All About TDS: Payment Procedures, Due Dates & Forms under Old vs Revised Income Tax Act, 2025

What is TDS? (Concept)

TDS (Tax Deducted at Source) refers to a system where tax is deducted by the payer at the time of making specified payments and then remitted to the government.

👉 Objective of TDS:

  • Collection of tax at the point of income generation
  • Prevention of tax evasion
  • Ensuring steady inflow of revenue to the government

👉 Tax Credit Available To Taxpayer In:

  • Form 26AS
  • Annual Information Statement (AIS)

🔄 Key Change from 1 April 2026 (New Income Tax Act, 2025)

Structural Transformation

Old Income Tax Act, 1961 New Income Tax Act, 2025
Multiple sections (192, 194 series) Consolidated framework
Complicated structure Simplified approach
Dispersed provisions Centralized system

👉 New Section Mapping:

  • Section 392 → TDS on Salary
  • Section 393 → TDS on Other Payments

✔️ The core concept remains unchanged, but the structure is simplified.

📅 TDS Payment Due Dates

Monthly Due Dates

Particular Due Date
TDS deducted during any month 7th of the following month
TDS deducted in March 30th April (next financial year)

👉 Example:

  • TDS deducted in April → Pay by 7 May
  • TDS deducted in March → Pay by 30 April

✔️ No change under the new Act.

⚠️ Special Case – Government Deductors

  • Payment required on the same day (through book entry)
  • For March deductions → 7 April

⚠️ Interest on Delay

Default Type Interest Rate
Failure to deduct TDS 1% per month
Delay in deposit 1.5% per month

📊 TDS Return Filing Due Dates (FY 2026–27)

Quarter Period Due Date
Q1 Apr – Jun 2026 31 July 2026
Q2 Jul – Sep 2026 31 Oct 2026
Q3 Oct – Dec 2026 31 Jan 2027
Q4 Jan – Mar 2027 31 May 2027

✔️ Filing timeline remains unchanged under the new law.

📄 TDS Return Forms

🔄 A. Quarterly TDS Returns

Purpose Old Form New Form (2025 Act)
Salary TDS 24Q Form 138
Non-salary (Resident) 26Q Form 140
Non-resident payments 27Q Form 142 / 144
TCS Return 27EQ Form 143

✔️ Only form numbers changed; compliance process remains same.

🔄 B. TDS Certificates

Purpose Old Form New Form
Salary Form 16 Form 130
Non-salary Form 16A Form 131

🔄 C. Declaration Forms

Purpose Old Forms New Form
Declaration for non-deduction of TDS 15G / 15H Form 121

✔️ Significant simplification introduced.

🔄 D. Challan-cum-Statement (Major Change)

Earlier Forms New Unified Form
26QB (Property)
26QC (Rent)
26QD (Contract)
26QE (Crypto)
👉 Merged Form 141

✔️ Four separate forms are now consolidated into a single form.

⏱️ Special Cases – Different Deadlines

Nature of Transaction Applicable Form Due Date
Property transactions Form 141 Within 30 days
Rent payments (Individual) Form 141 Within 30 days
Contract/Professional (Individual) Form 141 Within 30 days
Cryptocurrency transactions Form 141 Within 30 days

⚠️ Penalties & Consequences

📌 Late Filing Fee

  • ₹200 per day
  • Maximum penalty limited to the amount of TDS
Latest TDS Rates Table – Financial Year 2026–27

TDS Rates Comparison Chart for FY 2026–27 (Old vs New Act with Section Codes)                                                       TDS provisions have been updated in the Income Tax Act, 2025. Below is a detailed rate chart with old section references and corresponding new section codes.

TDS Rate Chart – FY 2026–27

(Old Act vs New Income Tax Act, 2025 – Sections & Codes)

With the implementation of the Income Tax Act, 2025, TDS provisions have been restructured and renumbered. While most rates and thresholds remain largely unchanged, the section references have shifted significantly.

Below is a comprehensive comparative chart mapping old sections with new section codes, along with applicable thresholds and TDS rates.

👤 Payment to Residents

Nature of Payment Old Section New Section (2025 Act) Threshold Rate
Salary 192 392(1) Basic exemption Slab
EPF Withdrawal 192A 392(7) ₹50,000 10%
Interest on Securities 193 393(1) Table Sl. 5(i) ₹10,000 10%
Dividend 194 393(1) Table Sl. 7 ₹10,000 (Individual) 10%
Interest (Senior Citizen) 194A 393(1) Table 5(ii)(D)(a) ₹1,00,000 10%
Interest (Others) 194A 393(1) Table 5(ii)(D)(b) ₹50,000 10%
Insurance Commission 194D 393(1) Table 1(i) ₹20,000 2% / 10%
Commission/Brokerage 194H 393(1) Table 1(ii) ₹20,000 2%
Rent (General) 194I 393(1) Table 2(i) ₹50,000 2%
Rent (Machinery) 194I 393(1) Table 2(ii)(D)(a) ₹50,000 2%
Rent (Land/Building) 194I 393(1) Table 2(ii)(D)(b) ₹50,000 10%
Purchase of Immovable Property 194-IA 393(1) Table 3(i) ₹50 lakh 1%
Compensation on Acquisition 194LA 393(1) Table 3(ii) ₹5 lakh 10%
Mutual Fund Income 194K 393(1) Table 4(i) ₹10,000 10%
Business Trust Income 194LBA 393(1) Table 4(ii) Nil 10%
Investment Fund Income 194LBB 393(1) Table 4(iii) Nil 10%
Securitisation Trust Income 194LBC 393(1) Table 4(iv) Nil 10%

🏢 Contract / Professional / Business Payments

Nature Old Section New Section Threshold Rate
Contractor (Individual/HUF) 194C 393(1) Table 6(i)(D)(a) ₹30,000 / ₹1 lakh 1%
Contractor (Others) 194C 393(1) Table 6(i)(D)(b) ₹30,000 / ₹1 lakh 2%
Individual/HUF paying Contractor/Professional 194M 393(1) Table 6(ii) ₹50 lakh 2%
Technical Services / Royalty 194J 393(1) Table 6(iii)(D)(a) ₹50,000 2%
Professional Services 194J 393(1) Table 6(iii)(D)(b) ₹50,000 10%
Director Remuneration 194J 393(1) Table 6(iii)(D)(b) No limit 10%

🔄 Special Transactions

Nature Old Section New Section Threshold Rate
Purchase of Goods 194Q 393(1) Table 8(ii) ₹50 lakh 0.10%
Benefit/Perquisite 194R 393(1) Table 8(iv) ₹20,000 10%
E-commerce Operator 194O 393(1) Table 8(v) ₹5 lakh (Ind/HUF) 0.10%
Virtual Digital Assets (Non-Individual) 194S 393(1) Table 8(vi) ₹10,000 1%
VDA (Individual/HUF) 194S 393(1) Table 8(vi) ₹50,000 1%
Life Insurance (Taxable Portion) 194DA 393(1) Table 8(i) ₹1,00,000 2%

🌍 Non-Resident Payments

Nature Old Section New Section Rate
General Payment to Non-resident 195 393(2) As per Act/DTAA
Interest on Foreign Loan 194LC 393(2) Table 2 5%
Infra Debt Fund 194LB 393(2) Table 5 5%
Rupee Bonds (IFSC pre-2023) 194LC 393(2) Table 4E(a) 4%
Rupee Bonds (post-2023) 194LC 393(2) Table 4E(b) 9%
Investment Fund Income 194LBB 393(2) Table 8 10% / 30%
Securitisation Trust 194LBC 393(2) Table 9 10% / 30%
Mutual Fund Units 196A 393(2) Table 10 20%
Units (Sec 208) 196A 393(2) Table 11 10%
LTCG (Units) 196A 393(2) Table 12 12.5%
Bonds / GDR Interest 196C 393(2) Table 13 10%
LTCG (Bonds/GDR) 196C 393(2) Table 14 12.5%
Securities Income 196D 393(2) Table 15 20%

🎯 Winnings / High-Rate TDS

Nature Old Section New Section Threshold Rate
Lottery / Puzzle 194B 393(3) Table 1 ₹10,000 30%
Online Gaming 194BA 393(3) Table 2 No limit 30%
Horse Race 194BB 393(3) Table 3 ₹10,000 30%
Lottery Commission 194G 393(3) Table 4 ₹20,000 2%

💵 TDS on Cash Withdrawal

Nature Old Section New Section Threshold Rate
Co-operative Society 194N 393(3) Table 5D(a) ₹3 crore 2%
Others 194N 393(3) Table 5D(b) ₹1 crore 2%

⚠️ Important Note – Section 397 (PAN Not Furnished)

If PAN is not provided, TDS will be higher of:

  • Applicable rate, or
  • 20%

📌 Disclaimer

The contents of this article are for general informational purposes only and intended to provide a quick reference to TDS rates. Readers are advised to verify provisions with the Income Tax Act, applicable rules, notifications, and official government sources before making any financial or compliance decisions.