Protection against double tax recovery prevents direct demands where withholding tax was deducted but remains unpaid by the deductor.

Section 401 bars direct recovery from an assessee to the extent tax has actually been deducted at source from the assessee's income. This prevents double recovery where the deductor has deducted tax but failed to deposit it with the Central Government. The protection does not extend to tax that was not deducted or to any undeducted balance. Recovery, together with applicable interest, penalty and recovery consequences, must proceed against the defaulting deductor under section 398.

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