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ITA Chapter 19

Deduction or collection at source and advance payment

  1. The tax on income shall be payable as per this Chapter by way of—
    1. deduction or collection at source; or
    2. advance payment; or
    3. 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—
    1. from whose income such tax has been deducted; or
    2. from whom such tax has been collected; or
    3. in respect of whose income such tax has been paid.
  6. The Board may make rules for—
    1. 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;
    2. the tax year for which the credit may be given.

Direct payment

  1. The income-tax on any income shall be payable directly by the assessee if—
    1. there is no provision under this Chapter to deduct income-tax on such income at the time of payment; or
    2. income-tax has not been deducted as per the provisions of this Chapter.
  2. If an assessee has any income of the nature as specified in section 17(1)(d) and such specified security or sweat equity shares are allotted or transferred directly or indirectly by the current employer which is an eligible start-up referred to in section 140, then direct payment of tax for the purposes of sub-section (1) shall be made in accordance with section 289(3).
  3. Where any person, including the principal officer of the company,—
    1. who is required to deduct any sum as per the provisions of this Act; or
    2. referred to in section 392(2)(a), being an employer,
    does not deduct, or after so deducting fails to pay, or does not pay, the whole or any part of the tax, as required under this Act, and where the assessee has also failed to pay such tax directly, then, such person shall, apart from any other consequences that he may incur, be deemed to be an assessee in default within the meaning of section 398(1), in respect of such tax.

Salary and accumulated balance due to an employee

  1. Any person responsible for paying any income chargeable under the head “Salaries” shall deduct income-tax on the amount payable and this deduction shall be made at the time of such payment at the average rate of income-tax computed on the basis of the rates in force for the tax year in which the payment is made, on the estimated income of the assessee under this head for such year.
  2. Without prejudice to the provisions of sub-section (1),—
    1. the person responsible for paying any income in the nature of a non-monetary perquisite chargeable to tax under section 17(1), may pay, at his option, tax on the whole or part of such income without making any deduction therefrom, at the time when such tax was deductible under sub-section (1);
    2. the tax under clause (a) shall be determined at the average rate as per sub-section (1), on the income chargeable under the head “Salaries” including the income referred to in the said clause, and shall be construed as if it were a tax deductible at source from the income under the head “Salaries”, and be subject to the provisions of this Chapter.
  3. Any person, being an eligible start-up referred to in section 140, responsible for paying any income of the nature specified in section 17(1)(d) in any tax year, shall deduct or pay, as the case may be, tax on such income, on the basis of rates in force for the tax year in which the specified security or sweat equity share is allotted or transferred, within the time as specified for the payee in section 289(3).
  4. The person responsible for making payment under sub-section (1), shall take into account the following particulars furnished by the assessee, at his option, in such form and verified in such manner as may be prescribed, for the purpose of making deduction under the said sub-section and such particulars shall have an effect of increasing or decreasing the tax to be deducted:—
    1. any income under the head “Salaries” due or received by the assessee, from any other employer or employers during the tax year;
    2. any relief allowable under section 157, where the assessee being a Government servant, or an employee in a company, co-operative society, local authority, university, institution, association or body is entitled for such relief;
    3. any loss under the head “Income from house property” for the same tax year;
    4. any income chargeable under any other head of income, not being a loss under any such head other than the loss specified in sub-clause (iii) for the same tax year;
    5. any tax deducted or collected at source under this Chapter for the same tax year.
  5. The tax deductible from income under the head “Salaries” shall not be reduced in any case, except on account of—
    1. loss under the head “Income from house property”; and
    2. the tax deducted and collected as per other provisions of this Chapter.
  6. The person responsible for paying any income chargeable under the head “Salaries” to the assessee—
    1. shall furnish a statement in such form and manner, as may be prescribed, with correct and complete particulars of perquisites or profits in lieu of salary paid, along with their value, to the assessee;
    2. shall, for the purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set off of loss) under the provisions of this Act in such form and manner, as may be prescribed; and
    3. may, increase or reduce the amount to be deducted under this section for adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the tax year.
  7. The trustees of a recognised provident fund, or any person authorised by the regulations of the fund to make payment of the accumulated balances due to employees shall, in cases where paragraph 9 of Part A of Schedule XI applies, at the time an accumulated balance due to an employee is paid, make therefrom the deduction provided in paragraph 10 of Part A of Schedule XI.
  8. Where any contribution made by an employer, including interest on such contributions, if any, in an approved superannuation fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the fund to the extent provided in paragraph 7 of Part B of Schedule XI.
  9. Irrespective of anything contained in this Act, the trustees of the Employees’ Provident Funds Scheme, 1952, made under section 5 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), or any person authorised under such scheme to make payment of accumulated balance due to employees, shall at the time of payment of accumulated balance due to the employee participating in a recognised provident fund, deduct income-tax thereon at the rate of 10%, where the aggregate amount of such payment is ₹ 50,000 or more, and such accumulated balance is includible in his total income owing to the provisions of paragraph 8 of Part A of Schedule XI not being applicable.
  10. For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at such rate of exchange as may be prescribed.

Tax to be deducted at source

  1. Where any income or sum of the nature specified in column B of the Table below, is credited or paid or distributed by the person specified in column C during the tax year, to a resident, the person responsible for paying such income or sum shall deduct income-tax,—
    1. on the entire amount of such income or sum, where the amount or aggregate of amounts exceeds the threshold limit specified in column D, or on sum as per Note 1 for serial number 8(ii), as the case may be;
    2. at the rate specified in column D;
    3. at the time of credit of such income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and
    4. subject to the provisions of sub-sections (4), (5), (6), (8) and (9).

Collection of tax at source

  1. Every person, as specified in column C of the Table below shall collect tax—
    1. on receipts specified in column B;
    2. at the rate as specified in column D; and
    3. at the time of debiting of the amount payable by the buyer or licensee or lessee to the account of the buyer or licensee or lessee or at the time of receipt of such amount from the said buyer or licensee or lessee in cash or by way of a cheque or a draft or any other mode, whichever is earlier.
  2. Irrespective of anything contained in sub-section (1) (Table: Sl. Nos. 1 to 5), the collection of tax shall not to be made in respect of receipts specified in sub-section (1) (Table: Sl. Nos. 1 to 5) in respect of the buyer, who is a resident in India, if he furnishes a written declaration in duplicate in such form and manner, as may be prescribed, to the person responsible for collecting tax, mentioning that such goods are to be utilised—
    1. for the purposes of manufacturing, processing or producing articles or things or for generating power; and
    2. not for trading purposes.
  3. Where no collection of tax is to be made under sub-section (2), the person responsible for collecting tax shall deliver or cause to be delivered, one copy of the declaration referred to in that sub-section, to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, on or before the seventh day of the month following the month of receipt of that declaration.
  4. The collection of tax shall not be made by the authorised dealer in respect of receipt specified in sub-section (1) (Table: Sl. No. 7),—
    1. on such amount on which tax has been collected by the seller in respect of receipt referred to in sub-section (1) (Table: Sl. No. 8);
    2. if the amount being remitted out is a loan obtained from any financial institution as defined in section 129(3)(b), for the purpose of pursuing any education.
  5. The collection of tax shall not be made by the authorised dealer or seller, in respect of receipt specified in sub-section (1) (Table: Sl. Nos. 7 and 8), if the buyer is liable to deduct tax at source under any other provisions of this Act and he has deducted such tax.
  6. For the purposes of this section, “forest produce” shall have the same meaning as defined in any State Act for the time being in force, or in the Indian Forest Act, 1927 (16 of 1927).

Certificates

  1. Where tax is required to be deducted on any income or sum under this Chapter, then subject to the rules made under this Act,—
    1. the payee may make an application before the Assessing Officer for deduction of income-tax at a lower rate or no deduction of income-tax, as the case may be; and
    2. the Assessing Officer on being satisfied that the total income of the payee justifies deduction of income-tax at a lower rate or no deduction of income-tax, as the case may be, shall issue to him a certificate as appropriate; and
    3. when a certificate is issued under clause (b) or sub-section (6), as the case may be, the person responsible for paying the income or sum shall deduct the tax at the rate specified in such certificate, or deduct no income-tax, as the case may be, till its validity.
    1. The person responsible for paying to a non-resident any sum as mentioned in section 393(2) (Table: Sl. No. 17), may make an application to the Assessing Officer in such form and manner as may be prescribed, where he considers that the whole of such sum would not be chargeable in the case of the recipient;
    2. the application under clause (a) shall be for determination of the appropriate proportion of the sum chargeable to tax, by the Assessing Officer in the manner as may be prescribed; and
    3. when the determination is made by the Assessing Officer as per clause (b), the tax shall be deducted under section 393(2) (Table: Sl. No. 17) only on that proportion of sum which is chargeable to tax under the Act.
  3. Where tax is required to be collected on any amount under this Chapter, then subject to the rules made under this Act,—
    1. the buyer or licensee or lessee may make an application before the Assessing Officer for collection of tax at a lower rate;
    2. the Assessing Officer on being satisfied that the total income of the buyer or licensee or lessee justifies collection of tax at a lower rate, shall issue to him a certificate as may be appropriate; and
    3. when a certificate is issued under clause (b), the person responsible for collecting tax shall collect it at the rates specified in such certificate till its validity.
  4. Every person deducting or collecting tax shall issue a certificate to the deductee or collectee, as the case may be, specifying—
    1. the amount of tax that has been deducted or collected;
    2. the rate at which tax has been deducted or collected; and
    3. any other particulars, as may be prescribed, within such period as may be prescribed.
  5. An employer referred to in section 392(2)(a) shall issue a certificate to the employee, in respect of whose income payment of tax has been made by the employer, that the tax has been paid to the Central Government, and specify—
    1. the amount of tax so paid;
    2. the rate at which tax has been paid; and
    3. any other particulars, as may be prescribed, within such period, as may be prescribed.
  6. The Assessing Officer may cancel the certificate granted under sub-section (1) or (3) after giving reasonable opportunity to the applicant.
  7. The application referred to in sub-section (1)(a) may also be filed before the prescribed income-tax authority, subject to such conditions as may be prescribed, and such authority on electronic verification of the contents of the application, may—
    1. either issue a certificate for deduction of income-tax at lower rate or no deduction of income-tax; or
    2. reject such application on account of non-fulfilment of the prescribed conditions or on account of the application being incomplete.

Tax deducted is income received

  1. The following sums shall be deemed as income received for the purposes of computing the income of an assessee—
    1. sums deducted under this Chapter; and
    2. income-tax paid outside India by way of deduction in respect of which an assessee is allowed a credit against the tax payable under this Act, except tax paid under section 392(2)(a) and tax deducted as per section 393(3) (Table: Sl. No. 5).

Compliance and reporting

    1. Every person deducting or collecting tax shall apply for allotment of a tax deduction and collection account number to the Assessing Officer within such time as may be prescribed, if that person has not already been allotted such number;
    2. where a tax deduction and collection account number has been allotted to a person, such person shall quote such number in all challans, statements, certificates referred to in this Chapter, and in all documents pertaining to such transactions as may be prescribed in the interests of revenue;
    3. The provisions of clause (a) shall not apply to—
      1. a person in respect of a transaction where he is required to deduct tax under section 393(1) [Table: Sl. No. 2(i), 3(i) or 6(ii)];
      2. a person referred to in section 393(4) [Table: Sl. No. 12.C(a)] in respect of a transaction where he is required to deduct tax on consideration for transfer of a virtual digital asset under section 393(1) [Table: Sl. No. 8(vi)];
      3. a resident individual or Hindu undivided family in respect of a transaction where he is required to deduct tax on any consideration for the transfer of any immovable property under section 393(2) [Table: Sl. No. 17]; or
      4. a person notified in this regard by the Central Government.
    1. Irrespective of anything contained in any other provision of this Act, every person, entitled to receive any amount on which tax is deductible or paying any amount on which tax is collectible, shall furnish his valid Permanent Account Number to the person responsible for deducting or collecting tax;
    2. In case of failure to comply with provisions of clause (a)—
      1. tax shall be deducted at the higher of the following rates:—
        1. at the rate specified in the relevant provision of this Act;
        2. at the rate or rates in force; or
        3. at the rate of 5% where tax is required to be deducted under section 393(1) [Table: Sl. No. 8(ii) or 8(v)]; or 20% in any other case.
      2. tax shall be collected at the higher of the following rates, not exceeding 20%—
        1. at twice the rate specified in the relevant provision of this Act; or
        2. at the rate of 5%.
    3. The provisions of clause (b)(i) shall not apply to a non-resident, not being a company or a foreign company, in respect of—
      1. payment of interest on long-term bonds as specified in section 393(2) (Table: Sl. Nos. 2, 3 and 4); and
      2. any other payment subject to such conditions, as may be prescribed.
    4. The provisions of clause (b)(ii) shall not apply to a non-resident who does not have permanent establishment in India, which includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.
    5. In respect of rent specified in section 393(1) [Table: Sl. No. 2(i)], if the tax is required to be deducted as per clause (b)(i), then such deduction shall not exceed the amount of rent payable for the last month of the tax year or the last month of the tenancy, as the case may be.
    6. If a person does not furnish his valid Permanent Account Number in—
      1. any declaration under section 393(6) or 394(2), then such declaration becomes invalid;
      2. any application made under provisions of section 395(1) or (3), then no certificate under such provisions shall be granted.
    7. If any declaration becomes invalid under clause (f)(i), then the deductor or collector shall deduct or collect tax as per the provisions of clause (b)(i) or (ii), as the case may be.
    8. The deductee or collectee shall furnish his valid Permanent Account Number to the deductor or collector, as the case may be, and the same shall be indicated in all bills, vouchers, correspondence and other documents which are sent to each other.
    1. Every person responsible for deduction or collection of tax or employer referred to in section 392(2)(a) shall pay the amount so deducted or collected or determined as per section 392(2)(b) to the credit of the Central Government, in such time as may be prescribed;
    2. Every person responsible for deduction or collection of tax or employer referred to in section 392(2)(a), after paying the tax to the credit of the Central Government as per clause (a), shall deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority, a statement for such period, in such form, verified in such manner, giving such particulars, and within such time, as may be prescribed;
    3. Every prescribed authority as per clause (b) shall deliver a statement in such form and manner as may be prescribed, to the buyer or licensor or lessee referred to in section 394(1) (Table: Sl. Nos. 1 to 4 or 9);
    4. Every person responsible for paying to a non-resident, not being a company or a foreign company, any sum, whether or not chargeable under this Act, shall furnish the information relating to payment of such sum, in such form and manner as may be prescribed.
    5. In case of an office of the Government,—
      1. where the sum deducted under this Chapter or tax referred to in section 392(2)(a); or
      2. where the sum collected under section 394(1) (Table: Sl. Nos. 1 to 5 or 9),
      has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, who is responsible for crediting such sum or tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed authority or the person authorised by such authority, a statement in such form, verified in such manner, giving such particulars and within such time, as may be prescribed.
    6. Every person referred to in clause (b) or (e) may correct any discrepancy or update the information furnished in the statement delivered under the said clauses, by delivering a correction statement in such form and verified in such manner as may be prescribed, to the prescribed authority under the said clauses, within two years from the end of the tax year in which such statement is required to be delivered under the said clauses or under section 200 of the Income-tax Act, 1961 (43 of 1961).
      7. Any banking company or co-operative society or public company referred to in Note 1 to section 393(1) (Table: Sl. No. 5) responsible for paying to a resident any income by way of interest, not exceeding the threshold limit mentioned in section 393(1) [Table: Sl. No. 5(ii) and (iii)], shall deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority, a statement in such form, verified in such manner, giving such particulars and within such time, as may be prescribed.
      1. The Board may require any person, other than the person mentioned in sub-clause (i), responsible for paying to a resident any income which is liable for deduction of tax at source under this Chapter to deliver or cause to be delivered to the income-tax authority or the authorised person under sub-clause (i), a statement in such form, verified in such manner, giving such particulars and within such time, as may be prescribed.
      2. The person referred to in sub-clause (i) or sub-clause (ii) may deliver a correction statement to correct any discrepancy or update the information furnished in the statement delivered under sub-clause (i) or sub-clause (ii), in such form and manner of verification, as may be prescribed to the income-tax authority referred to in sub-clause (i).
    8. Any person responsible for collecting the tax who fails to collect the tax as per the provisions of section 394 shall, irrespective of such failure, be liable to pay the tax to the credit of the Central Government as per the provisions of clause (a).

Consequences of failure to deduct or pay or, collect or pay

  1. If a person, including the principal officer of a company,—
    1. who is required to deduct or collect any amount under this Act; or
    2. referred to in section 392(2)(a), being an employer,
    does not deduct or pay, or does not collect or pay, or after so deducting or collecting fails to pay, the whole or any part of the tax, as required by or under this Act, then such person shall be deemed to be an assessee in default in respect of such tax in addition to any other consequences which that person may incur under this Act.
  2. Irrespective of anything contained in sub-section (1), any person,—
    1. including the principal officer of a company, who fails to deduct; or
    2. responsible for collecting tax as per section 394(1) (Table: Sl. Nos. 1 to 5 and 9), who fails to collect,
    the whole or any part of the tax, as required under this Chapter, on the amount paid or credited to the account of payee or, on the amount collected or debited to the account of the buyer or licensee or lessee, as the case may be, shall not be deemed to be an assessee in default in respect of such tax, if the payee or buyer or licensee or lessee has—
    1. furnished his return of income under section 263;
    2. taken into account the amount for computing income in that return of income; and
    3. paid the tax due on the income declared by him in such return of income,
    and the person furnishes a certificate to this effect from an accountant in the form as may be prescribed.
  3. Without prejudice to sub-section (1), if any person, as referred to in that sub-section does not deduct or collect the whole or any part of the tax or after deducting or collecting fails to pay the tax as required under this Act, he shall be liable to pay simple interest—
    1. at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible or collectible to the date on which such tax is deducted or collected; and
    2. at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted or collected to the date on which such tax is actually paid.
    3. The interest referred to in clause (a) shall be paid before furnishing the statement as per the provisions of section 397(3)(b).
    4. If the person referred to in sub-section (1) is not deemed to be an assessee in default under sub-section (2), then the interest as per clause (a)(i) is payable from the date on which that tax was deductible or collectible to the date of furnishing of return of income by the concerned payee or buyer or licensee or lessee, as the case may be.
    5. When an order is made by the Assessing Officer for the default under sub-section (1), the interest shall be paid by the person as per such order.
  4. Where the tax has not been paid after it is deducted or collected, the amount of the tax together with the amount of simple interest on it as referred to in sub-section (3)(a) shall be a charge upon all the assets of the person referred to in sub-section (1).
  5. The order shall not be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct or collect the whole or any part of the tax from any person—
    1. after six years from the end of the tax year in which tax was deductible or collectible; or
    2. after two years from the end of the tax year in which the correction statement is delivered under section 397(3)(f),
    whichever is later.
  6. The provisions of sections 286(1) and 286(3) shall apply to the time limit specified in sub-section (5).
  7. No penalty shall be levied under section 412 on the person mentioned in sub-section (1), unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct or collect and pay such tax.

Processing

  1. All statements of tax deducted at source or tax collected at source including a correction statement shall be processed in the following manner:—
    1. The amounts deductible or collectible under this Chapter shall be computed after making the following adjustments:—
      1. any arithmetical error in the statement; or
      2. an incorrect claim apparent from any information in the statement.
    2. The interest, if any, shall be computed on the basis of the amounts deductible or collectible as reflected in the statement.
    3. The fee, if any, shall be computed as per the provisions of section 427(1) and (2).
    4. The following amount shall be determined after adjustment of the amount computed under clauses (b) and (c) against any amount paid under section 397(3) or 398 or 427(1) and (2) and any amount paid otherwise by way of tax or interest or fee—
      1. the amount payable by; or
      2. the amount of refund due to,
        3. the deductor or collector.
    5. An intimation shall be prepared or generated and sent to the deductor or collector specifying the amount determined to be payable by, or the amount of refund due to, him under clause (d).
    6. The amount of refund due to a deductor or collector in pursuance of the determination under clause (d) shall be granted to the deductor or collector.
  2. The intimation under this section shall be sent within one year from the end of the tax year in which the statement is filed.
  3. The Board may make a scheme for centralised processing of statements, as required under sub-section (1).

Power of Central Government to relax provisions of this Chapter

  1. The Central Government may, by notification, provide that deduction or collection of tax shall not be made or is to be made at such lower rate, from such payment or receipt and in respect of such person or class of persons.
  2. The Board may, with the previous approval of the Central Government, issue guidelines to remove any difficulty arising in giving effect to the provisions of this Chapter and such guidelines shall be—
    1. binding on the income-tax authorities and on the person liable to deduct or, as the case may be, collect income-tax; and
    2. laid before each House of Parliament.
  3. The Board may notify a class of person, or cases, where the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, to make an application in such form and manner as may be prescribed, to the Assessing Officer, to determine the appropriate proportion of sum chargeable in the manner as may be prescribed, and accordingly tax shall be deducted under section 393(2) (Table: Sl. No. 17) on that proportion of the sum which is so chargeable.
  4. The Board may, by notification, make rules specifying the cases in which, and the circumstances under which, an application may be made for grant of a certificate under section 395(1) and (3), and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.

Bar against direct demand on assessee

  1. Where 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

  1. “Administrator” shall have the same meaning as assigned to it in section 2(a) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).
  2. “Agricultural land” means agricultural land in India,—
    1. not being a land situated in any area referred to in section 2(22)(iii), for the purposes of section 393(1) [Table: Sl. No. 3(i)];
    2. including a land situated in any area referred to in section 2(22)(iii), for the purposes of section 393(1) [Table: Sl. No. 3(iii)].
  3. “An incorrect claim apparent from any information in the statement” shall mean a claim, on the basis of an entry, in the statement—
    1. of an item, which is inconsistent with another entry of the same or some other item in such statement;
    2. in respect of rate of deduction of tax at source or rate of collection of tax at source, where such rate is not as per the provisions of the Act.
  4. “Authorised dealer” means a person authorised by the Reserve Bank of India under section 10(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) to deal in foreign exchange or foreign security.
  5. “Banking company” means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies.
  6. “Commission or brokerage” includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person,—
    1. for services rendered (not being professional services);
    2. for any services in the course of buying or selling of goods; or
    3. in relation to any transaction relating to any asset, valuable article or thing, not being securities.
  7. “Computer resource”, “internet” and “online game” shall have the meanings respectively assigned to them in section 194(2).
  8. “Consideration for transfer of any immovable property” shall include all charges of the nature of,—
    1. club membership fee;
    2. car parking fee;
    3. electricity or water facility fee;
    4. maintenance fee;
    5. advance fee; or
    6. any other charges of similar nature, which are incidental to transfer of the immovable property.
  9. “Contract” shall include sub-contract.
  10. “Designated person”, for the purposes of section 393(1) [Table: Sl. No. 6(i)], means—
    1. the Central Government or any State Government;
    2. any local authority;
    3. any corporation established by or under a Central Act or State Act or Provincial Act;
    4. any company;
    5. any co-operative society;
    6. any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;
    7. any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;
    8. any trust;
    9. any University established or incorporated by or under a Central Act or State Act or Provincial Act and an institution declared to be a university under section 3 of the University Grants Commission Act, 1956 (3 of 1956);
    10. any Government of a foreign State or a foreign enterprise or any association or body established outside India;
    11. any firm; or
    12. any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person,—
      1. does not fall under any of the preceding sub-clauses; and
      2. has total sales, gross receipts or turnover from business or profession carried on by him exceeding one crore rupees in case of business or fifty lakh rupees in case of profession during the tax year immediately preceding the tax year in which such sum is credited or paid to the account of the contractor.
  11. “Electronic commerce” means the supply of goods or services, or both, including digital products, over digital or electronic network.
  12. “E-commerce operator” means a person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
  13. “E-commerce participant” means a person resident in India selling goods or providing services, or both, including digital products, through digital or electronic facility or platform for electronic commerce.
  14. “Fees for technical services” shall have the meaning as assigned to it in section 9(7)(b).
  15. “Foreign exchange asset” means any specified asset which the assessee has acquired or purchased with, or subscribed to, in convertible foreign exchange.
  16. “Foreign Institutional Investor” shall have the meaning as assigned to it in section 210(6)(a).
  17. “Goods carriage” shall have the meaning as assigned to it in section 58(11)(d).
  18. “Immovable property” means any land (other than agricultural land) or any building or part of a building.
  19. “Investor” shall have the meaning assigned to it in section 221(6)(a), for the purposes of section 393(1) [Table: Sl. No. 4(iv)] and section 393(2) (Table: Sl. No. 9).
  20. “Licensee or lessee” means any person, other than a public sector company, who has been granted a lease or a licence or entered into a contract or otherwise received any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, from the licensor or lessor for the use of parking lot or toll plaza or mine or quarry for the purposes of business.
  21. “Licensor or lessor” means any person who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company for the use of such parking lot or toll plaza or mine or quarry for the purposes of business.
  22. “Non-resident Indian” shall have the meaning assigned to it in section 212(d).
  23. “Offshore Banking Unit” shall have the same meaning as assigned to it in section 2(u) of the Special Economic Zones Act, 2005 (28 of 2005).
  24. “Online gaming intermediary” means an intermediary who offers one or more online games.
  25. “Overseas tour programme package” means any tour package which offers visit to any country or territory outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto.
  26. “Person responsible for paying” means—
    1. in the case of payments of income chargeable under the head “Salaries”, other than payments by the Central Government or the State Government—
      1. the employer himself; or
      2. if the employer is a company, the company itself, including the principal officer thereof;
    2. in the case of payments of income chargeable under the head “Interest on securities”, other than payments made by or on behalf of the Central Government or State Government, local authority, corporation or company, including the principal officer thereof;
    3. in the case of any sum payable to a non-resident Indian, being any sum representing consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised person referred in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999), responsible—
      1. for remitting such sum to the non-resident Indian; or
      2. for crediting such sum to his Non-resident (External) Account maintained as per the provisions of the Foreign Exchange Management Act, 1999 (42 of 1999), and any rules made thereunder;
    4. in the case of furnishing of information relating to payment to a non-resident, not being a company, or to a foreign company, of any sum, whether or not chargeable under the provisions of this Act—
      1. the payer himself; or
      2. if the payer is a company, the company itself including the principal officer thereof;
    5. in the case of credit, or, as the case may be, payment of any other sum chargeable under the provisions of this Act—
      1. the payer himself; or
      2. if the payer is a company, the company itself including the principal officer thereof;
    6. in the case of credit, or as the case may be, payment of any sum chargeable under the provisions of this Act made by or on behalf of the Central Government or the State Government—
      1. the drawing and disbursing officer; or
      2. any other person, by whatever name called, responsible for crediting, or paying such sum;
    7. in the case of a person not resident in India—
      1. the person himself;
      2. any person authorised by such person; or
      3. the agent of such person in India including any person treated as an agent under section 306.
  27. “Professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as may be notified by the Board for the purposes of this section, or of section 62.
  28. “Rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any—
    1. land;
    2. building (including factory building);
    3. land appurtenant to a building (including factory building);
    4. machinery;
    5. plant;
    6. equipment;
    7. furniture;
    8. fittings,
    whether or not any or all of the above are owned by the payee, and for the purposes of section 393(1) [Table: Sl. No. 2(i)], only the payment with reference to assets mentioned in sub-clauses (a), (b) and (c) shall be treated as rent.
  29. “Royalty” shall have the meaning assigned to it in section 9(6)(b).
  30. “Scrap” means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons.
  31. “Securities” shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
  32. “Seller” means—
    1. for the purposes of section 394(1) (Table: Sl. Nos. 1 to 6),—
      1. the Central Government;
      2. a State Government;
      3. any local authority or corporation or authority established by or under a Central Act or State Act or Provincial Act;
      4. any company or firm or co-operative society;
      5. an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the tax year immediately preceding the tax year in which the goods of the nature specified in such serial numbers are sold.
    2. for the purposes of section 394(1) (Table: Sl. No. 8), a person who sells overseas tour program package.
  33. “Services” for the purposes of section 393(1) [Table: Sl. No. 8(v)], includes “fees for technical services” and fees for “professional services”, as defined in this section.
  34. “Specified bank” means a banking company as the Central Government may, by notification, specify.
  35. “Specified company” means for the purposes of section 393(1) [Table: Sl. No. 4(i)] and 393(2) (Table: Sl. No. 10), a company as referred to in section 2(h) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).
  36. “Specified person” means—
    1. any person, not being an individual or Hindu undivided family; or
    2. an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the tax year immediately preceding the tax year in which such income or sum is credited or paid.
  37. “Special purpose vehicle” shall have the meaning in Schedule V (Note 2).
  38. “Specified senior citizen” means an individual, being a resident in India—
    1. who is of the age of seventy-five years or more at any time during the tax year;
    2. who is having pension income and no other income except the interest received or receivable from any account maintained by such individual in the same specified bank in which he is receiving his pension income; and
    3. has furnished a declaration to the specified bank containing particulars, in such form and verified in such manner as may be prescribed.
  39. “Specified undertaking” shall have the same meaning as assigned to it in section 2(i) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
  40. “Time deposits” means deposits (including recurring deposits) repayable on the expiry of fixed periods.
  41. “Unit” for the purposes of section 393(1) [Table: Sl. No. 4(iii)] and section 393(2) (Table: Sl. No. 8) shall have the meaning assigned to it in section 224(10)(c).
  42. “Unit Trust of India” means the Unit Trust of India as referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
  43. “University”, referred in section 392(4), means a University established or incorporated by or under a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act.
  44. “User” means any person who accesses or avails any computer resource of an online gaming intermediary.
  45. “User account” means account of a user registered with an online gaming intermediary.
  46. “Work” shall include—
    1. advertising;
    2. broadcasting and telecasting including production of programmes for such broadcasting or telecasting;
    3. carriage of goods or passengers by any mode of transport other than by railways;
    4. catering;
    5. manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from—
      1. such customer; or
      2. its associate, being a person placed similarly in relation to such customer as is the person placed in relation to the assessee under the provisions contained in section 36(3),
      but does not include—
      1. manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer or associate of such customer; or
      2. any sum referred to in section 393(1) [Table: Sl. No. 6(iii)].
    6. supply of manpower to a person to work under his supervision, control or direction.

Liability for payment of advance tax

  1. Advance tax shall be payable during any financial year in respect of the current income of the assessee, as per the provisions of this Part.
  2. For the purposes of this Part, “current income” of a tax year means the total income of the assessee which would be chargeable to tax for such tax year.
  3. The provisions of sub-section (1) shall not apply to an individual resident in India, who—
    1. does not have any income chargeable under the head “Profits and gains of business or profession”; and
    2. is of the age of sixty years or more at any time during the tax year.

Conditions of liability to pay advance tax

  1. Advance tax shall be payable by the assessee during a financial year, where the amount of such tax payable during that year, as computed under this Part, is ` 10000 or more

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