Section 399: processing of TDS/TCS statements

How a statement is processed

All statements of tax deducted or collected at source, including correction statements, are processed as follows:

• The deductible/collectible amounts are computed after adjusting for any arithmetical error in the statement, or an incorrect claim apparent from information in the statement.
• Interest, if any, is computed on the basis of the amounts deductible or collectible as reflected in the statement.
• Fee, if any, is computed under Section 427(1) and (2).
• The amount payable by, or refund due to, the deductor or collector is determined after adjusting the interest and fee against amounts already paid under Section 397(3), Section 398, or Section 427(1) and (2), and any other amount paid by way of tax, interest or fee.
• An intimation is prepared or generated and sent to the deductor or collector specifying the amount payable by, or refundable to, them.
• Any refund due is granted to the deductor or collector.

Time limit and centralised processing

The intimation under this section must be sent within one year from the end of the tax year in which the statement is filed.

The Board may frame a scheme for centralised processing of statements as required under sub-section (1).

Frequently asked questions