Comparison of section 402 "Interpretation." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....odies. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: the provision is contained in Chapter on "Deduction and collection at source" and cross-refers to multiple provisions across the Income-tax Act/Bill (for example, sections 393 and 394, section 194(2), and other definitions in earlier Acts such as the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002; the Foreign Exchange Management Act, 1999; the Banking Regulation Act, 1949; the Special Economic Zones Act, 2005; and the University Grants Commission Act, 1956). Coverage: a comprehensive list of definitions used in the chapter, including persons (administrator, buyer, seller, designated person, specified person), transac....

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.... entry in the statement is inconsistent or where incorrect rates of deduction/collection are reported. Interpretation The provision establishes that statutory interpretation within the chapter must rely on the supplied definitions. Legislative intent, as discernible from the text, is to capture contemporary commercial forms (electronic commerce, online gaming) and to provide thresholds and lists to target withholding obligations efficiently. The inclusion of an express definition for "an incorrect claim apparent from any information in the statement" indicates an intent to permit administrative identification of errors from filed statements without needing external evidence, thereby facilitating quicker rectification or adjustment. No fur....

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....d verification requirements are complied with. (Text sets the three cumulative conditions.) * Example 3: A statement filed by a deductor which contains an entry showing a rate of collection of tax at source not in accordance with the Act would fall within the definition of "an incorrect claim apparent from any information in the statement" and therefore be susceptible to action under the chapter. (Clause (3)(b) in the Act expressly includes incorrect TCS rates.) Interplay Section 402 cross-references numerous provisions and other Acts; it operates as the statutory glossary for the chapter and therefore interacts with procedural rules, tables in sections 393 and 394 and specific sections such as section 194(2). The provision's defini....

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....of section 58; practical effect depends on the substantive content of section 58(10)(d) vs 58(11)(d) which is Not stated in the document. The change may reflect renumbering or an intent to align with a different definition; the provided texts do not state the substantive consequence. * "Person responsible for paying" - definition for non-resident section (27)(g): - Bill: clause (27)(g)(iii) includes the agent and adds the qualifying phrase that the expression "authorised person" shall have the same meaning as in section 2(c) of FEMA (explicit in Bill). - Act: clause (27)(g)(iii) includes agent and refers to any person authorised by such person; the Act omits the explicit clause defining "authorised person" within that paragraph. * Pract....