Complete guide on TDS new sections and codes applicable from FY 2026-27 including rates, thresholds, forms, and detailed tables. Expert guide by Covai Accounting Services.
TDS New Sections and Codes with Effect from FY 2026-27 – Complete Guide
This detailed guide explains the new TDS sections, codes, rates, thresholds, and forms applicable from Financial Year 2026-27. The government has restructured TDS provisions under new section codes to simplify compliance, filing, and reporting.
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Overview of TDS Changes FY 2026-27
The Income Tax Department introduced new consolidated TDS sections mainly under Sections 392, 393, and 394. These sections reorganize existing TDS provisions into structured categories such as salary, interest, commission, rent, professional services, NRI payments, gaming income, and TCS transactions.
Major Changes in TDS FY 2026-27
- New TDS section codes introduced
- Old sections mapped into new consolidated sections
- New TDS return forms introduced
- Updated thresholds and rates
- Simplified compliance reporting
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TDS Master Table for FY 2026-27
| New Section | Old Section | Category | Nature of Payment | Rate | Threshold | New Form | Old Form |
|---|---|---|---|---|---|---|---|
| 392 | 192 | TDS on Salary | Government employee | Avg Rate | As per slab | Form 138 | Form 24Q |
| 392 | 192 | TDS on Salary | Private employee | Avg Rate | As per slab | Form 138 | Form 24Q |
| 392 | 192A | TDS on PF Withdrawal | PF Withdrawal Payment | 10% | 50000 | Form 140 | Form 26Q |
| 393 | 194D | Commission | Insurance Commission | 2% | 20000 | Form 140 | Form 26Q |
| 393 | 194H | Commission | Other Commission | 2% | 20000 | Form 140 | Form 26Q |
| 393 | 194IB | Rent | Rent by Individual/HUF | 2% | 50000 pm | Form 141 | Form 26QC |
| 393 | 194I | Rent | Building Rent | 10% | 50000 pm | Form 140 | Form 26Q |
| 393 | 194IA | Property | Immovable Property Transfer | 1% | 50 Lakh | Form 141 | Form 26QB |
| 393 | 194J | Professional | Professional Services | 10% | 50000 | Form 140 | Form 26Q |
| 393 | 194C | Contract | Contract Payment | 1% / 2% | 30000 / 1L | Form 140 | Form 26Q |
| 393 | 194 Dividend | Dividend | Dividend from Domestic Company | 10% | - | Form 140 | Form 26Q |
| 393 | 194R | Perquisite | Perquisite & Benefit | 10% | 20000 | Form 140 | Form 26Q |
| 393 | 194O | E-Commerce | TDS by E-Commerce Operator | 0% | 5,00,000 | Form 140 | Form 26Q |
| 393 | 194S | Virtual Digital Asset | Crypto / VDA | 1% | - | Form 141 | Form 26EQ |
| 393 | 194B | Lottery | Lottery / Gambling | 30% | 10000 | Form 140 | Form 26Q |
| 393 | 194BA | Online Gaming | Net Winnings | 30% | - | Form 140 | Form 26Q |
| 393 | 194T | Partner Payment | Payment to Partner | 10% | 20000 | Form 140 | Form 26Q |
| 394 | 206C | TCS | Sale of Scrap | 2% | - | Form 143 | Form 27EQ |
| 394 | 206C(1F) | TCS | Motor Vehicle > 10L | 1% | 10 Lakh | Form 143 | Form 27EQ |
| 394 | 206C(1G) | TCS | LRS Remittance | 2% / 20% | 10 Lakh | Form 143 | Form 27EQ |
Conclusion
The new TDS sections applicable from FY 2026-27 aim to simplify tax deduction compliance and reporting. Businesses must update accounting systems, ERP software, and TDS return filing procedures according to the new section codes and forms.
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