Issue of certificate for tax deducted at source in respect of payment made net of tax

Certificate for tax deducted at source remains obligatory even when the payer bears the tax, requiring issuance to the payee.

Where a payer bears the tax and pays the payee net of tax, the payer must gross up the income for deduction purposes, deduct tax, and is legally obliged to furnish the prescribed certificate of tax deducted at source to the payee within the prescribed time so the payee can claim credit; bearing the tax under an agreement does not absolve the payer of the duty to issue the certificate.