Section 199 - Credit for tax deducted - Income-tax Act, 1961

Credit for tax deducted. 1 [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. ] ------------------------ Notes : 1. Substituted by Finance Act, 2008, w.e.f. 1.4.2008. Prior to substitution section 199 was read as under: "199. 1 [(1)] Any deduction made in accordance with 2 [the foregoing provisions of this Chapter] and paid to the Central Government shall be treated as a payment of 3 [tax] on behalf of the person from whose income the deduction was made, or of the owner of the security 4 [, or depositor or owner of property or of unit-holder] or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment 5 [***] 6 [made under this Act for the assessment year for which such income is assessable] : 7 [Provided that— ( i ) in a case where such person or owner 8 [or depositor or unit-holder] or shareholder is a person, whose income is included under the provisions of section 60, section 61, section 64, section 93 or section 94 in the total income of another person, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person; ( ii ) in any other case, where the dividend on any share is assessable as the income of a person other than the shareholder, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person in such circumstances as may be prescribed : 9 [ Provided further that where any property, deposit, security, unit or share is owned jointly by two or more persons not constituting a partnership, the payment shall be deemed to have been made on behalf of, and credit shall be given to, each such person in the same proportion in which rent, interest on deposit or on security or income in respect of unit or dividend on share is assessable as his income.]] 10 [(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 and credit shall be given to him for the amount so paid on production of the certificate furnished under section 203 in the assessment under this Act for the assessment year for which such income is assessable.] 11 [(3) Where any deduction is made in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 12 [2008] and paid to the Central Government, the amount of tax deducted and specified in the statement referred to in section 203AA shall be treated as tax paid on behalf of the persons referred to in sub-section (1) or, as the case may be, sub-section (2) and credit shall be given to him for the amount so deducted in the assessment made under this Act for the assessment year for which such income is assessable without the production of certificate.]" ------------------------ Sub-notes :- 1. Section 199 renumbered as sub-section (1) thereof by the Finance Act, 2002, w.e.f. 1-6-2002. 2. Substituted for the portion beginning with the words "the provisions of sections 192" and ending with "section 196D" by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the quoted portion, as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f. 1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act, 1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994, w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995, and Finance Act, 1999, w.e.f. 1-6-1999, read as under: "the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D". 3 . Substituted for "income-tax or super-tax, as the case may be," by the Finance Act, 1965, w.e.f. 1-4-1965. 4. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 5. Words "(including a provisional assessment under section 141A), if any," omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. The expression in italics was inserted by the Finance Act, 1968, w.e.f. 1-4-1968. 6. Substituted for "made for the immediately following assessment year under this Act" by the Finance Act, 1987, w.e.f. 1-6-1987. 7. Substituted by the Finance Act, 1968, w.r.e.f. 1-4-1962. 8 . Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 9. Substituted, by the Finance (No. 2) Act, 1996. Prior to its substitution, the second proviso, as substituted by the Finance Act, 1968, w.r.e.f. 1-4-1962, read as under : " Provided further that where any security or share in a company is owned jointly by two or more persons not constituting a partnership, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, each such person in the same proportion in which the interest on such security or dividend on such share is assessable as his income." 10. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. 11. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 12 . Substituted for "2006" by the Finance Act, 2006, w.e.f. 1-4-2006. Earlier "2006" was substituted for "2005" by the Finance Act, 2005, w.e.f. 1-4-2005.