Last reviewed: 8 July 2026. The Income-tax Act, 2025 reorganises the familiar TDS provisions of the 1961 Act into a more consolidated, structured format. For most businesses the substance - who deducts, at what rate, above what threshold - is broadly retained, but the section references and layout change, which matters for challans, returns and certificates. This guide explains what is changing, why mapping old to new matters, and how to prepare.
At a glance
What is actually changing
The new Act presents TDS in a more consolidated, table-based structure rather than as scattered sections. The economic substance of the common deductions - contractor payments, professional fees, rent, commission, purchase of goods - continues, so you are not relearning the rules, but you are relearning where to find them and how to reference them.
Why mapping old to new matters
During the transition you must quote the correct provision on TDS challans, returns and certificates. Mapping your existing sections to their place in the new framework - and updating your accounting software's TDS masters accordingly - prevents wrong codes, mismatches and notices. Reconcile a few live transactions to confirm the mapping before relying on it.
How to prepare
- Update TDS masters and the code mapping in your accounting system.
- Train the accounts team on the new references for your common payments.
- Confirm the applicability date - use the provisions in force for each period.
- Because the fine detail evolves as forms are notified, verify the exact mapping for your payments with a professional before relying on it.
Frequently asked questions
What is changing for TDS under the Income-tax Act, 2025?
The new Act reorganises and consolidates the TDS provisions of the 1961 Act, presenting them in a more structured, table-based format. The underlying substance - who deducts, at what rate and threshold - is largely carried forward, but the section references and layout change.
Do TDS rates and thresholds change?
Broadly the rates and thresholds are retained, though the government continues to rationalise thresholds from time to time. The main practical change is the reorganisation and renumbering, not a wholesale change in rates.
Why does mapping old to new sections matter?
During the transition, you need to quote the correct provision on challans, returns and certificates. Mapping your existing sections (like 194C, 194J, 194Q) to their place in the new structure avoids errors and mismatches.
Will the common sections like 194C and 194J still exist?
The familiar deductions - contractor payments, professional fees, rent, commission, purchase of goods - continue in substance under the new framework, even if presented differently within the consolidated structure.
When does the new Act apply?
The new Act applies from its notified effective date. Until then, and for periods before it, the 1961 Act provisions govern - so watch the applicability date for your deductions and returns.
What should businesses do to prepare?
Update your TDS masters and accounting software mapping, train the team on the new references, and reconcile a few live transactions to confirm the correct code is being quoted.
Does the reorganisation affect TDS returns?
The return and challan formats follow the applicable law for the period. During transition, ensure the software and the codes used match the provisions in force for that period.
Where can I get the exact new mapping?
Because the fine detail evolves as rules and forms are notified, confirm the precise mapping for your specific payments with a professional or the latest official material before relying on it.
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WhatsAppLinkedInSchedule a callDisclaimer: This article is for general guidance only. The new Act's detailed provisions evolve as rules and forms are notified; please confirm the current position before relying on it.