Withholding tax deduction rule: deduction deemed made when payee files return if payer not treated as in default. The amendment provides that where a payer fails to deduct tax under Chapter XVII-B but is not deemed an assessee in default under the first proviso to the recovery provision, then for purposes of disallowance it shall be deemed that the assessee has deducted and paid the tax on the date the payee furnishes its return of income referred to in that proviso; a parallel change omits residency wording in a related proviso to secure consistent deductibility treatment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Withholding tax deduction rule: deduction deemed made when payee files return if payer not treated as in default.
The amendment provides that where a payer fails to deduct tax under Chapter XVII-B but is not deemed an assessee in default under the first proviso to the recovery provision, then for purposes of disallowance it shall be deemed that the assessee has deducted and paid the tax on the date the payee furnishes its return of income referred to in that proviso; a parallel change omits residency wording in a related proviso to secure consistent deductibility treatment.
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