Section 198 - Tax deducted is income received

Section 198 treats tax deducted at source as income received for computation purposes under Income Tax Act

Section 198 of the Income Tax Act, 1961 establishes that tax deducted at source is treated as income received for computation purposes. All sums deducted under the chapter's provisions and income tax paid outside India eligible for credit against domestic tax liability are deemed income received by the assessee. The provision includes exceptions where tax paid under section 192(1A) and amounts deducted under section 194N are not considered income received. This statutory provision ensures proper income computation while accounting for tax deductions and foreign tax credits.