Old vs new TDS sections and forms
Old vs New TDS Sections and Forms: A Complete Comparison for FY 2026-27
The Income Tax Act, 2025, which comes into effect from 1 April 2026, has brought several changes to the TDS framework. While the basic rules for deducting tax at source remain the same, many TDS sections have been renumbered and reorganised to make the law easier to understand and follow.
One of the key changes is the grouping of various TDS provisions under new sections such as Sections 392 and 393. Along with this, some forms have also been renamed and updated under the new Act.
In this post, we will look at the old and new TDS sections, understand the changes in TDS forms, and discuss what businesses should do to stay compliant under the new tax law.
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Old vs New TDS Sections
Introduction of New TDS Sections
Under the Income Tax Act, 1961, TDS provisions were covered under several sections such as 192, 194A, 194C, 194J, 194Q and many others. With the introduction of the Income Tax Act, 2025, these provisions have been reorganised into a simpler structure. Salary-related TDS provisions are now covered under Section 392, while most other TDS provisions have been brought under Section 393. Â
Although the section numbers have changed, the TDS rates, threshold limits, and applicability remain largely the same. Therefore, businesses and taxpayers need to understand the new section mapping to ensure correct TDS deduction, reporting, and compliance.
Comparison of Important TDS Sections
| Old Section | Nature of Payment | New Section |
| 192 | Salary | 392(7) |
| 192A | EPF Withdrawal | 392(7) |
| 194C | Contractor Payments | 393(1) Sl.6(i) |
| 194H | Commission/Brokerage | 393(1) Sl.1(ii) |
| 194I | Rent | 393(1) Sl.2(ii) |
| 194J | Professional and Technical Fees | 393(1) Sl.6(iii) |
| 194O | E-commerce Transactions | 393(1) Sl.8(v) |
| 194Q | Purchase of Goods | 393(1) Sl.8(ii) |
| 194R | Benefits or Perquisites | 393(1) Sl.8(iv) |
| 194S | Virtual Digital Assets | 393(1) Sl.8(vi) |
| 193 | Interest on Securities | 393(1) Sl.5(i) |
| 194 | Dividend | 393(1) Sl.7 |
| 194A | Interest Other Than Securities | 393(1) Sl.5(ii)/(iii) |
| 194D | Insurance Commission | 393(1) Sl.1(I) |
| 194IA | Purchase of Immovable Property | 393(1) Sl.3(iii) |
| 194IB | Rent by Certain Individuals or HUFs | 393(1) Sl.3(iv) |
| 194K | Income from Mutual Funds | 393(1) Sl.4(i) |
| 194N | Cash Withdrawals | 393(3) Sl.5 |
Section 194Q
Under the Income Tax Act, 1961, Section 194Q required buyers to deduct TDS at 0.1% on the purchase of goods once the specified limit was crossed.
Under the Income Tax Act, 2025, this provision has been moved to Section 393. While the section number has changed, the requirement to deduct TDS on the purchase of goods remains the same. A specific nature code has also been introduced to help identify and report these transactions correctly.
Section 194R
Section 194R deals with TDS on benefits or perks given during the course of business or profession.
Under the Income Tax Act, 2025, this provision has been moved under Section 393. Businesses that provide gifts, incentives, rewards, or other benefits must continue to check whether TDS is applicable and deduct it accordingly.
Section 194O
Section 194O covers TDS on payments made through e-commerce platforms. If a seller sells goods or services through an online marketplace, the e-commerce operator is responsible for deducting TDS on the payment made to the seller.
Under the Income Tax Act, 2025, this provision has been moved under Section 393. Although the section number has changed, the responsibility of e-commerce operators to deduct TDS remains the same.
Section 194S
Section 194S deals with TDS on transactions involving virtual digital assets such as cryptocurrencies.
Under the Income Tax Act, 2025, this provision has been moved under Section 393. Although the section number has changed, taxpayers dealing in cryptocurrencies and other virtual digital assets must continue to deduct and comply with TDS requirements as applicable.
Old vs New TDS Forms
Form 15G & 15H to Form 121
One important change under the Income Tax Act, 2025 is the introduction of Form 121, which replaces both Form 15G and Form 15H.
Earlier, individuals below 60 years used Form 15G, while senior citizens used Form 15H to declare that their income was not taxable and to avoid TDS deduction on certain incomes.
Now, a single Form 121 can be used by all eligible resident taxpayers for the same purpose. This removes the need for separate forms and makes the declaration process easier for taxpayers as well as deductors.
Form 16 to Form 130
Form 16 is the TDS certificate issued by employers to employees for tax deducted from salary.
Under the Income Tax Act, 2025, Form 16 has been renamed as Form 130. The purpose of the form remains the same. Employers will continue to issue it to employees as proof of TDS deducted from salary and deposited with the government.
Form 16A to Form 131
Form 16A is issued for TDS deducted on payments other than salary, such as professional fees, commission, interest, rent, and contractor payments.
Under the Income Tax Act, 2025, Form 16A has been renamed as Form 131. Deductors must continue issuing this certificate to payees for TDS deducted on eligible non-salary payments.
Form 24Q to Form 138
Form 24Q is the quarterly TDS return filed by employers for salary payments.
Under the Income Tax Act, 2025, Form 24Q has been renamed as Form 138. Employers must continue reporting salary-related TDS details through this new form.
Form 26Q to Form 140
Form 26Q is the quarterly TDS return used for reporting TDS deducted on payments made to resident taxpayers other than salary.
Under the Income Tax Act, 2025, Form 26Q has been renamed “Form 140.” Businesses must use this form to report applicable non-salary TDS deductions.
Form 27EQ to Form 143
Form 27EQ is the quarterly statement used for reporting Tax Collected at Source (TCS).
Under the Income Tax Act, 2025, Form 27EQ has been renamed ‘Form 143’. Tax collectors must continue reporting TCS transactions through the revised form.
Form 26AS to Form 168
Form 26AS is the annual tax statement that shows details such as TDS, TCS, advance tax, self-assessment tax, and other tax-related information.
Under the Income Tax Act, 2025, Form 26AS has been renamed “Form 168.” Taxpayers can continue using it to verify tax credits and match their tax payments.
Form 15CA to Form 145
Form 15CA is a declaration required for certain foreign remittances made outside India.
Under the Income Tax Act, 2025, Form 15CA has been renamed as “Form 145”. Taxpayers making eligible foreign remittances must continue furnishing the required details through this form.
Form 15CB to Form 146
Form 15CB is a certificate issued by a Chartered Accountant for specified foreign remittances. It confirms the taxability and compliance requirements of the transaction.
Under the Income Tax Act, 2025, Form 15CB has been renamed as “Form 146.” The certification requirement remains the same wherever applicable.
Form 24A to Form 143
Form 24A was used for certain TDS-related reporting and correction processes under the earlier law.
Under the Income Tax Act, 2025, Form 24A has been renamed as “Form 143.” Taxpayers and deductors should use the revised form for the relevant compliance procedures under the new Act.
Quick Reference Table: Old vs New TDS Forms
| Old Form | Purpose | New Form |
| Form 15G / 15H | Declaration for non-deduction of TDS | Form 121 |
| Form 16 | Salary TDS Certificate | Form 130 |
| Form 16A | Non-Salary TDS Certificate | Form 131 |
| Form 24Q | Salary TDS Return | Form 138 |
| Form 26Q | Non-Salary TDS Return (Residents) | Form 140 |
| Form 27EQ | TCS Return | Form 143 |
| Form 26AS | Annual Tax Statement | Form 168 |
| Form 15CA | Foreign Remittance Declaration | Form 145 |
| Form 15CB | CA Certificate for Foreign Remittance | Form 146 |
| Form 24A | Specific TDS Reporting/Correction Processes | Form 143 |
Enhanced Reporting in TDS Returns
The Income Tax Act, 2025 aims to make TDS reporting more organised and easier to track. It uses specific codes and better classification of transactions so that the tax department can clearly identify the type of payment and the related TDS deduction.
Because of this, businesses should maintain proper records and ensure that TDS deductions are reported under the correct section while filing returns.
Digital Compliance Shift
The new tax framework encourages more digital and organised compliance. Some TDS forms have been renamed and simplified to make the process easier for taxpayers and businesses.
As a result, businesses need to maintain proper records and rely on accounting, payroll, or compliance software to manage TDS deductions, filings, and reporting accurately and on time.
Common Challenges with New TDS Provisions
When moving to the new TDS framework, businesses and tax professionals may face a few practical challenges, such as:
- Getting familiar with the new section numbers and their corresponding old sections.
- Updating accounting, payroll, and compliance software to reflect the new provisions.
- Training finance and tax teams on the revised structure.
- Ensuring the correct nature code is selected while reporting transactions.
- Avoiding mistakes in TDS returns during the initial transition period.
Since the changes mainly involve restructuring and renumbering, these challenges are expected to reduce once businesses become accustomed to the new system.
Best Practices to Manage TDS Compliance
To manage TDS compliance smoothly under the Income Tax Act, 2025, businesses can follow a few simple practices:
- Keep a ready reference of the old and new TDS section mappings.
- Regularly check and update vendor and employee details.
- Verify PAN information before making payments.
- Reconcile TDS deductions and payments at regular intervals.
- Stay informed about the latest updates and notifications from the Income Tax Department.
- Use payroll or tax software to reduce manual work and avoid filing errors.
How Saral Helps Ensure Accurate TDS Compliance
Saral TDS makes compliance easier by automating TDS calculations, supporting the latest section mapping, preparing returns, and checking for errors before filing. This helps businesses save time, reduce manual work, and file TDS returns accurately and on time.
Conclusion
The Income Tax Act, 2025 has not brought major changes to the basic concept of TDS. However, it has reorganised the TDS framework by introducing new section numbers, revised reporting requirements, and simplified forms. Provisions such as Sections 194Q, 194R, 194O, and 194S continue to exist, but they are now covered under Section 393 of the new Act.
Businesses should take time to understand these changes, update their accounting and compliance systems, and ensure their teams are familiar with the new provisions. Being prepared in advance will help avoid filing mistakes and make the transition to the new tax regime much smoother.
That brings us to the end of this post on the old and new TDS sections and forms under the Income Tax Act, 2025. We hope the information shared here has given you a clear understanding of the changes and what they mean for TDS compliance.
If you have any doubts or questions on this topic, do let us know in the comments below. Our team will be glad to help you with your queries.
