Deduction only one mode of recovery
Section 202 of the Income-tax Act, 1961 deals with deduction only one mode of recovery. The power to recover tax by deduction under the foregoing provisions of this Chapter shall be without prejudice to any other mode of recovery. The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
The power to recover tax by deduction under the foregoing provisions of this Chapter shall be without prejudice to any other mode of recovery.
Certificate for tax deducted.
Section 202, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 390 Deduction or collection at source and advance payment Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 9
- Finance Act s. 53 Amendment of section 202
- Finance Act s. 60 Amendment of sections 198 to 200, 202, 203, 203A and 205
- Finance Act s. 78 Amendment of sections 198 to 200, 202 to 203A and 205
- Finance Act s. 30 Amendment of sections 198 to 200, 202 to 203A and 205
- Finance Act s. 43 Amendment of sections 198 to 200 and 202 to 205
- Finance Act s. 40 Amendment of sections 198 to 200 and 202 to 205
- Finance Act s. 78 Amendment of section 198 to 200, 202 to 203A, 204 and 205
- Finance Act s. 43 Amendment of section 202
- Finance Act s. 56 Amendment of section 202
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Commr. of Income Tax-iii, Gujarat vs Patel Gruh Nirman Flat Yojana 5
Court's Decision & Legal Precedent
A promotional scheme offering prizes by lucky draw to incentivize timely payment of installments in a real estate transaction does not constitute a lottery business requiring tax deduction at source under Section 194B of the Income Tax Act, 1961, because: (1) there is no independent consideration paid for participation in the lucky draw; (2) participation is automatic upon becoming a plot purchaser; (3) the scheme lacks the essential elements of a lottery (separate ticket purchase, risk of loss, independent consideration); and (4) the scheme is a business promotion activity, not a lottery business. Therefore, tax deduction at source is not applicable to prizes awarded under such promotional schemes.
On this section: Provides for raising demand for tax not deducted at source. The assessing officer raised demand under this section.
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Commr. of Income Tax-iii, Gujarat vs Patel Gruh Nirman Flat Yojana 5
Court's Decision & Legal Precedent
A promotional scheme offering prizes through lucky draw to customers who make timely payments on a primary transaction (plot purchase) does not constitute a lottery requiring Tax Deduction at Source under Section 194B of Income Tax Act 1961, when: (a) there is no separate or independent consideration paid specifically to participate in the draw beyond the primary transaction consideration; (b) participants do not pay to try their luck as the primary purpose but become eligible incidentally through the primary purchase; (c) the scheme is genuinely designed to promote the primary business activity and not as an independent lottery business; and (d) participants do not stand to lose consideration specifically paid for the draw opportunity.
On this section: Relates to recovery of tax. The Assessing Officer raised demand under this section for unpaid TDS on the prizes.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 202
What have the courts held on Section 202 of the Income-tax Act?
Commr. of Income Tax-iii, Gujarat vs Patel Gruh Nirman Flat Yojana 5 (20 Nov 2015) is the leading judgment on this section among those set out below: Provides for raising demand for tax not deducted at source. The assessing officer raised demand under this section. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 202 of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 202, section 202 Income Tax Act, section 202 of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Commr. of Income Tax-iii, Gujarat vs Patel Gruh Nirman Flat Yojana 5 (20 Nov 2015).
What should I read with Section 202 of the Income-tax Act, and has it changed?
9 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 390 (Deduction or collection at source and advance payment), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 202 of the Income-tax Act come into force?
Section 202 of the Income-tax Act, cited as Income Tax Act 202, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.