CA Final May 2027: The TDS & TCS Revolution. Mastering the New Section 393 Master Table
If you ask any CA Final student about the hardest part of Direct Tax, they usually say: "Remembering 30+ different TDS sections and their specific thresholds."
The Income-tax Act, 2025 has heard your prayers. In a move to simplify compliance, the government has replaced the scattered TDS/TCS regime with a Unified Master Table. For May 2027 students, this is the most significant "Unlearning" task.
The End of "Section Hunting"
From May 2027, you no longer search for Sec 194C, 194J, or 194H. They have all been absorbed into the Section 393 Master Table.
1. What is the Section 393 Master Table?
Instead of separate sections for "Contractors," "Professionals," or "Commission agents," the New Act provides a comprehensive table. This table lists the Nature of Payment, the Payer, the Threshold, and the Rate in one place.
| Nature of Payment | Legacy Ref (1961) | New Ref (2025) | Standard Rate |
|---|---|---|---|
| Salaries | Sec 192 | Sec 392 | Slab Rates |
| Professional Fees | Sec 194J | Sec 393 [Entry 4] | 2% / 10% |
| Contractual Payments | Sec 194C | Sec 393 [Entry 2] | 1% / 2% |
| Brokerage/Commission | Sec 194H | Sec 393 [Entry 5] | 5% |
2. Standardized Thresholds
One of the biggest pain points was varying limits (30k for 194C, 30k for 194J, 15k for 194H). The 2025 Act moves toward Standardized Thresholds to reduce errors. In your May 2027 exam, expect questions where multiple payments are made to one vendor, testing your ability to aggregate them under the new unified limits.
3. The TCS Integration
Just like TDS, Tax Collected at Source (TCS) has been moved to Section 405. The "LRS" (Liberalised Remittance Scheme) and "Overseas Tour Package" rates have been further simplified to avoid the 5% vs 20% confusion that plagued the 1961 Act.
4. Strategic Advice for May 2027 Students
- Unlearn the Section Codes: Stop referring to 194J/194C in your office work if you are a May 2027 student. Start using terms like "TDS Table Entry 4" to build muscle memory.
- Focus on the Certificate: Section 197 (Lower TDS) is now Section 395. The process is now 100% digital and instant for most taxpayers.
- Watch for Interplay: In the exam, remember that failing to deduct tax under Section 393 will lead to a 30% disallowance under Section 49.
Download the "Section 393 Master Table" Chart
We have converted the 50+ page legal draft into a 1-Page Visual Cheat Sheet for your study desk.
GET THE TDS CHART📚 The May 2027 Transition Series
Master the New Income-tax Act, 2025 with our comprehensive 4-part guide:
- ✅ Part 1: The Big Reset: What’s Changing?
- ✅ Part 2: The May 2027 Student Checklist
- ✅ Part 3: The Golden Bridge: Section Mapping Guide
- ✅ Part 4: The TDS & TCS Revolution: Section 393 Master Table