What this means
Section 195 of IT Act 1961 (TDS on any sum chargeable to tax paid to a non-resident: deduct at rates in force or DTAA rates, whichever is beneficial; payer may apply under §195(2) for determination of appropriate proportion) maps to Section 395 of IT Act 2025 (separate section, not consolidated into §393). The DTAA benefit and §195(2) application mechanism are retained. Verify on the income-tax portal before filing.
Change type — Section renumbered
The section number changed when the IT Act 1961 was reorganised into the IT Act 2025. The substance, rates, thresholds, and conditions are preserved. Any reference to the old section number in contracts, certificates, or returns before 1 April 2026 remains valid under the transitional provisions in §536.
Effective date
This change takes effect from 1 April 2026 (Tax Year 2026-27 onwards). For income earned before 1 April 2026, the old Section 195 continues to apply under the transitional provisions of Section 536 of the IT Act 2025. Returns for FY 2025-26 (AY 2026-27) are filed under the IT Act 1961 — old section numbers apply.
Frequently asked questions
Where did Section 195 go in the Income Tax Act 2025?▾
Section 195 of the IT Act 1961 maps to 395 in the IT Act 2025, effective 1 April 2026. Section 195 of IT Act 1961 (TDS on any sum chargeable to tax paid to a non-resident: deduct at rates in force or DTAA rates, whichever is beneficial; payer may apply under §195(2) for determination of appropriate proportion) maps to Section 395 of IT Act 2025 (separate section, not consolidated into §393). The DTAA benefit and §195(2) application mechanism are retained. Verify on the income-tax portal before filing.
Does Section 195 still apply for FY 2025-26 (AY 2026-27)?▾
Yes. For income earned in FY 2025-26 (April 2025 to March 2026), the IT Act 1961 continues to apply — including Section 195. The IT Act 2025 (and its new section numbering) applies from Tax Year 2026-27 (income earned on or after 1 April 2026). Verify on the income-tax portal before filing.
What is the new section number for 195 in the IT Act 2025?▾
The new corresponding provision is 395 under the Income Tax Act 2025. Change type: Section renumbered. The section number changed when the IT Act 1961 was reorganised into the IT Act 2025. The substance, rates, thresholds, and conditions are preserved. Any reference to the old section number in contracts, certificates, or returns before 1 April 2026 remains valid under the transitional provisions in §536. Verify on the income-tax portal before filing.