a tft substrate and the manufacturing method thereof are disclosed . the method includes : providing a substrate ; forming a gate electrode on the substrate ; forming a first insulation layer and an active layer on the gate electrode in turn ; forming a first black matrix on the active layer ; forming a source electrode and a drain electrode on the first black matrix ; forming a second insulation layer on the source electrode and the drain electrode ; and forming a pixel electrode on the second insulation layer . the pixel electrode is electrically connected to the source electrode or the drain electrode via the second insulation layer . in this way , the masking effect of the display panel assembled by the tft substrate can be ensured . in addition , the coupling capacitance between the data line and the scanning line may be reduced .