Which code do I put on the TDS challan for section 194?

For tax deducted on or after 1 April 2026 use challan ITNS 281N and enter payment code 1029 in the section-wise payment table. For deductions up to 31 March 2026, the old challan ITNS 281 with the 1961 Act section still applies.

Has the rate of TDS changed?

The new Act reorganises and renumbers the provisions. Check the rate and threshold for your payment on the e-filing portal or in the Act itself; this page lists only the general rate on which the published tables agree.

INCOME-TAX ACT 2025 · FROM 1 APRIL 2026

Section 194 (dividends): new TDS payment code 1029

From 1 April 2026, section 194 of the Income-tax Act 1961 (dividends) is reported under the Income-tax Act 2025 as payment code 1029 (dividend), under section 393(1) Sl. 7.

OLD SECTION	NEW CODE	NEW SECTION REFERENCE	NATURE OF PAYMENT	GENERAL RATE
194	1029	393(1) Sl. 7	Dividend	10%

What changed

The Income-tax Act 2025 replaces the separate 194-series sections with one table. Salary sits in section 392, almost every other deduction in section 393, and collection at source in section 394. Each row of the table has a four-digit payment code, and that code replaces the section number on challans and in quarterly statements. The period is now called the Tax Year, which is the same twelve months as the financial year.

Common questions

What is the new code for section 194?: From 1 April 2026, section 194 of the Income-tax Act 1961 (dividends) is reported under the Income-tax Act 2025 as payment code 1029 (dividend), under section 393(1) Sl. 7.
Which code do I put on the TDS challan for section 194?: For tax deducted on or after 1 April 2026 use challan ITNS 281N and enter payment code 1029 in the section-wise payment table. For deductions up to 31 March 2026, the old challan ITNS 281 with the 1961 Act section still applies.
Has the rate of TDS changed?: The new Act reorganises and renumbers the provisions. Check the rate and threshold for your payment on the e-filing portal or in the Act itself; this page lists only the general rate on which the published tables agree.

Have challans to enter?

Drop the challan PDFs, old ITNS 281 or new 281N, and get one Excel sheet with the code, BSR, date and breakup.

Challan PDF to Excel

OTHER SECTIONS

194A 194C 194D 194E 194H 194I 194IC 194J 194LBC 194N 194O 194Q 194R 194S 194T 195

Compiled from two published code tables (TDSMAN rate chart and Terra Insight payment-code reference, both read on 18 September 2026) and confirmed against real ITNS 281N challan receipts for code 1031. Only rows on which both tables agree are listed. TCS codes, the salary codes under section 392 and code 1038 are left out because the tables disagree. Confirm on the income-tax e-filing portal before filing.