§ 400
Chapter XIX — Collection And Recovery Of Tax
Power of Central Government to relax provisions of this Chapter
Income-tax Act, 2025
The Central Government can issue notifications to lower tax deduction or collection rates for specific payments, persons or classes of persons. The Board, with the Government's prior approval, may issue binding guidelines to address difficulties in applying this chapter, and must lay them before Parliament. It can also prescribe procedures for non‑resident payments, requiring applications to assessors to determine the taxable portion and deduct tax accordingly. Additionally, the Board may set rules for applying for certificates under sections 395(1) and 395(3).
📜 Official text of the section +
400. (1) The Central Government may, by notification provide that deduction or
collection of tax shall not be made or is to be made at such lower rate, from
such payment or receipt and in respect of such person or class of persons.
93. Substituted for “427” by the Finance Act, 2026, w.e.f. 1-4-2026.
94[(2) The Board may, with the previous approval of the Central Government, issue
guidelines to remove any difficulty arising in giving effect to the provisions of this
Chapter and such guidelines shall be—
( a) binding on the income-tax authorities and on the person liable to deduct
or, as the case may be, collect income-tax; and
( b) laid before each House of Parliament.]
(3) The Board may notify, a class of person, or cases, where the person responsible
for paying to a non-resident, not being a company, or to a foreign company, any
sum, whether or not chargeable under the provisions of this Act, to make an appli-
cation in such form and manner as may be prescribed, to the Assessing Officer, to
determine the appropriate proportion of sum chargeable in the manner as may be
prescribed, and accordingly tax shall be deducted under section 393(2) (Table: Sl.
No. 17) on that proportion of the sum which is so chargeable.
(4) The Board may by notification, make rules specifying the cases in which, and the
circumstances under which, an application may be made for grant of a certificate
under section 395(1) and (3), and the conditions subject to which such certificate
may be granted and providing for all other matters connected therewith.
Bar against direct demand on assessee.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.