Section 190 of Income-tax Act, 1961: Deduction at Source and Advance Payment
Section 190 of the Income-tax Act, 1961 establishes that income tax can be collected during the year through tax deducted at source (TDS), tax collected at source (TCS), advance tax and specified salary-tax payments, even though the regular assessment takes place later. It is a foundational provision in Chapter XVII, which deals with collection and recovery of tax.
What does Section 190 provide?
Section 190(1): Payment before regular assessment
Under sub-section (1), notwithstanding that regular assessment of income is to take place in a later assessment year, tax is payable through deduction or collection at source, advance payment or payment under section 192(1A), as applicable, in accordance with Chapter XVII.
Section 190(2): Charge of income tax remains
Sub-section (2) makes clear that the advance collection mechanisms do not affect the charge of tax under section 4(1). Section 4(1) is the charging provision imposing income tax on total income at applicable rates, subject to the Act.
In practical terms: deduction or payment during the year is a method of collecting tax; it does not replace the final computation of the taxpayer's liability.
Methods of paying tax under Section 190
| Method | Meaning | Related provisions under the 1961 Act |
|---|---|---|
| TDS | The payer deducts income tax from specified payments and deposits it with the Government. | Sections 192 to 196D, as applicable |
| TCS | A specified seller or collector collects tax from a buyer or other payer where the law requires it. | Section 206C |
| Advance tax | The taxpayer pays estimated tax during the financial year in prescribed instalments. | Sections 207 to 219 |
| Employer-paid salary tax | An employer may pay tax on specified non-monetary perquisites without deducting it from the employee's salary. | Section 192(1A) |
Each mechanism is subject to its own conditions, thresholds, rates and procedural requirements. Section 190 itself does not prescribe a universal TDS rate or advance-tax instalment schedule.
Example: How advance collection works
Suppose a taxpayer earns salary and bank interest. The employer may deduct tax on salary under section 192, and the bank may deduct tax on interest under section 194A when applicable. If the estimated total tax liability, after considering deductible or collectible tax and other relevant credits, requires advance-tax payment, the taxpayer may also need to pay advance tax. These payments are reconciled against the final tax liability when the return is filed.
Excess tax may be refundable and a shortfall may require additional payment, subject to applicable provisions.
Income-tax Act, 2025: Corresponding Section 390
The Income-tax Act, 2025 applies from 1 April 2026 for Tax Year 2026-27 onwards. Its Section 390, titled Deduction or collection at source and advance payment, corresponds to the general subject of Section 190 of the 1961 Act.
Section 390(1) provides for payment by deduction or collection at source, advance payment or payment under section 392(2)(a). Section 390(2) confirms that such payment may be required before assessment; Section 390(3) preserves the charge under section 4(1). Sub-sections (4) to (6) additionally address other recovery methods, credit for taxes paid and rule-making powers.
For Tax Year 2026-27 onwards, the newer framework includes Section 393 on deduction at source and Sections 404 to 407 concerning advance tax. For Assessment Year 2026-27 and earlier years, the relevant provisions of the 1961 Act continue to govern, subject to repeal and savings rules.
Important distinction: Section 190 of the 2025 Act concerns determination of tax in special cases; it is not the replacement for Section 190 of the 1961 Act.
Practical compliance points
- Identify the correct Act and tax year before selecting a challan or form.
- Verify whether a payment is subject to TDS or TCS and check the applicable rate and threshold.
- Estimate advance-tax liability after taking account of expected tax deducted or collected at source.
- Reconcile tax credits with Form 26AS, AIS and relevant tax certificates.
- Retain challans and supporting records and review the current law before filing.
Frequently asked questions
Does Section 190 impose an additional tax?
No. It establishes methods for collecting tax before the final assessment; the underlying charge is governed by section 4(1).
Are TDS and advance tax both possible on the same taxpayer's income?
Yes. Advance-tax calculations generally take account of eligible tax deductible or collectible at source, according to the applicable rules, to avoid counting the same liability twice.
Which provision replaces Section 190 under the 2025 Act?
Section 390 of the Income-tax Act, 2025 addresses deduction or collection at source and advance payment.
Official legislation and guidance
Updated: 27 October 2026. This article provides general legal information. Verify amendments, notifications and individual facts before acting.