What is the new code for 194J?

1027 for professional fees (10%), 1026 for technical fees, call centres and film royalties (2%), and 1028 for director's fees other than salary (10%).

What is the new code for TDS on rent (194I)?

1008 for plant, machinery or equipment (2%) and 1009 for land, building or furniture (10%).

Which section replaces sections 193 to 196D?

Section 393 of the Income-tax Act, 2025: sub-section (1) for residents, (2) for non-residents and (3) for payments to any person.

Do I use the new codes for FY 2025-26 corrections?

No. TDS deducted up to 31 March 2026 stays under the 1961 Act, so corrections for those periods use the old section codes and forms.

Is TCS also renumbered?

Yes. TCS moves from section 206C to section 394, with payment codes 1068 to 1092, reported in Form 143 (formerly 27EQ).

TDS Section Codes Old vs New: Payment Codes 2026-27

Mapping of old TDS section codes to new payment codes under the Income-tax Act 2025

Quick answer

From 1 April 2026 (tax year 2026-27), TDS is no longer identified by sections like 194C or 194J. Almost all non-salary TDS sits in section 393 of the Income-tax Act, 2025, and each type of payment has a four-digit payment code used in the challan and in the quarterly return. The most used: contractors 1023/1024 (old 194C), professional fees 1027 (old 194J(b)), technical fees 1026 (old 194J(a)), rent 1008/1009 (old 194I), interest 1021/1022 (old 194A), commission 1006 (old 194H) and purchase of goods 1031 (old 194Q).

Why the codes changed

Under the Income-tax Act, 1961, each type of payment had its own section, and the TDS challan and return used a short section code for it (for example 94C for 194C or 4JB for 194J(b)). The Income-tax Act, 2025 consolidates these into one table in section 393:

393(1): payments to residents (contractors, professionals, rent, interest, commission and so on)
393(2): payments to non-residents
393(3): payments to any person (lottery and online game winnings, cash withdrawals, payments to partners)

Because one section now covers dozens of payment types, "393" on its own doesn't say what the payment was. The payment code does. Using the wrong code is one of the fastest ways to get a short-deduction default from TRACES.

The most used codes at a glance

Payment	Old section	Old challan code	New provision	New payment code	Rate
Contractor, individual or HUF	194C	94C	393(1) Sl. 6(i)	1023	1%
Contractor, others	194C	94C	393(1) Sl. 6(i)	1024	2%
Professional fees	194J(b)	4JB	393(1) Sl. 6(iii)	1027	10%
Technical fees, call centre, film royalty	194J(a)	4JA	393(1) Sl. 6(iii)	1026	2%
Director's fees (non-salary)	194J(b)	4JB	393(1) Sl. 6(iii)	1028	10%
Rent, plant and machinery	194I(a)	4IA	393(1) Sl. 2(ii)	1008	2%
Rent, land, building, furniture	194I(b)	4IB	393(1) Sl. 2(ii)	1009	10%
Interest, bank or post office (others)	194A	94A	393(1) Sl. 5(ii)	1021	10%
Interest, other than bank	194A	94A	393(1) Sl. 5(iii)	1022	10%
Commission or brokerage	194H	94H	393(1) Sl. 1(ii)	1006	2%
Purchase of goods	194Q	94Q	393(1) Sl. 8(ii)	1031	0.1%

Full mapping: payments to residents (Form 140, formerly 26Q)

New code	Payment	Old section	New provision	Rate	Threshold
1005	Insurance commission (non-company 2%, company 10%)	194D	393(1) Sl. 1(i)	2% / 10%	₹20,000
1006	Commission or brokerage	194H	393(1) Sl. 1(ii)	2%	₹20,000
1008	Rent, plant, machinery or equipment	194I(a)	393(1) Sl. 2(ii)	2%	₹50,000 a month
1009	Rent, land, building or furniture	194I(b)	393(1) Sl. 2(ii)	10%	₹50,000 a month
1011	Joint development agreement, monetary consideration	194IC	393(1) Sl. 3(ii)	10%	—
1012	Compensation on compulsory acquisition	194LA	393(1) Sl. 3(iii)	10%	₹5,00,000
1013	Income from mutual fund units	194K	393(1) Sl. 4(i)	10%	₹10,000
1014–1016	Business trust: interest, dividend, rent to resident unit holders	194LBA	393(1) Sl. 4(ii)	10%	—
1017	Income from investment fund units	194LBB	393(1) Sl. 4(iii)	10%	—
1018	Income from securitisation trust	194LBC	393(1) Sl. 4(iv)	10%	—
1019	Interest on securities	193	393(1) Sl. 5(i)	10%	₹10,000
1020	Bank / post office interest, senior citizen	194A	393(1) Sl. 5(ii)	10%	₹1,00,000
1021	Bank / post office interest, others	194A	393(1) Sl. 5(ii)	10%	₹50,000
1022	Other interest	194A	393(1) Sl. 5(iii)	10%	₹10,000
1023	Contract work, individual or HUF	194C	393(1) Sl. 6(i)	1%	₹30,000 a payment / ₹1,00,000 a year
1024	Contract work, others	194C	393(1) Sl. 6(i)	2%	₹30,000 a payment / ₹1,00,000 a year
1026	Technical fees, film royalty, call centre	194J(a)	393(1) Sl. 6(iii)	2%	₹50,000
1027	Professional fees	194J(b)	393(1) Sl. 6(iii)	10%	₹50,000
1028	Director's remuneration (non-salary)	194J(b)	393(1) Sl. 6(iii)	10%	None
1029	Dividend	194	393(1) Sl. 7	10%	₹10,000 (individual)
1030	Life insurance payout (taxable part)	194DA	393(1) Sl. 8(i)	2%	₹1,00,000
1031	Purchase of goods	194Q	393(1) Sl. 8(ii)	0.1%	Above ₹50 lakh a year
1033	Business perquisite	194R	393(1) Sl. 8(iv)	10%	₹20,000
1035	E-commerce operator	194O	393(1) Sl. 8(v)	0.1%	₹5 lakh (individual / HUF)
1037	Virtual digital asset	194S	393(1) Sl. 8(vi)	1%	₹10,000
1058	Lottery, crossword, card game, betting	194B	393(3) Sl. 1	30%	₹10,000 a transaction
1060	Online game winnings	194BA	393(3) Sl. 2	30%	—
1062	Horse race winnings	194BB	393(3) Sl. 3	30%	₹10,000 a transaction
1063	Commission on lottery tickets	194G	393(3) Sl. 4	2%	₹20,000
1064	Cash withdrawal, co-operative society	194N	393(3) Sl. 5	2%	₹3 crore a year
1065	Cash withdrawal, others	194N	393(3) Sl. 5	2%	₹1 crore a year
1066	NSS withdrawal	194EE	393(3) Sl. 6	10%	₹2,500
1067	Salary, commission or interest to a partner	194T	393(3) Sl. 7	10%	₹20,000

Paid through Form 141, not a quarterly return (formerly Forms 26QB, 26QC, 26QD and 26QE): rent paid by individuals not under audit (old 194IB, 2%), purchase of immovable property (old 194IA, 1%), contract or professional fees paid by individuals not under audit (old 194M, 2%) and virtual digital assets bought by such individuals (old 194S, 1%).

Payments to non-residents (Form 144, formerly 27Q)

New code	Payment	Old section	Rate
1039	Non-resident sportsman, entertainer or sports association	194E	20%
1040 / 1041	Interest on foreign-currency borrowing / rupee bonds (before 1 July 2023)	194LC / 194LD	5%
1042 / 1043	Interest on IFSC-listed bonds	194LC	4% / 9%
1044	Interest from infrastructure debt fund	194LB	5%
1045 / 1046	Business trust: interest / dividend	194LBA	5% / 10%
1050–1055	Mutual fund, offshore fund, GDR and FII income	196A–196D	10%–20%
1057	Any other sum to a non-resident (fees for technical services, royalty, capital gains, others)	195	Rate depends on the income

TCS codes (Form 143, formerly 27EQ)

TCS moves from section 206C to section 394, with codes 1068–1092: liquor, tendu leaves, timber and forest produce (1068–1072), scrap (1073), coal, lignite and iron ore (1074), motor vehicles and notified luxury goods above ₹10 lakh (1075–1085), LRS remittances and overseas tour packages (1086–1088), and parking, toll and mining leases (1090–1092).

Salary TDS

Salary TDS moves from section 192 to section 392 and is reported in Form 138 (formerly 24Q).

Which code to use, by period

The code depends on when the TDS was deducted, not when you file or pay:

Deducted on or after 1 April 2026: new payment codes, new forms (138, 140, 143, 144).
Deducted up to 31 March 2026: old section codes and old forms (24Q, 26Q, 27Q, 27EQ), including correction statements filed today for FY 2025-26 or earlier.
Late payment of old-period TDS: if you deposit TDS deducted in March 2026 after 1 April 2026, the challan should still carry the old section code for that period.

Common mistakes that create TRACES defaults

Mistake	Result	Fix
Choosing 1024 (2%) for a professional fee	Short deduction of 8%	Classify by service: professional fees are 1027
Using 1023 for a company contractor	Short deduction of 1%	1023 is only for individuals and HUFs; companies and firms are 1024
Booking all interest under 1022	Wrong threshold applied	Bank and post office interest is 1020 or 1021
Challan code doesn't match the return	Challan not matched, "short payment" default	Use the same payment code in the challan and the return, or correct the challan
Old ERP code mapped to "393" without a payment code	Return rejected or wrong nature of payment	Map every vendor and GL to the four-digit code

Updating your ERP and vendor master

For companies and banks, the change is mostly a data job. Map each old section in the vendor master and GL to the new four-digit code, keep the old code alongside it for corrections, and check your challan templates. TaxCPC, Figment's TDS return filing software, maps old sections to the new payment codes automatically, validates each record against TRACES before filing, and generates Forms 138, 140, 143 and 144 along with the old forms for corrections. To check the code, rate and threshold for a single payment, use the free TDS calculator, or look up any old section in the Income-tax section mapper.

Frequently Asked Questions

1023 when the contractor is an individual or HUF (1%), and 1024 for any other contractor (2%), under section 393(1), Table Sl. No. 6(i).

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TDS Section Codes: Old vs New Payment Codes under the Income-tax Act, 2025