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TDS · effective 1 April 2026

Section 201 under the
Income-tax Act, 2025

Consequences of failure to deduct/collect or pay TDS/TCS; assessee-in-default

Income-tax Act, 1961
201
Income-tax Act, 2025
398
ConfirmedTaken from the ICAI Direct Taxes Committee concordance and independently checked against the bare statutory text of the Income-tax Act, 2025.

Topic

Consequences of failure to deduct/collect or pay TDS/TCS; assessee-in-defaultTDS provisions under the Income-tax Act, 2025 (Act 30 of 2025).

What carried over

The substance of this provision was not changed by the re-write. What moved is the citation.

The 'not deemed to be an assessee in default if the payee has filed and paid' relief (old first proviso to 201(1)) is preserved and is cross-referenced from s.35(b)(i)(B) for the disallowance rules.

Source

ICAI concordance row '398 | Consequences of failure to deduct or pay or, collect or pay | 201, 206C'.

Open the source document →

CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.

Still cite section 201 for
Income earned up to 31 March 2026 — that is FY 2025-26, Assessment Year 2026-27, governed by the Income-tax Act, 1961 even though you file it during 2026.
Cite 398 for
Income earned from 1 April 2026 — Tax Year 2026-27 onwards, governed by the Income-tax Act, 2025. Tax deducted on payments made on or after 1 April 2026 must be reported under the new section 393 table references and new challan/return codes. Quoting a legacy section such as 194C or 194J triggers validation failure.
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197 · Certificate for lower or nil deduction of tax at source
Next →
206AA · Higher TDS/TCS rate where PAN is not furnished
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This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.

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