[Update 2026-April & May] Single TDS Challan multiple sections Consolidated payment
By: Sangeet Kumar Gupta, and Puneet Gupta , MLG Associates (MLGA) and Finsys Infotech Limited and Mr Vijay Sahni of Webtel Electrosoft Pvt Ltd
Published: May 3, 2026
As we transition into the first month of the Income Tax Act, 2025, several businesses have raised concerns about the structural overhaul of TDS sections. At MLGA, we believe in combining legal theory with practical technical reality.
Following our consultation with the technical leadership at Webtel Electrosoft, we are pleased to clarify that while the “Section Numbers” have changed, your “Single Challan” convenience remains intact.
As we enter the first reporting month under the Income Tax Act, 2025, there has been significant debate regarding the “Single Challan” system for different types of TDS. Based on our technical consultation with Mr. Vijay Sahni (Director & Technical Head, Webtel Electrosoft Pvt Ltd)—the makers of India’s most widely used TDS software—we are pleased to provide this clarification to ensure your compliance remains seamless. ( Ref. : https://webtel.in/Meet-Management )
1. The Move to “Parent Sections”
The Income Tax Act, 2025 has simplified 60+ legacy sections into three umbrella sections. This is the new legal map for your monthly deductions:
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Section 392: TDS on Salaries (Replacing the old Sec 192).
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Section 393: TDS on ALL Non-Salary payments (Consolidating old 194C, 194J, 194I, etc.).
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Section 394: Tax Collected at Source (TCS) (Replacing Sec 206C).
2. Can I still use a Single Challan for multiple codes?
Yes. Based on the latest FVU 9.4 and Webtel software logic, deductors can continue to deposit a consolidated tax amount (e.g., ₹10 Lakhs) in one go.
While the new Act technically categorizes payments into 92 Numeric Codes (1001–1092), the e-filing portal and TRACES utility allow you to map one large challan to multiple codes during the filing of your Quarterly Return (New Form 140).
The most critical concern for accounts teams was whether a single payment (e.g., ₹10 Lakhs) could still cover multiple TDS categories.
The Verdict: As confirmed by Webtel’s technical leadership, the Single-Challan logic will continue. * Even though the Act uses a new numeric taxonomy (Codes 1001–1092), the Government’s e-filing utility (FVU) still allows you to deposit a lump sum under a single major head.
- Mapping: You can continue to pay one consolidated amount. The “bifurcation” or “mapping” to specific categories (like 1023 for Contractors or 1003 for Professionals) will happen at the time of filing your Quarterly Return (New Form 140). That is a part of the Software work… during E Filing.. and not yours in “Payment”
3. Example of New Codes… within Section 393
For Academic Purposes : Section 393 TDS codes are the new numeric payment codes used under the Income-tax Act, 2025 for TDS return filing. Based on the available published tables, the complete code range runs from 1001 to 1067, with 1001–1038 covering resident/other domestic categories, 1039–1057 covering non-residents, and 1058–1067 covering “any person” payments. Some of the popular one’s are :
| Nature of Payment | Legacy Section | New Act 2025 Code |
| Professional & Technical Fees : Same 10% or 2% | 194J | 1003 |
| Contractors / Sub-Contractors : Same 1% and 2% | 194C | 1002 |
| Rent (Land & Building) same 2% and 10% | 194I(b) | 1009 |
| Commission & Brokerage | 194H | 1007 |
| Interest (Other than Bank) | 194A | 1005 |
Full list on following links. For academic knowledge only..
https://razorpay.com/docs/payroll/tax-verifications/tax-codes/ and https://www.tdsman.com/downloads/TDS_and_TCS-rate-chart-2027.pd
4. Practical work in Finsys ERP / Tally / your Accounting Software
for Day to Day Accounting, the Ledger Accounts remain the same. Usually they are
TDS Payable- Salary
TDS Payable- Contractor
TDS Payable- Professional
TDS Payable- Rent
TDS Payable- Interest
TDS Payable- Commission and so on
There is no change in the names of the sections.
Accounting will also continue as it is, as it was.
Accrual on each Purchase voucher / Service Voucher : As it is.
Ledger Account in Trial balance : As it is.
5. Payment of TDS “online to Govt”
As since 2012 CBDT Notification, you can continue single Payment of all TDS sections in single Challan. Keep that in TDS Control Account / Buffer Account. At time of each monthly closing / Quarterly Closing.. Transfer all the payables to the TDS Control account / Buffer Account.
Exactly same as in past years
6. Filing of TDS Return
Use Webtel E TDS Filing Software. Helps you in Smoother compliance work. https://webtel.in/tds-filing-software ). Softwares like Finsys ERP, give excel output for ease in filing the TDS returns using Webtel.
Webtel has done the internal programming for the Required Automation. Its Robust Planning allows it to use the Consolidated TDS Challan amongst Various sections. No worries.
Exactly same as in past years.
6. Action Items for your Accounts Team
Do Not Mix Salary & Non-Salary Challan Amount …: While you can mix multiple non-salary codes in one challan, Salary (Sec 392) must always be paid via a separate challan, as it is reported in a different return (Form 138).
Webtel Updation : Ensure your Webtel software is updated to the FY 2026-27 (Tax Year 2026-27) This version is pre-configured to handle the mapping of your single challan to the 92 new numeric codes.
Webtel Adoption : If your TDS Software Still does not allow this facility to you… upgrade to Webtel. https://webtel.in/tds-filing-software
Form 168 Reconciliation: From this month onwards, tell your vendors to check Form 168 (which replaces the old Form 26AS). Their tax credits will now appear under these 4-digit numeric codes.
Final Word
The move to the Income Tax Act, 2025 is a structural shift, not a procedural hurdle. By maintaining the “Single Challan” approach suggested by Webtel, your business can avoid the administrative burden of generating dozens of small payments.
Webtel, Finsys and MLG Team are here to assist with your first “Form 140” filing under the new regime. Please contact your relationship manager for any specific queries.
Warm Regards
- Sangeet Kumar Gupta & Puneet Gupta, MLG Associates & Finsys ERP Team
- with Vijay Sahni, R. Kapoor & R Aggarwal : Directors Webtel Electrosoft
- Together as your Digitisation Experts
Section 393 … Income Tax Act.. Section Bare Act on Govt Website
https://www.incometaxindia.gov.in/w/section-393-5
And
All codes. List of Academic Purposes
https://razorpay.com/docs/payroll/tax-verifications/tax-codes/ and https://www.tdsman.com/downloads/TDS_and_TCS-rate-chart-2027.pdf
Joint Webtel Finsys Seminar ( Past event )
More Pictures from joint Webtel Finsys Events click here
The LAW = Same as last year… There is no Change … as such… but now MSME Limit is now Rs 100 Crores… hence, more and more of your suppliers are now covered in MSME benefit scheme.
Do you have letters or MOU with each MSME vendor, … with overriding clause for 45 days, irrespective of the PO’s and Invoices. ( get the format in the Google drive link below )
MOU copy inside
How to File FBAR: Step-by-Step Guide
Steps:
How MLG Associates Can Help You File FBAR
