Section 401 of Income Tax Act 2025 in hindi
Where tax is deductible at the source under this Chapter, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.
Summary
- This section protects the taxpayer from having to pay tax twice on the same income.
- If tax has already been cut at source under this Chapter from a taxpayer's income, the tax department cannot demand that the taxpayer pay that tax directly themselves.
- This legal protection or bar against direct demand only applies to the extent of the tax amount that was actually cut at source.
Practical examples
FAQ
1. Does this protection cover the entire tax liability of the taxpayer?
No, the protection is limited. It only protects you to the extent to which tax has been deducted from that income. If the tax cut was less than what you actually owe, you must pay the remaining balance yourself.
Test yourself
Q1.Under Section 401, who is barred from being called upon to pay the tax directly if it has already been deducted at source?
Q2.To what limit or extent does the protection under Section 401 apply?
Q3.What does the term "bar against direct demand" in the title of Section 401 refer to in plain words?
Q4.Under what condition does the protection of Section 401 activate for a taxpayer?
Q5.If a taxpayer's tax liability is Rs. 15,000, and Rs. 10,000 has been deducted at source, how much tax can the department directly demand from the taxpayer under Section 401?