INCOME-TAX ACT 2025 · FROM 1 APRIL 2026
Section 194N (cash withdrawals): new TDS payment code 1064 and 1065
From 1 April 2026, section 194N of the Income-tax Act 1961 (cash withdrawals) is reported under the Income-tax Act 2025 as payment code 1064 (cash withdrawal: co-operative society) and 1065 (cash withdrawal: others), under section 393(3) Sl. 5.D(a) and 393(3) Sl. 5.D(b).
| OLD SECTION | NEW CODE | NEW SECTION REFERENCE | NATURE OF PAYMENT | GENERAL RATE |
|---|---|---|---|---|
| 194N | 1064 | 393(3) Sl. 5.D(a) | Cash withdrawal: co-operative society | 2% |
| 194N | 1065 | 393(3) Sl. 5.D(b) | Cash withdrawal: others | 2% |
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 194N?
- From 1 April 2026, section 194N of the Income-tax Act 1961 (cash withdrawals) is reported under the Income-tax Act 2025 as payment code 1064 (cash withdrawal: co-operative society) and 1065 (cash withdrawal: others), under section 393(3) Sl. 5.D(a) and 393(3) Sl. 5.D(b).
- Which code do I put on the TDS challan for section 194N?
- For tax deducted on or after 1 April 2026 use challan ITNS 281N and enter payment code 1064 and 1065, whichever matches the payment 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.
- Why does section 194N have more than one new code?
- The Income-tax Act 2025 lists each kind of payment as its own row in the table under section 393(3). 1064 is for cash withdrawal: co-operative society; 1065 is for cash withdrawal: others.
- 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.
OTHER SECTIONS
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.