• TDS return forms: Form 24Q (salary), Form 26Q (non-salary domestic), Form 27Q (non-resident payments) — same structure, same filing process
• TDS deposit process: Monthly by 7th (March: April 30) via NSDL challan — unchanged
• TRACES portal: Login, return filing, Form 16/16A generation — all unchanged
• TDS certificates: Form 16, Form 16A, Form 16B, Form 16C — formats have minor changes but same purpose and fields
• Quarterly return due dates: Q1 July 31, Q2 October 31, Q3 January 31, Q4 May 31 — unchanged
• AIS / Form 26AS: How TDS credit is reported and how payee claims it — unchanged
• Section 40(a)(ia): Expense disallowance for non-deduction of TDS — continues in equivalent form under ITA 2025
• Penalty structure: 234E (₹200/day return late fee), 201(1A) (interest on late deposit), 271C (non-deduction penalty) — continues in equivalent form
• Form 15G/15H: Declaration for nil/lower TDS by payees with income below exemption — unchanged
• Form 13: Lower deduction certificate from AO — continues
• TAN requirements: Who needs TAN, how to apply — unchanged

Section 393 is the largest master section — it absorbs most of the commonly used 194-series sections. Understanding its sub-structure prevents errors in return filing:

Section 206AA — No PAN: 20% TDS

If the payee does not furnish their PAN — TDS at 20% or double the applicable rate (whichever is higher). This provision continues in ITA 2025 with the same effect. Collect PAN from all payees before making any TDS-applicable payment.

Section 206AB — ITR Non-Filer: Double Rate

If the payee has not filed ITR for the preceding two financial years AND their total TDS/TCS was above ₹50,000 in each of those years — deduct at the higher of: twice the normal rate, or 5%. TRACES portal has a compliance check tool (TRACES ITR Filing Status Verification) where deductors can verify the payee’s ITR filing status before payment. This provision continues in ITA 2025 unchanged.

Payments to non-residents were governed by Section 195 in the old Act. Under ITA 2025, these are reorganised under Sections 396 and 397. The practical requirements remain identical:

• Form 15CA: Online declaration by remitter before making foreign payment — continues
• Form 15CB: CA certificate certifying nature of payment and applicable TDS rate — continues
• DTAA (Double Taxation Avoidance Agreements): Same interaction with TDS rates as before — lower DTAA rate applies when the NRI provides tax residency certificate (TRC) and Form 10F
• Lower deduction certificate: NRI can still apply to AO for reduced rate under the new section equivalent
• Who needs to file 15CA/15CB: Same categories as before — changes based on amount and nature of remittance per RBI/FEMA rules

The reorganisation of NRI payment sections under ITA 2025 is more structural than substantive. All existing procedures and forms continue. NRI sellers of Indian property: Section 195 (now reorganised) continues to apply at capital gains rates — not the 1% flat rate of Section 394 (old 194IA) which applies only to resident sellers.

Immediate (April 2026)

1. Identify all TDS-applicable vendor/payment categories — list every payment type your business makes that attracted TDS under old sections
2. Map each old section to new section — use the mapping table in this article. Confirm with CA for any complex or unusual payment types.
3. Update accounting software vendor master — change TDS section codes in Tally Prime, Zoho Books, SAP, or your ERP. Contact software provider if unsure which field to update.
4. Update payroll software — salary TDS section changes from 192 to 392. Most payroll software providers will have released an update — apply it before April’s salary run.
5. Correct two common errors proactively: Commission threshold is ₹15,000 (not ₹20,000). Bank interest threshold is ₹40,000 for general taxpayers (not ₹50,000). Update your TDS tracking accordingly.

Before First Quarterly Return (July 31, 2026)

1. Trial run of quarterly return — generate a test Form 26Q before filing. Verify all section codes are correct in the system-generated return file.
2. Reconcile challan section codes — TDS challans deposited from April 2026 should use new section codes. Verify with bank that the challan correctly reflects the new codes.
3. 206AB verification habit — add ITR filing status check to the payment approval process for all professional fees and large contractor payments above ₹1 lakh.

Before Year-End (March 2027)

1. AIS reconciliation: Verify all TDS deposits for FY 2026-27 are reflected in payees’ AIS under the correct new section codes.
2. Form 16/16A generation: Confirm TRACES has updated certificate templates for new section references. Generate sample Form 16A and verify section reference is 393 (not old 194J/194C).

TCS (Tax Collected at Source) provisions were also reorganised under ITA 2025. Key distinction: TDS is deducted by the payer at time of payment. TCS is collected by the seller at time of sale. Common TCS situations: car sale above ₹10 lakh (1% TCS), scrap sale, luxury goods, foreign remittance under LRS (Liberalised Remittance Scheme), overseas tour packages.

TCS section numbers have also changed under ITA 2025. If your business collects TCS (car dealers, luxury goods sellers, forex dealers, overseas tour operators) — verify the new TCS section codes with your CA separately. The transition approach is identical: same rates, new section numbers, software update required.