The Quiet TDS Trap in the 1 April 2026 Transition: How the "Earlier of Credit or Payment" Test Decides Whether You Cite the 1961 Act or Section 393
The 1 April 2026 cutover to the Income-tax Act, 2025 hides a quiet TDS trap. Deduction events whose earlier-of-credit-or-payment date falls on or before 31 March 2026 stay under the 1961 Act (old section codes, Form 26Q/27Q), even if deposited in April. Later events move to Section 393.
CA Vikram Mehta
@ca_vikram
CA
FCA | Direct Tax & International Taxation | Ex-Big4 | Pune | 18 years in practice. Views personal.