ABSTRACT:India’s direct tax landscape underwent a paradigm shift with the repeal of the six-decade-old Income Tax Act, 1961, replaced by the Income Tax Act, 2025, effective April 1, 2026. The Income-tax Act, 1961 had seen more than 4,000 amendments over the years based on the evolving taxation policy. Consequently, the 1961 Act had become complex, voluminous, scattered, and has many redundant provisions. This study focusing on the consolidation of Tax Deducted at Source (TDS) provisions. While tax rates have remained largely stagnant, the structural reorganization reducing the Act from 819 to 536 sections. Utilizing secondary data from the Central Board of Direct Taxes (CBDT), regulatory filings, and professional commentaries, this paper representing the shift from section-based to code-based reporting. Key findings indicate that while the consolidation into Section 393 simplifies legal navigation, it introduces significant transitional risks in ERP mapping and 'Tax Year' alignment.
KEYWORDS: Corporate Governance, Income Tax Act 2025, Section 393, Tax Year, TDS Compliance.
NAVIGATING THE TRANSITION: A COMPARATIVE STUDY OF TDS COMPLIANCE UNDER THE INCOME TAX ACT, 1961 AND THE INCOME TAX ACT, 2025
ASST.PROF. DR. NARESH DATTARAM DHANAWADE , CA SACHIN VAMAN DEVARE