Collection and Recovery of Tax
Sections 390-430, connected Rules 203-273, Forms 121-186, Finance Act 2026 amendments, transition mapping, practical controls, cases and professional Q&A.
Decision path
Person, event and period
Section and Schedule
Rule, Form, authority
Books, portal, bank, approvals
Correction, stay, appeal, defence
Section navigation: s. 390 s. 391 s. 392 s. 393 s. 394 s. 395 s. 396 s. 397 s. 398 s. 399 s. 400 s. 401 s. 402 s. 403 s. 404 s. 405 s. 406 s. 407 s. 408 s. 409 s. 410 s. 411 s. 412 s. 413 s. 414 s. 415 s. 416 s. 417 s. 418 s. 419 s. 420 s. 421 s. 422 s. 423 s. 424 s. 425 s. 426 s. 427 s. 428 s. 429 s. 430
What this chapter governs
41 provisions: 390-430.
203-273; 121-186. Current electronic schemas must be checked at filing.
1961 Act Chapter XVII: sections 190-234E, advance tax sections 207-219, recovery sections 220-232 and interest/fee provisions 234A-234F.
Deduction or collection at source and advance payment
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Direct payment
Statutory function
Establishes the statutory treatment for direct payment within Chapter XIX.
Professional decode
Identify person, event, amount, period, authority, form, evidence, consequence and remedy before applying the provision.
Salary and accumulated balance due to an employee
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Deduction of tax at source on specified payments and sums
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Collection of tax at source
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Certificate for deduction or collection at lower rate
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Tax deducted is income received
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Tax deduction and collection account number, payment, statements and certificates
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Consequences of failure to deduct, collect or pay tax
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Processing
Statutory function
Establishes the statutory treatment for processing within Chapter XIX.
Professional decode
Identify person, event, amount, period, authority, form, evidence, consequence and remedy before applying the provision.
Power to issue notifications and guidelines for deduction or collection
Statutory function
Determines the payer/collector obligation, timing, base, rate, deposit, statement and credit chain.
Professional decode
Build a payment-level TDS/TCS matrix; verify payee status, threshold, treaty, certificate, payment date and Form 26AS/AIS credit.
Bar against direct demand on assessee
Statutory function
Establishes the statutory treatment for bar against direct demand on assessee within Chapter XIX.
Professional decode
Identify person, event, amount, period, authority, form, evidence, consequence and remedy before applying the provision.
Interpretation
Statutory function
Establishes the statutory treatment for interpretation within Chapter XIX.
Professional decode
Identify person, event, amount, period, authority, form, evidence, consequence and remedy before applying the provision.
Liability for payment of advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Conditions of liability to pay advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Computation of advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Payment of advance tax by assessee on his own accord
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Advance-tax order by Assessing Officer
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Instalments of advance tax and due dates
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
When assessee is deemed to be in default
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Credit for advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
When tax payable and when assessee deemed in default
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Penalty payable when tax in default
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Certificate by Tax Recovery Officer and validity thereof
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Jurisdiction of Tax Recovery Officer
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Stay of proceedings in pursuance of certificate and amendment or cancellation thereof
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Other modes of recovery
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Recovery through State Government
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Recovery of tax in pursuance of agreements with foreign countries
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Recovery of penalties, fine, interest and other sums
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Tax clearance certificate
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Other laws and suits for recovery not affected
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Recovery of tax arrear in respect of non-resident from his assets
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Interest for defaults in furnishing return of income
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Interest for defaults in payment of advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Interest for deferment of advance tax
Statutory function
Regulates advance-tax liability, estimation, instalments, credit and default consequences.
Professional decode
Forecast current income by tax bucket; reconcile TDS/TCS, reliefs, credits and instalment due dates.
Interest on excess refund
Statutory function
Provides a time-linked interest or fee consequence for a specified filing, payment or reporting default.
Professional decode
Compute from the correct statutory start/end dates and base; separately test consequential recomputation after appeal or rectification.
Fee for default in furnishing statements
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Fee for default in furnishing return of income, audited accounts and reports
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Fee for default relating to statement or certificate
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Fee for default relating to intimation of Aadhaar number
Statutory function
Governs demand, default, recovery certificate, attachment, stay and alternative recovery routes.
Professional decode
Reconcile demand, service, credits, appeal/stay status, TRO jurisdiction and protected-property issues before payment or challenge.
Connected compliance layer
| Layer | Coverage | Control |
|---|---|---|
| Rules | 203-273 | Use exact notified text, amendments and corrigenda. |
| Forms | 121-186 | Confirm live e-filing schema, signing authority and acknowledgement. |
| Notifications | Rates, notified persons, schemes, exemptions, reporting and recovery | Check Gazette number, effective date and supersession. |
| Circulars / instructions | Administrative guidance and compounding / processing instructions | Apply only within lawful scope and after section 536 mapping. |
18 practical cases
A practical file raises salary TDS. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises vendor TDS. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises non-resident remittance. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises lower-rate certificate. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises TCS collection. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises advance-tax forecast. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises recovery stay. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises foreign recovery. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises late return interest. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises deferment interest. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises excess refund interest. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises statement fee. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises Aadhaar fee. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises TDS credit mismatch. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises asset attachment. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises tax clearance. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises TRO jurisdiction. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises appeal-effect demand. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
36 questions
The enacted section and applicable Schedule control first; then the notified Rules, current forms, valid Gazette instruments and binding judicial law. Portal text is operational guidance, not a substitute for law.
No. Map it to the 2025 Act, test section 536 savings, consistency and later supersession before relying on it.
Notice/order, service trail, computation, books/ledger, bank/challan records, prescribed statements/forms, correspondence, approvals and a limitation calendar.
No. Payment may stop further interest or support reasonable cause, but filing, reporting, penalty or prosecution consequences may remain.
Use the consolidated Act wording and effective-date footnotes; do not apply the pre-substitution text to an action governed by the amended provision.
Reconfirm the live Gazette, current form/schema, annual Finance Act, jurisdictional case law and transaction-specific facts.
Section 390, Deduction or collection at source and advance payment, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 391, Direct payment, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 392, Salary and accumulated balance due to an employee, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 393, Deduction of tax at source on specified payments and sums, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 394, Collection of tax at source, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 395, Certificate for deduction or collection at lower rate, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 396, Tax deducted is income received, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 397, Tax deduction and collection account number, payment, statements and certificates, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 398, Consequences of failure to deduct, collect or pay tax, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 399, Processing, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 400, Power to issue notifications and guidelines for deduction or collection, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 401, Bar against direct demand on assessee, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 402, Interpretation, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 403, Liability for payment of advance tax, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 404, Conditions of liability to pay advance tax, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 405, Computation of advance tax, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 406, Payment of advance tax by assessee on his own accord, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 407, Advance-tax order by Assessing Officer, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 408, Instalments of advance tax and due dates, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 409, When assessee is deemed to be in default, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 410, Credit for advance tax, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 411, When tax payable and when assessee deemed in default, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 412, Penalty payable when tax in default, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 413, Certificate by Tax Recovery Officer and validity thereof, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 414, Jurisdiction of Tax Recovery Officer, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 415, Stay of proceedings in pursuance of certificate and amendment or cancellation thereof, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 416, Other modes of recovery, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 417, Recovery through State Government, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 418, Recovery of tax in pursuance of agreements with foreign countries, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 419, Recovery of penalties, fine, interest and other sums, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Source discipline
https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf
https://www.incometaxindia.gov.in/income-tax-act