Section 209 of the Income Tax Act
Income-tax Act, 2025: s.405
Section 209 of the Income-tax Act, 1961 corresponds to section 405 (Computation of advance tax) of the Income-tax Act, 2025.
Read section 405 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 209 is DIT v. Jacabs Civil Incorporated/ Mitsubhishi Corporation (330 ITR 578), cited in 115 of the 136 judgments on BharatTax that turn on this section.
Leading authorities on Section 209
Interest under Section 234B is generally not leviable on non-residents whose income is subject to tax deduction at source under Section 195, provided the non-resident assessee did not induce short or non-deduction of TDS by the payer.
Interest levied under Sections 234A, 234B, and 234C of the Income-tax Act is compensatory in nature, not penal. This interest is automatically imposed upon default in payment of advance tax.
Interest under Section 234B is not leviable when the entire income of the assessee was deductible at source under Section 195. Provisions for advance tax under Sections 234B and 234C are not applicable if tax is deductible at source under Section 195.
