Comparison of section 393 "Tax to be deducted at source." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ll text (old version) is the subject of the detailed statutory commentary below. Affected parties include payers obliged to deduct TDS (businesses, financial institutions, e-commerce operators, specified persons) and payees (residents, non-residents, business trusts, investment funds). Effective dates or enactment dates: Not stated in the document (Bill is described as "old version"; Section presented as enacted-but no explicit effective dates appear in the texts provided). Background & Scope Statutory hooks: both texts operate under the general heading "Deduction and collection at source" and are framed as section/clause 393 in the Income-tax Act/Bill, 2025. Coverage: detailed tables listing categories of income or sums (commission, rent....

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.... and various non-resident scenarios including interest, distributed income of business trusts, unit holders, offshore funds and FIIs. Cross-references to other sections and Schedules are frequent (e.g., sections 67(14), 211, 208, 221, 223, 224; Schedules V, VI, VII). Interpretation The text indicates legislative intent to: (1) extend systematic TDS across a broad range of transactions and payees; (2) capture emerging categories (e-commerce facilitation and virtual digital asset transfers); (3) maintain sectoral and payer-based exemptions and lower thresholds for certain payees (banks, co-op societies, business trusts); and (4) provide procedural reliefs (declaration for nil deduction). Interpretive principles follow textual rules: where t....

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.... Rent paid by a company to an individual landlord (not a specified person): Monthly rent Rs.55,000 => threshold Rs.50,000 exceeded; payer must deduct TDS at 2% at time of credit/payment (per serial 2(i)). * Example 2 - Purchase of goods by a buyer amounting to Rs.60,00,000 in a transaction: Under serial 8(ii) (purchase of goods), buyer is required to deduct TDS at 0.1% on the sum exceeding Rs.50,00,000. The amount subject to TDS is Rs.10,00,000; TDS = 0.1% of Rs.10,00,000 = Rs.1,000. * Example 3 - E-commerce participant who is an individual with gross sales of Rs.4,00,000 during tax year and receives payments via an e-commerce operator: If PAN/Aadhaar furnished, serial 8(v) exemption applies (no deduction by operator) as gross sales <= ....

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....movable Property): The Bill (Document 2) states the rate as "1% of such sum or stamp duty value of the property if more than Rs. 50,00,000, whichever is higher." The enacted Section (Document 1) sets rate as "1% of- (a) consideration for transfer of the immovable property; or (b) stamp duty value of such property, whichever is higher" and lists threshold as "Fifty lakh rupees and as per Note 3." * Practical impact: substantive parity; minor textual differences in phrasing do not change outcome. Both require TDS where value >= Rs.50 lakh and apply on higher of consideration or stamp duty value. * Serial Number 4(ii) (Business Trust Distributions): The Bill&#39;s wording in Document 2 is slightly different-refers to "Any distributed incom....

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....ity of e-commerce TDS to avoid multiple deductions; reduces compliance uncertainty for operators and participants. * Notes on mixed in-kind payments for serials 8(iv) and 8(vi): Both texts contain similar safeguards requiring payer to ensure tax paid before releasing benefit where cash is insufficient. Enacted text (Document 1) supplies a specific definition clause within Note 6(b) that "&#39;person responsible for providing&#39; means ..." which appears in Bill too but enacted text may be clearer in placement. * Practical impact: operational clarity for payers in in-kind transactions and VDA transfers. * Subsections on No Deduction (Section 393(4) Table): Both texts have largely identical exemption rows but minor editorial difference....

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....g thresholds and turnover calculations for exemption tests. The Bill explicitly requires prescribed forms and timelines for reporting in certain contractor exemptions-details of the form and time limits are Not stated in the document. Key Takeaways * Clause 393 creates a comprehensive TDS matrix covering residents, non-residents and payments to any person with specified rates and thresholds. * Newer economic activities-e-commerce facilitation and virtual digital asset transfers-are explicitly subject to TDS; e-commerce TDS is given precedence to avoid double deduction. * Multiple conditional exemptions and declaration mechanisms exist to prevent undue deduction in specific cases (banks, certain trusts, life insurance payouts, small e....