Income Tax Act

Official PDF pages 501–505

SOURCE PDF PAGE 501
94
[ (2) The Board may, with the previous approval of the Central Government, issue
guidelines to remove any difficulty arising in giving effect to the provisions of this
Chapter and such guidelines shall be—
( a )   binding on the income-tax authorities and on the person liable to deduct
or, as the case may be, collect income-tax; and
( b )   laid before each House of Parliament. ]
(3)   The Board may notify, a class of person, or cases, where the person responsible
for paying to a non-resident, not being a company, or to a foreign company, any
sum, whether or not chargeable under the provisions of this Act, to make an appli -
cation in such form and manner as may be prescribed, to the Assessing Officer, to
determine the appropriate proportion of sum chargeable in the manner as may be
prescribed, and accordingly tax shall be deducted under section 393(2) (Table: Sl.
No. 17) on that proportion of the sum which is so chargeable.
(4)   The Board may by notification, make rules specifying the cases in which, and the
circumstances under which, an application may be made for grant of a certificate
under section 395(1) and (3), and the conditions subject to which such certificate
may be granted and providing for all other matters connected therewith.
Bar against direct demand on assessee.
401.   Where tax is deductible at the source under this Chapter, the assessee
shall not be called upon to pay the tax himself to the extent to which tax
has been deducted from that income.
Interpretation.
402.   For the purposes of this Chapter,—
( 1 )   “Administrator” shall have the same meaning as assigned to it in section
2( a ) of the Unit Trust of India (Transfer of Undertaking and Repeal)
Act, 2002 (58 of 2002);
( 2)   “agricultural land” means agricultural land in India,—
( a )   not being a land situated in any area referred to in section 2( 22 )
( iii ) ,   for the purposes of section 393(1) [Table: Sl. No. 3( i )];
( b )   including a land situated in any area referred to in section 2( 22 )
( iii ), for the purposes of section 393(1) [Table: Sl. No. 3( iii )];
( 3 )   “an incorrect claim apparent from any information in the statement”
shall mean a claim, on the basis of an entry, in the statement—
( a )   of an item, which is inconsistent with another entry of the same or
some other item in such statement;
( b )   in respect of rate of deduction of tax at source or rate of collection
of tax at source, where such rate is not as per the provisions of the
Act;
( 4 )   “authorised dealer” means a person authorised by the Reserve Bank of
India under section 10(1) of the Foreign Exchange Management Act,
1999 (42 of 1999) to deal in foreign exchange or foreign security;
94.   Substituted by the Finance Act, 2026, w.e.f.   1-4-2026 . Prior to its substitution, sub-section
(2) read as under :
“(2)   The Board may issue guidelines with the previous approval of the Central Government,
to remove any difficulty arising in giving effect to the provisions of this Chapter and these
guidelines shall be laid before each House of Parliament.”

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SOURCE PDF PAGE 502
( 5 )   “banking company” means a banking company to which the Banking
Regulation Act, 1949 (10 of 1949) applies;
( 6 )   “buyer”   for the purposes of provisions in column B of the Table below
means any person as specified in column C but does not include any
person as specified in column D:—
TABLE
Sl.
No.
Provisions   Person   Person not to be
included
A   B   C   D
1.   Purchase of goods
referred to in section
393(1) [Table: Sl. No.
8( ii )].
A   person   whose   total
sales, gross receipts or
turnover from the busi -
ness carried on by him
exceed ten crore rupees
during the tax year im -
mediately preceding the
tax year in which the
purchase   of   goods   is
carried out.
Any person, as the Central
Government may notify for
this purpose, subject to con -
ditions as may be specified
therein.
2.   Sale   of   goods   re -
ferred to in section
394(1)   (Table:   Sl.
Nos. 1 to 5).
A person who obtains
in any sale, by way of
auction, tender or any
other mode, goods of
the nature specified in
section 394(1) (Table: Sl.
Nos. 1 to 5), or the right
to   receive   any   such   goods.
( a )   A public sector compa -
ny; or
( b )   the Central or a State
Government, and an
embassy, a High Com -
mission, legation, com -
mission, consulate and
the trade representa -
tion, of a foreign State;
or
( c )   a club; or
( d )   a buyer in the retail
sale   of   such   goods
purchased by him for
personal consumption.
3.   Sale   of   motor   ve -
hicle or any other
goods   referred   to
in   section   394(1)
(Table: Sl. No. 6).
A person who obtains in
any sale, goods of the na -
ture specified in section
394(1) (Table: Sl. No. 6).
( a )   A person as specified
in Sl. No. 2.D( b ) ;   or
( b )   a   local   authority   as
defined at Sche-dule
III (Table: Sl. No. 22);
or
( c )   a   p u b l i c   s e c t o r
c o m p a n y   w h i c h
is engaged in the busi -
ness of carrying pas -
sengers.

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SOURCE PDF PAGE 503
Sl.
No.
Provisions   Person   Person not to be
included
A   B   C   D
4.   Remittance   under
Liberalised Remit -
tance   Scheme   re -
ferred to in section
394(1)   (Table:   Sl.
No. 7).
A   person   remitting
amount under the Lib -
eralised   Remittance
Scheme of Reserve Bank
of India.
( a )   A person as per Sl. No.
2 . D( a ) or Sl. No. 3.D( b );
( b )   Any other person as
the   Central   Govern -
ment may notify for
this purpose subject to
such conditions as may
be specified therein.
5.   Sale of overseas tour
programme package
referred to in section
394(1)   (Table:   Sl.
No. 8).
A person who purchas -
es   overseas   tour   pro -
gramme package.
A person as per Sl. No. 4.D.
( 7 )   “commission or brokerage” includes any payment received or receivable,
directly or indirectly, by a person acting on behalf of another person,—
( a )   for services rendered (not being professional services); or
( b )   for any services in the course of buying or selling of goods; or
( c )   in relation to any transaction relating to any asset, valuable article
or thing, not being securities;
( 8 )   “computer resource”, “internet” and “online game” shall have the mean -
ings respectively assigned to them in section 194(2);
( 9 )   “consideration for transfer of any immovable property” shall include all
charges of the nature of,—
( a )   club membership fee; or
( b )   car parking fee; or
( c )   electricity or water facility fee; or
( d )   maintenance fee; or
( e )   advance fee; or
( f )   or any other charges of similar nature, which are incidental to
transfer of the immovable property;
( 10 )   “contract” shall include sub-contract;
( 11 )   “designated person”, for the purposes of section 393(1) [Table: Sl. No. 6
( i )], means—
( a )   the Central Government or any State Government; or
( b )   any local authority; or
( c )   any corporation established by or under a Central Act or State Act
or Provincial Act; or
( d )   any company; or

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( e )   any co-operative society; or
( f )   any authority, constituted in India by or under any law, engaged
either for the purpose of dealing with and satisfying the need for
housing accommodation or for the purpose of planning, develop -
ment or improvement of cities, towns and villages, or for both; or
( g )   any society registered under the Societies Registration Act, 1860
(21 of 1860) or under any law corresponding to that Act in force in
any part of India; or
( h )   any trust; or
( i )   any University established or incorporated by or under a Central
Act or State Act or Provincial Act and an institution declared to be
a university under section 3 of the University Grants Commission
Act, 1956 (3 of 1956); or
( j )   any Government of a foreign State or a foreign enterprise or any
association or body established outside India; or
( k )   any firm; or
( l )   any person, being an individual or a Hindu undivided family or an
association of persons or a body of individuals, if such person,—
( i )   does not fall under any of the preceding sub-clauses; and
( ii )   has total sales, gross receipts or turnover from business or
profession carried on by him exceeding one crore rupees in
case of business or fifty lakh rupees in case of profession dur -
ing the tax year immediately preceding the tax year in which
such sum is credited or paid to the account of the contractor;
( 12 )   “electronic commerce” means the supply of goods or services, or both,
including digital products, over digital or electronic network;
( 13 )   “e-commerce operator” means a person who owns, operates or manages
digital or electronic facility or platform for electronic commerce;
( 14 )   “e-commerce participant” means a person resident in India selling goods
or providing services, or both, including digital products, through digital
or electronic facility or platform for electronic commerce;
( 15 )   “fees for technical services” shall have the meaning as assigned to it in
section 9(7)( b );
( 16 )   “foreign exchange asset” means any specified asset which the assessee
has acquired or purchased with, or subscribed to in, convertible foreign
exchange;
( 17 )   “Foreign Institutional Investor” shall have the meaning as assigned to it
in section 210(6)( a ) ;
( 18 )   “goods carriage” shall have the meaning as assigned to it in section
58(11)( d ) ;
( 19 )   “immovable property” means any land (other than agricultural land) or
any building or part of a building;

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( 20 )   “investor” shall have the meaning assigned to it in section 221(6)( a ), for
the purposes of section 393(1) [Table: Sl. No. 4( iv )] and section 393(2)
(Table: Sl. No. 9);
( 21 )   “licensee or lessee” means any person, other than a public sector
company, who has been granted a lease or a licence or entered into a
contract or otherwise received any right or interest either in whole or in
part in any parking lot or toll plaza or mine or quarry, from the licensor
or lessor for the use of parking lot or toll plaza or mine or quarry for the
purposes of business;
( 22 )   “licensor or lessor” means any person who grants a lease or a licence or
enters into a contract or otherwise transfers any right or interest either
in whole or in part in any parking lot or toll plaza or mine or quarry, to
another person, other than a public sector company for the use of such
parking lot or toll plaza or mine or quarry for the purposes of business;
( 23 )   “non-resident Indian” shall have the meaning assigned to it in section
212( d ) ;
( 24 )   “Offshore Banking Unit” shall have the same meaning as assigned to it
in section 2( u ) of the Special Economic Zones Act, 2005 (28 of 2005);
( 25 )   “online gaming intermediary” means an intermediary who offers one or
more online games;
( 26 )   “overseas tour programme package” means any tour package which offers
visit to any country or territory outside India and includes expenses for
travel or hotel stay or boarding or lodging or any other expenditure of
similar nature or in relation thereto;
( 27 )   “person responsible for paying” means—
( a )   in the case of payments of income chargeable under the head
“Salaries”, other than payments by the Central Government or the
State Government—
( i )   the employer himself; or
( ii )   if the employer is a company, the company itself, including
the principal officer thereof;
( b )   in the case of payments of income chargeable under the head
“Interest on securities”, other than payments made by or on behalf
of the Central Government or State Government, local authority,
corporation or company, including the principal officer thereof;
( c )   in the case of any sum payable to a non-resident Indian, being
any sum representing consideration for the transfer by him of any
foreign exchange asset, which is not a short-term capital asset,
the  
95
[ authorised person, referred in clause ( c ) of section 2 of the
Foreign Exchange Management Act, 1999 (42 of 1999), responsible ] —
( i )   for remitting such sum to the non-resident Indian; or
95.   Substituted for “authorised person responsible” by the Finance Act, 2026, w.e.f.   1-4-2026 .