https://www.taxtmi.com/caselaws?id=798201 Section 205 prevents a direct tax demand against a deductee to the extent tax has actually been deducted from its income, even where the deductor fails to remit that tax to the Central Government. Tax withheld under the statutory withholding regime is retained on the Government's behalf, while recovery and other consequences of non-deposit apply to the deductor responsible for deduction and remittance. Accordingly, TDS credit on rental income cannot be denied solely because the tenant-deductor did not deposit the deducted amount, preventing the deductee from being taxed again on income already subjected to withholding. en-us Mon, 31 Aug 2026 00:00:00 +0530 Thu, 03 Sep 2026 08:20:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798201 Section 205 prevents a direct tax demand against a deductee to the extent tax has actually been deducted from its income, even where the deductor fails to remit that tax to the Central Government. Tax withheld under the statutory withholding regime is retained on the Government's behalf, while recovery and other consequences of non-deposit apply to the deductor responsible for deduction and remittance. Accordingly, TDS credit on rental income cannot be denied solely because the tenant-deductor did not deposit the deducted amount, preventing the deductee from being taxed again on income already subjected to withholding. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798201