Income Tax Act, 2025  ·  Chapter XVIII — Collection and Recovery of Tax  ·  Section 402

Section 402
Interpretation

IT Act 2025 Chapter XVIII Effective 1 April 2026 Old: 192 to
New Provision
Section 402, IT Act 2025
Replaces (IT Act 1961)
192 to
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 402

r 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; (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 to deal in foreign exchange or foreign security; (5) “banking company” means a banking company to which the Banking Regulation Act, 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 A person whose Any person, as the Central goods referred total sales, gross Government may notify for to in section receipts or turnover this purpose, subject to 393(1) [Table: from the business conditions as may be Sl. No. 8(ii)]. carried on by him specified therein. exceed ten crore rupees during the tax year immediately preceding the tax year in which the purchase of goods is carried out. 2. Sale of goods A person who (a) A public sector referred to in obtains in any sale, company; or section 394(1) by way of auction, (b) the Central or a State (Table: Sl. Nos. tender or any other Government, and an embassy,

Sl. No. Provisions Person Person not to be included A B C D 1 to 5). mode, goods of the a High Commission, legation, nature specified commission, consulate and the in section 394(1) trade representation, of a (Table: Sl. Nos. 1 foreign State; or to 5), or the right to (c) a club; or receive any such (d) a buyer in the retail goods sale of such goods purchased by him for personal consumption. 3. Sale of motor A person who (a) A person as specified vehicle or any obtains in any sale, in Sl. No. 2.D(b); or other goods goods of the nature (b) a local authority referred to in specified in section as defined at Schedule III section 394(1) 394(1) (Table: (Table: Sl. No. 22); or (Table: Sl. No. 6). Sl. No. 6). (c) a public sector company which is engaged in the business of carrying passengers. 4. Remittance A person remitting (a) A person as per Sl. under amount under the No. 2.D(a) or Sl. No. 3.D(b); Liberalised Liberalised (b) Any other person as Remittance Remittance the Central Government may Scheme Scheme of Reserve notify for this purpose subject referred to in Bank of India. to such conditions as may be section 394(1) specified therein. (Table: Sl. No. 7). 5. Sale of overseas A person who A person as per Sl. No. 4.D. tour programme purchases overseas package referred tour programme to in section package. 394(1) (Table: Sl. No. 8). (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

meanings 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; (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.

Shahi & Co. — Our Understanding
This section falls under Chapter XVIII which deals with collection and recovery of tax — including TDS, advance tax, self-assessment tax, and recovery proceedings.
Practical Note: TDS compliance is one of the most heavily scrutinised areas in income tax. Failure to deduct, short deduction, or late deposit of TDS attracts interest, penalty, and disallowance of the related expenditure.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 402 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.