TDS Section Mapping: Old vs New Income Tax Act, 2025(Effective from 1st April , 2026 onwards)
7 Jan 2026
The Income-tax Act, 1961 has been in force for decades, but over time, the law became complex, with multiple sections, cross-references, and procedural challenges. To simplify tax compliance and modernize the framework, the new Income-tax Act, 2025 was introduced, coming into effect from 1 April 2026.
Tax Deducted at Source (TDS) is an important way to collect tax at the time of payment. Under the old Act, TDS rules were scattered, and thresholds varied, making compliance complex. The 2025 Act simplifies these rules, renumbers sections, and raises thresholds, making it easier for professionals, banks, financial institutions, and businesses to comply efficiently.
Please find the table below for your quick reference:
Note:
The threshold limits and rates referred to herein are not newly introduced by the Income-tax Act, 2025. These limits and rates were already revised and made applicable with effect from 1 April 2025 through the Finance Act, 2025. The Income-tax Act, 2025 merely consolidates and restructures these provisions, ensuring continuity while improving clarity and ease of compliance.
The threshold limits and rates referred to herein are not newly introduced by the Income-tax Act, 2025. These limits and rates were already revised and made applicable with effect from 1 April 2025 through the Finance Act, 2025. The Income-tax Act, 2025 merely consolidates and restructures these provisions, ensuring continuity while improving clarity and ease of compliance.
| NATURE OF INCOME | OLD ACT SECTION (1961) | NEW ACT SECTION (2025) | THRESHOLD OLD ACT | THRESHOLD & RATE NEW ACT |
|---|---|---|---|---|
| Interest on Securities /Debentures (National Development Bonds, specified debentures, Central/State Govt securities excluding certain taxable savings bonds) | 193 | 393(1) [Table:S.No 5(i)], 393(4) [S.No.6] | Securities: Nil; Debentures: ₹5,000 | ₹10,000; TDS @ 10% |
| Dividend (Individual Shareholders) | 194 | 393(1) [S.7],393(4) [S.No. 10] | ₹5,000; TDS @10% | ₹5,000; TDS @ 10% |
| Interest other than Securities | 194A | 393(1) [S.No. 5(ii), 5(iii)], 393(4) [S.No. 7] | Senior: ₹50,000; Others (Bank/PO/Co-op): ₹40,000; Others: ₹5,000; TDS @ 10% | Senior: ₹1,00,000; Others (Bank/PO/Co-op): ₹50,000; Others: ₹10,000; TDS @ 10% |
| Winnings from Lottery /Gambling (non-online) | 194B | 393(3) [S.No. 1] | Aggregate > ₹10,000 per year | ₹10,000 per transaction; TDS @ 30% |
| Winnings from Online Games | 194BA | 393(3) [S.No. 2] | No threshold; TDS 30% | TDS @ 30% as specified in Note 1 (On net winnings in user account payee and where there is withdrawal) |
| Winnings from Horse Race | 194BB | 393(3) [S.No. 3] | Aggregate > ₹10,000 per year | ₹10,000 per transaction; TDS @ 30% |
| Payment for carrying out any work (including supply of labour) under a contract | 194C | 393(1) [S.No. 6(i)], 393(4) [S.No. 8] | ₹30,000 per contract or ₹1,00,000 aggregate; 1% (Ind/HUF), 2(others) | Same threshold; Same rates |
| Insurance commission (including renewal / revival of policies) | 194D | 393(1) [S.No. 1(i)] | ₹15,000; TDS @ 5% | ₹20,000; TDS @ 5% |
| Any sum under a life insurance policy(including bonus), except amounts not includible under Schedule II) | 194DA | 393(1) [S.No. 8(i)] | ₹1,00,000; TDS @2% on taxable sum | Same threshold; Same rates |
| Payments to Non-Resident Sportsmen / Associations | 194E | 393(2) [S.No. 1] | No threshold; TDS @ 20% | Same threshold; Same rates |
| National Savings Scheme Payments | 194EE | 393(3) [S.No. 6] | Threshold: 2500; TDS @ 10% | Same threshold; Same rates |
Commission on Sale of Lottery Tickets | 194G | 393(3) [S.No. 4] | ₹15,000, TDS @2% | ₹20,000; TDS @ 2% |
Commission or brokerage (other than insurance commission) | 194H | 393(1) [S.No. 1(ii)], 393(4) [S.No. 1] | ₹15,000; TDS @ 2% | ₹20,000; TDS @ 2% |
| Rent (Land, Building, Plant, Machinery, Furniture, etc.) | 194-I | 393(1) [S.No.2(i),(ii)], 393(4)[S.No. 2] | Aggregate during FY > ₹2,40,000; plant & machinery- 2%,land/building/furniture- 10% | Aggregate ₹2,40,000 during financial year; 2% (Plant & Machinery), 10% land/Building/Furniture) |
| Transfer of Immovable Property (non-agricultural) | 194-IA | 393(1) [S.No. 3(i)] | ₹50,00,000, TDS @ 1% | Same & As per Note 3; |
| Payment of rent by certain individuals/ HUFs | 194-IB | Section 393(1), Serial No. 2(i) | 50,000 @2% | Same |
| Payment under Specified Agreement | 194-IC | 393(1) [S.No. 3(ii)] | No threshold; TDS @ 10% | No threshold; TDS @ 10% |
| Professional / Technical fees, Royalty, Director remuneration, Commission (other than insurance) | 194J |
393(1) [S.No. 6(iii) ,393(4) [S.No. 9] | ₹30,000; TDS @10% (2% for technical services) | ₹50,000 aggregate during financial year;TDS @ 2% (Technical services, royalty for cinematographic films, call centre operators);TDS @ 10% for others |
| Mutual Fund Units Income | 194K | 393(1)[S.No.4(i)],393(4) [S.No. 4] | ₹5,000; TDS @ 10% | ₹10,000; TDS @ 10% |
| Compensation on Compulsory Acquisition | 194LA |
393(1) [S.No. 3(iii)], 393(4) [S.No. 3] | ₹2,50,000; TDS @ 10% | ₹5,00,000; TDS @ 10% |
| Infrastructure Debt Fund Interest | 194LB | 393(2) [S.No. 5] | No threshold; TDS @ 5% | No threshold; TDS @ 5% |
| Business Trust Units | 194LBA | 393(1) [S.No. 4(ii)], 393(2) [S.No. 6,7], 393(4) [S.No. 5,13] | No threshold | No threshold; TDS @ 10% |
| Investment Fund Units | 194LBB | 393(1) [S.No. 4(iii)], 393(2) [S.No. 8], 393(4) [S.No. 14] | No threshold | No threshold; TDS @ 10% |
| Securitisation Trust Income | 194LBC | 393(1) [S.No. 4(iv)], 393(2) [S.No. 9] | No threshold; TDS @ 25% for HUF/Individual, 30% for others. | No threshold; TDS @ 10% |
| Interest from Indian Company (Foreign Borrowings) | 194LC | 393(2) [S.No. 2–4] |
No threshold; TDS @ 5%, Bonds issued in the period of 1st Apr 2020-1st July 2023 at 4%,Bonds issued after 1st July 2023 at 9% | Same |
| Payment by Individual /HUF for contract work, professional services or commission (where payer not covered under 6(i) or 6(iii)) | 194M | 393(1) [S.No. 6(ii)] | ₹50,00,000; TDS @ 2% | Same |
| Cash Withdrawals | 194N | 393(3) [S.No. 5],393(4)[S.No. 18] | ₹3 Cr for co-operative society, ₹1Cr for other than co-operative, TDS @2% | ₹3 Crore (Co-operative Society); ₹1 Crore (Others);TDS @ 2%;TDS @ 5% applicable for specified non-filers as per conditions |
| E-commerce Payments | 194O | 393(1) [S.No. 8(v)], 393(4) [S.No. 11] | >₹5,00,000/year; TDS @0.1% | Same |
| Total income of specified senior citizen after Chapter VIII deductions and section 156 rebate | 194P | 393(1) [S.No. 8(iii)] | Not applicable | As applicable; rates in force |
| Payment for certain sum of purchase of goods | 194Q | 393(1) [S.No. 8(ii) | >₹50,00,000, TDS @0.1% with reference to Section 206C(1H) | >₹50,00,000, TDS @0.1% |
| Deduction in case any benefit or perquisite is provided | 194R | 393(1) [S.No. 8(iv) | >₹20,000, 10% of value or aggregate of such benefit or perquisite. | Same |
| Virtual Digital Assets | 194S | 393(1) [S.No. 8(vi)], 393(4) [S.No. 12] | >₹50,000; TDS @1% | Same |
CONCLUSION:
TDS rules continue under the new Act, but with a cleaner structure and higher limits. Section numbers have been updated, some rules merged, and thresholds increased which means, small payments are less likely to be taxed at source. Overall, the changes make TDS simpler, clearer, and more taxpayer-friendly.
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DISCLAIMER
The information contained in this document is prepared by R.J. Soni & Associates and TaxOSmart LLP (hereinafter referred to as RJSA) for information purpose only. It does not constitute any legal advice or tax advice. In no way, this document should be treated as a marketing material or efforts to solicit a client. While we have made every attempt to ensure that the information contained in this document is true, RJSA, its partners and/or any of its employees make no claims / guarantee about its accuracy, completeness, or up-to-date character, or warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.
The information contained in this document is prepared by R.J. Soni & Associates and TaxOSmart LLP (hereinafter referred to as RJSA) for information purpose only. It does not constitute any legal advice or tax advice. In no way, this document should be treated as a marketing material or efforts to solicit a client. While we have made every attempt to ensure that the information contained in this document is true, RJSA, its partners and/or any of its employees make no claims / guarantee about its accuracy, completeness, or up-to-date character, or warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.