TDS Rate Chart FY 2026-27: New Section Numbers (392 & 393) Explained

2026-06-09 · 7 min read · by a CA firm

From 1 April 2026, the Income Tax Act 2025 replaced the 1961 Act, and TDS got its biggest structural change in decades. If you deduct TDS for a business, this is the one change you cannot ignore this year: the section numbers on your challans and returns have changed.

What actually changed

The old, scattered 194-series sections have been consolidated. Salary TDS now sits under Section 392. Almost every other kind of TDS — contractor payments, professional fees, rent, interest, commission, purchase of goods, partner payments — now falls under one master section, Section 393. TCS moves to Section 394.

Importantly, the familiar numbers like 194C, 194J and 194Q have not vanished from everyday language — they still describe the nature of the payment. But on the portal, your challans and quarterly returns must now use the new section references and the numeric payment codes. Filing with the old codes for any period from April 2026 gets rejected.

The rates haven't mostly changed — the numbering has

For most payments, the rate and threshold you knew still apply; only the section label is new. A handful of rates were trimmed by the Finance Act 2025 (rent by individuals, insurance maturity, and e-commerce operator payments all came down), and Section 194T brought partner payments into TDS for the first time. You can see every line in our always-current TDS rate chart for FY 2026-27.

New return forms too

The quarterly returns were renamed: Form 24Q is now Form 138 (salary), 26Q is Form 140 (resident non-salary), 27Q is Form 144 (non-resident), and 27EQ is Form 144A (TCS). Form 16 becomes Form 130, and the foreign-remittance forms 15CA/15CB become 145/146.

What you should do

Update your accounting software, Tally setup and internal checklists to the new section and form references. When in doubt about a specific payment, the fastest check is our free TDS Wizard — it tells you the section (old and new), the rate, the payment code and the deposit date in a few clicks.

FAQ

Is 194C still valid?

As a description, yes — but for filing it now falls under Section 393 with its own payment code. See the 194C guide.

Where can I see all old-to-new mappings?

Our New Sections & Payment Codes page lists every code 1001–1067 with the old and new section.

This article is general information for FY 2026-27, not advice for your specific case. Verify against the latest law or talk to a CA.