What has been Changed?
With the Income Tax Act, 2025 coming into force on 1st April 2026, the Income Tax Rules, 2026 have completely renumbered and restructured all TDS and TCS sections and forms. Nearly every form and section that deductors, collectors, and deductees use on a routine basis has been assigned a new number. The underlying compliance obligations, quarterly filing, payment, certificate issuance, remain the same, but the form numbers, section references, and certain procedural rules have changed significantly.
This note gives you a one-stop reference for all form-number changes, sections changes and software/system action points you need to address after 1st April 2026.
Key Structural Changes
Unified ‘Tax Year’ Concept
If you have ever been confused by the terms “Previous Year” and “Assessment Year” — you are not alone. These two overlapping terms have long been a source of confusion for taxpayers and businesses alike.
The good news: the Income Tax Act, 2025 has done away with this dual-year terminology entirely. From 1st April 2026, there is just one term, Tax Year. Therefore, from 01st April,2026 New Tax Year 2026-27 will kick in.
Now, Financial Year = Tax Year
TDS Rates Chart for FY 2026–27
| Old Section |
New Section |
Nature of Payment |
Threshold |
Indv / HUF | Company
/ Firm |
Payment Code |
|
192 |
Sec 392 | Salary | Slab | N/A | 1001, 1002 &
1003 |
|
| 192 A | Sec 392(7) | TDS on withdrawal of Provident Fund | > 50,000 | 10 | N/A |
1004 |
|
193 |
393(1) [Table: S.No.5(i)] 393(4) [Table: S. No.6] |
Interest on securities |
10,000 |
10 |
10 |
1019 |
|
194 |
393(1) [Table: S.No.7] |
Any dividend (Including dividend on preferences shares) declared – (Payer
– Any domestic company) |
Nil |
10 |
10 |
1029 |
|
|
393(1) [Table S. No.7] | Same as above – (a shareholder being an individual) | 10,000 | 10 | N/A | 1029 |
|
194A |
393(1) [Table: S.No.5(ii) & 5(iii)] | Interest other than “Interest on securities” where payer is : |
|
|
|
a) Bank /Co-op Soc /Post office: | |||||
|
|
i) Senior citizen | 1,00,000 | 10 | 10 | 1020 | |
| ii) other than Senior citizen | 50,000 | 10 | 10 |
1021 |
||
| b) other than above | 10,000 | 10 | 10 |
1022 |
||
|
|
MCAT (Motor Accidents claims Tribunal – Except when paid to
Individual) |
50,000 | 10 | 10 | ||
| 194B | 393(3) [Table :S. No.1] | Winning from Lottery or crossword puzzle, etc. | 10,000 | 30 | 30 |
1058 |
|
194BA |
393(3) [Table :S. No.2] | Winning from Online games | No limit | 30 | 30 | 1060 |
| 194BB | 393(3) [Table :S. No.3] | Winning from Horse race | 10,000 | 30 | 30 |
1062 |
|
194C |
393(1) [Table: S. No. 6(i)], 393(4) [Table]: Sr.no. 8] |
Payment to contractors (including supply of labour for carrying out any work) |
|
|||
|
|
I. Payment to Contractors- Single transaction | 30,000 | 1 | 2 | 1023 | |
| II. Payment to contractors aggregate during Tax Year | 1,00,000 | 1 | 2 |
1024 |
||
|
194D |
393(1) [Table: S. No.1(i)] | Insurance commission | 20,000 | 2 | 10 | 1005 |
| 194EE | 393(3) [Table: S. No.6] | Payment in respect of deposit under National saving schemes etc. | 2,500 | 10 | 10 |
1066 |
|
194G |
393(3) [Table :S. No.4] | Commission, etc. on sale of lottery tickets | 20,000 | 2 | 2 | 1063 |
| 194DA | 393(1) [Table :S. No.8(1)] | Payment in respect of life insurance policy | 1,00,000 | 2 | 2 |
1030 |
|
194H |
393(1) [Table :S. No.1(ii)] | Commission/ Brokerage | 20,000 | 2 | 2 | 1006 |
| 194I | 393(1) [Table :S. No.2(ii)] | Rent
a. Land and Building |
Rs. 50,000
per month |
10 | 10 |
1009 |
|
|
b. Plant /Machinery | Rs. 50,000
per month |
2 | 2 |
1008 |
|
|
194IA |
393(1) [Table :S. No.3(i)] |
On Payment for purchase of immovable property other than non- taxable agriculture land if consideration for transfer of the
immovable property OR stamp duty value is more than Rs. 50 lacs |
50,00,000 |
1 |
1 |
NA |
| 194IB | 393(1) [Table :S. No.2(i)] | On payment of rent, where payer is other than specified persons. | Rs. 50,000
per month |
2 | 2 |
NA |
|
194IC |
393(1) [Table :S. No.3(ii)] |
Payment of consideration to
Landowners under Joint Development agreement |
Nil |
10 |
10 |
1011 |
| 194J | 393(1) [Table :S.
No.6(iii)] |
Professional Fees (including Royalty, Software etc.) |
|
|||
|
|
a. Payment to Directors other than salary | No Limit | 10 | 10 | 1028 | |
|
|
b. Payment for Technical Services | 50,000 | 2 | 2 |
1026 |
|
| c. Payment to others | 50,000 | 10 | 10 |
1027 |
||
|
194K |
393(1) [Table :S. No.4(i)] | Income in respect of units | 10,000 | 10 | 10 | 1013 |
|
194LA |
393(1) [Table :S. No.3(iii)] |
Payment of Compensation on acquisition of certain immovable property (Other than agriculture
Land) |
5,00,000 |
10 |
10 |
1012 |
|
194LBA |
393(3) [Table :S. No.5] |
Payment of certain amount in cash by bank or Co-op Society or post
office where… |
||||
| a. Recipient being a co-operative society | 3,00,00,000 | 2 | 2 | 1064 | ||
| b. Recipient being person other than a co-operative society | 1,00,00,000 | 2 | 2 |
1065 |
||
|
194O |
393(1) [Table: S.No.8(v)] | Payment of certain amount by ecommerce operator to ecommerce
participant being Individual and HUF |
5,00,000 | 0.1 | 0 | 1035 |
|
393(1) [Table:S.No.8(v)]] |
Payment of certain amount by ecommerce operator to ecommerce participant other than Individual and
HUF |
Nil |
0 |
0.1 |
NA |
|
|
194Q |
393(1) [Table: S. No.
8(ii)] |
Purchase of goods (buyer having turnover above Rs. 10 crores) | 50,00,000 | 0.1 | 0.1 | 1031 |
| 194R | 393(1) [Table: S. No.
8(iv)] |
Deduction of tax on benefit of perquisite in respect of business or
profession |
20,000 | 10 | 10 |
1033 |
|
194S |
393(1) [Table: S.No.8(vi)], 393(4) [Table: S.No.12] |
TDS on payment for Virtual Digital Asset:
Payer is individual /HUF having no Income under the head PGBP or Payer is Individual/ HUF having t/o of Preceding FY less than Rs.1 Crores/ Rs.50Lacs |
50,000 |
1 |
1 |
1034 |
|
|
Other payers | 10,000 | 1 | 1 | ||
| 194T | 393(3) [Table: S.No.7] | Payment to partners of firms (For e g. Interest/Remuneration) | 20,000 | 10 | 10 |
1067 |
TCS Provisions – Key Changes
TCS rates have been rationalized significantly. The following table summarizes the key changes effective 1st April 2026:
|
Nature of Transaction |
Old TCS Rate | New TCS Rate |
Remarks |
| Overseas Tour Package | 5% (up to ₹7L) / 20% (above ₹7L) | Flat 2% — No threshold |
Simplified single flat rate; major cash-flow relief |
|
LRS Remittance – Education G Medical |
5% (above ₹7L) | 2% (above ₹10L) | Lower rate + higher threshold |
| LRS Remittance – Other purposes | 20% (above ₹7L) | 20% (above ₹10L) |
Rate unchanged; threshold raised |
|
Motor Vehicles (above ₹10L) |
1% | 1% (unchanged) | No change |
| Multiple TCS categories (importers etc.) | Varied rates | Uniform 2% |
Simplification across categories |
Master Form Renumbering Reference
The table below is a comprehensive old-to-new form number mapping for all TDS and TCS related forms. Deductors must use the new form numbers for all filings pertaining to Tax Year 2026–27 onwards.
Ǫuarterly TDS Return Statements
|
Old Form (Act 1G61) |
New Form (Act
2025 / Rules 2026) |
Purpose / Nature of TDS | Filed By | Reference Section (New) |
|
Form 24Ǫ |
Form 138 | Salary payments (incl. pension of
specified senior citizens) |
Employer /
Deductor |
Sec. 367(3)(b) r/w Sec. 362 |
|
Form 26Ǫ |
Form 140 | All non-salary payments to residents
(interest, rent, professional fees, contractor etc.) |
Any deductor |
Sec. 367(3)(b) r/w Sec. 363 |
|
Form 27Ǫ |
Form 144 | Payments to non-residents / foreign
companies (other than salary) |
Any deductor |
Sec. 367(3)(b) r/w Sec. 365 |
| Form 27EǪ | Form 143 |
Tax Collected at Source (TCS) quarterly return |
Seller / Collector |
Sec. 400 |
Ǫuick Reference Card — Old vs. New Form Numbers
Use this as a desk reference. Old form names remain relevant for periods before 1 April 2026; new forms apply from Tax Year 2026–27.
| Category | Old Form No. |
New Form No. |
|
Salary TDS Return |
Form 24Ǫ |
Form 138 |
|
Non-Salary TDS Return (Resident) |
Form 26Ǫ |
Form 140 |
|
Non-Resident TDS Return |
Form 27Ǫ | Form 144 |
| TCS Return | Form 27EǪ |
Form 143 |
|
Salary TDS Certificate |
Form 16 | Form 130 |
| Non-Salary TDS Certificate | Form 16A |
Form 131 |
|
Property TDS Certificate |
Form 16B | Form 132 |
| Rent TDS Certificate | Form 16C |
Form 133 |
| TCS Certificate | Form 27D |
Form 147 |
|
Annual Tax Statement |
Form 26AS | Form 168 |
|
Lower/Nil TDS Application |
Form 13 |
Form 128 |
| Foreign Remittance Declaration | Form 15CA |
Form 145 |
| CA Certificate for Remittance | Form 15CB |
Form 146 |
| DTAA / Tax Residency Declaration | Form 10F |
Form 41 |
| Excess TDS Refund (Deductor) | Form 26B |
Form 136 |
Accounting System Update Checklist
|
Accounting System |
What Needs Updating | When Required By |
|
Payroll system (for employers) |
TDS section from Sec. 162 to Sec. 362;
updated perquisite valuation rules; Form 130 (new Form 16) generation |
Before April 2026 (payroll processing from Tax Year 2026–27) |
|
Accounting ERP (Tally, SAP, Zoho etc.) |
TDS/TCS section ledgers remapped to new
section codes; new form numbers in challan integration |
Before April 2026 (first transaction posting) |
|
|
Section codes from Sec. 206C to Sec. 400;
new flat rate (2%) for tour packages; revised LRS threshold of ₹10L |
Before April 2026 (first transaction posting) |
|
TRACES Portal (Deductor login) |
New form downloads options; Form 131
instead of Form 16A; correction statement now limited to 2 years |
Automatic — TRACES will update; verify after April 2026 |
|
Form 16 / 16A Generation Templates |
Redesign to Form 130 / 131 format; dual-
regime column in Part B |
Before May 2027 (first Form 130 issuance for Tax Year 2026–27) |
|
GST / Accounting Software |
TDS code cross-reference (especially for
rent, professional fees where GST and TDS both apply) |
Before April 2026 |
| Vendor Contract/Documents | Section number needs to be aligned as per new Income Tax Act,2025 |
From April 2026 onwards |