The comparative framework between the Income Tax Act, 1961 and the proposed Income Tax Act, 2025 highlights a significant restructuring of TDS and TCS provisions to improve clarity and efficiency. The new Act consolidates numerous scattered sections into fewer, logically grouped provisions, mainly under Sections 392 to 406. Salary-related deductions are unified, while payments such as interest, commission, rent, professional fees, and contractor payments are merged under a single comprehensive section. Specialized categories like winnings, online gaming, virtual digital assets, and cash withdrawals are distinctly classified. Non-resident taxation and transfer pricing-related deductions are streamlined, while compliance provisions such as lower/nil deduction certificates, TDS credit, defaults, and penalties are retained with enhanced digital processing systems. TCS provisions are similarly consolidated, covering goods, remittances, and compliance-linked higher rates. Overall, the new framework reduces duplication, enhances transparency, and aligns tax deduction and collection processes with a digital, simplified compliance ecosystem.
| Comparative Sections of TDS and TCS between Income Tax Act, 1961 & Income Tax Act, 2025 | |||||
| Old IT Act, 1961 Section | Old Sub-section | Nature of TDS/TCS Provision | New IT Act, 2025 Section | New Sub-section | Remarks / Comparative Position |
| 192 | 192(1) | TDS on Salary | 392 | 392(1) | Salary TDS consolidated |
| 192 | 192(2A) | Relief u/s 89 | 392 | 392(3) | Salary relief reporting |
| 192 | 192(2B) | Declaration of other income | 392 | 392(4) | Integrated salary disclosure |
| 192A | — | PF Withdrawal | 392 | 392(7) | Retained in salary chapter |
| 193 | — | Interest on Securities | 393 | 393(1)(a) | Resident payment TDS consolidation |
| 194 | — | Dividend | 393 | 393(1)(b) | Consolidated |
| 194A | — | Interest other than securities | 393 | 393(1)(a) | Merged under interest category |
| 194B | — | Lottery / Crossword winnings | 393 | 393(3)(a) | Special rate TDS |
| 194BA | — | Online Gaming winnings | 393 | 393(3)(c) | Special digital asset category |
| 194BB | — | Horse race winnings | 393 | 393(3)(b) | Special winnings category |
| 194C | 194C(1) | Contractor payments | 393 | 393(1)(c) | Consolidated contractor TDS |
| 194D | — | Insurance commission | 393 | 393(1)(d) | Commission category |
| 194DA | — | Insurance policy payout | 393 | 393(1)(m) | Retained separately |
| 194E | — | Non-resident sports association | 393 | 393(2)(e) | Non-resident payments |
| 194EE | — | NSS withdrawals | 393 | 393(1)(n) | Consolidated |
| 194F | — | Mutual fund repurchase | 393 | 393(1)(o) | Rationalized |
| 194G | — | Lottery commission | 393 | 393(1)(d) | Commission category |
| 194H | — | Commission/Brokerage | 393 | 393(1)(d) | Merged |
| 194I | 194I(a) | Rent – plant/machinery | 393 | 393(1)(e) | Unified rent provision |
| 194I | 194I(b) | Rent – land/building | 393 | 393(1)(e) | Unified rent provision |
| 194IA | — | Purchase of Immovable Property | 393 | 393(1)(p) | Property transaction TDS |
| 194IB | — | Rent by Individual/HUF | 393 | 393(1)(e) | Consolidated |
| 194IC | — | Joint Development Agreement | 393 | 393(1)(q) | Retained |
| 194J | 194J(a) | Professional fees | 393 | 393(1)(f) | Professional category |
| 194J | 194J(b) | Technical fees | 393 | 393(1)(f) | Merged |
| 194K | — | Mutual fund income | 393 | 393(1)(r) | Rationalized |
| 194LA | — | Compensation on compulsory acquisition | 393 | 393(1)(s) | Retained |
| 194LB | — | Infrastructure debt fund income | 393 | 393(2)(f) | Non-resident income |
| 194LBA | — | Business trust income | 393 | 393(2)(g) | Non-resident trust distribution |
| 194LBB | — | Investment fund income | 393 | 393(2)(h) | Fund distribution |
| 194LBC | — | Securitisation trust income | 393 | 393(2)(i) | Retained |
| 194M | — | Contract/professional payment by Individual/HUF | 393 | 393(1)(t) | Consolidated |
| 194N | — | Cash withdrawal | 393 | 393(3)(d) | Special category |
| 194O | — | E-commerce operator | 393 | 393(1)(g) | E-commerce category |
| 194P | — | Senior citizen specified income | 393 | 393(1)(u) | Retained |
| 194Q | — | Purchase of goods | 393 | 393(1)(h) | Goods purchase TDS |
| 194R | — | Benefits/perquisites | 393 | 393(1)(i) | Benefit/perquisite TDS |
| 194S | — | Virtual Digital Assets | 393 | 393(1)(j) | Crypto/VDA coverage |
| 194T | — | Partner payments by firm | 393 | 393(1)(k) | Newer provision retained |
| 195 | 195(1) | Payments to non-residents | 393 | 393(2)(a) | Main non-resident TDS |
| 195 | 195(2) | Application for lower deduction | 395 | 395(1) | Lower deduction framework |
| 196A | — | Foreign mutual fund income | 393 | 393(2)(b) | Retained |
| 196B | — | Offshore fund income | 393 | 393(2)(c) | Rationalized |
| 196C | — | Foreign company income | 393 | 393(2)(c) | Consolidated |
| 196D | — | FII/FPI income | 393 | 393(2)(d) | Foreign investor TDS |
| 197 | — | Lower/Nil deduction certificate | 395 | — | Expanded portal-based system |
| 198 | — | Tax deducted deemed income | 396 | — | Continuation provision |
| 199 | — | Credit of TDS | 397 | — | Credit mechanism retained |
| 200 | 200(1) | Deposit of TDS | 398 | 398(1) | Compliance obligation |
| 200A | — | Processing of TDS statements | 399 | — | Automated processing |
| 201 | 201(1) | Assessee in default | 400 | 400(1) | Default provision |
| 201 | 201(1A) | Interest on default | 400 | 400(2) | Interest retained |
| 203 | — | TDS Certificate | 402 | — | Digital certificate system |
| 206AA | — | Higher TDS for no PAN | 403 | — | PAN compliance retained |
| 206AB | — | Higher TDS for non-filers | 404 | — | Compliance-linked deduction |
| 206C | 206C(1) | TCS on specified goods | 394 | 394(1) | Unified TCS |
| 206C | 206C(1G) | Foreign remittance / Tour package | 394 | 394(2) & 394(3) | Consolidated |
| 206C | 206C(1H) | TCS on sale of goods | 394 | 394(5) | Goods sale TCS |
| 206CC | — | Higher TCS for no PAN | 405 | — | PAN enforcement |
| 206CCA | — | Higher TCS for non-filers | 406 | — | Compliance-linked TCS |
| 234E | — | Late fee for TDS return | 447 | — | Penalty/fee restructuring |
| 271C | — | Penalty for failure to deduct | 444 | — | Penalty retained |
| 271H | — | Penalty for incorrect TDS return | 445 | — | Compliance enforcement |
| 272A | — | Failure to issue TDS certificate | 446 | — | Penalty retained |
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