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TDS · effective 1 April 2026

Section 194 under the
Income-tax Act, 2025

TDS on dividends

Income-tax Act, 1961
194
Income-tax Act, 2025
393(1), Table Sl. No. 7 read with 393(4), Table Sl. No. 10
ConfirmedTaken from the ICAI Direct Taxes Committee concordance and independently checked against the bare statutory text of the Income-tax Act, 2025.

Topic

TDS on dividendsTDS provisions under the Income-tax Act, 2025 (Act 30 of 2025).

What carried over

The substance of this provision was not changed by the re-write. What moved is the citation.

Worth reading both places: the main table shows 10% with 'Threshold limit: Nil', which looks like a change until you read s.393(4) Sl. No. 10(f), which preserves the exemption for an individual shareholder where the dividend is paid other than in cash and does not exceed Rs 10,000 in the tax year. Net effect is the same as the 1961 position. Sl. No. 10(a)-(e) preserve the LIC/GIC/insurer/business-trust exemptions.

Source

Verified against bare text of s.393(1) Table Sl. No. 7 and s.393(4) Table Sl. No. 10 in ICAI publication.

Open the source document →

CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.

Still cite section 194 for
Income earned up to 31 March 2026 — that is FY 2025-26, Assessment Year 2026-27, governed by the Income-tax Act, 1961 even though you file it during 2026.
Cite 393(1), Table Sl. No. 7 read with 393(4), Table Sl. No. 10 for
Income earned from 1 April 2026 — Tax Year 2026-27 onwards, governed by the Income-tax Act, 2025. Tax deducted on payments made on or after 1 April 2026 must be reported under the new section 393 table references and new challan/return codes. Quoting a legacy section such as 194C or 194J triggers validation failure.
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This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.

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