Tax collection at source enables TDS, TCS and advance tax before assessment while preserving tax credit and underlying tax liability. Income-tax may be collected during the tax year through TDS, TCS, advance tax or the specified payment mechanism, notwithstanding that assessment occurs later. These collection modes do not alter the underlying charge of tax and do not make exempt income taxable merely because tax was deducted. Amounts deposited with the Central Government are treated as tax paid on behalf of the relevant taxpayer, with tax credit governed by rules. TDS, TCS and advance tax operate as pre-paid taxes deductible from total tax liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax collection at source enables TDS, TCS and advance tax before assessment while preserving tax credit and underlying tax liability.
Income-tax may be collected during the tax year through TDS, TCS, advance tax or the specified payment mechanism, notwithstanding that assessment occurs later. These collection modes do not alter the underlying charge of tax and do not make exempt income taxable merely because tax was deducted. Amounts deposited with the Central Government are treated as tax paid on behalf of the relevant taxpayer, with tax credit governed by rules. TDS, TCS and advance tax operate as pre-paid taxes deductible from total tax liability.
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