New Provision
Section 401, IT Act 2025
Replaces (IT Act 1961)
205
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 401
ere tax is deductible at the source under this Chapter, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income. Interpretation. 402. Fo
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 401 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.