Section 199: Credit for Tax Deducted at Source Explained, Rule 37BA Details TDS Crediting Procedures for Deductees.
Section 199 of the Income Tax Act addresses the credit for tax deducted at source (TDS). It states that any tax deducted and paid to the Central Government is considered a tax payment on behalf of the individual or entity whose income was subject to deduction. Rule 37BA outlines the procedures for crediting TDS, specifying that credit is given to the deductee based on information provided by the deductor. In cases where income is assessable to another person, credit is transferred accordingly. The Act ensures that taxpayers are not directly liable for taxes already deducted at source, even if not deposited by the deductor.