New Provision
Section 390, IT Act 2025
Replaces (IT Act 1961)
190
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 390
he tax on income shall be payable as per this Chapter by way of–– (a) deduction or collection at source; or (b) advance payment; or (c) payment under section 392(2)(a). (2) The tax referred to in sub-section (1) shall be payable as per the provisions of this Chapter, irrespective of the fact that the assessment in respect of such income is to be made in a later tax year. (3) Nothing contained in this section, shall affect the charge of tax on such income under section 4(1). (4) The payment of tax referred to in sub-section (1) shall be in addition to any other mode of tax recovery to discharge the liability in respect of income assessed for a tax year. (5) The tax deducted at source or collected at source or sum referred to in section 392(2)(a) under this Chapter and paid to the Central Government shall be treated as payment of tax on behalf of the person–– (a) from whose income such tax has been deducted; or (b) from whom such tax has been collected; or (c) in respect of whose income such tax has been paid. (6) The Board may make rules for— (a) giving credit of tax deducted or collected or paid to a person referred to in sub-section (5) and also a person other than the person referred to in the said sub-section; (b) the tax year for which the credit may be given.
Shahi & Co. — Our Understanding
This section falls under Chapter XVIII which deals with collection and recovery of tax — including TDS, advance tax, self-assessment tax, and recovery proceedings.
Practical Note: TDS compliance is one of the most heavily scrutinised areas in income tax. Failure to deduct, short deduction, or late deposit of TDS attracts interest, penalty, and disallowance of the related expenditure.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 390 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.