The Statutory Brief

IT Act 1961 → 2025 / Section 195A

TDS

Section 195A → Section 393(10)

Grossing up of tax where income is payable 'net of tax'

Section 195A of the old Income-tax Act, 1961 · new section 393(10) under the Income-tax Act, 2025

New reference Section 393(10)

Income-tax Act, 1961Section 195A

  • Where the payer bears the tax, income is grossed up before TDS

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 393(10)

  • Same rule, now section 393(10)

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered.

Practice notes

  • Common in foreign payments where the vendor quotes a net amount.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 195A called in the new Income Tax Act 2025?

Section 393(10): grossing up where tax is borne by the payer.

What is section 195A called in the new Income-tax Act, 2025?

Section 195A of the Income-tax Act, 1961 corresponds to Section 393(10) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 195A under the new Income Tax Act?

Renumbered.

Is section 195A still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 195A of the 1961 Act. Section 393(10) of the 2025 Act applies from tax year 2026-27.

Related sections

195→393TDS on interest and other sums paid to non-residents (residual provision)115A→207Tax on dividends, interest, royalty and FTS of non-residents and foreign companies90 / 90A→159Double taxation relief under tax treaties (DTAA)