• NEW TDS SECTION CODES
Tax Resource

NEW TDS SECTION CODES - EFFECTIVE 1 APRIL 2026

These new section codes must be used in TDS challans from 1 April 2026 onwards

New Section Nature of Provision Notes
392 TDS on Salary Covers salary TDS deducted by employers
393 TDS other than Salary Interest, commission, rent, professional fees, etc.
394 Tax Collected at Source (TCS) TCS on specified goods/services
395 TDS/TCS Certificates Form 16 (salary), Form 16A (non-salary)
396 Tax Deducted = Income Received Deducted tax treated as income received by payee
397 Compliance & Reporting Filing TDS returns, statements & reporting duties
398 Consequences of Failure Interest, penalty & disallowance for non-compliance
399 Processing of TDS Returns Processing by the Income Tax Department
400 Power to Relax Provisions Govt. can relax rules in genuine hardship cases
401 Bar Against Direct Demand Dept. cannot demand directly from recipient if TDS was deductible
402 Interpretation How to interpret the TDS/TCS chapter

DISCLAIMER: This chart is for reference purposes only. Always verify with a Chartered Accountant or refer to official CBDT / CBIC notifications. Source: Finance Act 2025, CBDT Circulars | Prepared for FY 2026-27 (AY 2027-28)