If you've deducted TDS on a vendor payment before, you probably know the section number by heart — 194C for a contractor, 194J for professional fees, 194I for rent. Under the Income-tax Act, 2025, those section numbers are retired entirely, replaced by a system of numeric payment codes running from 1001 to 1092. Here's how the new system is actually structured.
Why one system replaced dozens of section numbers
The 1961 Act spread TDS obligations across roughly 30 different sections (194, 194A, 194B, 194C... through 194Q and beyond), each governing a specific payment type at its own rate and threshold. The Income-tax Act, 2025 consolidates all of this under just three parent sections — 392 (salary), 393 (all other TDS payments), and 394 (TCS) — and replaces the old section-number lookup with a system of numeric payment codes that identify the specific payment type within those three sections.
How the code ranges are organised
| Code range | Covers | Parent section |
|---|---|---|
| 1001-1004 | Salary TDS quarterly statements (Form 138) | 392 |
| 1005-1038, 1058-1067 | Non-salary TDS to residents — contractors, professional fees, rent, interest, commission | 393 |
| 1068-1092 | TCS quarterly collection statements | 394 |
Two confirmed examples, for orientation
Two specific codes are already well-documented in practitioner guidance: Code 1027 covers professional fees (CA, legal, medical) at the familiar 10% rate, and Code 1026 covers technical services (IT support, call centres) at 2% — the same rates these payment types carried under the old 194J, just under a new lookup code instead of a section number. The underlying rates and thresholds for TDS have not changed in this transition — only the numbering and lookup mechanism have.
The full code-to-payment-type list runs to dozens of entries across the ranges above; rather than reproduce a list that's still being finalised in official guidance and third-party tax software as of this writing, the reliable approach is to pull the current list directly from your payroll/accounting software's TDS module (major Indian tax software vendors have already built this mapping in) or the Income Tax Department's own reference material, and cross-check against the payment type rather than trying to memorise a static table — the same caution applies to any published list, including this one, until the numbering settles across the industry.
What this means practically for freelancers and small businesses
- Stop looking up "which section" and start looking up "which code." The mental habit of citing 194C/194J by memory needs to shift to checking the numeric code for the specific payment type before deducting TDS.
- Old section numbers on new returns will be treated as defective. Quoting 194C or 194J on a TDS return covering payments made after 1 April 2026 isn't just outdated — it can make the filing non-compliant under the new Act.
- Your accounting software should handle this automatically if it's kept current — this is exactly the kind of mechanical lookup change that tax software vendors build into an update rather than something you should track manually going forward.
For the full picture of what else changed structurally under the new Act, see our Income-tax Act, 2025 explainer.
Frequently Asked Questions
Do the actual TDS rates change under the new numeric code system?
No — this is a renumbering and consolidation of the lookup mechanism, not a rate change. A payment that attracted 10% TDS under 194J continues to attract 10% under its new numeric code.
When do I need to start using the new codes?
For TDS deducted on payments made from 1 April 2026 onward (Tax Year 2026-27). Payments made before that date, and the returns covering them, still use the old section-number system.
What happens if I mistakenly cite an old section number on a return covering the new tax year?
Returns using retired section numbers for post-transition payments risk being treated as defective under the new Act — correct and resubmit using the applicable numeric code as soon as the error is identified.
Is there a single official published list of all 92 codes?
Official guidance and industry reference tables are both still stabilising as of mid-2026 — verify against your accounting software's current TDS module or the Income Tax Department's own published material rather than relying on any single third-party table without cross-checking.
Do TCS (tax collected at source) transactions use the same numbering system?
Yes — TCS statements fall under codes 1068-1092 within Section 394, the same overall numeric-code framework as TDS.
Does this affect how much TDS I see deducted on my own income (e.g., as a freelancer receiving payment)?
No — the amount deducted is governed by the same rate and threshold rules as before. The numeric code only affects how the deductor reports and files the deduction, not how much is deducted from your payment.