Section 396 — Tax deducted is income received
The following sums shall be deemed as income received for the purposes of
computing the income of an assessee—
( a) sums deducted under this Chapter; and
92. Substituted by the Finance Act, 2026, w.e.f. 1-10-2026. Prior to its substitution, clause ( c)
read as under :
“( c) the provisions of clause (a) shall not apply—
( i) to a person who is required to deduct tax under provisions of section 393(1) [Table:
Sl. Nos. 2(i), 3(i) and 6(ii)];
( ii) to a person referred to in section 393(4) [Table: Sl. No. 12.C(a)]; and
( iii) a person notified in this regard by the Central Government.”
( b) income-tax paid outside India by way of deduction in respect of which
an assessee is allowed a credit against the tax payable under this Act,
except tax paid under section 392(2)(a) and tax deducted as per section 393(3)
(Table: Sl. No. 5).
Related sections
- Section 390 — Deduction or collection at source and advance payment
- Section 391 — Direct payment
- Section 392 — Salary and accumulated balance due to an employee
- Section 393 — Tax to be deducted at source
- Section 394 — Collection of tax at source
- Section 395 — Certificates
- Section 397 — Compliance and reporting
- Section 398 — Consequences of failure to deduct or pay or, collect or pay
- Section 399 — Processing
- Section 400 — Power of Central Government to relax provisions of this Chapter
- Section 401 — Bar against direct demand on assessee
- Section 402 — Interpretation
- Section 403 — Liability for payment of advance tax
- Section 404 — Conditions of liability to pay advance tax
- Section 405 — Computation of advance tax
- Section 406 — Payment of advance tax by assessee on his own accord
- Section 407 — Payment of advance tax by assessee in pursuance of order of Assessing Officer
- Section 408 — Instalments of advance tax and due dates
- Section 409 — When assessee is deemed to be in default
- Section 410 — Credit for advance tax
- Section 411 — When tax payable and when assessee deemed in default
- Section 412 — Penalty payable when tax in default
- Section 413 — Certificate by Tax Recovery Officer and validity thereof
- Section 414 — Tax Recovery Officer by whom recovery is to be effected
- Section 415 — Stay of proceedings in pursuance of certificate and amendment or cancella-tion thereof
- Section 416 — Other modes of recovery
- Section 417 — Recovery through State Government
- Section 418 — Recovery of tax in pursuance of agreements with foreign countries
- Section 419 — Recovery of penalties, fine, interest and other sums
- Section 420 — Tax clearance certificate
- Section 421 — Recovery by suit or under other law not affected
- Section 422 — Recovery of tax arrear in respect of non-resident from his assets
- Section 423 — Interest for defaults in furnishing return of income
- Section 424 — Interest for defaults in payment of advance tax
- Section 425 — Interest for deferment of advance tax
- Section 426 — Interest on excess refund
- Section 427 — Fee for default in furnishing statements
- Section 428 — Fee for default in furnishing return of income, audited accounts and reports
- Section 429 — Fee for default relating to statement or certificate
- Section 430 — Fee for default relating to intimation of Aadhaar number