3735111 - India Withholding Tax - Maintenance of New Income Type Including Section 393 - Effective 1st April 2026

Due to the introduction of the Income tax Act, 2025, all non salary withholding tax sections (194, 195, 196 series) will be consolidated into a new TDS section, Section 393, effective 1st April 2026.

SAP Business ByDesign has been updated to support this statutory change, and customers must transition to the new Section 393 based withholding tax configuration for invoices posted on or after this date.

SAP Business ByDesign 

1. Go to the Business configuration work center.
2. Select the Implementation Projects view.
3. Click Open Activity List and navigate to Fine Tune.
4. Search for activity Withholding Tax - India.
5. Click Check withholding tax codes.

1. We strongly recommend ensuring, complete booking of all entries until 31st March 2025 before the configuration update.
2. Update the Business Configuration >Withholding Tax India> Go to Check Withholding Tax Codes> Maintain appliable New Section Income Type from the drop down containing the subsections of 393.
3. Create invoice, simulate supplier invoice and check income type for withholding tax line for invoices posted after 1st April 2026.
4. If everything is correct post invoice. If still the old sections or incorrect category mapping is applied, return to Business Configuration and update the sections of 393 income type assignment.
5. Please note that all TDS returns and Form 16A related to entries up to 31 March 2026 must continue to be filed in the old forms, as the new renumbered forms (Form 131) apply only for transactions dated on or after 1 April 2026.

Withholding Tax  India  Section 393 , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , Problem