What is the new TDS payment code system (1001–1067) and where do I use it?

Question

tdsguru.in (CA firm) · Accepted Answer

Under the Income-tax Act 2025, each nature of payment now carries a numeric code that you quote on the challan and in the return instead of relying only on the old section number. The Income-tax Act 2025 consolidated non-salary TDS under Section 393 and introduced a single table of numeric payment codes (1001–1067), each identifying a nature of payment (for example, contractor payments map to code 1023/1024). You quote the relevant code when paying the TDS challan and when reporting deductions in the return. The familiar 194-series numbers still describe the nature of payment, but your challans and statements must carry the correct new code.