Section 201(1A) of the Income Tax Act

Income-tax Act, 2025: s.398

Section 201(1A) falls under section 201 of the Income-tax Act, 1961, which corresponds to section 398 (Consequences of failure to deduct or pay or, collect or pay) of the Income-tax Act, 2025.

Read section 398 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 201(1A) is GE India Technology Centre Pvt. Ltd. v. CIT (327 ITR 456), cited in 663 of the 4,608 judgments on BharatTax that turn on this section.

Leading authorities on Section 201(1A)

GE India Technology Centre Pvt. Ltd. v. CIT
327 ITR 456 · 2010 · Supreme Court
663
citing judgments

Tax must be deducted at source from payments made to a non-resident under Section 195 only if such payment is chargeable to tax in India. The Assessing Officer bears the onus to establish that the payments made are indeed chargeable to tax under the Income Tax Act.

Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT
293 ITR 226 · 2007 · Supreme Court
576
citing judgments

The deductor cannot be treated as an assessee-in-default under Section 201(1) if the deductee has already paid the tax or offered the impugned receipts in their return of income. However, interest under Section 201(1A) for delayed deposit of tax can still be levied up to the date of filing of the return of income by the deductee.

MALPE VISHWANATH ACHARYA AND OTHERS v. STATE OF MAHARASHTRA AND ANOTHER. 365 32
9 SCC 1 · 2018 · Supreme Court
533
citing judgments
254 ITR 121 (Guj) ITO v. Gujarat Narmada Valley Fertilizers Co. Ltd.
243 ITR 435 · 2000 · High Court
173
citing judgments
247 ITR 305 (Guj) CIT v. Nestle India Ltd.
140 ITR 832 · 1983 · High Court
172
citing judgments

An employer is not in default under section 201 if they have made a bona fide estimate of employee income and deducted tax at source based on that estimate.

Jagaran Prakashan Ltd. v. DCIT
345 ITR 288 · 2012 · High Court
164
citing judgments

A deductor cannot be treated as an assessee in default for failure to deduct tax at source if the recipient has already paid the income tax directly. The onus is on the deductor to prove that the recipient has paid the tax.

Chandra Kishore Jha v. Mahavir Prasad
8 SCC 266 · 1999 · Supreme Court
163
citing judgments

If a statute or law prescribes that a thing must be done in a particular manner, then it must be done in that manner alone and in no other way. This principle mandates strict adherence to statutory procedures.

CIT v. Kotak Securities Ltd.
340 ITR 333 · 2012 · High Court
161
citing judgments

A deductor's bonafide belief or reliance on a Tax Residency Certificate (TRC) can influence whether they are deemed an 'assessee in default' under Section 195 for failing to deduct tax at source on payments to non-residents. The decision clarifies the due diligence required when interpreting tax treaties and TRCs for TDS compliance.

CIT vs. Nicholas Piramal India Ltd (2008) 299 ITR 0356 (BOMBAY); CIT v. Semiconductor Complex Ltd.
282 ITR 263 · 2006 · High Court
159
citing judgments

An employer making a bona fide estimate of taxable salary income is acting in accordance with established legal precedent.

Verizon Communications Singapore Pte Ltd. v. ITO
361 ITR 575 · 2014 · High Court
156
citing judgments

Payments for the use of equipment or copyrighted articles constitute royalty income under section 9(1)(vi) of the Income-tax Act, necessitating TDS deduction under section 195 and attracting disallowance under section 40(a)(i) for non-compliance.

Judgments on Section 201(1A)

State Bank of India, Overseas Branch, 15/54B, Civil Lines, Kanpur vs. Dy. CIT(TDS), Kanpur

ITA 187/LKW/2022[2011-12]Status: DisposedITAT Lucknow09 Jul 2024AY 2011-12

Bench: Hon’Ble Shri G. D. Padmahshali & Shri Subhash Malguriaआयकर अपील सं. / Ita No.186/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Zonal Office, The Mall Road, Kanpur, Up-208001 Tan: Knps02318B . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent & आयकर अपील सं. / Ita No.187/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Overseas Branch, 15/54B, Civil Lines, Kanpur, Up-208001 Tan: Knps01627D . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : None For The Assessee Revenue By : Mr Sk Sharma [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 09/07/2024 घोषणा की तारीख / Date Of Pronouncement : 09/07/2024 आदेश / Order Per G. D. Padmahshali, Am; These Twin Appeals Of The Assessee Are Assailed Against The Separate Din & Order No. Itba/Nfac/S/250/2022-23/1045081675(1) & 1045081558(1) Both Dt. 31/08/2022 Orders Passed U/S 250 Of The Income Tax Act [‘The Act’ In Short] By The National Faceless Appeal Centre, Delhi [‘Nfac’ In Short] Confirming The Order Dt. 21/03/2018 Passed U/S 201(1) & 201(1A) Of The Act By The Dy. Commissioner Of Income Tax Circle-51(1), Nagpur [‘Ao’ Hereinafter] Anent To Assessment Year 2011- 12 [‘Ay’ Hereinafter]

For Appellant: None for the AssesseeFor Respondent: Mr SK Sharma [‘Ld. DR’]
Section 201Section 201(1)Section 24Section 246A(1)(ha)Section 250

State Bank of India, Zonal Office, the Mall Road, Kanpur vs. Dy. CIT(TDS), Kanpur

ITA 186/LKW/2022[2011-12]Status: DisposedITAT Lucknow09 Jul 2024AY 2011-12

Bench: Hon’Ble Shri G. D. Padmahshali & Shri Subhash Malguriaआयकर अपील सं. / Ita No.186/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Zonal Office, The Mall Road, Kanpur, Up-208001 Tan: Knps02318B . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent & आयकर अपील सं. / Ita No.187/Lkw/2022 निर्धारण वर्ा / Assessment Year : 2011-12 State Bank Of India Overseas Branch, 15/54B, Civil Lines, Kanpur, Up-208001 Tan: Knps01627D . . . . . . . अपीलार्थी / Appellant बिधम / V/S. Dy. Commissioner Of Income Tax, Tds, Kanpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : None For The Assessee Revenue By : Mr Sk Sharma [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 09/07/2024 घोषणा की तारीख / Date Of Pronouncement : 09/07/2024 आदेश / Order Per G. D. Padmahshali, Am; These Twin Appeals Of The Assessee Are Assailed Against The Separate Din & Order No. Itba/Nfac/S/250/2022-23/1045081675(1) & 1045081558(1) Both Dt. 31/08/2022 Orders Passed U/S 250 Of The Income Tax Act [‘The Act’ In Short] By The National Faceless Appeal Centre, Delhi [‘Nfac’ In Short] Confirming The Order Dt. 21/03/2018 Passed U/S 201(1) & 201(1A) Of The Act By The Dy. Commissioner Of Income Tax Circle-51(1), Nagpur [‘Ao’ Hereinafter] Anent To Assessment Year 2011- 12 [‘Ay’ Hereinafter]

For Appellant: None for the AssesseeFor Respondent: Mr SK Sharma [‘Ld. DR’]
Section 201Section 201(1)Section 24Section 246A(1)(ha)Section 250

Sulekha.Com New Media Private Limited, Chennai vs. DCIT TDS Circle 3(1), Chennai

In the result, all four these appeals filed by the assessee are allowed for statistical purposes

ITA 1325/CHNY/2023[2021-22]Status: DisposedITAT Chennai08 Jul 2024AY 2021-22

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.1322, 1323, 1324 & 1325/Chny/2023 (िनधा"रणवष" / Assessment Years: 2018-19, 2019-20, 2020-21 & 2021-2022) Sulekha.Com New Media Private Vs. The Deputy Commissioner Of Limited, Income Tax, 2Nd Floor Campus, Tds Circle 3(1) 1A Rmz Millenia Business Park, Chennai. 143, Dr. Mgr Main Road, Perungudi, Kandanchavadi, Chennai 600 096. [Pan: Aadcm 6938R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri. V. Ravichandran, C.A., ""यथ" क" ओर से /Respondent By : Shri. Arv Srinivasan, Irs, Addl.Cit. सुनवाई क" तार"ख/Date Of Hearing : 08.07.2024 घोषणा क" तार"ख /Date Of Pronouncement : 08.07.2024 आदेश / O R D E R Per Manu Kumar Giri () This Bunch Of Four Appeals Being Ita Nos.1322-1325/Chny/2023 Filed By The Assessee Sulekha.Com New India Private Limited Are Directed Against Separate Orders Of Even Date 27.09.2023 Passed By The Learned Commissioner Of 2 Ita Nos.1322-1325/Chny/2023

For Appellant: Shri. V. Ravichandran, C.AFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT
Section 194JSection 201(1)

Sulekha.Com New Media Private Limited, Chennai vs. DCIT TDS Circle 3(1), Chennai

In the result, all four these appeals filed by the assessee are allowed for statistical purposes

ITA 1324/CHNY/2023[2020-21]Status: DisposedITAT Chennai08 Jul 2024AY 2020-21

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.1322, 1323, 1324 & 1325/Chny/2023 (िनधा"रणवष" / Assessment Years: 2018-19, 2019-20, 2020-21 & 2021-2022) Sulekha.Com New Media Private Vs. The Deputy Commissioner Of Limited, Income Tax, 2Nd Floor Campus, Tds Circle 3(1) 1A Rmz Millenia Business Park, Chennai. 143, Dr. Mgr Main Road, Perungudi, Kandanchavadi, Chennai 600 096. [Pan: Aadcm 6938R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri. V. Ravichandran, C.A., ""यथ" क" ओर से /Respondent By : Shri. Arv Srinivasan, Irs, Addl.Cit. सुनवाई क" तार"ख/Date Of Hearing : 08.07.2024 घोषणा क" तार"ख /Date Of Pronouncement : 08.07.2024 आदेश / O R D E R Per Manu Kumar Giri () This Bunch Of Four Appeals Being Ita Nos.1322-1325/Chny/2023 Filed By The Assessee Sulekha.Com New India Private Limited Are Directed Against Separate Orders Of Even Date 27.09.2023 Passed By The Learned Commissioner Of 2 Ita Nos.1322-1325/Chny/2023

For Appellant: Shri. V. Ravichandran, C.AFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT
Section 194JSection 201(1)

Sulekha.Com New Media Private Limited, Chennai vs. DCIT TDS Circle 3(1) Chennai, Chennai

In the result, all four these appeals filed by the assessee are allowed for statistical purposes

ITA 1323/CHNY/2023[2019-20]Status: DisposedITAT Chennai08 Jul 2024AY 2019-20

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.1322, 1323, 1324 & 1325/Chny/2023 (िनधा"रणवष" / Assessment Years: 2018-19, 2019-20, 2020-21 & 2021-2022) Sulekha.Com New Media Private Vs. The Deputy Commissioner Of Limited, Income Tax, 2Nd Floor Campus, Tds Circle 3(1) 1A Rmz Millenia Business Park, Chennai. 143, Dr. Mgr Main Road, Perungudi, Kandanchavadi, Chennai 600 096. [Pan: Aadcm 6938R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri. V. Ravichandran, C.A., ""यथ" क" ओर से /Respondent By : Shri. Arv Srinivasan, Irs, Addl.Cit. सुनवाई क" तार"ख/Date Of Hearing : 08.07.2024 घोषणा क" तार"ख /Date Of Pronouncement : 08.07.2024 आदेश / O R D E R Per Manu Kumar Giri () This Bunch Of Four Appeals Being Ita Nos.1322-1325/Chny/2023 Filed By The Assessee Sulekha.Com New India Private Limited Are Directed Against Separate Orders Of Even Date 27.09.2023 Passed By The Learned Commissioner Of 2 Ita Nos.1322-1325/Chny/2023

For Appellant: Shri. V. Ravichandran, C.AFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT
Section 194JSection 201(1)

Sulekha.Com New Media Private Limited, Chennai vs. DCIT TDS Circle 3(1), Chennai

In the result, all four these appeals filed by the assessee are allowed for statistical purposes

ITA 1322/CHNY/2023[2018-19]Status: DisposedITAT Chennai08 Jul 2024AY 2018-19

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.1322, 1323, 1324 & 1325/Chny/2023 (िनधा"रणवष" / Assessment Years: 2018-19, 2019-20, 2020-21 & 2021-2022) Sulekha.Com New Media Private Vs. The Deputy Commissioner Of Limited, Income Tax, 2Nd Floor Campus, Tds Circle 3(1) 1A Rmz Millenia Business Park, Chennai. 143, Dr. Mgr Main Road, Perungudi, Kandanchavadi, Chennai 600 096. [Pan: Aadcm 6938R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri. V. Ravichandran, C.A., ""यथ" क" ओर से /Respondent By : Shri. Arv Srinivasan, Irs, Addl.Cit. सुनवाई क" तार"ख/Date Of Hearing : 08.07.2024 घोषणा क" तार"ख /Date Of Pronouncement : 08.07.2024 आदेश / O R D E R Per Manu Kumar Giri () This Bunch Of Four Appeals Being Ita Nos.1322-1325/Chny/2023 Filed By The Assessee Sulekha.Com New India Private Limited Are Directed Against Separate Orders Of Even Date 27.09.2023 Passed By The Learned Commissioner Of 2 Ita Nos.1322-1325/Chny/2023

For Appellant: Shri. V. Ravichandran, C.AFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT
Section 194JSection 201(1)