https://www.taxtmi.com/caselaws?id=782524 Credit for tax deducted at source from salary cannot be denied merely because the employer failed to deposit the deducted amount with the Central Government. Sections 199 and 205 of the Income-tax Act protect the recipient from a direct tax demand to the extent tax was deducted from income, while recovery for non-remittance may be pursued against the deductor. CBDT instructions on non-deposit of TDS and binding precedent support this treatment. The assessee is therefore entitled to TDS credit, and denial of credit or coercive recovery solely due to the deductor's default is unsustainable. en-us Mon, 24 Nov 2025 00:00:00 +0530 Fri, 18 Sep 2026 14:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782524 Credit for tax deducted at source from salary cannot be denied merely because the employer failed to deposit the deducted amount with the Central Government. Sections 199 and 205 of the Income-tax Act protect the recipient from a direct tax demand to the extent tax was deducted from income, while recovery for non-remittance may be pursued against the deductor. CBDT instructions on non-deposit of TDS and binding precedent support this treatment. The assessee is therefore entitled to TDS credit, and denial of credit or coercive recovery solely due to the deductor's default is unsustainable. Case-Laws Income Tax Mon, 24 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782524