals — coal, lignite, iron ore | S. 206C(1) | S. 394 Sl.5 | 2% |
| Sale of motor vehicle / notified goods (> ₹10 lakh) | S. 206C(1F) | S. 394 Sl.6 | 1% |
| Overseas remittance (LRS) — for education (loan from financial institution) | S. 206C(1G) | S. 394 Sl.7 | Nil |
| Overseas remittance (LRS) — education or medical treatment | S. 206C(1G) | S. 394 Sl.7 | 2% |
| Overseas remittance (LRS) — any other purpose | S. 206C(1G) | S. 394 Sl.7 | 20% |
| Sale of overseas tour programme package | S. 206C(1G) | S. 394 Sl.8 | 2% |
| Use of parking lot / toll plaza / mine or quarry (for business) | S. 206C(1C) | S. 394 Sl.9 | 2% |
Received a TDS Notice?
Section 399 (old 200A) intimation, Section 398 (old 201) default order, or TRACES demand? Our team can help you respond, rectify, and resolve.