Chapter XIX of the Income-tax Act, 2025 — Collection and Recovery of Tax

What this chapter does

Sections 390 to 402 carry TDS and TCS: section 393 is the single consolidated deduction section that absorbs what the 1961 Act spread across sections 192 to 195, section 394 collection at source, section 395 certificates, section 397 compliance and reporting, and section 398 the consequences of failure. Sections 403 to 411 carry advance tax. Sections 412 to 422 carry recovery, including the Tax Recovery Officer, other modes of recovery and recovery in pursuance of agreements with foreign countries. Sections 423 to 430 carry interest and fees for default.

What to watch

• Section 393 is one section doing the work of a dozen; the rate and threshold now come from its Table rather than from separate sections.
• Interest under section 424 runs whether or not the shortfall was deliberate, and it is computed before any penalty question arises.

The sections in this chapter

• Section 390 — Deduction or collection at source and advance payment
• Section 391 — Direct payment
• Section 392 — Salary and accumulated balance due to an employee
• Section 393 — Tax to be deducted at source read in full
• Section 394 — Collection of tax at source
• Section 395 — Certificates
• Section 396 — Tax deducted is income received
• Section 397 — Compliance and reporting
• Section 398 — Consequences of failure to deduct or pay or, collect or pay
• Section 399 — Processing
• Section 400 — Power of Central Government to relax provisions of this Chapter
• Section 401 — Bar against direct demand on assessee
• Section 402 — Interpretation
• Section 403 — Liability for payment of advance tax
• Section 404 — Conditions of liability to pay advance tax
• Section 405 — Computation of advance tax
• Section 406 — Payment of advance tax by assessee on his own accord
• Section 407 — Payment of advance tax by assessee in pursuance of order of Assessing Officer
• Section 408 — Instalments of advance tax and due dates
• Section 409 — When assessee is deemed to be in default
• Section 410 — Credit for advance tax
• Section 411 — When tax payable and when assessee deemed in default
• Section 412 — Penalty payable when tax in default
• Section 413 — Certificate by Tax Recovery Officer and validity thereof
• Section 414 — Tax Recovery Officer by whom recovery is to be effected
• Section 415 — Stay of proceedings in pursuance of certificate and amendment or cancellation thereof
• Section 416 — Other modes of recovery
• Section 417 — Recovery through State Government
• Section 418 — Recovery of tax in pursuance of agreements with foreign countries
• Section 419 — Recovery of penalties, fine, interest and other sums
• Section 420 — Tax clearance certificate
• Section 421 — Recovery by suit or under other law not affected
• Section 422 — Recovery of tax arrear in respect of non-resident from his assets
• Section 423 — Interest for defaults in furnishing return of income
• Section 424 — Interest for defaults in payment of advance tax read in full
• Section 425 — Interest for deferment of advance tax
• Section 426 — Interest on excess refund
• Section 427 — Fee for default in furnishing statements
• Section 428 — Fee for default in furnishing return of income, audited accounts and reports
• Section 429 — Fee for default relating to statement or certificate
• Section 430 — Fee for default relating to intimation of Aadhaar number