New Provision
Section 421, IT Act 2025
Replaces (IT Act 1961)
232
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 421
e several modes of recovery specified in this Part shall not affect in any way:— (a) any other law for the time being in force relating to the recovery of debts due to Government; or (b) the right of the Government to institute a suit for the recovery of the arrears due from the assessee, and it shall be lawful for the Assessing Officer or the Government, as the case may be, to have recourse to any such law or suit, irrespective of the fact that the tax due is being recovered from the assessee by any mode specified in this Part of the Chapter.
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 421 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.