Income-tax Act, 1961Section 199
- TDS deposited is treated as tax paid by the payee
- Credit in the year the income is assessable
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 199
TDSSection 199 → Section 390
Credit for TDS in the payee's hands
Section 199 of the old Income-tax Act, 1961 · new section 390 under the Income-tax Act, 2025
New reference Section 390(5), (6)
Income-tax Act, 2025Section 390(5), (6)
- Credit for tax deducted: section 390(5)–(6)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered.
Practice notes
- Mismatches with Form 26AS/AIS are the usual reason for credit denial.
Frequently asked
Which section gives TDS credit under the new Income Tax Act 2025?
Section 390(5) and (6) (old section 199).
What is section 199 called in the new Income-tax Act, 2025?
Section 199 of the Income-tax Act, 1961 corresponds to Section 390(5), (6) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 199 under the new Income Tax Act?
Renumbered.
Is section 199 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 199 of the 1961 Act. Section 390(5), (6) of the 2025 Act applies from tax year 2026-27.