Income Tax Act, 2025
Section 3: Ins. by Act 23 of 2012, s. 79 (w.e.f. 12012).
3. Ins. by Act 23 of 2012, s. 79 (w.e.f. 12012).
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(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:]
1[Provided further that] no penalty shall be charged under section 221 from such person, unless the
Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct
and pay such tax.]
2[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or
company as is referred to in that sub-section does not deduct the whole or any part of the tax or after
deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple
interest,—
(i) at one per cent for every month or part of a month on the amount of such tax from the date on
which such tax was deductible to the date on which such tax is deducted; and
(ii) at one and one-half per cent for every month or part of a month on the amount of such tax
from the date on which such tax was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the statement in accordance with the provisions of subsection (3) of section 200:]
1[Provided that in case any person, including the principal officer of a company fails to deduct the
whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a
resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default
under the first proviso to sub-section (1), the interest under clause (i) shall be payable from the date on
which such tax was deductible to the date of furnishing of return of income by such resident.]
(2) Where the tax has not been paid as aforesaid after it is deducted, 3[the amount of the tax together
with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge] upon all the
assets of the person, or the company, as the case may be, referred to in sub-section (1).
4[5[(3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for
failure to deduct the whole or any part of the tax from a person resident in India, at any time after the
expiry of seven years from the end of the financial year in which payment is made or credit is given.]
(4) The provisions of sub-clause (ii) of sub-section (3) of section 153 and of Explanation 1 to section
153 shall, so far as may, apply to the time limit prescribed in sub-section (3).]
6[Explanation.—For the purposes of this section, the expression “accountant” shall have the meaning
assigned to it in the Explanation to sub-section (2) of section 288.]
202. Deduction only one mode of recovery.—The power to 7[recover tax] by deduction under 8[the
foregoing provisions of this Chapter] shall be without prejudice to any other mode of recovery.
has taken into account such sum for computing income in such return of income; and
has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:]
1[Provided further that] no penalty shall be charged under section 221 from such person, unless the
Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct
and pay such tax.]
2[
Without prejudice to the provisions of sub-section
at one per cent for every month or part of a month on the amount of such tax from the date on
which such tax was deductible to the date on which such tax is deducted; and
at one and one-half per cent for every month or part of a month on the amount of such tax
from the date on which such tax was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the statement in accordance with the provisions of subsection
of section 200:]
1[Provided that in case any person, including the principal officer of a company fails to deduct the
whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a
resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default
under the first proviso to sub-section
shall be payable from the date on
which such tax was deductible to the date of furnishing of return of income by such resident.]
Where the tax has not been paid as aforesaid after it is deducted, 3[the amount of the tax together
with the amount of simple interest thereon referred to in sub-section
shall be a charge] upon all the
assets of the person, or the company, as the case may be, referred to in sub-section
No order shall be made under sub-section
deeming a person to be an assessee in default for
failure to deduct the whole or any part of the tax from a person resident in India, at any time after the
expiry of seven years from the end of the financial year in which payment is made or credit is given.]
The provisions of sub-clause
of sub-section
of section 153 and of Explanation 1 to section
153 shall, so far as may, apply to the time limit prescribed in sub-section
of section 288.]
202. Deduction only one mode of recovery.—The power to 7[recover tax] by deduction under 8[the
foregoing provisions of this Chapter] shall be without prejudice to any other mode of recovery.