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2025Section 402

402. Interpretation.

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From the Income Tax Department's correspondence.

For the purposes of this Chapter,—

(1) "Administrator" shall have the same meaning as assigned to it in section 2(a) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(2) "agricultural land" means agricultural land in India,—

(a) not being a land situated in any area referred to in section 2(22)(iii), for the purposes of section 393(1) [Table: Sl. No. 3(i)];

(b) including a land situated in any area referred to in section 2(22)(iii), for the purposes of section 393(1) [Table: Sl. No. 3(iii)];

(3) "an incorrect claim apparent from any information in the statement" shall mean a claim, on the basis of an entry, in the statement—

(a) of an item, which is inconsistent with another entry of the same or some other item in such statement;

(b) in respect of rate of deduction of tax at source or rate of collection of tax at source, where such rate is not as per the provisions of the Act;

(4) "authorised dealer" means a person authorised by the Reserve Bank of India under section 10(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) to deal in foreign exchange or foreign security;

(5) "banking company" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies;

(6) "buyer" for the purposes of provisions in column B of the Table below means any person as specified in column C but does not include any person as specified in column D:—

TABLE

Sl. No.ProvisionsPersonPerson not to be included
ABCD
1.Purchase of goods referred to in A per section 393(1) [Table: Sl. No. the b 8(ii)]. during whichson whose total sales, gross receipts or turnover from usiness carried on by him exceed ten crore rupee the tax year immediately preceding the tax year i the purchase of goods is carried out.Any person, as the Central Government may notify
s for this purpose, subject to conditions as may be n specified therein.
2.Sale of goods referred to in A per section 394(1) (Table: Sl. Nos. or any 1 to 5). 394(1 such gson who obtains in any sale, by way of auction, tende other mode, goods of the nature specified in sectio ) (Table: Sl. Nos. 1 to 5), or the right to receive an oods.r (a) A public sector company; or
n (b) the Central or a State Government, and an y embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State; or
(c) a club; or
(d) a buyer in the retail sale of such goods purchased by him for personal consumption.
3.Sale of motor vehicle or any A per other goods referred to in specif section 394(1) (Table: Sl. No.
6).		son who obtains in any sale, goods of the natur ied in section 394(1) (Table: Sl. No. 6).e (a) A person as specified in Sl. No. 2.D(b); or
(b) a local authority as defined at Schedule III (Table: Sl. No. 22); or
(c) a public sector company which is engaged in the business of carrying passengers.
4.Remittance under Liberalised A per Remittance Scheme referred to Schem in section 394(1) (Table: Sl. No.
7).		son remitting amount under the Liberalised Remittanc e of Reserve Bank of India.e (a) A person as per Sl. No. 2.D(a) or Sl. No. 3.D(b);
(b) Any other person as the Central Government may notify for this purpose subject to such conditions as may be specified therein.
5.Sale of overseas tour A pers programme package referred to
in section 394(1) (Table: Sl. No.
8).
"commission or brokerage" includes an
(a) for services rendered (not bein
(b) for any services in the course
(c) in relation to any transaction r
"computer resource", "internet" and "o "consideration for transfer of any imm
(a) club membership fee; or
(b) car parking fee; or
(c) electricity or water facility fee
(d) maintenance fee; or
(e) advance fee; or
(f) or any other charges of similar
"contract" shall include sub-contract; "designated person", for the purposes o
(a) the Central Government or an
(b) any local authority; or
(c) any corporation established by
(d) any company; or
(e) any co-operative society; or
(f) any authority, constituted in I accommodation or for the pur
(g) any society registered under t of India; or
(h) any trust; or
(i) any University established or university under section 3 of t
(j) any Government of a foreign S
(k) any firm; or
(l) any person, being an individua
(i) does not fall under an
(ii) has total sales, gross business or fifty lakh credited or paid to the
"electronic commerce" means the supp "e-commerce operator" means a person "e-commerce participant" means a per electronic facility or platform for electr "fees for technical services" shall have "foreign exchange asset" means any exchange;
"Foreign Institutional Investor" shall h "goods carriage" shall have the meanin "immovable property" means any land "investor" shall have the meaning assig Sl. No. 9);
"licensee or lessee" means any person otherwise received any right or interes use of parking lot or toll plaza or mine "licensor or lessor" means any person or in part in any parking lot or toll plaz plaza or mine or quarry for the purpose "non-resident Indian" shall have the m "Offshore Banking Unit" shall have the "online gaming intermediary" means a "overseas tour programme package" travel or hotel stay or boarding or lodg "person responsible for paying" means
(a) in the case of payments of i Government—
(i) the employer himself
(ii) if the employer is a c
(b) in the case of payments of inc Government or State Governm
(c) in the case of any sum payab exchange asset, which is not a Management Act, 1999 (42 of
(i) for remitting such su
(ii) for crediting such sum Act, 1999 (42 of 1999
(d) in the case of furnishing of in whether or not chargeable und
(i) the payer himself; or
(ii) if the payer is a comp
(e) in the case of credit, or, as the
(i) the payer himself; or
(ii) if the payer is a comp
(f) in the case of credit, or as th Central Government or the Sta
(i) the drawing and disbu
(ii) any other person, by
responsible for crediting, or pa
(g) in the case of a person not resi
(i) the person himself; or
(ii) any person authorised
(iii) the agent of such pers
"professional services" means services profession of accountancy or technical the purposes of this section, or of secti "rent" means any payment, by whatev separately or together) any—
(a) land; or
(b) building (including factory bu
(c) land appurtenant to a building
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above reference to assets mentioned in sub-cl "royalty" shall have the meaning assig "scrap" means waste and scrap from t cutting up, wear and other reasons; "securities" shall have the same meani "seller" means—
(a) for the purposes of section 394
(i) the Central Governm
(ii) a State Government;
(iii) any local authority or
(iv) any company or firm
(v) an individual or a Hi him exceed one crore the tax year in which
(b) for the purposes of section 394
"services" for the purposes of section 3 in this section;
"specified bank" means a banking com "specified company" means for the pu 2(h) of the Unit Trust of India (Transfe "specified person" means—
(a) any person, not being an indiv
(b) an individual or a Hindu und exceed one crore rupees in cas which such income or sum is c
"special purpose vehicle" shall have th "specified senior citizen" means an ind
(a) who is of the age of seventy-fi
(b) who is having pension income in the same specified bank in
(c) has furnished a declaration to t
"specified undertaking" shall have the Act, 2002 (58 of 2022);
"time deposits" means deposits (includ "unit" for the purposes of section 393( 224(10)(c);
"Unit Trust of India" means the Unit 2002);
"University", referred in section 392(4 institution declared under section 3 of t "user" means any person who accesses "user account" means account of a user "work" shall include—
(a) advertising;
(b) broadcasting and telecasting in
(c) carriage of goods or passenger
(d) catering;
(e) manufacturing or supplying a
(i) such customer; or
(ii) its associate, being a provisions contained but does not include—
(A) manufacturi purchased fr
(B) any sum refe
96[(f) supply of manpower to a perso		on who purchases overseas tour programme package. y payment received or receivable, directly or indirectl g professional services); or
of buying or selling of goods; or
elating to any asset, valuable article or thing, not being nline game" shall have the meanings respectively assig ovable property" shall include all charges of the nature ; or
nature, which are incidental to transfer of the immova f section 393(1) [Table: Sl. No. 6 (i)], means—
y State Government; or
or under a Central Act or State Act or Provincial Act;
ndia by or under any law, engaged either for the pur pose of planning, development or improvement of citie he Societies Registration Act, 1860 (21 of 1860) or un incorporated by or under a Central Act or State A he University Grants Commission Act, 1956 (3 of 1956 tate or a foreign enterprise or any association or body l or a Hindu undivided family or an association of pers y of the preceding sub-clauses; and
receipts or turnover from business or profession ca rupees in case of profession during the tax year im account of the contractor;
ly of goods or services, or both, including digital produ who owns, operates or manages digital or electronic f son resident in India selling goods or providing servic onic commerce;
the meaning as assigned to it in section 9(7)(b); specified asset which the assessee has acquired or p
ave the meaning as assigned to it in section 210(6)(a); g as assigned to it in section 58(11)(d);
(other than agricultural land) or any building or part of ned to it in section 221(6)(a), for the purposes of secti , other than a public sector company, who has been t either in whole or in part in any parking lot or toll p or quarry for the purposes of business;
who grants a lease or a licence or enters into a contract a or mine or quarry, to another person, other than a pu s of business;
eaning assigned to it in section 212(d);
same meaning as assigned to it in section 2(u) of the
n intermediary who offers one or more online games; means any tour package which offers visit to any cou ing or any other expenditure of similar nature or in rela—
ncome chargeable under the head "Salaries", other t ; or
ompany, the company itself, including the principal off ome chargeable under the head "Interest on securities", ent, local authority, corporation or company, including le to a non-resident Indian, being any sum represent short-term capital asset, the 95[authorised person, re 1999), responsible]—
m to the non-resident Indian; or
to his Non-resident (External) Account maintained as
), and any rules made thereunder;
formation relating to payment to a non-resident, not
er the provisions of this Act—
any, the company itself including the principal officer t case may be, payment of any other sum chargeable un any, the company itself including the principal officer t e case may be, payment of any sum chargeable unde te Government—
rsing officer; or
whatever name called,
ying such sum;
dent in India—
by such person; or
on in India including any person treated as an agent un rendered by a person in the course of carrying on leg consultancy or interior decoration or advertising or s
on 62;
er name called, under any lease, sub-lease, tenancy or ilding); or
(including factory building); or
are owned by the payee, and for the purposes of se
auses (a), (b) and (c) shall be treated as rent;
ned to it in section 9(6)(b);
he manufacture or mechanical working of materials w ng as assigned to it in section 2(h) of the Securities Con
(1) (Table: Sl. Nos. 1 to 6),—
ent; or
or
corporation or authority established by or under a Cen or co-operative society; or
ndu undivided family, whose total sales, gross receipts rupees in case of business or fifty lakh rupees in case the goods of the nature specified in such serial number
(1) (Table: Sl. No. 8), a person who sells overseas tour 93(1) [Table: Sl. No. 8(v)], includes "fees for technica pany as the Central Government may, by notification, s
rposes of section 393(1) [Table: Sl. No. 4(i)] and 393( r of Undertaking and Repeal) Act, 2002 (58 of 2002); idual or Hindu undivided family; or
ivided family, whose total sales, gross receipts or tur e of business or fifty lakh rupees in case of profession redited or paid;
e meaning in Schedule V (Note 2);
ividual, being a resident in India—
ve years or more at any time during the tax year;
and no other income except the interest received or re
which he is receiving his pension income; and
he specified bank containing particulars, in such form same meaning as assigned to it in section 2(i) of the ing recurring deposits) repayable on the expiry of fixed 1) [Table: Sl. No. 4(iii)] and section 393(2) (Table: S
Trust of India as referred to in the Unit Trust of India ), means a University established or incorporated by o he University Grants Commission Act, 1956 (3 of 195 or avails any computer resource of an online gaming i registered with an online gaming intermediary; cluding production of programmes for such broadcasti s by any mode of transport other than by railways; product according to the requirement or specification o person placed similarly in relation to such customer as in section 36(3),
ng or supplying a product according to the require om a person, other than such customer or associate of s rred to in section 393(1) [Table: Sl. No. 6(iii)].
n to work under his supervision, control or direction.]		A person as per Sl. No. 4.D.
y, by a person acting on behalf of another person,—securities;
ned to them in section 194(2);
of,—
ble property;
or
pose of dealing with and satisfying the need for housing s, towns and villages, or for both; or
der any law corresponding to that Act in force in any part ct or Provincial Act and an institution declared to be a ); or
established outside India; or
ons or a body of individuals, if such person,—
rried on by him exceeding one crore rupees in case of mediately preceding the tax year in which such sum is cts, over digital or electronic network;
acility or platform for electronic commerce;
es, or both, including digital products, through digital or urchased with, or subscribed to in, convertible foreign a building;
on 393(1) [Table: Sl. No. 4(iv)] and section 393(2) (Table: granted a lease or a licence or entered into a contract or laza or mine or quarry, from the licensor or lessor for the or otherwise transfers any right or interest either in whole blic sector company for the use of such parking lot or toll Special Economic Zones Act, 2005 (28 of 2005);
ntry or territory outside India and includes expenses for tion thereto;
han payments by the Central Government or the State icer thereof;
other than payments made by or on behalf of the Central the principal officer thereof;
ing consideration for the transfer by him of any foreign ferred in clause (c) of section 2 of the Foreign Exchange per the provisions of the Foreign Exchange Management being a company, or to a foreign company, of any sum, hereof;
der the provisions of this Act—
hereof;
r the provisions of this Act made by or on behalf of the der section 306;
al, medical, engineering or architectural profession or the uch other profession as may be notified by the Board for any other agreement or arrangement for the use of (either ction 393(1) [Table: Sl. No. 2(i)], only the payment with hich is definitely not usable as such because of breakage, tracts (Regulation) Act, 1956 (42 of 1956);
tral Act or State Act or Provincial Act; or
or turnover from the business or profession carried on by of profession during the tax year immediately preceding s are sold;
program package;
l services" and fees for "professional services", as defined pecify;
2) (Table: Sl. No. 10), a company as referred to in section nover from the business or profession carried on by him during the tax year immediately preceding the tax year in ceivable from any account maintained by such individual and verified in such manner as may be prescribed;
Unit Trust of India (Transfer of Undertaking and Repeal) periods;
l. No. 8) shall have the meaning assigned to it in section (Transfer of Undertaking and Repeal) Act, 2002 (58 of r under a Central, State or Provincial Act, and includes an 6), to be a University for the purposes of that Act; ntermediary;
ng or telecasting;
f a customer by using material purchased from—
is the person placed in relation to the assessee under the
ment or specification of a customer by using material uch customer; or

Footnotes

  1. 95.Sub. for "authorised person responsible" by Act No. 4 of 2026, w.e.f. 1-4-2026.↩
  2. 96.Ins. by Act No. 4 of 2026, w.e.f. 1-4-2026.↩

Income-tax Act, 2025: text as on 25 August 2026 · Official source ↗ ·