Income-tax Act, 1961Section 203A
- TAN mandatory for deductors/collectors (203A)
- Duty to deposit and file statements (200)
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 203A
TDSSection 203A → Section 397
TAN: tax deduction and collection account number, and deductor duties
Section 203A of the old Income-tax Act, 1961 · new section 397 under the Income-tax Act, 2025
New reference Section 397(1) (200 → 397(3))
Income-tax Act, 2025Section 397(1) (200 → 397(3))
- TAN: section 397(1)
- Exemptions: rent by individuals (Sl. 2(i)), property purchase (3(i)), 194M-type payments (6(ii)), some VDA cases
- Statements: section 397(3)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; TAN exemptions written into 397(1)(c). From 1 October 2026 (Finance Act 2026) a resident individual/HUF buying immovable property from a non-resident (393(2) Sl. 17) does not need a TAN (397(1)(c)(iii)).
Practice notes
- Late-filing fee: section 427; penalty: section 461.
Frequently asked
Is TAN required for TDS on property purchase under the new Income Tax Act 2025?
No. Section 397(1)(c) exempts deductions under section 393(1), Table Sl. Nos. 2(i), 3(i) and 6(ii) from obtaining a TAN.
What is section 203A called in the new Income-tax Act, 2025?
Section 203A of the Income-tax Act, 1961 corresponds to Section 397(1) (200 → 397(3)) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 203A under the new Income Tax Act?
Renumbered; TAN exemptions written into 397(1)(c). From 1 October 2026 (Finance Act 2026) a resident individual/HUF buying immovable property from a non-resident (393(2) Sl. 17) does not need a TAN (397(1)(c)(iii)).
Is section 203A still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 203A of the 1961 Act. Section 397(1) (200 → 397(3)) of the 2025 Act applies from tax year 2026-27.