Section 393 Payment Code Finder — TDS Codes 1001-1092
Find the correct four-digit TDS payment code under the Income Tax Act 2025. Search by expense type (rent, professional fees, contractor, commission, dividend, virtual digital assets, interest, etc.) or by legacy Section 194x code. Filter by deductee type where the code splits by payee constitution (Individual/HUF vs Other). Each result returns the payment code, the Section 393 sub-clause reference, the applicable rate, the single-payment and aggregate-FY thresholds, the cross-era 194x mapping, and a typical applicability example. Effective 1 April 2026 for FY 2026-27 onward.
Illustrative — the payment code, rate and threshold data reflect the Income Tax Act 2025 as enrolled and the most recent CBDT notifications published on the Income Tax India e-filing portal. Verify the current rate and threshold for the specific payment against the latest CBDT circular, the section identifier dropdown on your authorised-bank e-payment challan portal, and your TRACES return preparation utility before locking any master or executing an actual deduction. Codes flagged provisional are subject to final CBDT verification. The finder does not constitute tax, TDS or legal advice.
About this tool
FY 2026-27 shift: Section 194x → Section 393 codes 1001-1092
The Income Tax Act 2025 replaces the Section 194 series of the 1961 Act (194A, 194C, 194D, 194H, 194I, 194J, 194N, 194O, 194Q, 194R, 194S, 194T and the rest) with a consolidated Section 393 that carries a Schedule structure. Section 393(1) covers general resident payees, Section 393(2) covers non-resident payees, and Section 393(3) covers special transactions. Each Schedule row is identified by a four-digit numeric payment code in the 1001-1092 range. Salary continues under Section 392 (formerly Section 192) and Tax Collected at Source moves to Section 394 (formerly the Section 206C series, codes 1071+). This finder returns each new-era code with its Schedule slot, rate, threshold and legacy 194x cross-reference.
Effective date — 1 April 2026 for FY 2026-27
The payment code framework applies to deductions made on or after 1 April 2026, i.e. the first day of Financial Year 2026-27. Deductions on 31 March 2026 or earlier continue to identify the legacy 194x section on the challan even where the challan itself is deposited in April. Every challan ITNS 281 filed for a deduction on 1 April 2026 or later must carry the four-digit payment code in the section identifier field; the bank's e-payment portal, the OLTAS challan acknowledgement and the TRACES challan-to-return matching engine all key off the payment code from this cutover.
Cross-era transition — FY 2025-26 into FY 2026-27
Three reconciliation surfaces straddle the cutover. The Q4 FY 2025-26 quarterly return, due 31 May 2026, closes under legacy section codes because the underlying deductions fall under the 1961 Act. The Q1 FY 2026-27 quarterly return, due 31 July 2026, opens under new payment codes because the underlying deductions fall under the 2025 Act. Between these two, a payee's TDS receivable ledger for FY 2026-27 will carry legacy-era credits as opening balance plus new-era credits as accrued in-year. The Form 26AS annual tax statement retires; the replacement Form 168 shows credits by payment code as the primary column, not by legacy section. The Form 16A quarterly certificate retires; the replacement Form 131 shows the payment code block. The 24Q/26Q/27Q return-form family consolidates into Form 141. A reconciliation engine that joins the Form 168 credit against the deductor's receivable ledger must treat legacy 194C and new codes 1023 (Individual/HUF payees) plus 1024 (other payees) as equivalent for cross-era matching — and similarly for the Section 194J to 1026/1027/1028 mapping, the Section 194A to 1020/1021/1022 mapping, the Section 194R to 1033/1034 mapping and the Section 194S to 1036/1037/1038 mapping. TransactIG carries three modes for the transition — legacy, payment_code, and dual — with dual mode as the standard through FY 2026-27.
Reconciliation risk during the transition window
Four defect classes surface during Q1 FY 2026-27 reconciliation. First, master data drift — the vendor master and GL still tagging invoices with legacy 194x codes while the challan and return preparation utility require payment codes. Second, challan misclassification — the April 7 deposit deadline for March deductions still needs legacy codes, while the same-day deposit for early-April deductions needs new codes; batching them in one bank payment file creates OLTAS matching problems downstream. Third, cross-era join in the ledger — the reconciliation join key must accept legacy Section 194x and new payment code 393(1) Sl. n as equivalent. Fourth, decommissioned 206AB and 206CCA screening — the higher-TDS-for-non-filers regime is abolished under the 2025 Act, and ERP scripts that automatically apply the doubled rate must be disabled from 1 April 2026 or the deductor will over-deduct and be liable for refund-of-excess adjustments to vendors under Section 200A / Rule 30(6A) of the new Rules. All four defect classes flow through this finder's data: search on 194C returns both 1023 and 1024, search on 194J returns 1026 and 1027 and 1028, and so on — use the pair for the cross-era reconciliation configuration.
Section 393 payment codes are the taxonomy that every Indian TDS reconciliation now keys off
From 1 April 2026, every TDS challan ITNS 281 filed on the authorised-bank e-payment portal, every quarterly return in the new Form 141 family, every deductee certificate in Form 131 and every annual tax statement in Form 168 carries a four-digit payment code in the 1001-1092 range in place of the legacy Section 194x reference. The reclassification is a consolidation exercise under Section 393 of the Income Tax Act 2025, not a rate reset — the 1% and 2% contractor rates carry over, the 10% professional-fees rate carries over, the ₹30,000 single / ₹1,00,000 aggregate contractor thresholds carry over. What changes is the identifier shown on the challan and on the return. That identifier is now the primary join key for the reconciliation engine that ties the deductor's TDS-payable ledger to the OLTAS challan record, to the quarterly return, to Form 131 issued to the deductee, and to Form 168 showing on the deductee's side. Any Indian finance team running TDS at meaningful volume — a Nifty-500 corporate finance shared-service centre, a mid-market manufacturer at Rs 500-2,000 crore turnover with 15-25 vendors above the Section 194Q code 1031 threshold, an IT services firm with 500-2,000 contractor and consultant relationships against Section 194C code 1023/1024 and Section 194J code 1026/1027, a real-estate developer with rent and JDA payments under Section 194-I code 1008/1009 and Section 194-IC code 1011, an e-commerce marketplace under Section 194O code 1035 — must complete the master-data migration ahead of the 1 April 2026 cutover and run cross-era reconciliation through FY 2026-27.
The taxonomy structure carries a clear grouping logic. Schedule §393(1) is the general resident bucket, split into rows Sl. 1 (insurance and commission — codes 1005 and 1006, legacy 194D and 194H at 2%), Sl. 2 (rent — codes 1007 to 1009, legacy 194-IB, 194-I(a), 194-I(b) at 2% / 2% / 10%), Sl. 3 (property transfer and JDA — codes 1010 and 1011, legacy 194-IA and 194-IC at 1% and 10%), Sl. 5 (interest — codes 1020 to 1022, legacy 194A at 10% across bank senior citizen / bank non-senior / non-bank), Sl. 6 (contractor and professional — codes 1023 to 1028, legacy 194C and 194M and 194J at 1%/2% contractor, 2% technical, 10% professional and director), Sl. 7 (dividend — code 1029, legacy 194 at 10%), Sl. 8 (specified payments — codes 1031 to 1038, legacy 194Q at 0.1%, 194R at 10%, 194O at 0.1%, 194S at 1%). Schedule §393(2) is the non-resident bucket — codes 1039 to 1057, covering non-resident sportsmen and entertainers (194E code 1039 at 20%), non-resident securitisation trust income (194LBC code 1049 at 10%), and the catch-all non-resident code 1057 (legacy Section 195, rates in force or treaty rate whichever is lower). Schedule §393(3) is the special-transactions bucket — codes 1064 to 1067, covering cash withdrawal under legacy 194N (codes 1064 co-operative bank at 2% above ₹1 Cr and 1065 other banks at 2% above ₹1 Cr) and partnership firm to partner payments under legacy 194T (code 1067 at 10% above ₹20,000). Section 394 covers Tax Collected at Source under codes 1071+, mapping legacy 206C(1) scrap and forest produce to 1071 at 1%, 206C(1F) motor vehicle above ₹10 lakh to 1072 at 1%, and 206C(1G) LRS remittance and overseas tour package to 1074 at the LRS-notified rate.
The reconciliation surface behind the taxonomy is deep. Every deductor's monthly reconciliation cycle joins the internal TDS-payable ledger (booked at the invoice-processing step) against the challan ITNS 281 deposited by the 7th of the following month (or 30 April for March-end deductions under the extended cutoff), against the quarterly Form 141 return filed by end of the month following the quarter close, against the Form 131 certificates issued to deductees by 15 August (Q1), 15 November (Q2), 15 February (Q3) and 15 June (Q4 of the following FY). Any mismatch surfaces in the deductee's Form 168 as a pending or short-credit entry, triggers a Section 200A demand notice for short-deduction, drags a Section 234B/C interest liability at 1% per month for short-deduction under Section 201(1A) and 1.5% per month for delayed deposit, potentially converts into a Section 40(a)(ia) disallowance in the following year's corporate return (30% of the expense disallowed until the TDS is rectified and the credit flows through), and in the wilful-default case can escalate to a Section 276B prosecution flag (imprisonment three months to seven years). The payment code taxonomy tightens the reconciliation join — the deductor's challan, return and certificate all key off the same four-digit code, so any misclassification is immediately visible when the deductee's Form 168 does not carry the corresponding code.
TransactIG operationalises the Section 393 payment code taxonomy end to end. The reconciliation engine ingests the Form 168 credit file for every deductee, joins it against the deductor's TDS-payable ledger on the four-tuple (TAN, PAN, payment code, quarter), treats legacy-era section codes and new-era payment codes as equivalent under the dual-mode configuration through the FY 2026-27 transition window, and surfaces every mismatch as a numbered variance under the branded Seven Classes of Reconciliation Leakage taxonomy. The output of the reconciliation is the input to the deductor's Q4 close, the internal auditor's ICFR walkthrough under Section 143(3)(i) of the Companies Act 2013, the CARO 2020 Clause 3(vii)(a) statement on statutory dues, and the tax auditor's Section 44AB Clause 34 disclosure in Form 3CD. ISO 27001:2022, AWS Mumbai, DPDP Act 2023 aligned, implementation two to four weeks.
Related
TDS payment codes 1001-1092: Section 393 reference table (FY 2026-27)
The full walk-through of the taxonomy, the parent-section grouping (392 salary, 393 non-salary, 394 TCS), the legacy 194x mappings, the rates and thresholds and the Form 141/131/168 filing changes.
Cross-era TDS reconciliation: FY 2025-26 into FY 2026-27
How the Q4 FY 2025-26 close under legacy section codes joins to the Q1 FY 2026-27 open under new payment codes in one continuous TDS receivable ledger.
TDS reconciliation runbook — monthly and quarterly, India
The monthly Section 200 deposit cycle and the quarterly Form 141 return preparation, deductee certificate issuance and Form 168 credit reconciliation cadence.
TDS Form 26AS reconciliation failure modes, India
The variance taxonomy behind the receivable-vs-Form-26AS/168 join, the classification of short-credit / mis-credit / duplicate-credit / mis-code, and the escalation to a Section 200A demand notice.
TDS reconciliation software
TransactIG's TDS reconciliation surface — ledger, challan, return, certificate, Form 168 credit — keyed on the Section 393 payment code taxonomy.
Operationalise the cross-era transition
If the ERP vendor master, the return preparation utility and the reconciliation engine still key off legacy 194x codes, talk to us.
Frequently Asked Questions
What is the Section 393 payment code system? +
Section 393 of the Income Tax Act 2025 is the successor consolidation to the Section 194 series of the Income-tax Act 1961. Under the 2025 Act, non-salary Tax Deducted at Source is organised under a Schedule that groups payment types into rows (Sl. 1 for insurance/commission, Sl. 2 for rent, Sl. 5 for interest, Sl. 6 for contractor and professional, Sl. 7 for dividend, Sl. 8 for specified payments such as goods purchase and e-commerce). Each Schedule row corresponds to a four-digit numeric payment code in the 1001-1092 range (for example, 1027 for professional fees under Section 393(1) Sl. 6(iii).D(b), formerly Section 194J). Salary continues under Section 392 (formerly Section 192) and Tax Collected at Source moves to Section 394 (formerly the Section 206C series). This finder returns the payment code, Schedule slot, rate, threshold, cross-era 194x mapping and a typical applicability example for each type of expense the finance team is likely to encounter.
When did codes 1001-1092 come into effect? +
The Income Tax Act 2025 payment code framework applies to all TDS and TCS deductions made on or after 1 April 2026, i.e. from the first day of Financial Year 2026-27. Every challan ITNS 281 filed for a deduction date on or after that day must carry a payment code in the 1001-1092 range in the section identifier field, not the legacy 194x reference. Deductions made up to 31 March 2026, even where the challan is deposited in April by the standard 7th-of-month deposit deadline, continue to carry the legacy section code because the underlying deduction event predates the new Act. The old Form 16A quarterly certificate is replaced by Form 131; the old Form 26AS annual tax statement is replaced by Form 168; the old form-family 24Q/26Q/27Q is consolidated into Form 141. All new forms key off the payment code as the primary classification field.
How does the cross-era transition work between old 194x codes and new 393 codes? +
The cross-era transition creates three specific reconciliation challenges through FY 2026-27. First, the Q4 FY 2025-26 return filing cycle (return due 31 May 2026, TDS-certificate download in Form 16A in June) closes under the legacy section codes because the underlying deductions fall under the 1961 Act. Second, the Q1 FY 2026-27 return filing cycle (return due 31 July 2026, first Form 131 certificate download in August) opens under the new payment codes because the underlying deductions fall under the 2025 Act. Third, the TDS receivable ledger in a payee's books will carry credits from both eras in the same FY 2026-27 balance — old-era credits carried in as opening balance plus new-era credits accrued in the current year. A reconciliation engine has to treat legacy Section 194C and new payment codes 1023 (Ind/HUF payee) plus 1024 (other payees) as the same transaction type for cross-era matching, similarly Section 194J with codes 1026 (technical) and 1027 (professional) and 1028 (director), and so on. TransactIG operates the reconciliation surface in three modes — legacy, payment_code, and dual — with the dual mode being the standard for FY 2026-27 where both taxonomies are live.
What determines Individual/HUF vs Other rate application? +
Where the Income Tax Act 2025 Schedule distinguishes by payee constitution, the finder returns the applicable code for the deductee type filtered. Two prominent cases: Section 393(1) Sl. 6(i) (contractor payments, legacy Section 194C) splits into code 1023 at 1% for Individual/HUF payees and code 1024 at 2% for other payees (companies, firms, LLPs). Section 393(1) Sl. 8(vi) (virtual digital assets, legacy Section 194S) splits into code 1036 at 1% (specified-person threshold ₹50,000 per FY) for Individual/HUF payers and code 1037 at 1% (threshold ₹10,000 per FY) for other payers. Section 393(1) Sl. 2(i) (rent by Individual/HUF, legacy Section 194-IB) applies only where the deductor is an Individual or HUF who is not subject to tax audit under Section 63 of the 2025 Act. Where the Schedule does not distinguish (e.g. professional fees code 1027, or dividend code 1029), the same rate and threshold apply regardless of deductee constitution — those rows appear under the Any filter setting.
Where can I find the complete code list? +
The Central Board of Direct Taxes publishes the notified list of payment codes on the Income Tax India e-filing portal, and each authorised bank's e-payment challan portal reflects the notified list in its section identifier dropdown. The list is also incorporated in the return preparation utility (RPU) and File Validation Utility (FVU) released by NSDL/Protean e-Gov for the new Form 131/141/168 filing cycle. For a working reconciliation-oriented cross-reference — legacy 194x code to new 393 code with rate, threshold, Schedule slot and typical applicability example — the sibling article at /insights/tds-payment-codes-1001-1092-india/ carries the same dataset that powers this finder. A small number of provisional codes flagged in the finder (1007 rent by Individual/HUF, 1010 property transfer, 1025 contract by Individual/HUF, 1036 VDA by Individual/HUF) are subject to final CBDT verification and should be confirmed against the CBDT notification and your TRACES return-preparation utility before locking them into a production ERP master or GL configuration.
From payment-code lookup to production monthly TDS reconciliation
TransactIG joins the TDS-payable ledger against the OLTAS challan record against the Form 141 quarterly return against the Form 131 certificate against the Form 168 credit — keyed on the Section 393 payment code, with dual-mode cross-era matching through FY 2026-27. ISO 27001:2022, AWS Mumbai, implementation two to four weeks.