Section 399 — Processing of TDS-TCS Statements | ITA 2025

Section 399 of the Income-tax Act, 2025 is the substantive equivalent of section 200 A (TDS) and section 206 CB (TCS) of the Income-tax Act, 1961. It establishes the centralised processing mechanism for quarterly TDS/TCS statements at the…

Section 399 — - PROCESSING OF TDS/TCS STATEMENTS

Section 399 of the Income-tax Act, 2025 is the substantive equivalent of section 200A (TDS) and section 206CB (TCS) of the Income-tax Act, 1961. It establishes the centralised processing mechanism for quarterly TDS/TCS statements at the CPC-TDS, Vaishali (Ghaziabad).

Statutory text — Income-tax Act, 2025

399.

(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 com- puted 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 93[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 93[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). Power of Central Government to relax provisions of this Chapter.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 399 -- Processing of TDS statements	s. 200A (FA 2009 from 1-4-2010)
s. 399 -- Processing of TCS statements	s. 206CB (FA 2015)

STATUTORY ARCHITECTURE

CPC-TDS processes the quarterly statement and issues an intimation containing: (a) any sum payable / refundable, (b) any interest payable, (c) any fee payable u/s 234E [s. 446 of 2025]. The intimation is deemed a notice of demand u/s 156. Time-limit: 1 year from the end of the FY in which statement is filed.

PRACTITIONER PLANNING NOTES

CPC-TDS issues default intimations on TRACES; respond within 30 days via online justification report.
Common defaults: short-deduction (mismatch with declared rate), short-payment (challan-statement mismatch), late-filing fee, interest u/s 201(1A).
Correction return is the standard remedy for PAN errors / challan misallocation.
Carrying-forward unmatched TDS challans across quarters via 'OLTAS challan correction' on TRACES.

CASE-LAW

Vatika Township (P) Ltd. (2014) 367 ITR 466 (SC) -- prospective application of FA amendments to s. 200A.

CROSS-REFERENCES

s. 397 -- compliance and reporting.
s. 398 -- consequences of failure.
s. 287 (2025) / s. 154 (1961) -- rectification.

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