CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
Section 200 — Duty of Person Deducting Tax (Tax Deducted at Source)
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Live. The operational hinge of the deduction machinery.
Finance Act, 2026: No amendment.
Mechanism: The deductor must deposit the deducted tax to the Government within the prescribed time and file the prescribed TDS statements (and corrections) under sub-section (3).
Litigation profile: Mechanical. Litigation arises on the consequences (sections 201/234E/276B), not the duty — the candour rule applies.
A. SECTION COMMENTARY
Section 200 sets out the duty of the person who has deducted tax at source. He must pay the tax so deducted to the credit of the Central Government within the prescribed time and in the prescribed manner; an employer who pays tax on non-monetary perquisites under section 192(1A) must likewise pay it over; and, under sub-section (3), every deductor must prepare and deliver, within the prescribed time, periodic statements of tax deducted (the TDS returns), as well as correction statements where any particulars require amendment. It is the operational hinge of the whole deduction machinery — deduction is meaningless unless the tax is deposited and reported.
Deposit and statement are distinct obligations
Two distinct duties flow from section 200: the duty to deposit the deducted tax (breach of which attracts section 201, interest under section 201(1A) and, in an aggravated case, prosecution under section 276B), and the duty to file the prescribed statements (breach of which attracts the late fee under section 234E and processing under section 200A, and may attract penalty under section 271H). The deposit obligation is the more serious, because the deducted tax is money held for the Government; its retention is visited with the strictest consequences.
A mechanical, compliance provision — candour
Section 200 is mechanical and is rarely litigated on its own terms; the litigation arises on the consequences (sections 201, 234E, 276B) rather than on the duty itself. In candour, there is no separate body of section 200 merits authority; it is applied with those consequence provisions.
B. STATUTORY POSITION (verbatim text)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025 (the Finance Act, 2026 makes no amendment to this section). Editorial markers “***” denote text omitted by the Legislature.
200. (1) Any person deducting any sum in accordance with the foregoing provisions of this Chapter shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.
(2) Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.
(2A) In case of an office of the Government, where the sum deducted in accordance with the foregoing provisions of this Chapter or tax referred to in sub-section (1A) of section 192 has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such sum or tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.
(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section
(1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed:
Provided that the person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority: 12-Provided further that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered.
C. AUTHORITIES
Candour rule observed: section 200 is a compliance provision litigated through its consequence sections. The statutory scheme is offered.
Principle: Section 200 requires the deductor both to deposit the deducted tax within the prescribed time and to file the prescribed TDS statements; the consequences of breach are found in sections 201, 201(1A), 276B (deposit) and sections 234E, 200A, 271H (statements).
Use: Maps the duty onto its consequence provisions.
Principle: No second recovery of the tax from the deductor where the payee has paid it; section 201(1A) interest runs for the period of default.
Use: Tempers the deposit-default consequence, the deducted tax apart.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is new, narrow or substantially unlitigated, the candour rule is observed — the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.
CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
Section 200 — Duty of Person Deducting Tax (Tax Deducted at Source)
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Live. The operational hinge of the deduction machinery.
Finance Act, 2026: No amendment.
Mechanism: The deductor must deposit the deducted tax to the Government within the prescribed time and file the prescribed TDS statements (and corrections) under sub-section (3).
Litigation profile: Mechanical. Litigation arises on the consequences (sections 201/234E/276B), not the duty — the candour rule applies.
A. SECTION COMMENTARY
Section 200 sets out the duty of the person who has deducted tax at source. He must pay the tax so deducted to the credit of the Central Government within the prescribed time and in the prescribed manner; an employer who pays tax on non-monetary perquisites under section 192(1A) must likewise pay it over; and, under sub-section (3), every deductor must prepare and deliver, within the prescribed time, periodic statements of tax deducted (the TDS returns), as well as correction statements where any particulars require amendment. It is the operational hinge of the whole deduction machinery — deduction is meaningless unless the tax is deposited and reported.
Deposit and statement are distinct obligations
Two distinct duties flow from section 200: the duty to deposit the deducted tax (breach of which attracts section 201, interest under section 201(1A) and, in an aggravated case, prosecution under section 276B), and the duty to file the prescribed statements (breach of which attracts the late fee under section 234E and processing under section 200A, and may attract penalty under section 271H). The deposit obligation is the more serious, because the deducted tax is money held for the Government; its retention is visited with the strictest consequences.
A mechanical, compliance provision — candour
Section 200 is mechanical and is rarely litigated on its own terms; the litigation arises on the consequences (sections 201, 234E, 276B) rather than on the duty itself. In candour, there is no separate body of section 200 merits authority; it is applied with those consequence provisions.
B. STATUTORY POSITION (verbatim text)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025 (the Finance Act, 2026 makes no amendment to this section). Editorial markers “***” denote text omitted by the Legislature.
200. (1) Any person deducting any sum in accordance with the foregoing provisions of this Chapter shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.
(2) Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.
(2A) In case of an office of the Government, where the sum deducted in accordance with the foregoing provisions of this Chapter or tax referred to in sub-section (1A) of section 192 has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such sum or tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.
(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section
(1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed:
Provided that the person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority: 12-Provided further that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered.
C. AUTHORITIES
Candour rule observed: section 200 is a compliance provision litigated through its consequence sections. The statutory scheme is offered.
Statutory backdrop — deposit and reporting
Two duties: deposit (section 201/201(1A)/276B) and statements (section 234E/200A/271H)
Principle: Section 200 requires the deductor both to deposit the deducted tax within the prescribed time and to file the prescribed TDS statements; the consequences of breach are found in sections 201, 201(1A), 276B (deposit) and sections 234E, 200A, 271H (statements).
Use: Maps the duty onto its consequence provisions.
Hindustan Coca-Cola Beverages (P) Ltd. v. CIT (2007) 293 ITR 226 (SC) — cognate
Principle: No second recovery of the tax from the deductor where the payee has paid it; section 201(1A) interest runs for the period of default.
Use: Tempers the deposit-default consequence, the deducted tax apart.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is new, narrow or substantially unlitigated, the candour rule is observed — the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.