Section 198 of Income Tax Act "Tax deducted is income received"
198. All sums deducted in accordance with the foregoing
provisions of this Chapter shall, for the purpose of
computing the income of an assessee, be deemed to be income
received :
Provided that the sum being the tax paid, under sub-section
(1A) of section 192 for the purpose of computing the income
of an assessee, shall not be deemed to be income received:
83[Provided further that the sum deducted in accordance with
the provisions of section 194N for the purpose of computing
the income of an assessee, shall not be deemed to be income
received.]
199. (1) Any deduction made in accordance with the
foregoing provisions of this Chapter and paid to the Central
Government shall be treated as a payment of tax on behalf of
the person from whose income the deduction was made, or of
the owner of the security, or of the depositor or of the
owner of property or of the unit-holder, or of the
shareholder, as the case may be.
(2) Any sum referred to in sub-section (1A) of section 192
and paid to the Central Government shall be treated as the
tax paid on behalf of the person in respect of whose income
such payment of tax has been made.
(3) The Board may, for the purposes of giving credit in
respect of tax deducted or tax paid in terms of the
provisions of this Chapter, make such rules as may be
necessary, including the rules for the purposes of giving
credit to a person other than those referred to in
sub-section (1) and sub-section (2) and also the assessment
year for which such credit may be given.