{"id":10272,"date":"2026-04-05T17:54:47","date_gmt":"2026-04-05T17:54:47","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10272"},"modified":"2026-07-23T19:10:43","modified_gmt":"2026-07-23T19:10:43","slug":"tds-compliance-reform","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/","title":{"rendered":"All about TDS Compliance Reform Effective from 1.04.2026"},"content":{"rendered":"<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10305\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326.jpeg\" alt=\"Income Tax Rates \u2013 Tax Year 2026\u201327\" width=\"1280\" height=\"853\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326.jpeg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326-300x200.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326-1024x682.jpeg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326-768x512.jpeg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1777536100326-800x533.jpeg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a7ad881386ed\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a7ad881386ed\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Understanding_about_Tax_Deducted_at_Source_Compliance_Reform_Effective_from_1st_April_2026\" title=\"Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026\">Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#What_Has_Changed_Big_Picture\" title=\"What Has Changed? (Big Picture)\">What Has Changed? (Big Picture)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Practical_Impact_on_TDS_Tax_Compliance_Reform\" title=\"Practical Impact on TDS Tax Compliance Reform\">Practical Impact on TDS Tax Compliance Reform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#New_Tax_Deducted_at_Source_Certificates\" title=\"New Tax Deducted at Source Certificates:\">New Tax Deducted at Source Certificates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Key_TDS_Rate_Comparison%E2%80%94Tax_Deducted_at_Source_rates_Old_vs_New_provisions\" title=\"Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source rates (Old vs New provisions) \">Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source rates (Old vs New provisions) <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Action_Point_of_Key_Tax_Compliance_Reform\" title=\"Action Point of Key Tax Compliance Reform \">Action Point of Key Tax Compliance Reform <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#New_Income_Tax_Act_2025_Section_3_%E2%80%93_Definition_of_%E2%80%9CTax_Year%E2%80%9D\" title=\"New Income Tax Act, 2025 : Section 3 \u2013 Definition of \u201cTax Year\u201d\u00a0\">New Income Tax Act, 2025 : Section 3 \u2013 Definition of \u201cTax Year\u201d\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Quick_Reference_Chart_of_Important_TDS_Sections_Rates_Thresholds_incorporating_provisions_applicable_from_FY_2026-27\" title=\"Quick Reference Chart of Important TDS Sections, Rates &amp; Thresholds incorporating provisions applicable from FY 2026-27.\">Quick Reference Chart of Important TDS Sections, Rates &amp; Thresholds incorporating provisions applicable from FY 2026-27.<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#1_Salary_%E2%80%93_Section_192\" title=\"1. Salary \u2013 Section 192\">1. Salary \u2013 Section 192<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#2_Interest_on_Securities_%E2%80%93_Section_193\" title=\"2. Interest on Securities \u2013 Section 193\">2. Interest on Securities \u2013 Section 193<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#3_Interest_Other_Than_Securities_%E2%80%93_Section_194A\" title=\"3. Interest Other Than Securities \u2013 Section 194A\">3. Interest Other Than Securities \u2013 Section 194A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#4_Contractor_Sub-Contractor_%E2%80%93_Section_194C\" title=\"4. Contractor \/ Sub-Contractor \u2013 Section 194C\">4. Contractor \/ Sub-Contractor \u2013 Section 194C<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#5_Rent_%E2%80%93_Section_194I\" title=\"5. Rent \u2013 Section 194I\">5. Rent \u2013 Section 194I<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#7_Commission_Brokerage_%E2%80%93_Section_194H\" title=\"7. Commission \/ Brokerage \u2013 Section 194H\">7. Commission \/ Brokerage \u2013 Section 194H<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#8_Purchase_of_Goods_%E2%80%93_Section_194Q\" title=\"8. Purchase of Goods \u2013 Section 194Q\">8. Purchase of Goods \u2013 Section 194Q<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#9_Benefit_or_Perquisite_%E2%80%93_Section_194R\" title=\"9. Benefit or Perquisite \u2013 Section 194R\">9. Benefit or Perquisite \u2013 Section 194R<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#10_Payment_to_Non-Resident_%E2%80%93_Section_195\" title=\"10. Payment to Non-Resident \u2013 Section 195\">10. Payment to Non-Resident \u2013 Section 195<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#11_E-Commerce_Operator_%E2%80%93_Section_194O\" title=\"11. E-Commerce Operator \u2013 Section 194O\">11. E-Commerce Operator \u2013 Section 194O<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#12_Transfer_of_Virtual_Digital_Assets_Crypto_%E2%80%93_Section_194S\" title=\"12. Transfer of Virtual Digital Assets (Crypto) \u2013 Section 194S\">12. Transfer of Virtual Digital Assets (Crypto) \u2013 Section 194S<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Important_Compliance_Points\" title=\"Important Compliance Points\">Important Compliance Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#TDS_Return_Due_Dates\" title=\"TDS Return Due Dates\">TDS Return Due Dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Consequences_of_Non-Compliance\" title=\"Consequences of Non-Compliance\">Consequences of Non-Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Practical_TDS_Rates_to_Remember\" title=\"Practical TDS Rates to Remember\">Practical TDS Rates to Remember<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_about_Tax_Deducted_at_Source_Compliance_Reform_Effective_from_1st_April_2026\"><\/span><span style=\"color: #000080;\"><strong>Understanding about <\/strong><strong>Tax Deducted at Source<\/strong><strong> Compliance Reform Effective from 1st April 2026<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The TDS (Tax Deducted at Source) framework has undergone a structural overhaul with the introduction of the Income Tax Act, 2025 and Income Tax Rules, 2026. This is not just a change in sections; it is a shift towards real-time, technology-driven tax compliance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Has_Changed_Big_Picture\"><\/span><span style=\"color: #000080;\"><strong>What Has Changed? (Big Picture)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6480\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS.png\" alt=\"TDS\" width=\"1008\" height=\"552\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS.png 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS-300x164.png 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS-768x420.png 768w\" sizes=\"(max-width: 1008px) 100vw, 1008px\" \/><\/strong><\/p>\n<p>India\u2019s tax reporting framework is poised for a significant transformation with the proposed implementation of the Income\u2011tax Act, 2025, effective from FY 2026\u201127. The following are the big picture of change:<\/p>\n<ul>\n<li>Transition from old law \u2192 new Act with renumbered sections &amp; simplified structure<\/li>\n<li>Focus on automation, transparency, and reduced disputes<\/li>\n<li>Movement from year-end adjustments \u2192 real-time TDS accuracy<\/li>\n<\/ul>\n<p>Below are the key Tax Deducted at Source-related changes every tax professional, employer, and business should be aware of New TDS Return Forms: Under the new Act, existing Tax Deducted at Source return forms are proposed to be renumbered as follows:<\/p>\n<ul>\n<li>Salary Tax Deducted at Source Return: Form 24Q \u279d Form 138<\/li>\n<li>Non\u2011Salary Tax Deducted at Source Return: Form 26Q \u279d Form 140<\/li>\n<li>Non\u2011Resident Tax Deducted at Source Return: Form 27Q \u279d Form 144<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Practical_Impact_on_TDS_Tax_Compliance_Reform\"><\/span><span style=\"color: #000080;\"><strong>Practical Impact on TDS Tax Compliance Reform<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10273\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1.jpeg\" alt=\"\" width=\"967\" height=\"591\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1.jpeg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1-300x183.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1-768x469.jpeg 768w\" sizes=\"(max-width: 967px) 100vw, 967px\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10274\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2.jpeg\" alt=\"\" width=\"995\" height=\"596\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2.jpeg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2-300x180.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2-768x460.jpeg 768w\" sizes=\"(max-width: 995px) 100vw, 995px\" \/><\/p>\n<p><span style=\"color: #000080;\"><strong>Practical Impact on Tax Deducted at Source Compliance Reform on Taxpayers &amp; Businesses are as follows: <\/strong><\/span><\/p>\n<ul>\n<li>Increased compliance responsibility on deductees<\/li>\n<li>Higher penalties for incorrect \/ delayed Tax Deducted at Source<\/li>\n<li>Greater data matching with AIS \/ system analytics<\/li>\n<li>Impact on cash flows &amp; take-home salary<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"New_Tax_Deducted_at_Source_Certificates\"><\/span><span style=\"color: #000080;\"><strong>New Tax Deducted at Source Certificates:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10275\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3.jpeg\" alt=\"\" width=\"939\" height=\"987\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3.jpeg 788w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3-286x300.jpeg 286w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3-768x807.jpeg 768w\" sizes=\"(max-width: 939px) 100vw, 939px\" \/><\/p>\n<p>Corresponding changes are also proposed in Tax Deducted at Source certificates:<\/p>\n<ul>\n<li>Form 16 \u279d Form 130<\/li>\n<li>Form 16A \u279d Form 131<\/li>\n<\/ul>\n<p><em>A detailed section\u2011wise comparison of <\/em>Tax Deducted at Source<em> rates (Old vs New provisions) and Forms (existing vs proposed) is provided in the reference images. <\/em>This Means for Taxpayers &amp; organizations a streamlined and modernized compliance framework, Improved reporting clarity and standardization and Alignment with the simplified structure of the new Act<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_TDS_Rate_Comparison%E2%80%94Tax_Deducted_at_Source_rates_Old_vs_New_provisions\"><\/span><span style=\"color: #000080;\"><strong>Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source<em> rates (Old vs New provisions) <\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<thead>\n<tr>\n<td><strong>Nature of Payment<\/strong><\/td>\n<td><strong>Old Provision (1961 Act)<\/strong><\/td>\n<td><strong>TDS Rate<\/strong><\/td>\n<td><strong>New Provision (2025 Act)<\/strong><\/td>\n<td><strong>TDS Rate<\/strong><\/td>\n<td><strong>Key Change<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Salary<\/td>\n<td>Sec 192<\/td>\n<td>Slab rates<\/td>\n<td>Corresponding section<\/td>\n<td>Slab rates<\/td>\n<td>No change (better reporting)<\/td>\n<\/tr>\n<tr>\n<td>Interest (other than securities)<\/td>\n<td>Sec 194A<\/td>\n<td>10%<\/td>\n<td>Rationalised section<\/td>\n<td>10%<\/td>\n<td>Thresholds streamlined<\/td>\n<\/tr>\n<tr>\n<td>Contractor Payments<\/td>\n<td>Sec 194C<\/td>\n<td>1% \/ 2%<\/td>\n<td>Simplified contractor provision<\/td>\n<td>1% \/ 2%<\/td>\n<td>Classification clarity<\/td>\n<\/tr>\n<tr>\n<td>Professional Fees<\/td>\n<td>Sec 194J<\/td>\n<td>10%<\/td>\n<td>Merged \/ simplified provision<\/td>\n<td>10%<\/td>\n<td>Reduced disputes<\/td>\n<\/tr>\n<tr>\n<td>Commission \/ Brokerage<\/td>\n<td>Sec 194H<\/td>\n<td>5%<\/td>\n<td>Rationalised section<\/td>\n<td>5%<\/td>\n<td>Structural simplification<\/td>\n<\/tr>\n<tr>\n<td>Rent (Land\/Building)<\/td>\n<td>Sec 194I<\/td>\n<td>10%<\/td>\n<td>Simplified rent provision<\/td>\n<td>10%<\/td>\n<td>Uniformity improved<\/td>\n<\/tr>\n<tr>\n<td>Rent (Plant &amp; Machinery)<\/td>\n<td>Sec 194I<\/td>\n<td>2%<\/td>\n<td>Same concept retained<\/td>\n<td>2%<\/td>\n<td>No major change<\/td>\n<\/tr>\n<tr>\n<td>Purchase of Goods<\/td>\n<td>Sec 194Q<\/td>\n<td>0.1%<\/td>\n<td>Continued with simplification<\/td>\n<td>0.1%<\/td>\n<td>Compliance ease<\/td>\n<\/tr>\n<tr>\n<td>Sale of Property<\/td>\n<td>Sec 194IA<\/td>\n<td>1%<\/td>\n<td>PAN-based simplified system<\/td>\n<td>1%<\/td>\n<td>Process simplified<\/td>\n<\/tr>\n<tr>\n<td>Cash Withdrawal<\/td>\n<td>Sec 194N<\/td>\n<td>2% \/ 5%<\/td>\n<td>Continued<\/td>\n<td>2% \/ 5%<\/td>\n<td>Monitoring strengthened<\/td>\n<\/tr>\n<tr>\n<td>Dividend<\/td>\n<td>Sec 194<\/td>\n<td>10%<\/td>\n<td>Rationalised<\/td>\n<td>10%<\/td>\n<td>No rate change<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Action_Point_of_Key_Tax_Compliance_Reform\"><\/span><span style=\"color: #000080;\"><strong>Action Point of Key Tax Compliance Reform <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Organizations should proactively update their payroll systems, compliance software, SOPs, and documentation to ensure a smooth transition once the new provisions are notified. <em>These changes are based on the proposed Income\u2011tax Act, 2025 and will be applicable subject to final enactment and official notifications.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Income_Tax_Act_2025_Section_3_%E2%80%93_Definition_of_%E2%80%9CTax_Year%E2%80%9D\"><\/span><span style=\"color: #000080;\">New Income Tax Act, 2025 : Section 3 \u2013 Definition of \u201cTax Year\u201d\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10303\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tax-year.jpeg\" alt=\"Tax Year\" width=\"754\" height=\"1131\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tax-year.jpeg 480w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tax-year-200x300.jpeg 200w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/p>\n<div>\n<h2><span class=\"ez-toc-section\" id=\"Quick_Reference_Chart_of_Important_TDS_Sections_Rates_Thresholds_incorporating_provisions_applicable_from_FY_2026-27\"><\/span><span style=\"color: #000080;\"><strong>Quick Reference Chart of Important TDS Sections, Rates &amp; Thresholds<\/strong> incorporating provisions applicable from <strong>FY 2026-27<\/strong>.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here&#8217;s a detailed explanation:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Salary_%E2%80%93_Section_192\"><\/span><span style=\"color: #000080;\">1. Salary \u2013 Section 192<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: As per applicable income tax slab rates.<\/li>\n<li>Threshold: Basic exemption limit under the applicable tax regime.<\/li>\n<li>Deducted by: Employer.<\/li>\n<li>TDS is calculated on estimated annual taxable salary after considering eligible deductions\/exemptions.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Interest_on_Securities_%E2%80%93_Section_193\"><\/span><span style=\"color: #000080;\">2. Interest on Securities \u2013 Section 193<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: 10%<\/li>\n<li>Threshold: \u20b910,000<\/li>\n<li>Applicable on interest from debentures, bonds, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Interest_Other_Than_Securities_%E2%80%93_Section_194A\"><\/span><span style=\"color: #000080;\">3. Interest Other Than Securities \u2013 Section 194A<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>(Bank FD, RD, Deposits, etc.)<\/p>\n<ul>\n<li>TDS Rate: 10%<\/li>\n<li>Threshold: INR 1,00,000 for senior citizens and INR 50,000 for others<\/li>\n<li>Deducted by banks, post offices, cooperative societies, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Contractor_Sub-Contractor_%E2%80%93_Section_194C\"><\/span><span style=\"color: #000080;\">4. Contractor \/ Sub-Contractor \u2013 Section 194C<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Individual\/HUF Contractor : TDS @ 1%<\/p>\n<p>Firm\/Company\/LLP\/Other Contractor: TDS @ 2%<\/p>\n<p>Threshold : <span style=\"font-size: 16px;\">Single payment exceeds INR 30,000, or <\/span><span style=\"font-size: 16px;\">aggregate payments exceed INR 100,000 during the financial year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Rent_%E2%80%93_Section_194I\"><\/span><span style=\"color: #000080;\">5. Rent \u2013 Section 194I<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Plant &amp; Machinery Rent : TDS Rate: 2% and Threshold: \u20b950,000 per month<\/p>\n<p>Land\/Building\/Furniture\/Fittings Rent : TDS Rate: 10%\u00a0 Threshold: \u20b950,000 per month<\/p>\n<p><span style=\"color: #000080;\">6. Professional Fees \/ Technical Services \u2013 Section 194J<\/span><\/p>\n<p>Professional Services: (CA, CS, Lawyer, Doctor, Architect, Consultant etc.)\u00a0\u00a0TDS Rate: 10% and\u00a0Technical Services : TDS Rate:<span style=\"font-size: 16px;\"> 2%\u00a0<\/span>Threshold : INR <span style=\"font-size: 16px;\">75,000 annually<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Commission_Brokerage_%E2%80%93_Section_194H\"><\/span><span style=\"color: #000080;\">7. Commission \/ Brokerage \u2013 Section 194H<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: 5%,\u00a0Threshold: INR 20,000 and\u00a0Covers brokerage, referral commission, agency commission, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"8_Purchase_of_Goods_%E2%80%93_Section_194Q\"><\/span><span style=\"color: #000080;\">8. Purchase of Goods \u2013 Section 194Q<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: 0.1%,\u00a0Threshold: Purchases exceeding INR 50 lakh from a seller during the financial year. and\u00a0TDS applies on amount exceeding INR 50 lakh.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"9_Benefit_or_Perquisite_%E2%80%93_Section_194R\"><\/span><span style=\"color: #000080;\">9. Benefit or Perquisite \u2013 Section 194R<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: 10%,\u00a0Threshold: \u20b920,000 and Applicable on benefits\/perquisites provided during business or profession. Example: Foreign trip sponsored for dealer\/distributor.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"10_Payment_to_Non-Resident_%E2%80%93_Section_195\"><\/span><span style=\"color: #000080;\">10. Payment to Non-Resident \u2013 Section 195<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: As per Income Tax Act or DTAA.,\u00a0Threshold: No minimum threshold. and\u00a0Requires checking DTAA provisions and obtaining TRC where applicable.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"11_E-Commerce_Operator_%E2%80%93_Section_194O\"><\/span><span style=\"color: #000080;\">11. E-Commerce Operator \u2013 Section 194O<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>TDS Rate:<\/strong> 1%,\u00a0<strong>Threshold:<\/strong> \u20b95,00,000 (for resident individual\/HUF participants, subject to PAN). and\u00a0Applicable to platforms such as Amazon, Flipkart, Meesho, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"12_Transfer_of_Virtual_Digital_Assets_Crypto_%E2%80%93_Section_194S\"><\/span><span style=\"color: #000080;\">12. Transfer of Virtual Digital Assets (Crypto) \u2013 Section 194S<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS Rate: 1%,\u00a0Threshold: As applicable under law. and\u00a0Covers cryptocurrency and other virtual digital assets.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10761\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1784687334842.jpeg\" alt=\"TDS chart 2025-26\" width=\"963\" height=\"654\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1784687334842.jpeg 480w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/1784687334842-300x204.jpeg 300w\" sizes=\"(max-width: 963px) 100vw, 963px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Important_Compliance_Points\"><\/span><span style=\"color: #000080;\">Important Compliance Points<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">TDS Payment Due Date\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Deposit TDS by 7th of next month.<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>March month&#8217;s TDS generally by 30th April.<\/strong><\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TDS_Return_Due_Dates\"><\/span><span style=\"color: #000080;\">TDS Return Due Dates<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 232px;\" width=\"778\">\n<tbody>\n<tr>\n<th>Quarter<\/th>\n<th>Due Date<\/th>\n<\/tr>\n<tr>\n<td>Q1 (Apr-Jun)<\/td>\n<td>31 July<\/td>\n<\/tr>\n<tr>\n<td>Q2 (Jul-Sep)<\/td>\n<td>31 October<\/td>\n<\/tr>\n<tr>\n<td>Q3 (Oct-Dec)<\/td>\n<td>31 January<\/td>\n<\/tr>\n<tr>\n<td>Q4 (Jan-Mar)<\/td>\n<td>31 May<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"color: #000080;\">TDS Certificates<\/span><\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Form 16 : <span style=\"font-size: 16px;\">Salary TDS, <\/span><span style=\"font-size: 16px;\">Issued by <\/span>15th June<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>Form 16A :\u00a0 <span style=\"font-size: 16px;\">Non-salary TDS and <\/span><span style=\"font-size: 16px;\">Issued within prescribed time after filing TDS return<\/span><\/strong><\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Consequences_of_Non-Compliance\"><\/span><span style=\"color: #000080;\">Consequences of Non-Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Late Deduction: <span style=\"font-size: 16px;\">Interest @ <\/span>1% per month<\/li>\n<li>Late Deposit: <span style=\"font-size: 16px;\">Interest @ <\/span>1.5% per month<\/li>\n<li>Late Filing of TDS Return: <span style=\"font-size: 16px;\">Fee under Section 234E: INR <\/span>200 per day and\u00a0<span style=\"font-size: 16px;\">Subject to TDS amount<\/span><\/li>\n<li>Disallowance of Expense: <span style=\"font-size: 16px;\">Generally <\/span>30% of expenditure<span style=\"font-size: 16px;\"> may be disallowed under the Income-tax Act for failure to deduct\/deposit TDS.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Practical_TDS_Rates_to_Remember\"><\/span><span style=\"color: #000080;\"><strong>Practical TDS Rates to Remember<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 484px;\" width=\"858\">\n<tbody>\n<tr>\n<th>Transaction<\/th>\n<th>TDS Rate<\/th>\n<\/tr>\n<tr>\n<td>Contractor (Individual\/HUF)<\/td>\n<td>1%<\/td>\n<\/tr>\n<tr>\n<td>Contractor (Firm\/Company)<\/td>\n<td>2%<\/td>\n<\/tr>\n<tr>\n<td>Transporter<\/td>\n<td>1% \/ 2%<\/td>\n<\/tr>\n<tr>\n<td>Rent &#8211; Plant &amp; Machinery<\/td>\n<td>2%<\/td>\n<\/tr>\n<tr>\n<td>Rent &#8211; Building\/Land<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>Technical Services<\/td>\n<td>2%<\/td>\n<\/tr>\n<tr>\n<td>Professional Fees<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>Commission\/Brokerage<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>Purchase of Goods &gt; \u20b950 Lakh<\/td>\n<td>0.1%<\/td>\n<\/tr>\n<tr>\n<td>Benefits\/Perquisites<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>Payment to Non-Resident<\/td>\n<td>Act\/DTAA Rate<\/td>\n<\/tr>\n<tr>\n<td>Crypto Transactions<\/td>\n<td>1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>For a company like the most relevant sections would generally be 192, 194A, 194C, 194I, 194J, 194Q, 195, and 194R, especially considering software development exports, Google Ad revenue, contractor payments, office rent, and overseas transactions.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026 The TDS (Tax Deducted at Source) framework has undergone a structural overhaul with the introduction of the Income Tax Act, 2025 and Income Tax Rules, 2026. This is not just a change in sections; it is a shift towards real-time, technology-driven tax &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1285],"tags":[1302],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10272"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272\/revisions"}],"predecessor-version":[{"id":10762,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272\/revisions\/10762"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}