Processing
[Section-399 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 399(1) of 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:––
- 399(1)(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;
- 399(1)(b) the interest, if any, shall be computed on the basis of the amounts deductible or collectible as reflected in the statement;
- 399(1)(c) the fee, if any, shall be computed as per the provisions of section 427;
- 399(1)(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 clause (b) and (c) against any amount paid under section 397(3) or 398 or 427 and any amount paid otherwise by way of tax or interest or fee;
- 399(1)(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);
- 399(1)(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.
Section 399(2) of Income Tax Act 2025
399(2) The intimation under this section shall be sent within of one year from end of the tax year in which the statement is filed.
Section 399(3) of Income Tax Act 2025
399(3) The Board may make a scheme for centralised processing of statements, as required under sub-section (1).
FAQs on Section 399 of Income Tax Act 2025
What is the scope of Section 399(1) of the Income Tax Act, 2025?
Section 399(1) governs the manner in which all statements of tax deducted at source (TDS) or tax collected at source (TCS), including correction statements, are processed.
What types of errors are adjusted during processing under Section 399(1)(a)?
The processing adjusts for arithmetical errors and incorrect claims that are apparent from the information in the statement.
How is interest calculated under Section 399(1)(b)?
Interest is computed based on the deductible or collectible amounts as reflected in the statement.
How is the fee computed under Section 399(1)(c)?
The fee, if any, is computed according to the provisions of Section 427 of the Income Tax Act, 2025.
How is the net payable or refundable amount determined under Section 399(1)(d)?
The net amount payable or refundable is determined after adjusting the computed interest and fee against amounts paid under Sections 397(3), 398, 427, or any other amount paid as tax, interest, or fee.
What does the intimation sent under Section 399(1)(e) include?
The intimation specifies the amount payable by or the refund due to the deductor or collector.
When is the refund granted as per Section 399(1)(f)?
The refund is granted to the deductor or collector as determined under clause (d) of Section 399(1).
What is the time limit for sending intimation under Section 399(2)?
The intimation must be sent within one year from the end of the tax year in which the statement is filed.
Can the processing of statements be centralized?
Yes, under Section 399(3), the Board may implement a scheme for centralized processing of statements.
Does Section 399 cover correction statements as well?
Yes, Section 399(1) explicitly includes correction statements along with original TDS/TCS statements.
