Comparison of section 390 "Deduction or collection at source and advance payment." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....unts remitted to the Central Government as tax paid on behalf of specified persons, and empowers the Board to make rules regarding credit and the tax year for credit. The provision affects taxpayers subject to TDS/TCS/advance payment and tax administration. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause 390 is located in Chapter XIX, Part A (General) of the Income Tax Bill, 2025 (Old Version) and addresses "Deduction or collection at source and advance payment." The text defines the modes by which tax on income shall be payable under the Chapter and clarifies interplay with assessment and the charge of tax. Definitions: Not stated in the document. Context: The clause frames withhold....

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....on(s) in sub-section (5) and also a person other than those persons; and (b) "the tax year for which the credit shall be given." Interpretation Legislative intent as indicated: The clause treats withholding/collection and advance payment as mechanisms to secure tax revenue irrespective of final assessment, and contemplates crediting such payments against the taxpayer's liability. The text indicates a recognition that tax deduction/collection and advance payment are provisional modes intended to operate alongside assessment and other recovery measures. The rule-making clause indicates intent to prescribe administrative specifics (crediting and tax year attribution) by secondary legislation. More precise interpretive guidance (e.g., how....

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....ill, 2025 - Old Version * Wording of sub-section (2): - Clause 390 (Bill): "irrespective of the assessment to be made later than the relevant tax year." - Section 390 (Act): "irrespective of the fact that the assessment in respect of such income is to be made in a later tax year." * Practical impact: The Act's wording is marginally more specific as to the subject of the later assessment ("in respect of such income"), clarifying that the later assessment relates to the income subject to the Chapter. The Bill's wording is broader and potentially ambiguous as to what "assessment to be made later" refers to. The practical effect is a minor clarity improvement in the enacted text; no substantive change in obligation is evident from t....

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.... sub-paragraphs. The Act's three-limb formulation is clearer in identifying the person on whose behalf tax is treated as paid, explicitly including a separate limb for "paid" (section 392(2)(a) sums). This improves clarity on who receives credit for TDS/TCS/payment. Substantively, the Act clarifies credit entitlement mechanics; the Bill's language might have been open to narrower or confused readings. * Wording of sub-section (6)(b): - Clause 390 (Bill): "the tax year for which the credit shall be given." - Section 390 (Act): "the tax year for which the credit may be given." * Practical impact: The Bill's use of "shall" suggests a mandatory duty on the Board to specify the tax year(s) for which credit is to be given; the Act....