TDS Section Codes Chart 2026: Old Section to New Section (IT Act 2025)

Understanding the IT Act 2025 Transition

The Income Tax Act, 2025 represents a monumental shift in India's tax landscape. This update aims to consolidate and simplify the complex web of TDS and TCS provisions that have existed since 1961. Our interactive tool above is designed to bridge the gap between the two regimes, ensuring you never miss a compliance deadline.

01

Why the Change?

The new Act reduces statutory complexity, provides clearer definitions for digital assets, and aligns tax rates with the modern economic environment of 2026.

02

Rate Rationalization

Several sections like 194D and 194M have seen rate adjustments in Finance Bill 2026 to ensure a more equitable tax distribution across sectors.

Expert Advice

Update Your Systems Early

To avoid last-minute errors in TDS returns, ensure that your accounting software (Tally, SAP, etc.) is configured with the New 2025 Section Codes before the first quarter of FY 2026-27 begins.

Frequently Asked Questions

1. Is the IT Act 1961 still valid for old transactions?

Yes, any transaction or assessment pertaining to years prior to April 1, 2026, will still follow the provisions of the 1961 Act. The 2025 Act applies to income generated from FY 2026-27 onwards.

2. How can I search for a specific nature of payment?

Simply type the payment type (e.g., 'Salary', 'Rent', 'Contract') into the interactive search bar at the top of this page to instantly see the relevant old and new section codes.

3. What happens if I use the wrong section code?

Using an incorrect section code can lead to notice from the CPC-TDS department and potential interest/penalty for short deduction. Always verify using our tool before filing.