- June 18, 2026
- Posted by: Amit Mundhra CA
- Category: Income Tax
From 1 April 2026, the income tax portal no longer shows section numbers like 194C or 194J when you deposit TDS. It now uses new numeric payment codes from 1001 to 1067 under the Income Tax Act 2025. This article gives you the complete list of new TDS challan codes with the corresponding old section reference, plain English description, rate, and threshold — so you can select the right code at the challan screen without confusion.
Key Takeaways
- The new TDS challan codes range from 1001 to 1067, replacing old section numbers 192 to 206AB under the Income Tax Act 2025 with effect from 1 April 2026
- The most commonly confused change is old Section 194J, which now has three separate codes: 1026 for technical services at 2%, 1027 for professional fees at 10%, and 1028 for director fees at 10%
- New TDS challan codes for old sections 194IA, 194IB, 194M, and 194S do not appear on the regular challan dropdown — these are now filed through Form 141, the unified challan-cum-statement replacing old Forms 26QB, 26QC, 26QD, and 26QE
- All new codes are used in quarterly TDS returns on Forms 138 and 140, and for challan deposit on ITNS 281
- Using the wrong code creates a TRACES mismatch and triggers an automatic demand notice — always verify before submitting
What are the new TDS challan codes and why did they change?
From 1 April 2026, old TDS section numbers like 194C, 194J, and 194H are replaced by numeric payment codes under Section 393 of the Income Tax Act 2025. The rates and thresholds remain largely unchanged; only the code used on the challan and in TDS returns has changed. If your software still uses old section numbers for payments made after 1 April 2026, your challan will not match at TRACES and you will receive a demand notice.
How to use the new TDS challan codes on the income tax portal
On the income tax portal, select “Income Tax Act 2025” and Tax Year 2026-27. The “Description” dropdown will show the new payment codes — select the one matching your payment type. For multiple payment types, enter each code separately with its own amount. The portal dropdown is the authoritative source — always verify it there before finalising.
One timing note: for payments where credit or payment to the payee occurred on or before 31 March 2026, old section numbers still apply even if the deposit is made after 1 April 2026.
Complete list of new TDS challan codes FY 2026-27 — Codes 1001 to 1067
The new TDS challan codes are divided into two segments below: codes that every business or MSME will use regularly, and codes applicable only to specific regulated entities like banks, insurance companies, and mutual funds.
New TDS challan codes for daily business use — payments every business and MSME makes
| Code | Old section | What this covers | New section reference | Rate | Threshold |
|---|---|---|---|---|---|
| Salary and workforce | |||||
| 1001 | 192 | Salary — Government employees other than Union Government | Sec 392 | Slab rates | Basic exemption |
| 1002 | 192 | Salary — Non-government employees | Sec 392 | Slab rates | Basic exemption |
| 1004 | 192A | Premature withdrawal of accumulated PF balance | Sec 392(7) | 10% | Rs. 50,000 |
| Contractor and professional payments | |||||
| 1023 | 194C | Work contract — contractor is Individual or HUF | Sec 393(1) Table 1 Sl. No. 6(i).D(a) | 1% | Rs. 30,000 per contract or Rs. 1,00,000 aggregate |
| 1024 | 194C | Work contract — contractor is any person other than Individual or HUF | Sec 393(1) Table 1 Sl. No. 6(i).D(b) | 2% | Rs. 1,00,000 aggregate |
| 1026 | 194J(a) | Technical services fees, royalty on cinematographic films, call centre payments | Sec 393(1) Table 1 Sl. No. 6(iii).D(a) | 2% | Rs. 50,000 |
| 1027 | 194J(b) | Professional services fees — CA, advocate, doctor, engineer, consultant | Sec 393(1) Table 1 Sl. No. 6(iii).D(b) | 10% | Rs. 50,000 |
| 1028 | 194J(b) | Remuneration, fees, or commission to a director other than salary | Sec 393(1) Table 1 Sl. No. 6(iii).D(b) | 10% | Nil |
| 1006 | 194H | Commission or brokerage other than insurance commission | Sec 393(1) Table 1 Sl. No. 1(ii) | 2% | Rs. 20,000 |
| Rent | |||||
| 1008 | 194I(a) | Rent on plant, machinery, or equipment — specified person | Sec 393(1) Table 1 Sl. No. 2(ii).D(a) | 2% | Rs. 50,000 per month |
| 1009 | 194I(b) | Rent on land, building, furniture, or fittings — specified person | Sec 393(1) Table 1 Sl. No. 2(ii).D(b) | 10% | Rs. 50,000 per month |
| Interest payments | |||||
| 1022 | 194A | Interest other than interest on securities — paid by company, firm, or NBFC to any person | Sec 393(1) Table 1 Sl. No. 5(iii) | Rates in force | Rs. 10,000 per year |
| Property transactions | |||||
| 1011 | 194IC | Cash consideration under Joint Development Agreement u/s 67(14) | Sec 393(1) Table 1 Sl. No. 3(ii) | 10% | Nil |
| 1012 | 194IA | Compensation on acquisition of certain immovable property | Sec 393(1) Table 1 Sl. No. 3(iii) | 1% | Rs. 50,00,000 |
| Firm and partner payments | |||||
| 1067 | 194T | Salary, remuneration, commission, bonus, or interest paid by firm or LLP to partner including credit to capital account | Sec 393(3) Table 3 Sl. No. 7 | 10% | Rs. 20,000 per partner per year |
| Dividend, goods, perquisites, and digital assets | |||||
| 1029 | 194 | Dividend including preference share dividend declared by domestic company | Sec 393(1) Table 1 Sl. No. 7 | 10% | Nil |
| 1031 | 194Q | Purchase of goods — buyer turnover exceeds Rs. 10 crore in preceding year | Sec 393(1) Table 1 Sl. No. 8(ii) | 0.1% | Rs. 50,00,000 per seller per year |
| 1033 | 194R | Benefit or perquisite arising from business or profession — cash or kind | Sec 393(1) Table 1 Sl. No. 8(iv) | 10% | Rs. 20,000 per year |
| 1034 | 194R | Benefit or perquisite provided in kind where cash portion is insufficient to cover TDS liability | Sec 393(1) Table 1 Sl. No. 8(iv) | 10% | Rs. 20,000 per year |
| 1035 | 194O | Payment by e-commerce operator to e-commerce participant for sale of goods or services | Sec 393(1) Table 1 Sl. No. 8(v) | 0.1% | Nil (no deduction if Individual or HUF participant gross sales below Rs. 5,00,000 with PAN) |
| 1037 | 194S | Consideration for transfer of Virtual Digital Asset — by person other than Individual or HUF | Sec 393(1) Table 1 Sl. No. 8(vi) | 1% | Nil |
| 1038 | 194SP | Consideration for transfer of Virtual Digital Asset — paid in kind or partly in kind | Sec 393(1) Table 1 Sl. No. 8(vi) | 1% | Nil |
New TDS challan codes for specific regulated businesses only
| Code | Old section | What this covers | New section reference | Rate | Threshold |
|---|---|---|---|---|---|
| Insurance and financial products | |||||
| 1005 | 194D | Insurance commission paid by insurance company to agents | Sec 393(1) Table 1 Sl. No. 1(i) | Rates in force | Rs. 20,000 |
| 1030 | 194DA | Sum under life insurance policy including bonus, other than exempt amounts | Sec 393(1) Table 1 Sl. No. 8(i) | 2% | Rs. 1,00,000 |
| Mutual funds, business trusts, and investment funds | |||||
| 1013 | 194K | Income on units of specified mutual fund or specified company paid to resident | Sec 393(1) Table 1 Sl. No. 4(i) | 10% | Rs. 10,000 |
| 1014 | 194LBA | Interest income distributed by business trust (REIT or InvIT) to resident unit holder | Sec 393(1) Table 1 Sl. No. 4(ii) | 10% | Nil |
| 1015 | 194LBA | Dividend income distributed by business trust (REIT or InvIT) to resident unit holder | Sec 393(1) Table 1 Sl. No. 4(ii) | 10% | Nil |
| 1016 | 194LBA | Rental income distributed by REIT to resident unit holder | Sec 393(1) Table 1 Sl. No. 4(ii) | 10% | Nil |
| 1017 | 194LBB | Income from units of investment fund (AIF) paid to resident unit holder | Sec 393(1) Table 1 Sl. No. 4(iii) | 10% | Nil |
| 1018 | 194LBC | Income from securitisation trust paid to resident investor | Sec 393(1) Table 1 Sl. No. 4(iv) | 10% | Nil |
| Interest paid by banks and post offices | |||||
| 1019 | 193 | Interest on securities — debentures, government bonds | Sec 393(1) Table 1 Sl. No. 5(i) | Rates in force | Rs. 10,000 |
| 1020 | 194A | Interest other than interest on securities — deductee is senior citizen (bank or post office deductor) | Sec 393(1) Table 1 Sl. No. 5(ii).D(a) | Rates in force | Rs. 1,00,000 |
| 1021 | 194A | Interest other than interest on securities — deductee is other than senior citizen (bank or post office deductor) | Sec 393(1) Table 1 Sl. No. 5(ii).D(b) | Rates in force | Rs. 50,000 |
| Senior citizen bank payments | |||||
| 1032 | 194P | Income of senior citizen aged 75 or above — salary and interest from same specified bank | Sec 393(1) Table 1 Sl. No. 8(iii) | Slab rates | Basic exemption |
| Winnings and gaming | |||||
| 1058 | 194B | Winnings from lottery, crossword puzzle, card game, or gambling | Sec 393(3) Table 3 Sl. No. 1 | Rates in force | Rs. 10,000 per transaction |
| 1059 | 194B | Same as above where consideration is in kind and tax is paid before winnings are released | Sec 393(3) Table 3 Sl. No. 1 | Rates in force | Rs. 10,000 per transaction |
| 1060 | 194BA | Winnings from online gaming — on net winnings in user account at end of tax year | Sec 393(3) Table 3 Sl. No. 2 | Rates in force | Nil |
| 1061 | 194BA | Online gaming winnings in kind where tax is paid before winnings are released | Sec 393(3) Table 3 Sl. No. 2 | Rates in force | Rs. 10,000 per transaction |
| 1062 | 194BB | Winnings from horse race | Sec 393(3) Table 3 Sl. No. 3 | Rates in force | Rs. 10,000 per transaction |
| 1063 | 194G | Commission or prize paid to lottery ticket stockist, distributor, or seller | Sec 393(3) Table 3 Sl. No. 4 | 2% | Rs. 20,000 |
| Cash withdrawals by banks | |||||
| 1064 | 194N | Cash payment by bank, post office, or co-operative society to a co-operative society deductee | Sec 393(3) Table 3 Sl. No. 5.D(a) | 2% | Rs. 3,00,00,000 |
| 1065 | 194N | Cash payment by bank, post office, or co-operative society to any other person | Sec 393(3) Table 3 Sl. No. 5.D(b) | 2% | Rs. 1,00,00,000 |
| National Savings Scheme | |||||
| 1066 | 194EE | Amount withdrawn under National Savings Scheme u/s 80CCA(2)(a) | Sec 393(3) Table 3 Sl. No. 6 | 10% | Rs. 2,500 |
The codes below apply only where the deductor is a bank, post office, insurance company, mutual fund, investment fund, securitisation trust, business trust, gaming platform, or lottery operator. Most businesses will never need these codes.
Why can’t I find new TDS challan codes for 194IA, 194IB, 194M, and 194S on the portal?
This is the most common confusion when using the new TDS challan codes on the income tax portal. Four old sections do not appear in the regular section-wise payment dropdown:
- Old Section 194IA: TDS on purchase of immovable property above Rs. 50 lakh
- Old Section 194IB: TDS on rent paid by Individual or HUF not liable to tax audit
- Old Section 194M: TDS on payments by Individual or HUF not liable to tax audit to contractors and professionals
- Old Section 194S: TDS on transfer of Virtual Digital Asset by Individual or HUF
These four sections use a separate challan-cum-statement mechanism. Under the Income Tax Act 2025, old Forms 26QB, 26QC, 26QD, and 26QE are consolidated into a single Form 141. File Form 141 on the income tax portal separately from the regular quarterly TDS return. The due date is 30 days from the end of the month in which TDS was deducted.
If you are searching for these codes on the regular challan screen and cannot find them, navigate to Form 141 on the portal instead.
What are the new TDS challan codes replacing old Section 194J — why are there three codes?
Under the old Act, Section 194J covered all professional fees, technical services, royalties, and director fees under one section. Under the new Act, these payments split into three separate codes with different rates:
| Code | What it covers | Rate | Old section |
|---|---|---|---|
| 1026 | Technical services, royalty on films, call centre fees | 2% | 194J(a) |
| 1027 | Professional services — CA, advocate, doctor, engineer, architect, consultant | 10% | 194J(b) |
| 1028 | Director remuneration, fees, or commission other than salary | 10% | 194J(b) |
Using code 1026 where code 1027 applies means you have deducted at 2% instead of 10%. The portal raises a demand notice automatically for this under-deduction. Review all vendor categories in your accounts payable master before the Q1 return filing.
Frequently asked questions on new TDS challan codes
What are the new TDS challan codes under the Income Tax Act 2025?
The new TDS challan codes are numeric payment codes from 1001 to 1067 replacing old TDS section numbers like 194C, 194J, 194H, and 192. Each code corresponds to a specific entry in Section 393 of the Income Tax Act 2025 and must be used on the TDS challan and in quarterly TDS returns from 1 April 2026 onwards.
What is the new TDS challan code for 194C contractor payments?
Old Section 194C now has two new TDS challan codes. Use code 1023 if the contractor is an Individual or HUF at 1%, with threshold of Rs. 30,000 per contract or Rs. 1,00,000 aggregate. Use code 1024 if the contractor is any other person such as a company or firm at 2%, with threshold of Rs. 1,00,000 aggregate.
What is the new TDS challan code for 194J professional fees?
Old Section 194J now has three new TDS challan codes. Code 1026 covers technical services at 2%, code 1027 covers professional fees at 10%, and code 1028 covers director fees at 10%. Using code 1026 for professional services is an under-deduction error and will trigger a demand notice.
What is TDS challan code 1006?
Code 1006 is the new TDS challan code for commission or brokerage other than insurance commission, replacing old Section 194H. Rate is 2% and threshold is Rs. 20,000. Insurance commission uses a separate code 1005 at rates in force.
What is the difference between new TDS challan codes 1023 and 1024?
Both replace old Section 194C for contractor payments. Code 1023 applies where the contractor is an Individual or HUF at 1%. Code 1024 applies where the contractor is any other person such as a company or firm at 2%. Selecting the wrong code between these two is one of the most common challan errors in businesses with regular contractor payments.
Where is 2% TDS applicable under the new challan codes?
Several new TDS challan codes attract 2%: code 1024 for contractor payments to non-Individual or HUF, code 1006 for commission or brokerage, code 1008 for rent on plant and machinery, code 1026 for technical services, code 1030 for life insurance policy payout, and codes 1064 and 1065 for cash withdrawals by banks. Partner payments under code 1067 attract 10%, not 2%.
What form replaces old Form 26Q for TDS returns?
Old Form 26Q is replaced by Form 140 for non-salary TDS returns. Old Form 24Q for salary TDS is replaced by Form 138.
Disclaimer: The new TDS challan codes listed in this article are based on the income tax portal dropdown as available in June 2026 and the Income Tax Act 2025. The portal dropdown is the authoritative source for code selection. Karnani and Co. accepts no liability for errors arising from changes made by the Income Tax Department to the portal after the date of publication.
For guidance on TDS applicability or a compliance review for your business, contact Karnani and Co., Chartered Accountants, Jaipur at Contact Us.
Published: June 2026 | Last reviewed: June 2026
