Section 390 — Master Collection Framework | ITA 2025

Section 390 — - DEDUCTION OR COLLECTION AT SOURCE AND ADVANCE PAYMENT

Section 390 is the substantive equivalent of 1961 s. 190 -- the foundational charging provision establishing that INCOME TAX shall be PAYABLE by way of: (a) DEDUCTION OR COLLECTION AT SOURCE; OR (b) ADVANCE PAYMENT (advance tax instalments); OR (c) any other prescribed mode. The provision is the GATEWAY to Chapter XIX -- the comprehensive collection framework. India's tax-collection architecture relies heavily on TDS / TCS (paying-source-based collection) plus advance tax (taxpayer self-assessment + 4 instalments) plus self-assessment / regular assessment payment. Effectively over 95% of revenue collected via these mechanisms; final assessment is residual reconciliation.

Statutory text — Income-tax Act, 2025

Marginal note -- Deduction or collection at source and advance payment

(1) The tax on income shall be payable as per this Chapter by way of—

(a) deduction or collection at source; or

(b) advance payment; or

(c) payment under section 392(2)(a).

(2) The tax referred to in sub-section (1) shall be payable as per the provisions of this Chapter, irrespective of the fact that the assessment in respect of such income is to be made in a later tax year.

(3) Nothing contained in this section, shall affect the charge of tax on such income under section 4(1).

(4) The payment of tax referred to in sub-section (1) shall be in addition to any other mode of tax recovery to discharge the liability in respect of income assessed for a tax year.

(5) The tax deducted at source or collected at source or sum referred to in section 392(2)(a)under this Chapter and paid to the Central Government shall be treated as payment of tax on behalf of the person—

(a) from whose income such tax has been deducted; or

(b) from whom such tax has been collected; or

(c) in respect of whose income such tax has been paid.

(6) The Board may make rules for—

(a) giving credit of tax deducted or collected or paid to a person referred to in sub-section (5) and also a person other than the person referred to in the said sub-section;

(b) the tax year for which the credit may be given. Direct payment.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 390	INCOME-TAX ACT, 1961 -- s. 190
Sub-s. (1)(a) -- TDS / TCS framework	1961 s. 190(1)
Sub-s. (1)(b) -- Advance tax framework	1961 s. 190(1)/(2)
Self-assessment / regular assessment integration	1961 s. 190 read with s. 140A / 156

STATUTORY ARCHITECTURE

INDIA'S TAX-COLLECTION ARCHITECTURE: (I) TDS (Tax Deducted at Source) under s. 393 / Chapter XIX-B: payer-side collection; covers ~50% revenue; salary / interest / rent / professional fees / contractor / commission etc.; rates 1%-30% based on category. (II) TCS (Tax Collected at Source) under s. 394: seller-side collection; covers specified goods / services; bullion / scrap / cars / foreign-remittance / etc. (III) ADVANCE TAX under ss. 403-411: taxpayer-side self-assessment in 4 instalments (15%/45%/75%/100% by 15-Jun/15-Sep/15-Dec/15-Mar). (IV) SELF-ASSESSMENT TAX under s. 266 / 1961 s. 140A: paid before return-filing if any shortfall. (V) REGULAR ASSESSMENT TAX: post-AO assessment shortfall. (VI) MAT / AMT / various special rates: separately computed and paid. Section 390 is the master gateway aligning all these mechanisms. Practitioner: every taxpayer interaction with Indian tax system flows through this framework.

CROSS-REFERENCES

Section 391 -- Direct payment.
Section 392 -- Salary TDS framework.
Section 393 -- TDS provisions (Chapter XIX-B).
Section 394 -- TCS.
Section 403-411 -- Advance tax.
Section 423-426 -- Interest provisions.
Section 266 -- Self-assessment tax.

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