Law, Practice & Procedure on Tax Deduction & Collection at Source including Advance Tax & Refunds

Preface to the Twenty-third Edition ........................................................................................................ v
About the Authors.................................................................................................................................. vii
Detailed Contents................................................................................................................................... xi
List of Circulars..................................................................................................................................... xli
Table of Cases.....................................................................................................................................xliii

DIVISION I

Part A: Interplay of TDS/TCS provisions under Income-tax Act, 1961 and Income-tax Act, 2025

CR-1 Comparative Sections, Rules and Forms of TDS/TCS Provisions...............................................4
CR-2 Comparative Legislative Changes in TDS/TCS Provisions....................................................... 20

Part B: General

CR-3 Amendment brought in TDS & TCS provisions by the Finance Act, 2026............................... 48
CR-4 TDS & TCS at a glance.............................................................................................................. 51
CR-5 Time & Mode of Payment of TDS & TCS at a glance .............................................................. 59
CR-6 Declaration & Certificates..........................................................................................................62
CR-7 Statement of TDS & TCS at a glance ........................................................................................ 64
CR-8 Withholding Tax Rates Applicable in the Treaties that India has entered into with Various
Countries....................................................................................................................................66

Part A: GeneralCR-9 Section Codes and list of Nature of Remittances.......................................................................73

DIVISION II

Chapter 1: System of Collection of Tax [Sections 390 and 391]................................................... 100
Chapter 2: Overview of Provisions relating to TDS/TCS .............................................................. 106

Part B: TDS on Salary and Accumulated Balance

Chapter 3: TDS on Salary and accumulated balance due to an employee......................................116
Chapter 4: How to estimate income under the head "Salaries" for purpose of TDS ...................... 165

[Sections 15 to 19]

Part C: TDS on Payments to Residents Only

Chapter 5: TDS on Commission or Brokerage............................................................................... 226
[Section 393(1) (Table Sl. No. 1(i) and (ii) (erstwhile Sections 194D and 194H)]
Chapter 6: TDS on Payment of Rent.............................................................................................. 253

[Section 393(1) (Table: Sl. No. 2) (erstwhile Section 194-IB & 194-I)]
Chapter 7: TDS on payment on Transfer of certain immovable property other than

Agricultural land........................................................................................................... 282
[Section 393(1) (Table: Sl. No. 3) (erstwhile sections 194-IA, 194-IC and 194LA)]
Chapter 8: TDS on Income from Capital Market........................................................................... 303
[Section 393(1) (Table Sl. No. 4) (erstwhile Sections 194K, 194LBA(1), 194LBB,
194LBC(1))]

Chapter 9: TDS on Interest Income................................................................................................ 327

[Section 393(1) (Table Sl. No. 5) (erstwhile Section 193 and 194A)]

Chapter 10: TDS on Payments to Contractors, Fees for professional and technical services ..........378

[Section 393(1) (Table Sl. No. 6) (erstwhile Section 194C, 194M and 194J)]

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x Law, Practice & Procedure on Tax Deduction & Collection at Source...
Chapter 11: TDS on Dividends........................................................................................................444

[Section 393(1) (Table: Sl. No. 7) (erstwhile section 194)]

Chapter 12: TDS in Other Cases......................................................................................................451
[Section 393(1) Table Sl. No. 8 (erstwhile Sections 194DA, 194Q, 194P, 194R, 194O
and 194S)]

Part D: TDS on Payments to Non Residents only

Chapter 13: TDS on Payments to Non-Residents ............................................................................ 520
[Section 393(2) (Table: Sl. No. 1 to 17) (erstwhile 194E, 194LC, 194LB, 194LBA(2)
&(3), 194LBB, 194LBC(2), 196A, 196B, 196C, 196D and 195)]]

Part E: TDS on Payments to Any Person

Chapter 14: TDS on Payments to Any Person (Whether Resident or Non-Resident deductees) .....628
[Section 393(3) (Table: Sl. No. 1 to 7) (erstwhile 194B, 194BA, 194BB, 194G, 194N,
194EE and 194T)]

Part F: Collection of Tax at Source

Chapter 15: TCS on Certain Receipts .............................................................................................. 684

[Section 394]

DIVISION III

Chapter 16: Declaration and Certificates ......................................................................................... 715

[Section 393(6), (7), 394(2) & (3) and 395]

Chapter 17: Compliances & Reporting and Processing of Statements............................................. 748
Chapter 18: Consequences of Defaults............................................................................................. 775
[Sections 35(b), 35(c); 398; 412; 427; 448; 449; 461; 465; 468, 471; 476; 477; 485 and
486 (erstwhile sections 40(a); 201 & 206C(6A) to (8); 221; 234E; 271C; 271CA; 271H;
271-I; 272A; 272BB; 274; 276B; 276BB; 278A; 278AA)]

Chapter 19: Provisions relating to Relaxation from TDS/TCS ........................................................ 807
Chapter 20: Other Important Provisions relating to TDS/TCS ........................................................ 813

DIVISION IV

Chapter 21: Advance Payment of Tax.............................................................................................. 817

[Sections 403 to 410 (erstwhile sections 207-211, 218 and 219)]

Chapter 22: Refunds......................................................................................................................... 839

[Sections 431 to 438 (erstwhile sections 237 to 241 & 245)]

DIVISION V

Appendix 1 [Relevant Rules (Income Tax Rules, 2026 vis-à-vis Income Tax Rules, 1962)] ...........851
Appendix 2 [Relevant Forms (Forms under Income-tax Rules, 1962 vis-à-vis Income-tax
Rules, 2026)] ................................................................................................................877
Appendix 3 [Recent Judicial Decisions]........................................................................................1080
Appendix 4 [Relevant Circulars and Notifications] ......................................................................1058

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Contents xi

Detailed Contents

Preface to the Twenty-third Edition ........................................................................................................ v
About the Authors.................................................................................................................................. vii
Contents.................................................................................................................................................. ix
List of Circulars..................................................................................................................................... xli
Table of Cases.....................................................................................................................................xliii

DIVISION I

Part A: Interplay of TDS/TCS provisions under Income-tax Act, 1961and Income-tax Act, 2025

CR-1 Comparative Sections, Rules and Forms of TDS/TCS Provisions...............................................4
CR-2 Comparative Legislative Changes in TDS/TCS Provisions....................................................... 20

Part B: General

CR-3 Amendment brought in TDS & TCS provisions by the Finance Act, 2026 ............................... 48
CR-4 TDS & TCS at a glance.............................................................................................................. 51
CR-5 Time & Mode of Payment of TDS & TCS at a glance .............................................................. 59
CR-6 Declaration & Certificates..........................................................................................................62
CR-7 Statement of TDS & TCS at a glance ........................................................................................ 64
CR-8 Withholding Tax Rates Applicable in the Treaties that India has entered into with Various
Countries....................................................................................................................................66
CR-9 Section Codes and list of Nature of Remittances.......................................................................73

DIVISION II
Part A: General

(A) Pre-Paid Taxes

Chapter 1: System of Collection of Tax [Sections 390 and 391]................................................. 100

1.1 Deduction or collection at source and advance payment

[Section 390 (erstwhile Sections 190, 199, 202 and 206C(2) & (4) of ITA 1961)] ......101
1.1-a Credit for tax deducted or collected at source.
[Rule 203 (erstwhile Rule 37BA/37-I)].........................................................................102
1.2 Gist of Relevant Circular..............................................................................................103
1.3 Important Judicial Decisions ........................................................................................103

(B) Direct Payment of Tax

1.4 Direct payment.

[Section 391 (erstwhile Section 191 of ITA 1961)] ......................................................104

Chapter 2: Overview of Provisions relating to TDS/TCS........................................................... 106

2.1 Introduction ..................................................................................................................106
2.2 Incomes/sums/receipts from which tax is required to be deducted or collected at
source............................................................................................................................106
2.3 Procedure and scheme of TDS/TCS .............................................................................112

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xii Law, Practice & Procedure on Tax Deduction & Collection at Source...

Part B: TDS on Salary and Accumulated Balance

Chapter 3: TDS on Salary and accumulated balance due to an employee................................ 116

(A) TDS on income chargeable under the "Salaries"
[Sections 392(1) to 392(6) & 392(8) (erstwhile Section 192)]

3.1 Who is liable for deduction of tax at source? ...............................................................119
3.2 When does the liability to deduct tax at source arise? ..................................................119
3.3 Tax to be deducted at average rate of income-tax on estimated salary

[Section 392(1) (erstwhile Section 192(1))].................................................................120

3.4 Tax on non-monetary perquisites can be paid by employer

[Section 392(2)(a) & (b) (erstwhile Section 192(1A) and (1B))] .................................125
3.5 TDS on ESOP issued by an eligible startup referred in section 140 (erstwhile section

80-IAC)
[Section 392(3) (erstwhile Section 192(1C))]...............................................................126

3.6 Furnishing of particulars by the employee at his option

[Section 392(4) and Rule 73, 204(1) (erstwhile Section 192(2A) & 192(2B) and Rule
21AA, 26A(1) & 26B)]..................................................................................................126
3.6-a Furnishing of particulars relating to income/losses and tax deducted or collected at
source for making deduction under section 392(1) from income under head "Salaries".
[Section 392(4)(a)(i)/(iii)/(iv)/(v) read with Rule 204(1) (erstwhile Rule 26A(1) and 26B
merged)]....................................................................................................................... 127
3.6-b Furnishing of particulars relating to relief under section 157 read with Rule 73
(erstwhile Section 89 read with Rule 21AA) for making deduction under section 392(1)
from income under head "Salaries"
[Section 392(4)(a)(ii)]..................................................................................................127
3.7 Employer’s Obligations for Salary Reporting, Evidence Collection, and Tax

Deduction Adjustments
[Section 392(5)]............................................................................................................131
3.7-a Deductor to furnish statement to employee giving correct and complete particulars of
perquisites or profit in lieu of salary and the value thereof.
[Section 392(5)(a) read with Rule 26A(2)]...................................................................131
3.7-b Employer to obtain evidence or proof or particulars or prescribed claims (including
claim for set off of loss) for the purpose of deduction of tax under section 392(1)
[Section 392(5)(b) (erstwhile Section 192(2D))].......................................................... 131
3.7-c Adjustment in the amount of tax to be deducted
[Section 392(5)(c) (erstwhile Section 192(3))]............................................................. 134
3.8 Deduction at source of tax payable on accumulated balance of recognised provident

fund by trustees of such Fund
[Section 392(6)(a) (Erstwhile Section 192(4))]............................................................135

3.9 Deduction of tax on contributions paid to an employee out of Approved

superannuation fund by trustees of such Fund
[Section 392(6)(b) (Erstwhile Section 192(5))]............................................................136
3.10 CBDT Rules to be followed for deduction of tax at source..........................................137
3.11 Tax on income of an employee if he does not opt to be taxed under old regime.
[Section 202 (erstwhile Section 115BAC)]...................................................................137
3.12 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................139

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Contents xiii
3.13 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........139
3.14 Other provisions relating to TDS on salaries................................................................139
3.15 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........143
3.16 Gist of Relevant Circulars ............................................................................................143
3.17 Judicial Decisions.........................................................................................................145

(B) TDS on payment of accumulated balance in recognized provident fund
by the trustees of EPF Scheme, 1952 (This payment is not chargeable under
the head "Salaries") [Section 392(7) (erstwhile Section 192A)]

3.18 Who is liable for deduction of tax at source? ...............................................................159
3.19 When does liability to deduct tax at source arise? ........................................................159
3.20 Rate of TDS..................................................................................................................161
3.21 When is no tax to be deducted at source.......................................................................161
3.22 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................161
3.23 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........162
3.24 Other provision relating to TDS on payment of accumulated balance .........................163
3.25 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........164

Chapter 4: How to estimate income under the head "Salaries" for purpose of TDS .............. 165

[Sections 15 to 19]

4.1 Computation of income under the head "Income from Salaries"..................................165
4.2 Basis of Charge

[Section 15 (erstwhile Section 15 of ITA 1961)] ..........................................................165
4.2-a Arrears of Salary........................................................................................................... 166
4.3 Meaning of Salary ........................................................................................................166
4.4 Wages...........................................................................................................................167
4.5 Annuity.........................................................................................................................167
4.6 Retirement benefits.......................................................................................................167
4.7 Treatment of Bonus......................................................................................................167
4.8 Salary in lieu of notice period.......................................................................................167
4.9 Fee and Commission ....................................................................................................167
4.10 Overtime Payments.......................................................................................................167
4.11 Meaning and Type of Allowances................................................................................168
4.12 Any special allowance from employer i.e., House Rent Allowance — Section 11(1)
read with Schedule III (Table: Sl. No. 11) and Rule 279 (erstwhile Section 10(13A)
and Rule 2A) (Exemption under this Section shall be allowed only if the employee
opts to be taxed under old regime) ...............................................................................168
4.12-a Limits for the purposes of Schedule III (Table: Sl. No. 11) (Rule 279) (Erstwhile Rule
2A)................................................................................................................................ 168
4.13 Any special allowance or benefit to the extent to which such expenses are actually

incurred for that purpose
[Section 11(1) read with Schedule III (Table: Sl. No. 12) (erstwhile Section 10(14)(i))]
......................................................................................................................................171

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xiv Law, Practice & Procedure on Tax Deduction & Collection at Source...
4.13-a Prescribed allowances for the purposes of Schedule III (Table: Sl No. 12) (Rule 280)
(Erstwhile Rule 2BB) ...................................................................................................172

4.14 Any allowance granted to the employee to meet his personal expenses or to
remunerate or compensate him for performing duties of a special nature.
[Section 11(1) read with Schedule III (Table: Sl. No. 13)]
(erstwhile Section 10(14)(ii))]......................................................................................172
4.14-a Prescribed allowances for the purposes of Schedule III (Table: Sl No. 12 & 13) (Rule
280) (Erstwhile Rule 2BB)........................................................................................... 172
4.15 Allowances which are exempt in case of certain persons.............................................174
4.16 Allowances which are fully taxable under both the regimes ........................................175
4.17 Definition of "Perquisite" as per Section 17 (erstwhile Section 17(2)).........................175
4.18 Perquisites which are taxable in the hands of all categories of employees...................177
4.19 Perquisites which are taxable only in the case of specified employees

(Section 17(1)(c)) .........................................................................................................178
4.19-a Who is a specified employee
[Section 17(1)(c) (erstwhile Section 17(2)(iii))]........................................................... 178

4.20 Rent free accommodation or accommodation provided at concessional rate

[(Section 17(1)(a)) and Rule 15]..................................................................................179
4.21 Valuation of monetary obligation of the employee discharged by the employer
[Section 17(1)(f)]..........................................................................................................183
4.22 Valuation of Life Insurance premium/deferred annuity premium paid/ payable by the

employer
[Section 17(1)(g)].........................................................................................................183

4.23 Value of any specified security or sweat equity shares

[Section 17(1)(d)].........................................................................................................184
4.23-a Valuation of specified security or sweat equity share being a share in the company
[Rule 15(6) (Erstwhile Rule 3(8))] ............................................................................... 184
4.24 Contribution made by the employer in a recognised provident fund, in the pension
scheme referred to in section 124(1); and in an approved superannuation fund
exceeding ₹7,50,000
[Section 17(1)(h) (erstwhile Section 17(2)(vii))]..........................................................185
4.25 Annual Accretion to the balance at the credit of the fund or scheme referred to in

section 17(1)(h)
[Section 17(1)(i) (erstwhile Section 17(2)(viia))].........................................................186
4.25-a Annual accretion referred to in in section 17(1)(i) of the Act.
[Rule 16]....................................................................................................................... 186

4.26 Any other benefit or amenity shall be taxable perquisites in the hands of all

employees
[Section 17(1)(e) (erstwhile Section 17(2)(viii)) and Rule 15(5) (Erstwhile Rule
3(7)]..............................................................................................................................189

4.27 Valuation of motor car/other vehicles

[Rule 15(3) (erstwhile Rule 3(2))]................................................................................194
4.27-a Where more than one motor car is provided (Rule 15(3)(b)) .......................................197
4.27-b Specific documents to be maintained for S. No. (1)(a) or S. Nos. (2) and (3) of the above
table .............................................................................................................................. 197
4.28 Provision by the employer of services of a sweeper, a gardener, a watchman or

personal attendant
[Sl. No. 1 to Table III under Rule 15(4) (Erstwhile Rule 3(3))] ...................................197

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Contents xv
4.29 Value of benefit to the employee resulting from the supply of gas, electric energy or

water for household consumption
[Sl. No. 2(a) and (b) to Table III under Rule 15(4) (Erstwhile Rule 3(4))]..................197
4.30 Valuation in respect of free or concessional educational facilities to any member of

employees' household
[Sl. No. 3(a), (b) and (c) to Table III under Rule 15(4) (Erstwhile Rule 3(5))]............198
4.31 Personal or Private journey at free or concessional rate given to the transport

employees and members of their household
[Sl. No. 4 to Table III under Rule 15(4) (Erstwhile Rule 3(6))] ...................................198
4.32 Tax-free Perquisites (for all employees).......................................................................199
4.33 Treatment of medical facilities/reimbursement

[Section 17(2) (erstwhile Proviso to Section 17(2))]....................................................200
4.33-a Prescribed diseases or ailments
[Rule 18(3) (Erstwhile Rule 3A(2))]............................................................................. 202

4.34 Treatment of Leave Travel Concession (LTC)

[Schedule III (Table: Sl. No. 8) (erstwhile Section 10(5) and Rule 278)] ....................203
4.34-a Conditions for the purpose of Schedule III (Table: Sl. No. 8)
[Rule 278 (Erstwhile Rule 2B)].................................................................................... 203
4.34-b How many times can exemption be claimed?............................................................... 203
4.34-c Exemption available only in respect of two children (Rule 278(5) and (6).................. 204
4.35 Definition of “Profits in lieu of salary”

[Section 18 (erstwhile Section 17(3))]..........................................................................204
4.36 Gratuity.........................................................................................................................206
4.37 Treatment of Pension....................................................................................................206
4.38 Treatment of Leave Salary............................................................................................206
4.39 Retrenchment Compensation........................................................................................207
4.40 Compensation received on Voluntary Retirement........................................................207
4.41 Deductions from salaries.

[Section 19 (Erstwhile Sections 16 and exemption which was allowed under
erstwhile sections 10(10), 10(10A), 10(10AA), 10(10B) & 10(10C) of ITA 1961 now
allowed as deduction after including the entire amount received in the meaning of
salary)].........................................................................................................................207
4.41-a Tax on employment
[Sl. No. 1 of table under section 19 (erstwhile section 16(iii))]....................................207
4.41-b Standard deduction
[Sl. No. 2 of table under section 19 (erstwhile section 16(ia))]. ...................................207
4.41-c Deduction on account of gratuity received
[Section 19(1)].............................................................................................................. 207
4.41-d Deduction on account of Commuted pension
[Section 19(1)].............................................................................................................. 210
4.41-e Retrenchment Compensation
[Section 19(1) read with Sl. No. 10 & 11 of Table under this section (erstwhile Section
10(10B))]...................................................................................................................... 212
4.41-f Compensation received on Voluntary Retirement
[Section 19(1) read with Sl. No. 12 of table under this section (erstwhile Section
10(10C))]...................................................................................................................... 214
4.41-g Treatment of Leave Salary............................................................................................ 214
4.42 Contribution by the employer to recognised provident fund ........................................216
4.43 Interest credited to recognised provident fund..............................................................216
4.44 Amount comprised in the transferred balance ..............................................................217

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xvi Law, Practice & Procedure on Tax Deduction & Collection at Source...
4.45 Treatment of Provident Fund........................................................................................217
4.45-a Kinds of Provident Funds............................................................................................. 217
4.45-b Treatment of Provident Fund for Income-tax Purposes................................................ 218
4.45-c Amount comprised in the transferred balance of Unrecognised Provident Fund (URPF)
when it is converted into recognised provident fund .................................................... 220

4.46 Relief when salary is paid in arrears or in advance, etc.

[Section 157 (erstwhile Section 89)/Rule 73 (Erstwhile Rule 21A)].............................221
4.46-a Relief under section 157(1) when salary is paid in arrears or in advance, gratuity, etc.
[Rule 73 (Erstwhile Rule 21A and 21AA)] ...................................................................221
4.46-b Whether relief under Section 157(1) (Erstwhile section 89) is available for the
compensation under voluntary retirement scheme (Section 157(2) (Erstwhile Proviso to
Section 89).................................................................................................................... 224

Part C: TDS on Payments to Residents Only

[Section 393(1)]

Chapter 5: TDS on Commission or Brokerage............................................................................ 226
[Section 393(1) (Table Sl. No. 1(i) and (ii) (erstwhile Sections 194D and 194H)]

(A) TDS on Insurance Commission
[Section 393(1) (Table: Sl. No. 1(i)) (erstwhile 194D)]

5.1 Who is liable for deduction of tax at source? ...............................................................227
5.2 When does the liability to deduct tax at source arise? ..................................................227
5.3 Rate of TDS..................................................................................................................228
5.4 When is no tax to be deducted at source? .....................................................................228
5.5 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................229
5.6 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........230
5.7 Other provisions relating to TDS on insurance commission ........................................231
5.8 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........234
5.9 Gist of Relevant Circulars ............................................................................................234
5.10 Judicial decisions..........................................................................................................235

(B) TDS on Commission and Brokerage
[Section 393(1) (Table: Sl. No. 1(ii)) (erstwhile section 194H)]

5.11 Who is liable for deduction of tax at source? ...............................................................237
5.12 Meaning of commission or brokerage ..........................................................................237
5.13 When does the liability to deduct tax at source arise? ..................................................238
5.14 Rate of TDS..................................................................................................................238
5.15 When is no tax to be deducted at source?.....................................................................238
5.16 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................240
5.17 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........240
5.18 Other provisions relation to TDS on commission or brokerage ...................................240
5.19 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........244

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Contents xvii
5.20 Gist of relevant circulars...............................................................................................244
5.21 Judicial decisions..........................................................................................................245

Chapter 6: TDS on Payment of Rent............................................................................................ 253[Section 393(1) (Table: Sl. No. 2) (erstwhile Section 194-IB & 194-I)]

(A) TDS on Rent paid by person other than Specified Person
[Section 393(1) (Table: Sl. No. 2(i)) (erstwhile Section 194-IB)]

6.1 Who is liable for deduction of tax at source? ...............................................................254
6.2 When does the liability to deduct tax at source arise? ..................................................255
6.3 Rate of TDS..................................................................................................................255
6.4 When is no tax to be deducted at source? .....................................................................255
6.5 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................256
6.6 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........256
6.7 Other provisions relating to TDS on Payment of rent by certain individuals or Hindu
undivided family...........................................................................................................257
6.8 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........258

(B) TDS on Rent paid by a Specified Person
[Section 393(1) (Table: Sl. No. 2(ii)) (erstwhile Section 194-I)]

6.9 Who is liable for deduction of tax at source? ...............................................................259
6.10 Meaning of rent ............................................................................................................259
6.11 When does the liability to deduct tax at source arise? ..................................................260
6.12 Rate of TDS..................................................................................................................260
6.13 Where no tax is to be deducted at source......................................................................260
6.14 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................262
6.15 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........264
6.16 Other provisions relating to TDS on rent......................................................................264
6.17 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........267
6.18 Important FAQs by CBDT ...........................................................................................267
6.19 Gist of Relevant Circulars ............................................................................................268
6.20 Judicial decisions..........................................................................................................271

Chapter 7: TDS on payment on Transfer of certain immovable property other than
Agricultural land ........................................................................................................282
[Section 393(1) (Table: Sl. No. 3) (erstwhile sections 194-IA, 194-IC and 194LA)]

(A) TDS on payment on Transfer of certain immovable property other than

Agricultural land (not covered under (B) & (C))
[Section 393(1) (Table: Sl. No. 3(i)) (erstwhile Section 194-IA)]

7.1 Who is liable for deduction of tax at source? ...............................................................283
7.2 Meaning of “Immovable Property” ..............................................................................283

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xviii Law, Practice & Procedure on Tax Deduction & Collection at Source...
7.3 When does the liability to deduct tax at source arise? ..................................................284
7.4 Rate of TDS..................................................................................................................284
7.5 When is no tax to be deducted at source? .....................................................................285
7.6 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................286
7.7 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........286
7.8 Other provisions relating to TDS on transfer of certain immovable property ..............286
7.9 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........287
7.10 Important FAQs by CBDT ...........................................................................................287

(B) TDS on Consideration (not in kind) under Specified Agreement
referred to in Section 67(14) (erstwhile Section 45(5A))
[Section 393(1) (Table: Sl. No. 3(ii)) (erstwhile Section 194-IC)]

7.11 Who is liable for deduction of tax at source? ...............................................................289
7.12 When does the liability to deduct tax at source arise? ..................................................290
7.13 Rate of TDS..................................................................................................................290
7.14 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................290
7.15 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........291
7.16 Other provisions relating to TDS on transfer of immovable property referred to in
section 67(14)...............................................................................................................291
7.17 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........293
7.18 Judicial Decision...........................................................................................................293
(C) TDS on Consideration/compensation on account of compulsory acquisition
of immovable property [Section 393(1) (Table: Sl. No. 3(iii))]

7.19 Who is liable for deduction of tax at source? ...............................................................295
7.20 When does the liability to deduct tax at source arise? ..................................................295
7.21 Rate of TDS..................................................................................................................296
7.22 Where is no tax to be deducted at source?....................................................................296
7.23 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................297
7.24 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........297
7.25 Other provisions relation to TDS on payment of compensation/consideration for
compulsory acquisition.................................................................................................297
7.26 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........300
7.27 Judicial decisions..........................................................................................................300

,
Contents xix

Chapter 8: TDS on Income from Capital Market.......................................................................303
[Section 393(1) (Table Sl. No. 4) (erstwhile Sections 194K, 194LBA(1), 194LBB,
194LBC(1))]

(A) TDS on Income in respect of Units other than (B), (C) & (D)
[Section 393(1) (Table: Sl. No. 4(i)) (erstwhile Section 194K)]

8.1 Who is liable for deduction of tax at source? ...............................................................304
8.2 When does liability to deduct tax at source arise? ........................................................305
8.3 Rate of TDS..................................................................................................................305
8.4 Where no tax is to be deducted at source......................................................................305
8.5 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a)/(b) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))]...............306
8.6 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........307
8.7 Other provisions relating to TDS on income in respect of units...................................308
8.8 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........310
8.9 Can credit of TDS be given to a person other than the deductee? ................................310

(B) TDS on Distributed Income of the nature referred to in
Schedule V (Table: Sl. No. 3 & 4) payable by Business Trust to Unit Holder
[Section 393(1) (Table: Sl. No. 4(ii)) (erstwhile Section 194LBA(1))]

8.10 Who is liable for deduction of tax at source? ...............................................................311
8.11 When does liability to deduct tax at source arise? ........................................................312
8.12 Rate of TDS..................................................................................................................312
8.13 Where no tax is to be deducted at source......................................................................312
8.14 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................313
8.15 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........313
8.16 Other provisions relating to Distributed Income of the nature referred to in Schedule
V (Table: Sl. No. 3 & 4) payable by Business Trust to Unit Holder ............................313
8.17 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........315
8.18 Can credit of TDS be given to a person other than the deductee? ................................316

(C) TDS on Income in respect of Units of Investment Fund
[Section 393(1) (Table: Sl. No. 4(iii)) (erstwhile Section 194LBB)]

8.19 Who is liable for deduction of tax at source? ...............................................................317
8.20 When does liability to deduct tax at source arise? ........................................................317
8.21 Rate of TDS..................................................................................................................317
8.22 When no tax is to be deducted at source.......................................................................317
8.23 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................318
8.24 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........318

,

xx Law, Practice & Procedure on Tax Deduction & Collection at Source...
8.25 Other provisions relating to Income in respect of Units of Investment Fund ...............318
8.26 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........321
8.27 Can credit of TDS be given to a person other than the deductee? ................................321

(D) TDS on Income in Respect of Investment in Securitisation Trust
[Section 393(1) (Table: Sl. No. 4(iv)) (erstwhile Section 194LBC(1))]

8.28 Who is liable for deduction of tax at source? ...............................................................322
8.29 When does liability to deduct tax at source arise? ........................................................322
8.30 Rate of TDS..................................................................................................................323
8.31 When no tax is to be deducted at source.......................................................................323
8.32 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................323
8.33 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........323
8.34 Other provisions relating to Income in respect of Units of Investment Fund ...............324
8.35 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........326
8.36 Can credit of TDS be given to a person other than the deductee? ................................326
8.37 Judicial decisions..........................................................................................................326

Chapter 9: TDS on Interest Income ............................................................................................. 327[Section 393(1) (Table Sl. No. 5) (erstwhile Section 193 and 194A)]

(A) TDS on Income by way of interest on securities
[Section 393(1) Table: Sl. No. 5(i) (erstwhile Section 193)]

9.1 Who is liable for deduction of tax at source? ...............................................................328
9.2 Meaning of “Interest on Securities”: ............................................................................328
9.3 When does the liability to deduct tax at source arise? ..................................................329
9.4 Rate of TDS..................................................................................................................329
9.5 When no tax is to be deducted at source.......................................................................330
9.6 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................331
9.7 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........332
9.8 Other provision relating to TDS on interest on securities.............................................333
9.9 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........336
9.10 Can credit of TDS be given to a person other than the deductee? ................................336
9.11 Gist of Relevant Circulars ............................................................................................336
9.12 Relevant Notifications under Section 393(4) (Table: Sl. No. 6.C(a)(ii)) of ITA, 2025
(erstwhile clause (iib) of the proviso to section 193)....................................................337
9.13 Important Judicial Decisions ........................................................................................350

(B) TDS on Income by way of interest other than on securities
[Section 393(1) Table: Sl. No. 5(ii)/(iii) (erstwhile Section 194A)]

9.14 Who is liable for deduction of tax at source? ...............................................................352
9.15 Meaning of “Interest on Securities”: ............................................................................353

,
Contents xxi
9.16 When does the liability to deduct tax at source arise? ..................................................353
9.17 Rate of TDS..................................................................................................................353
9.18 Where no tax is to be deducted at source......................................................................354
9.19 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................357
9.20 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........358
9.21 Other provisions relating to TDS on interest other than interest on securities .............358
9.22 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........362
9.23 Can credit of TDS be given to a person other than the deductee? ................................362
9.24 Gist of Relevant Circulars and Notifications................................................................362
9.25 Judicial decisions..........................................................................................................370

Chapter 10: TDS on Payments to Contractors, Fees for professional and technical services...378
[Section 393(1) (Table Sl. No. 6) (erstwhile Section 194C, 194M and 194J)]

(A) TDS on Payments to Contractors

[Section 393(1) (Table: Sl. No. 6(i)) (erstwhile Section 194C)]

10.1 Who is liable for deduction of tax at source? ...............................................................380
10.2 Meaning of work ..........................................................................................................381
10.3 When does the liability to deduct tax at source arise? ..................................................382
10.4 Rate of TDS..................................................................................................................382
10.5 When is no tax to be deducted at source? .....................................................................382
10.6 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................383
10.7 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........383
10.8 Other provisions relating to TDS on payment to contractors .......................................384
10.9 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........387
10.10 Gist of Relevant Circulars ............................................................................................387
10.11 Judicial Decisions.........................................................................................................397
10.11-a Meaning of "Work" ......................................................................................................397
10.11-b "Works Contract" vs. "Contract for Sale".....................................................................398
10.11-c Scope of Section 393(1) (Table Sl. No. 6(i)) (erstwhile Section 194C) ....................... 402
10.11-d Section 393(1) (Table Sl. No. 6(i)) (erstwhile Section 194C) VS. Section 393(1) (Table
Sl. No. 2(ii)) (erstwhile Section 194-I).........................................................................406
10.11-e Section 393(1) (Table Sl. No. 6(i)) (erstwhile Section 194C) VS. Section 393(1) (Table
Sl. No. 6(ii)) (erstwhile Section 194J)..........................................................................409
10.11-f Other Case Laws........................................................................................................... 414
(B) TDS on Payments of certain sums by certain individuals or Hindu Undivided Family

[Section 393(1) (Table: Sl. No. 6(ii)) (erstwhile Section 194M)]

10.12 Who is liable for deduction of tax at source? ...............................................................419
10.13 When does the liability to deduct tax at source arise? ..................................................420
10.14 Rate of TDS..................................................................................................................420

,

xxii Law, Practice & Procedure on Tax Deduction & Collection at Source...
10.15 When is no tax to be deducted at source? .....................................................................420
10.16 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................421
10.17 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........421
10.18 Other provisions relating to TDS on Payment of certain sums by certain individuals
or Hindu Undivided Family..........................................................................................421
10.19 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........422
(C) TDS on Fees for Professional or Technical Services or Royalty or Non-Compete Fee

[Section 393(1) (Table: Sl. No. 6(iii)) (erstwhile Section 194J)]

10.20 Who is liable for deduction of tax at source? ...............................................................424
10.21 Meaning of Important Terms........................................................................................424
10.21-a Meaning of "Professional Services" ............................................................................. 424
10.21-b Meaning of "Fees for Technical Services" ...................................................................425
10.21-c Meaning of "Royalty"...................................................................................................425
10.21-d Meaning of Sum referred to in Section 26(2)(h) (erstwhile Section 28(va))................ 426
10.22 When does the liability to deduct tax at source arise? ..................................................427
10.23 Rate of TDS..................................................................................................................427
10.24 When is no tax to be deducted at source? .....................................................................427
10.25 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................428
10.26 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........428
10.27 Other provisions relating to TDS on fees for professional or technical services..........429
10.28 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........432
10.29 Gist of Relevant Circulars ............................................................................................432
10.30 Judicial Decisions.........................................................................................................434

Chapter 11: TDS on Dividends.......................................................................................................444

[Section 393(1) (Table: Sl. No. 7) (erstwhile section 194)]

11.1 Who is liable for deduction of tax at source? ...............................................................444
11.2 When does liability to deduct tax at source arise? ........................................................445
11.3 Rate of TDS..................................................................................................................445
11.4 When is no tax to be deducted at source.......................................................................445
11.5 Can self declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a)/(b) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))]...............446
11.6 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28, 28AA and 29)] ...447
11.7 Other provision relating to TDS on dividend ...............................................................448
11.8 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........449
11.9 Can credit of TDS be given to a person other than the deductee? ................................449
11.10 Gist of Relevant Circular..............................................................................................450

,
Contents xxiii
11.11 Judicial Decision...........................................................................................................450

Chapter 12: TDS in Other Cases....................................................................................................451
[Section 393(1) Table Sl. No. 8 (erstwhile Sections 194DA, 194Q, 194P, 194R, 194O
and 194S)]

(A) TDS on Payments under Life Insurance Policy
[Section 393(1) (Table: Sl. No. 8(i)) (erstwhile Section 194DA)]

12.1 Who is liable for deduction of tax at source? ...............................................................452
12.2 When does the liability to deduct tax at source arise? ..................................................452
12.3 Rate of TDS..................................................................................................................452
12.4 Tax deductible only from Income comprised in such sum ...........................................453
12.4-a Keyman Insurance Policy............................................................................................. 453
12.4-b Unit Linked Insurance Policy ....................................................................................... 453
12.4-c Life insurance policies other than Unit linked insurance policy or keyman insurance
policy referred above ....................................................................................................453
12.4-d Computation of income chargeable to tax under Section 92(2)(l) (erstwhile section
56(2)(xiii))
[Rule 59 (erstwhile Rule 11UACA)]............................................................................. 453
12.5 When is no tax to be deducted at source? .....................................................................454
12.6 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................456
12.7 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........457
12.8 Other provisions relating to TDS on sums paid under a life insurance policy..............457
12.9 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........459

(B) TDS on Payment of Sum for Purchase of Goods
[Section 393(1) (Table: Sl. No. 8(ii)) (erstwhile Section 194Q)]

12.10 Who is liable for deduction of tax at source? ...............................................................460
12.11 When does the liability to deduct tax at source arise? ..................................................461
12.12 Rate of TDS..................................................................................................................461
12.13 When is no tax to be deducted at source? .....................................................................461
12.14 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................461
12.15 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........461
12.16 Other provisions relating to TDS on payment of sum for purchase of goods...............462
12.17 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........465
12.18 Gist of relevant Circulars and Notification...................................................................465

(C) TDS on Income of a Specified Senior Citizen
[Section 393(1) Table Sl. No. 8(iii) (erstwhile section 194P)]

12.19 Who is liable for deduction of tax at source? ...............................................................473
12.20 When does the liability to deduct tax at source arise? ..................................................474

,

xxiv Law, Practice & Procedure on Tax Deduction & Collection at Source...
12.20-a Furnishing of declaration and evidence of claims by specified senior citizen under
section 393(1) (Table: Sl. No. 8(iii)) (erstwhile section 194P)
[Rule 208 (erstwhile Rule 26D)] .................................................................................. 475
12.21 Rate of TDS..................................................................................................................475
12.22 When is no tax to be deducted at source? .....................................................................475
12.23 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................475
12.24 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........475
12.25 Other provisions relating to TDS on income of a specified senior citizen ...................476
12.26 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........477

(D) TDS on Benefit of Perquisite in Respect of Business or Profession
[Section 393(1) (Table: Sl. No. 8(iv)) (erstwhile Section 194R)]

12.27 Who is liable for deduction of tax at source? ...............................................................479
12.28 When does the liability to deduct tax at source arise? ..................................................479
12.29 Rate of TDS..................................................................................................................479
12.30 Where no tax is to be deducted at source......................................................................480
12.31 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................480
12.32 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........480
12.33 Other provisions relating to TDS from benefit/perquisite ............................................480
12.34 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........482
12.35 Gist of relevant circular................................................................................................482

(E) TDS on Payment of Certain Sums by E-commerce Operator to

E-commerce Participant

[Section 393(1) (Table: Sl. No. 8(v)) (erstwhile Section 194-O)]

12.36 Who is liable for deduction of tax at source? ...............................................................493
12.37 When does the liability to deduct tax at source arise? ..................................................493
12.38 Rate of TDS..................................................................................................................494
12.39 Where no tax is to be deducted at source......................................................................494
12.40 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................495
12.41 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........495
12.42 Other provisions relating to TDS on payment of certain sums by E-Commerce
Operator to E-Commerce Participant ...........................................................................495
12.43 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........499
12.44 Gist of Relevant Circulars ............................................................................................499

,
Contents xxv

(F) TDS on Consideration for Transfer of Virtual Digital Asset
[Section 393(1) Table Sl. No. 8(vi) (erstwhile section 194S)]

12.45 Who is liable for deduction of tax at source? ...............................................................507
12.46 Meaning of “Virtual Digital Asset” ..............................................................................508
12.47 When does the liability to deduct tax at source arise? ..................................................509
12.48 Rate of TDS..................................................................................................................509
12.49 When is no tax to be deducted at source? .....................................................................510
12.50 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................510
12.51 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)].........510
12.52 Other provisions relating to TDS on transfer of VDA..................................................511
12.53 Consequences of failure to deduct or pay tax, furnish statement/certificate, etc. .........513
12.54 Gist of relevant circulars...............................................................................................514

Part D: TDS on Payments to Non-residents only

Chapter 13: TDS on Payments to Non-Residents..........................................................................520
[Section 393(2) (Table: Sl. No. 1 to 17) (erstwhile 194E, 194LC, 194LB, 194LBA(2)
&(3), 194LBB, 194LBC(2), 196A, 196B, 196C, 196D and 195)]]

(A) TDS on Payment to Non-Resident Sportsmen or Sports Association
[Section 393(2) (Table: Sl. No. 1) (erstwhile 194E)]

13.1 Who is liable for deduction of tax at source? ...............................................................525
13.2 When does the liability to deduct tax at source arise? ..................................................526
13.3 Rate of TDS..................................................................................................................526
13.4 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................526
13.5 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........526
13.6 Other provision relating to TDS on payment to non-resident sportsman, sports
association or entertainers.............................................................................................527
13.7 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........529
13.8 Judicial Decisions.........................................................................................................529
(B) TDS on Income by way of Interest from Indian Company or Business Trust
[Section 393(2) (Table: Sl. No. 2, 3 and 4) (erstwhile section 194LC)]

13.9 Who is liable for deduction of tax at source? ...............................................................530
13.10 When does the liability to deduct tax at source arise? ..................................................531
13.11 Rate of TDS..................................................................................................................531
13.12 When is no tax required to be deducted at source ........................................................532
13.13 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................533

,

xxvi Law, Practice & Procedure on Tax Deduction & Collection at Source...
13.14 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........533

13.15 Other provisions relation to TDS on income by way of interest from Indian

Company or Business Trust..........................................................................................533
13.16 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........535
13.17 Can credit of TDS be given to a person other than the deductee? ................................535
13.18 Gist of Relevant Circulars ............................................................................................536

(C) TDS on Income by way of Interest from Infrastructure Debt Fund
[Section 393(2) (Table: Sl. No. 5) (erstwhile 194LB)]

13.19 Who is liable for deduction of tax at source? ...............................................................537
13.20 When does the liability to deduct tax at source arise? ..................................................537
13.21 Rate of TDS..................................................................................................................537
13.22 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................538
13.23 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........538
13.24 Other provisions relation to TDS from income from by way of interest from
Infrastructure Debt Fund ..............................................................................................538
13.25 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........540

(D) TDS on Distributed Income of Nature referred to in
Schedule V (Table: Sl. No. 3 and 4) payable by Business Trust
[Section 393(2) (Table: Sl. No. 6 and 7) (erstwhile 194LBA(2) &(3))]

13.26 Who is liable for deduction of tax at source? ...............................................................542
13.27 When does liability to deduct tax at source arise? ........................................................542
13.28 Rate of TDS..................................................................................................................543
13.29 Where no tax is to be deducted at source......................................................................544
13.30 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................544
13.31 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........544
13.32 Other provisions relation to Distributed Income of the nature referred to in Schedule
V (Table: Sl. No. 3 & 4) payable by Business Trust to Non-resident Unit Holder.......544
13.33 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........547
13.34 Can credit of TDS be given to a person other than the deductee? ................................547

(E) TDS on Income in respect of Units of Investment Fund
[Section 393(2) (Table: Sl. No. 8) (erstwhile Section 194LBB)]

13.35 Who is liable for deduction of tax at source? ...............................................................548
13.36 When does liability to deduct tax at source arise? ........................................................548
13.37 Rate of TDS..................................................................................................................548
13.38 Where no tax is to be deducted at source......................................................................549

,
Contents xxvii
13.39 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................549
13.40 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........549
13.41 Other provisions relation to TDS from income in respect of units of investment fund 549
13.42 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........551
13.43 Can credit of TDS be given to a person other than the deductee? ................................551

(F) TDS on Income in respect of Investment in Securitisation Trust
[Section 393(2) (Table: Sl. No. 9) (erstwhile Section 194LBC(2))]

13.44 Who is liable for deduction of tax at source? ...............................................................552
13.45 When does liability to deduct tax at source arise? ........................................................553
13.46 Rate of TDS..................................................................................................................553
13.47 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................553
13.48 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........553

13.49 Other provisions relation to TDS from income in respect of investment in

securitization trust.........................................................................................................554
13.50 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........556
13.51 Can credit of TDS be given to a person other than the deductee? ................................556

(G) TDS on Income in respect of Units of Mutual Fund or Specified Company
[Section 393(2) (Table: Sl. No. 10) (erstwhile Section 196A)]

13.52 Who is liable for deduction of tax at source? ...............................................................557
13.53 When does liability to deduct tax at source arise? ........................................................558
13.54 Rate of TDS..................................................................................................................558
13.55 When is no tax to be deducted at source.......................................................................558

13.55-a Condition for no deduction of tax at source from income in respect of units of non-
residents referred to in section 393(2) (Table: Sl. No. 10) read with section 393(4)

(Table: Sl. No. 15).
[Rule 210]..................................................................................................................... 558
13.56 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................558
13.57 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........558
13.58 Other provisions relation to TDS from income in respect of units of mutual fund or
units from specified company.......................................................................................559
13.59 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........561
13.60 Can credit of TDS be given to a person other than the deductee? ................................561

(H) TDS on Income from Units or LTCG from transfer of Units referred in
Section 208 (erstwhile Section 115AB) arising to Offshore Fund
[Section 393(2) (Table: Sl. No. 11 & 12) (erstwhile Section 196B)]

13.61 Who is liable for deduction of tax at source? ...............................................................562

,

xxviii Law, Practice & Procedure on Tax Deduction & Collection at Source...
13.62 When does liability to deduct tax at source arise? ........................................................563
13.63 Rate of TDS..................................................................................................................563
13.64 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................563
13.65 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........563
13.66 Other provisions relation to TDS on income in respect of units or on LTCG from
their transfer arising to an Offshore Fund.....................................................................563
13.67 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........566

(I) TDS on Income from Foreign Currency Bonds or GDRs referred to in

Section 209 (erstwhile Section 115AC)

[Section 393(2) (Table: Sl. No. 13 & 14) (erstwhile Section 196C)]

13.68 Who is liable for deduction of tax at source? ...............................................................567
13.69 When does liability to deduct tax at source arise? ........................................................568
13.70 Rate of TDS..................................................................................................................568
13.71 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................568
13.72 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........568
13.73 Other provisions relation to TDS on income in respect of foreign currency bonds or
GDRs or income arising from transfer thereof as LTCG..............................................569
13.74 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........572
13.75 Can credit of TDS be given to a person other than the deductee? ................................572

(J) TDS on Income in respect of Securities referred in
Section 210(1) (Table: Sl. No. 1) (erstwhile Section 115AD) arising to FII or
Specified Fund [Section 393(2) (Table: Sl. No. 15 & 16) (erstwhile Section 196D)]
13.76 Who is liable for deduction of tax at source? ...............................................................574
13.77 When does liability to deduct tax at source arise? ........................................................576
13.78 Rate of TDS..................................................................................................................576
13.79 When is no tax to be deducted at source.......................................................................576
13.79-a Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made for
no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))]..................... 579
13.80 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........579
13.81 Other provisions relation to TDS on income in respect of securities referred to in
Section 210 arising to FIIs or Specified Fund ..............................................................579
13.82 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........582

(K) TDS on Interest or other Sums chargeable to tax (Other than Salary)
[Section 393(2) (Table: Sl. No. 17) (erstwhile Section 195)]

13.83 Who is liable for deduction of tax at source? ...............................................................583
13.83-a Payer to deduct tax from payment to non-resident ....................................................... 583
13.83-b Meaning of "Person responsible for paying" ................................................................ 584

,
Contents xxix
13.83-c Obligation to deduct tax irrespective of residential status............................................ 585
13.84 When does liability to deduct tax at source arise? ........................................................586
13.85 Rate of TDS..................................................................................................................586
13.86 Rates of TDS for the tax year 2026-27 (As per Part II to the First Schedule of
Finance Act, 2026) .......................................................................................................587
13.87 When is no tax to be deducted at source.......................................................................594
13.88 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................594
13.89 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........595
13.90 Other provisions relating to TDS on payments to non-residents (not being a
company) or a foreign company ...................................................................................595
13.91 Consequences of failure to deduct or pay tax, furnish statement/ certificate, etc. ........598
13.92 Claim of refund by "Person responsible to deduct tax" ................................................598
13.93 Gist of Relevant Circulars ............................................................................................601
13.94 Judicial Decisions.........................................................................................................602
13.94-a Meaning of "non-resident" for the purpose of section 393(2) (Table: Sl. No. 17)........602
13.94-b Duty under section 393(2) (Table: Sl. No. 17) is statutory and cannot be bypassed by
agreement ..................................................................................................................... 603
13.94-c Applicability of section 195 (Section 393(2) (Table: Sl. No. 17) of IT Act, 2025) on
accrual of income..........................................................................................................603
13.94-d Tax to be deducted only from income chargeable to tax in India .................................604
13.94-e Purchase of property from a Non-Resident ..................................................................607
13.94-f Where there is no PE of Non-Resident.........................................................................607
13.94-g Interest payment by subsidiary ..................................................................................... 612
13.94-h "Make available" clause in DTAA ............................................................................... 612
13.94-i Payment under a Decree ............................................................................................... 614
13.94-j Purchase of copyrighted article is not a payment for copyright....................................614
13.94-k Other General Cases.....................................................................................................614
13.94-l Whether tax has to be deducted at source on the gross amount or the income element in
the amount .................................................................................................................... 623
13.94-m TDS to be deducted at rates given in DTAA if beneficial ............................................ 625
13.94-n Applicability of limitation period prescribed in sections 153 to 195............................ 626

Part E: TDS on Payments to Any Person

Chapter 14: TDS on Payments to Any Person (Whether Resident or Non-Resident deductees).628
[Section 393(3) (Table: Sl. No. 1 to 7) (erstwhile 194B, 194BA, 194BB, 194G, 194N,
194EE and 194T)]

(A) TDS on Winnings from Lottery, Crossword puzzle, Card Game, Gambling etc.

[Section 393(3) (Table: Sl. No. 1) (erstwhile 194B)]

14.1 Who is liable for deduction of tax at source? ...............................................................629
14.2 When does the liability to deduct tax at source arise? ..................................................630
14.3 Rate of TDS..................................................................................................................630
14.4 When is no tax to be deducted at source? .....................................................................631

,

xxx Law, Practice & Procedure on Tax Deduction & Collection at Source...
14.5 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................631
14.6 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........631
14.7 Other provisions relating to TDS on lotteries, etc. .......................................................631
14.8 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........635
14.9 Gist of Relevant Circulars ............................................................................................635
14.10 Circular No. 264, dated 11.2.1980................................................................................635
14.11 Important Judicial Decisions ........................................................................................635
14.11-a Scope of Section 393(3) (Table: Sl. No. 1) (erstwhile section 194B)........................... 635
14.11-b Tax cannot be demanded from the payee if it has already been deducted at source .....637

(B) TDS on Winnings from Online Game
[Section 393(3) (Table: Sl. No. 2) (erstwhile section 194BA)]

14.12 Who is liable for deduction of tax at source? ...............................................................638
14.13 When does the liability to deduct tax at source arise? ..................................................638
14.13-a Calculation of Net winnings from online games
[Rule 135 (erstwhile Rule 133)] ................................................................................... 639
14.14 Rate of TDS..................................................................................................................641
14.15 When is no tax required to be deducted?......................................................................641
14.16 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................641
14.17 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........641
14.18 Other provisions relating to TDS on winnings from online game ................................642
14.19 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........644
14.20 Gist of Relevant Circulars ............................................................................................644

(C) TDS on Winnings from Horse Races
[Section 393(3) (Table: Sl. No. 3) (erstwhile section 194BB)]

14.21 Who is liable for deduction of tax at source? ...............................................................648
14.22 When does the liability to deduct tax at source arise? ..................................................649
14.23 Rate of TDS..................................................................................................................649
14.24 When is no tax to be deducted at source? .....................................................................650
14.25 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................650
14.26 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........650
14.27 Other provisions relating to TDS on horse races..........................................................650
14.28 Consequences of failure to deduct or pay tax, furnish statement certificate, etc. .........653
14.29 Important Judicial Decisions ........................................................................................653

,
Contents xxxi

(D) TDS on Commission, etc. on Sale of Lottery Tickets
[Section 393(3) (Table: Sl. No. 4) (erstwhile section 194G)]

14.30 Who is liable for deduction of tax at source? ...............................................................654
14.31 When does the liability to deduct tax at source arise? ..................................................654
14.32 Rate of TDS..................................................................................................................655
14.33 Where no tax is to be deducted at source......................................................................656
14.34 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................656
14.35 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........656
14.36 Other provisions relating to TDS on commission on sale of lottery tickets .................656
14.37 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........660
14.38 IMPORTANT JUDICIAL DECISIONS ......................................................................660

(E) TDS on Payment of certain amounts in cash
[Section 393(3) (Table: Sl. No. 5) (erstwhile section 194N)]

14.39 Who is liable for deduction of tax at source? ...............................................................661
14.40 When does the liability to deduct tax at source arise? ..................................................661
14.41 Rate of TDS..................................................................................................................661
14.42 When no tax is to be deducted at source.......................................................................663
14.43 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................665
14.44 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 & 28AA)]............665
14.45 Other provisions relating to TDS on payment of certain amounts in cash ...................666
14.46 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........669
14.47 Tax Deducted is not deemed to be income received

[Section 396 (erstwhile section 198)]...........................................................................669

14.48 Credit of Tax paid

[Rule 203(7) (erstwhile Rule 37BA(3A))].....................................................................669
14.49 Judicial Decision...........................................................................................................669
(F) TDS on Payment in respect of Deposit under National Saving Scheme, etc.
[Section 393(3) (Table: Sl. No. 6) (erstwhile section 194EE)]

14.50 Who is for deduction of tax at source? .........................................................................671
14.51 When does the liability to deduct tax at source arise? ..................................................671
14.52 Rate of TDS..................................................................................................................671
14.53 When no tax is to be deducted at source.......................................................................671
14.54 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1C))]......................................671
14.55 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........672
14.56 Other provisions relating to TDS on withdrawals from National Saving Scheme .......672

,

xxxii Law, Practice & Procedure on Tax Deduction & Collection at Source...
14.57 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........674

(G) TDS on Payments to partners of Firms
[Section 393(3) (Table: Sl. No. 7) (erstwhile section 194T)]

14.58 Who is liable for deduction of tax at source? ...............................................................675
14.59 When does the liability to deduct tax at source arise? ..................................................676
14.60 Rate of TDS..................................................................................................................676
14.61 Where no tax is to be deducted at source......................................................................677
14.62 Can Self Declaration under Form No. 121 (erstwhile Form No. 15G/15H) be made

for no deduction of tax at source
[Section 393(6)(a) (erstwhile Section 197A(1A), 197A(1B), 197A(1C))].....................677
14.63 Can certificate be obtained from Assessing Officer for deduction of tax at nil rate or

lower rate
[Section 395(1) and Rule 213 (erstwhile Section 197 and Rules 28 and 28AA)] .........677
14.64 Other provisions relating to TDS on payment made to the partners of the firm...........677
14.65 Consequences of failure to deduct or pay tax, furnish statements/ certificate, etc........680
14.66 Frequently Asked Questions released by CBDT ..........................................................680

Part F: Collection of Tax at Source

Chapter 15: TCS on Certain Receipts............................................................................................ 684

[Section 394]

(A) TCS on Sale of Alcoholic Liquor, Forest Produce, Scrap and Minerals
[Section 394(1) (Table Sl. No. 1 to 5) (erstwhile 206C(1)/(1A)/(1B))]

15.1 Who is liable for collection of tax at source? ...............................................................687
15.1-a Meaning of "Seller" (Section 402(33)(a)): Seller means: ............................................. 687
15.1-b Meaning of "Buyer" (Section 402(6) (Table Sl. No. 2)): Buyer means:....................... 688
15.2 When does the liability to collect tax at source arise? ..................................................688
15.3 Rate of TCS ..................................................................................................................688
15.4 When no tax is to be collected at source.......................................................................689
15.5 Can Self Declaration be made for no collection of tax at source

[Section 394(2) and Rule 212 (erstwhile Section 206C(1A) and Rule 37C))]..............689
15.6 Can certificate be obtained from Assessing Officer for collection of tax at lower rate
[Section 395(3) and Rule 213 (erstwhile Section 206C(9) and Rules 37G and 37H))] 690
15.7 Other provisions relating to TCS on Sale of Alcoholic Liquor, Tendu Leaves,
Timber, Forest Produce or Scrap and Minerals ............................................................690
15.8 Consequences of failure to collect or pay tax, furnish statements/ certificate, etc........690
15.9 Judicial Decisions.........................................................................................................690
15.9-a Meaning of "Scrap" ......................................................................................................690
15.9-b Applicability of provisions of Section 394(1) (Table Sl. No. 1 to 5) (erstwhile section
206C(1)) ....................................................................................................................... 692
15.9-c Applicability of Declaration under Section 394(2) (erstwhile Section 206C(1A)).......693
(B) TCS on Sale consideration exceeding ₹10 Lakh in case of Motor Vehicle or

Notified Goods

[Section 394(1) (Table Sl. No. 6) (erstwhile 206C(1F))]

15.10 Who is liable for collection of tax at source? ...............................................................694
15.10-a Meaning of "Seller" (Section 402(33)(a)): Seller means: ............................................. 694
15.10-b Meaning of "Buyer" (Section 402(6) (Table Sl. No. 3)): Buyer means:....................... 694
15.11 When does the liability to collect tax at source arise? ..................................................695

,
Contents xxxiii
15.12 Rate of TCS ..................................................................................................................695
15.13 When no tax is to be collected at source.......................................................................695
15.14 Can Self Declaration be made for no collection of tax at source

[Section 394(2) and Rule 212 (erstwhile Section 206C(1A) and Rule 37C))]..............696
15.15 Can certificate be obtained from Assessing Officer for collection of tax at lower rate
[Section 395(3) and Rule 213 (erstwhile Section 206C(9) and Rules 37G and 37H))] 696
15.16 Other provisions relating to TCS on Sale of Motor Vehicles or Notified Goods. ........696
15.17 Consequences of failure to collect or pay tax, furnish statements/ certificate, etc........696
15.18 Frequently Asked Questions released by CBDT ..........................................................696
15.18-a FAQ dated 23.4.2025....................................................................................................696
15.18-b Circular No. 22/2016 dated 8.6.2016............................................................................ 696
15.19 Judicial decisions..........................................................................................................697

(C) TCS on Remittance under LRS
[Section 394(1) (Table Sl. No. 7) (erstwhile 206C(1G)(a))]

15.20 Who is liable for collection of tax at source? ...............................................................698
15.20-a Meaning of "Authorised Dealer" (Section 402(4))....................................................... 698
15.20-b Meaning of "Buyer" (Section 402(6) (Table Sl. No. 4))............................................... 698
15.21 When does the liability to collect tax at source arise? ..................................................699
15.22 Rate of TCS ..................................................................................................................699
15.23 When no tax is to be collected at source.......................................................................699
15.24 Can Self Declaration be made for no collection of tax at source

[Section 394(2) and Rule 212 (erstwhile Section 206C(1A) and Rule 37C))]..............700
15.25 Can certificate be obtained from Assessing Officer for collection of tax at lower rate
[Section 395(3) and Rule 213 (erstwhile Section 206C(9) and Rules 37G and 37H))] 700
15.26 Other provisions relating to TCS on Remittance under LRS........................................700
15.27 Consequences of failure to collect or pay tax, furnish statements/ certificate, etc........700
15.28 Frequently Asked Questions released by CBDT ..........................................................700

(D) TCS on Sale of "Overseas Tour Programme Package"
[Section 394(1) (Table Sl. No. 8) (erstwhile 206C(1G)(b))]

15.29 Who is liable for collection of tax at source? ...............................................................701
15.29-a Meaning of "Seller" (Section 402(33)(b)) ....................................................................701
15.29-b Meaning of "Buyer" (Section 402(6) (Table Sl. No. 5))............................................... 701
15.30 When does the liability to collect tax at source arise? ..................................................702
15.31 Rate of TCS ..................................................................................................................702
15.32 When no tax is to be collected at source.......................................................................702
15.33 Can Self Declaration be made for no collection of tax at source

[Section 394(2) and Rule 212 (erstwhile Section 206C(1A) and Rule 37C))]..............702
15.34 Can certificate be obtained from Assessing Officer for collection of tax at lower rate
[Section 395(3) and Rule 213 (erstwhile Section 206C(9) and Rules 37G and 37H))] 702
15.35 Other provisions relating to TCS on Sale of Overseas Tour Programme Package.......702
15.36 Consequences of failure to collect or pay tax, furnish statements/ certificate, etc........702
15.37 Frequently Asked Questions released by CBDT ..........................................................703
15.37-a Press Release dated 19.05.2023.................................................................................... 703
15.37-b Circular No. 10/2023 dated 30.06.2023 as corrected by Circular No. 11/2023 dated
6.7.2023 ........................................................................................................................ 704
15.37-c Other issues for consideration ...................................................................................... 706

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xxxiv Law, Practice & Procedure on Tax Deduction & Collection at Source...
(E) TCS on Use of Parking Lot or Toll Plaza or Mine or Quarry
[Section 394(1) (Table Sl. No. 9) (erstwhile 206C(1C))]

15.38 Who is liable for collection of tax at source? ...............................................................707
15.39 When does the liability to collect tax at source arise? ..................................................708
15.40 Rate of TCS ..................................................................................................................708
15.41 Can Self Declaration be made for no collection of tax at source

[Section 394(2) and Rule 212 (erstwhile Section 206C(1A) and Rule 37C))]..............708
15.42 Can certificate be obtained from Assessing Officer for collection of tax at lower rate
[Section 395(3) and Rule 213 (erstwhile Section 206C(9) and Rules 37G and 37H))] 708
15.43 Other provisions relating to TCS on Use of Parking Lot or Toll Plaza or Mine or
Quarry...........................................................................................................................708
15.44 Consequences of failure to collect or pay tax, furnish statements/ certificate, etc........708
15.45 Judicial decisions..........................................................................................................709
15.46 Other provisions relating to TCS under Section 394(1) (erstwhile Section 206C).......709

DIVISION III

Chapter 16: Declaration and Certificates...................................................................................... 715

[Section 393(6), (7), 394(2) & (3) and 395]
I. Declaration for No Deduction/Collection of Tax at Source in certain cases

(A) Declaration for No Deduction of Tax at Source in certain cases

16.1 Declaration for No deduction of tax at source (Section 393(6)/(7) (erstwhile Section
197A)) ..........................................................................................................................719
16.1-a Declaration to be furnished to person responsible for paying incomes or sums for no
deduction of tax at source (Section 393(6)(a)) ............................................................. 719
16.1-b Declaration by person claiming receipt of certain incomes without deduction of tax
under section 393(6)
[Rule 211 (erstwhile Rule 29C)]................................................................................... 721
16.1-c _Declaration may alternatively by furnished under section 393(7) to depository in
certain cases (Section 393(6)(b) inserted by Finance Act, 2026 w.e.f. 1.4.2027).........721
16.1-d Declaration to be furnished to prescribed income-tax authority on or before 7th day of
the month from the end of the quarter (Section 393(7) (erstwhile section 197A(2))....722
16.1-e Summarised Process flow of Filing Form No. 121....................................................... 722
16.1-f Gist of Relevant Circulars ............................................................................................ 723
16.1-g Relevant Judicial Decisions.......................................................................................... 725
(B) Declaration for No Collection of Tax at Source in certain cases 726
16.2 Self-declaration by buyer if relevant goods are purchased for manufacturing or

producing any articles or things
[Section 394(2) and Rule 212(1) and (2) (erstwhile section 206C(1A) and Rule
37C(1) and (2))]...........................................................................................................726
16.2-a Declaration to be furnished to person responsible for collecting tax for no collection of
tax at source (Section 394(2))....................................................................................... 726
16.2-b Declaration furnished under section 394(2) to be delivered to the Principal Chief
Commissioner/Chief Commissioner or Principal Commissioner /Commissioner
[Section 394(3) and Rule 212(3) (erstwhile Section 206C(1B) and Rule 37C(3))]......726
16.2-c Declaration by a buyer for no collection of tax at source under section 394(2).
[Rule 212 (erstwhile Rule 37C)]................................................................................... 726
16.2-d Relevant judicial decisions........................................................................................... 726

,
Contents xxxv

II. Certificates

(A) Certificate for lower / nil deduction/collection of income-tax at source

in case of Resident Payees

16.3 Certificate for deduction of income-tax at lower rate or no deduction of income-tax
[Section 395(1) (erstwhile Section 197(1))].................................................................727

16.4 Certificate for collection of income-tax at lower rate

[Section 395(3) (erstwhile Section 206C(9))]...............................................................728

16.5 The Assessing Officer may cancel the certificate

[Section 395(5)]............................................................................................................728
16.6 Application for grant of certificates for deduction or collection of income-tax at any

lower rates, or no deduction of income-tax.
[ Rule 213 (erstwhile Rule 28/28AA /28AB/29 for TDS and Rule 37G/ 37H for TCS)]728
16.7 Process Flow of Filing Form No. 128...........................................................................731
16.8 Gist of relevant Notifications/Circulars........................................................................732
16.9 Judicial decisions..........................................................................................................732

(B) Certificate in case of Non-Resident Payees

16.10 Application by payee for certificate authorising receipt of interest and other sums
without deduction of tax. (Rule 209 (erstwhile Rule 29B))..........................................735
16.11 Certificate for determination of appropriate portion of sum (other than salary)
[Section 395(2) (erstwhile Section 195(2))].................................................................737
16.12 Application by notified class of persons or cases for determination of appropriate

portion of sum (other than salary)
[Section 400(3) (erstwhile section 195(7))]..................................................................737
16.12-a Application by payer for grant of certificate under section 395(2) or section 400(3) for

determination of appropriate proportion of sum (other than salary), payable to non-
resident, chargeable in case of recipients. (Rule 214 (erstwhile Rule 29BA)) ............. 737

16.13 Judicial Decisions.........................................................................................................738

(C) Certificate for TDS/TCS and Tax paid on Non-Monetary perquisites
16.14 Certificate for tax DEDUCTED/COLLECTED at source (Section 395(4)(a)
(erstwhile Section 203(1) and 206C(5)) .......................................................................739
16.15 Certificate for tax PAID on Non-monetary perquisites (Section 395(4)(b) (erstwhile
Section 203(2) and 206C(5)) ........................................................................................739
16.16 Certificate of tax deducted or collected at source to be furnished under section
395(4). (Rule 215 (erstwhile Rule 31/37D)).................................................................739
16.17 Consequences if certificate is not issued ......................................................................741
16.18 Relevant Judicial Decisions..........................................................................................741
16.19 Credit for tax deducted or collected at Source..............................................................745
16.19-a Credit for tax deducted or collected OR paid by the employer for non-monetary
perquisites
[Section 390(5) (erstwhile Section 199 & 206C(4))].................................................... 745

16.19-b Rule for giving credit for tax deducted or collected or paid by the employer for non-
monetary perquisites

[Section 390(6)]: The Board may make rules (see Rule 203 below) for—.................. 745
16.19-c Credit for tax deducted or collected at source.
[Rule 203 (erstwhile Rule 37BA/37-I)].........................................................................745
16.20 Gist of Relevant Notifications......................................................................................747

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xxxvi Law, Practice & Procedure on Tax Deduction & Collection at Source...

Chapter 17: Compliances & Reporting and Processing of Statements.......................................748

(I) Compliance & Reporting
17.1 Tax Deduction and collection Account Number

[Section 397(1) (erstwhile section 203A)]....................................................................752
17.1-a Application for allotment of a tax deduction and collection account number
[Rule 216 (erstwhile Rule 114A)]................................................................................. 752

17.2 Requirement of furnishing of Permanent Account Number

[Section 397(2) (erstwhile Section 206AA & 206CC merged)]....................................760
17.2-a Judicial Decisions.........................................................................................................761
17.3 Duty of person deducting or collecting tax

[Section 397(3) (erstwhile Section 200, 206C(3) and 206A))].....................................762
17.3-a Payment of Tax Deducted or Collected to the Credit of Central Government
[Section 397(3)(a) (erstwhile Section 200(1) & (2) and Section 206C(3))]................. 762
17.3-b Statement by Government offices for tax paid without challan....................................762
17.3-c Time and mode of payment to Government account of tax deducted or collected at
source or tax paid under section 392(2)(a)
[Rule 218(1) to (4) & (9) to (11) (erstwhile Rule 30 and 37CA)].................................762
17.3-d Furnishing of Periodical Statements of Tax Deducted or Collected
[Section 397(3)(b) (erstwhile Section 200(3) and Proviso to Section 206C(3))]..........764
17.3-e Statement of TDS to be furnished by prescribed/notified persons
[Section 397(3)(g)(i) and (ii) (erstwhile Section 206A(1) and (2))]............................. 764
17.3-f Statement of deduction or collection of tax at source under section 397(3)(b):
[Rule 219 (erstwhile Rule 31A/31AA)].........................................................................765
17.3-g Gist of Relevant Notification........................................................................................ 766
17.3-h Correction of Discrepancy or Updation of statement by prescribed/notified persons
under Section 397(3)(b) or (e) (erstwhile Proviso to Section 200(3) and Proviso to
Section 206C(3B))........................................................................................................767
17.3-i Correction of Discrepancy or Updation of statement by person referred to in Section
397(3)(g)(i) or (ii) (erstwhile Section 206A(3)) ........................................................... 767
17.3-j Issuance of Statements by Prescribed Authority to Buyer, Licensor or Lessee
[Section 397(3)(c)].......................................................................................................767
17.3-k Furnishing of Information in Respect of Payments to Non-Residents
[Section 397(2)(d)].......................................................................................................768
17.3-l Furnishing of information for payment to a non-resident, not being a company, or to a
foreign company.
[Rule 220 (Erstwhile Rule 37BB)]................................................................................ 768
17.3-m Consequences for failure to collect tax at source
[Section 397(3)(h) (erstwhile Section 206C(6))].......................................................... 773

(II) Processing of Statements

17.4 Processing of Statements of TDS/TCS including correction statements

[Section 399 (erstwhile Section 200A and 206CB)].....................................................773

Chapter 18: Consequences of Defaults........................................................................................... 775
[Sections 35(b), 35(c); 398; 412; 427; 448; 449; 461; 465; 468, 471; 476; 477; 485
and 486 (erstwhile sections 40(a); 201 & 206C(6A) to (8); 221; 234E; 271C; 271CA;
271H; 271-I; 272A; 272BB; 274; 276B; 276BB; 278A; 278AA)]

18.1 Consequences for non-compliance with the provisions relating to TDS/TCS..............782

,
Contents xxxvii

(A) Consequences of failure to deduct/collect and/or pay tax
18.2 Disallowance of 30% of any expenditure claimed as payable to a resident.

[Section 35(b)(i) (erstwhile Section 40(a)(ia))]............................................................783
18.3 Judicial Decisions.........................................................................................................784

18.4 Disallowance of any expenditure claimed as payable outside India or to a non-
resident.

[Section 35(b)(ii) (erstwhile Section 40(a)(i))].............................................................785
18.5 Disallowance of payment to Provident or other fund on failure to secure deduction
of tax from Payments from such funds which are chargeable under the head
"Salaries".
[Section 35(b)(iii) (erstwhile Section 40(a)(iv))]..........................................................785
18.6 Disallowance of expenditure claimed as payable outside India or to a non-resident

chargeable under the head "Salaries".
[Section 35(c) (erstwhile Section 40(a)(iii))] ...............................................................786

18.7 Assessee shall be deemed to be in default.

[Section 398(1), (2), (5) and (6) (erstwhile sections 201(1), (2) to (4) and 206C(7A)
and (8)) merged]...........................................................................................................786
18.7-a When is an assessee deemed to be in Default? (Section 398(1))..................................786
18.7-b Assessee not deemed to be in default in certain cases
[Section 398(2) read with Rule 221 (erstwhile First proviso to section 201(1) and Rule
31ACB and Proviso to Section 206C(6A) and Rule 37J))]: .........................................786
18.7-c Providing time limits for passing of orders under section 398(1) holding a person to be
an assessee in default
[Section 398(5) and (6)]............................................................................................... 786
18.8 Judicial Decisions.........................................................................................................787
18.9 Payment of Interest on delayed deduction/collection or payment of tax

(Section 398(3))............................................................................................................791
18.9-a Period of Default and Rate of Interest ..........................................................................791
18.9-b Waiver of Interest.........................................................................................................793
18.10 Judicial decisions..........................................................................................................795
18.11 Penalty payable when tax in Default

[Section 412 (erstwhile Section 221)] ..........................................................................799
18.11-a Assessee in Default or deemed to be in default shall be liable for penalty
(Section 412(1))............................................................................................................ 799
18.11-b Penalty to not exceed arrears in Tax (Section 412(2)).................................................. 799
18.11-c Penalty not to be levied (Section 412(3)) .....................................................................799
18.11-d Assessee not to cease to be liable for penalty merely upon payment of tax before levy of
penalty (Section 412(4))............................................................................................... 799
18.11-e Refund of Penalty when tax wholly reduced as result of any final order
(Section 412(5))............................................................................................................ 799
18.11-f Penalty not to be levied if tax is not deducted due to good and sufficient reasons
[Section 398(7) (erstwhile Second Proviso to Section 201 and Second Proviso to
Section 206C(6A))] ......................................................................................................799
18.12 Judicial decisions..........................................................................................................799
18.13 Penalty for failure to deduct/collect tax at source.

[Sections 448 and 449 (erstwhile Sections 271C and 271CA)]....................................800
18.13-a Penalty for Failure to Deduct Tax at Source
[Section 448 (erstwhile Section 271C)]........................................................................800
18.13-b Penalty for Failure to Collect Tax at Source
[Section 449 (erstwhile Section 271CA)] .....................................................................800

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xxxviii Law, Practice & Procedure on Tax Deduction & Collection at Source...
18.14 Judicial Decisions.........................................................................................................801
18.15 Imprisonment for failure to deduct/collect tax at source ..............................................801
18.15-a Failure to pay tax to credit of Central Government under Chapter XIX-B.
[Section 476 (erstwhile Section 276B)]........................................................................801
18.15-b Failure to pay tax collected at source.
[Section 477 (Erstwhile Section 276BB)].....................................................................802
18.16 Judicial Decision...........................................................................................................802

(B) Consequences of failure to furnish statements or certificates, etc.

18.17 Fee for default in furnishing statements

[Section 427 (erstwhile Section 234E)]........................................................................803

18.18 Penalty for failure to furnish statements, etc.

[Section 461 (Erstwhile Section 271H)].......................................................................803
18.19 Penalty for failure to furnish information or furnishing inaccurate information under

section 397(3)(d).
[Section 462 (Erstwhile Section 271-I)].......................................................................803
18.20 Penalty for failure to answer questions, sign statements, furnish information, returns
or statements, allow inspections, etc. (Section 465 (erstwhile Section 272A)) ............804
18.20-a Relevant provisions of Section 465 and immunity thereof........................................... 804
18.21 Judicial decisions..........................................................................................................805

(C) Other Penal Provisions and Immunity/Waiver
18.22 Penalty for failure to comply with provisions of Section 397

[Section 468 (erstwhile Section 272BB)]......................................................................806

18.23 Penalty not to be imposed in certain cases

[Section 470 (erstwhile Section 273B)]........................................................................806

18.24 Punishment for second and subsequent offences

[Section 485 (erstwhile Section 278A)]........................................................................806

Chapter 19: Provisions relating to Relaxation from TDS/TCS ..................................................... 807
(A) (relating to Threshold Limits), (C) (relating to Section 393(4)), (D) (relating to Sections 394(4)

and 394(5)) and (G) (relating to relaxation by Central Government)
have been discussed in the relevant chapters
(B) (relating to Declaration and Certificates)
is discussed in detail in the chapter on "declarations and certificates"
(E) No TDS in certain cases (Section 393(5), 393(8) and 393(9)
(erstwhile sections 196, 197A(1D) and 197A(1E))
19.1 No TDS in case of amount payable to the Government, RBI, etc.

[Section 393(5) (erstwhile section 196)] ......................................................................807
19.2 Judicial Decisions.........................................................................................................808
19.3 No deduction of tax on interest paid by the Offshore Banking Unit to certain persons
[Section 393(8) (erstwhile Section 197A(1D))]............................................................808
19.4 Relevant Circular..........................................................................................................808
19.5 No deduction of tax on any payment made to New Pension System Trust

[Section 393(9) (erstwhile section 197A(1E))].............................................................809
(F) No TDS in case of entities whose income is exempt

19.6 Requirement of tax deduction at source in case of entities whose income is exempt
under section 10 of the Income-tax Act – Exemption thereof (Circular 18/2017 dated
29.05.2017)...................................................................................................................809

,
Contents xxxix

(G) Power of Central Government to relax the provisions
of the Chapter of TDS/TCS (Section 400)

19.7 Power of Central Government to relax the provisions (Section 400)...........................811
19.7-a Lower or Nil deduction of tax on specified amount to notified institution association or
body, etc.
[Section 400(1) (erstwhile Section 197A(1F)].............................................................. 811

Chapter 20: Other Important Provisions relating to TDS/TCS................................................... 813

20.1 Income payable "net of tax"

[Section 393(10) (erstwhile Section 195A]...................................................................813
20.1-a Provision subject to other provisions of Act.................................................................813
20.2 Relevant Circular..........................................................................................................813
20.3 Judicial Decisions.........................................................................................................814
20.4 Tax deducted is income received

[Section 398 (erstwhile Section 198)] ..........................................................................814
20.4-a Where the tax paid or deducted at source shall not be deemed to be income received by
the assessee:.................................................................................................................. 814
20.5 Judicial Decision...........................................................................................................814
20.6 Bar against direct demand on assessee

[Section 401 (erstwhile Section 205)] ..........................................................................814
20.7 Judicial Decisions.........................................................................................................815

DIVISION IV

Chapter 21: Advance Payment of Tax ........................................................................................... 817

[Sections 403 to 410 (erstwhile sections 207-211, 218 and 219)]

21.1 Liability for payment of Advance Tax

[Section 403 (erstwhile Section 207)] ..........................................................................822

21.2 Conditions of Liability to pay Advance Tax

[Section 404 (erstwhile Section 208)] ..........................................................................822

21.3 Computation of Advance Tax

[Section 405 (erstwhile Section 209)] ..........................................................................822
21.4 Payment of advance tax................................................................................................824
21.5 Judicial decision ...........................................................................................................826
21.6 Net agricultural income to be taken into account for computing advance tax

[Section 405(2) (erstwhile Section 209(2))].................................................................827

21.7 Instalments of advance tax and due dates

[Section 408 (erstwhile Section 211)] ..........................................................................827
21.8 Frequently Asked Questions on Advance tax...............................................................829
21.9 Payment of advance tax in case of capital gains, dividend income, winning of

lotteries etc.
[Section 425(4) (erstwhile Proviso to section 234C)]..................................................836

21.10 When assessee is deemed to be in default.

[Section 409 (erstwhile Section 218 of ITA 1961)] ......................................................837

21.11 Credit for Advance Tax

[Section 410 (erstwhile Section 219)] ..........................................................................837
21.12 Consequences if Advance Tax is not paid or paid less or if there is deferment of
payment of Advance Tax..............................................................................................837

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xl Law, Practice & Procedure on Tax Deduction & Collection at Source...

Chapter 22: Refunds........................................................................................................................ 839

[Sections 431 to 438 (erstwhile sections 237 to 241 & 245)]

22.1 Who is entitled to Refund?

[Section 431 (erstwhile Section 237)] ..........................................................................839

22.2 Person entitled to claim refund in certain special cases.

[Section 432 (erstwhile Section 238)] ..........................................................................839

22.3 Form of claim for refund and limitation.

[Section 433 (erstwhile Section 239)] ..........................................................................839
22.3-a Procedure for filing a delayed refund claim .................................................................839
22.4 Judicial decision ...........................................................................................................841
22.5 Refund for denying liability to deduct tax in certain cases.

[Section 434 (erstwhile Section 239A)]........................................................................841

22.6 Refund on appeal, etc.

[Section 435 (erstwhile Section 240 and proviso thereon)] .........................................842
22.7 Judicial decision ...........................................................................................................842
22.8 Correctness of assessment not to be questioned.

[Section 436 (erstwhile Section 242)] ..........................................................................842

22.9 Interest on refunds.

[Section 437 (erstwhile Section 244A)]........................................................................842
22.10 Judicial Decisions.........................................................................................................845
22.11 Set off and withholding of refunds in certain cases.

[Section 438 (erstwhile Section 245)] ..........................................................................847
22.12 Judicial decisions..........................................................................................................847

DIVISION V

Appendix 1 [Relevant Rules (Income Tax Rules, 2026 vis-à-vis Income Tax Rules, 1962)] ...........851
Appendix 2 [Relevant Forms (Forms under Income-tax Rules, 1962 vis-à-vis Income-tax
Rules, 2026)] ................................................................................................................877
Appendix 3 [Recent Judicial Decisions]........................................................................................1080
Appendix 4 [Relevant Circulars and