Section 399 — Processing
Old Act equivalent: Section 200A of IT Act 1961 Sub-part: B.—Deduction and collection at source
Statutory Text
- (1) All statements of tax deducted at source or tax collected at source including a correction statement shall be processed in the following manner:—
(a) the amounts deductible or collectible under this Chapter shall be computed after making the following adjustments:—
(i) any arithmetical error in the statement; or
(ii) an incorrect claim apparent from any information in the statement;
(b) the interest, if any, shall be computed on the basis of the amounts deductible or collectible as reflected in the statement;
(c) the fee, if any, shall be computed as per the provisions of section 427(1) and (2);
(d)
(i) the amount payable by; or
(ii) the amount of refund due to,
the deductor or collector shall be determined after adjustment of the amount computed under clauses (b) and (c) against any amount paid under section 397(3) or 398 or 427(1) and (2) and any amount paid otherwise by way of tax or interest or fee;
(e) an intimation shall be prepared or generated and sent to the deductor or collector specifying the amount determined to be payable by, or the amount of refund due to, him under clause (d);
(f) the amount of refund due to a deductor or collector in pursuance of the determination under clause (d) shall be granted to the deductor or collector.
(2) The intimation under this section shall be sent within one year from the end of the tax year in which the statement is filed.
(3) The Board may make a scheme for centralised processing of statements, as required under sub-section (1).
Sub-sections
Sub-section (1)
Processing of all TDS/TCS statements (including correction statements) through a prescribed sequence: computation of deductible/collectible amounts after adjustments for arithmetical errors and incorrect claims, interest computation, fee computation under section 427(1) and (2), determination of amount payable or refund due, and issuance of intimation.
Sub-section (2)
Time limit for intimation — must be sent within one year from end of the tax year in which the statement is filed.
Sub-section (3)
Power of the Board to frame a scheme for centralised processing of statements under sub-section (1).
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: All TDS/TCS statements including correction statements filed by deductors and collectors.
- Conditions: Processing involves adjustment for arithmetical errors and incorrect claims apparent from the statement, interest computation, fee computation under section 427(1) and (2).
- Time limits: Intimation must be sent within 1 year from end of tax year in which the statement is filed.
- Exceptions: None.
Cross-References
- s397(3) — amounts paid under compliance and reporting provisions, adjusted against payable/refund.
- s398 — amounts paid under assessee-in-default provisions, adjusted against payable/refund.
- s427 — fee computation under section 427(1) and (2).
Amendment Notes
None noted from the extracted pages.
Practical Notes
- Consolidates old section 200A (processing of TDS/TCS statements) into the new Act framework.
- The processing is mechanical and computerised — adjustments are limited to arithmetical errors and incorrect claims apparent from the statement itself (no external enquiry).
- Intimation under clause (e) is the formal output of processing, analogous to intimation under section 143(1) for income tax returns.
- The one-year time limit in sub-section (2) provides certainty to deductors/collectors regarding finality of processing.
- Sub-section (3) enables CPC-TDS (Centralised Processing Cell for TDS) operations at Ghaziabad/Vaishali.