30/01/2026
Here are the key detailed changes introduced in Sections 392, 393 and 394 of the Income-tax Act, 2025 (India) — focusing on TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions, especially compared with the old Income-tax Act, 1961 and related rules:
📌 1. Structural & Conceptual Overhaul
✅ Huge Consolidation of Provisions
Previously, TDS provisions were scattered across many sections (e.g., Sec 192–194T) under the 1961 Act.
The Income-tax Act, 2025 consolidates almost all TDS rules into:
Section 392 — TDS on salary
Section 393 — TDS on all other payments
Section 394 — TCS provisions
Why this matters:
This dramatically simplifies compliance — taxpayers and businesses no longer need to navigate dozens of small provisions and cross-references across the old law.
📌 2. Section 392 – TDS on Salary (No Major Rate Change)
🔹 Only one provision
Under the new Act, salary TDS is dealt with only in Section 392. Earlier it was under Sec 192 (and related sub-clauses).
🔹 Rates and thresholds remain as per income slabs
Employers deduct TDS based on tax slabs applicable to an individual’s income — this continues as before under this provision.
🔹 Concept change: Single Tax Year
The old concept of “Previous Year + Assessment Year” is replaced by a single Tax Year system — affecting the timing and applicability of salary TDS.
📌 3. Section 393 – TDS on Other Payments
🔹 Single Consolidated Section
Instead of many separate sections (Sec 193 interest, Sec 194 professional fees, Sec 194I rent, etc.), Section 393 now covers TDS on virtually all non-salary payments.
