Section 205 - Bar against direct demand on assessee

Section 205 Income Tax Act prevents double taxation by prohibiting direct tax demands on already deducted amounts

Section 205 of the Income Tax Act, 1961 establishes a protective provision preventing double taxation under the tax deduction at source system. The section prohibits tax authorities from making direct demands on assessees for tax amounts that have already been deducted at source under the chapter's provisions. This means when tax is properly deducted from an assessee's income by the deductor, the assessee cannot be required to pay that same tax amount again directly to the government. The provision ensures that once tax deduction at source has been implemented correctly, the assessee's liability is reduced by the deducted amount, preventing duplicate tax collection on the same income.