Section 198 - Tax deducted is income received - Income-tax Act, 1961

Tax deducted is income received. 198. All sums deducted in accordance with 1 [the foregoing provisions of this Chapter 4 [ and income-tax paid outside India, by way of deduction, in respect of which an assessee is allowed a credit against the tax payable under this Act, ] ] shall, for the purpose of computing the income of an assessee, be deemed to be income received : 2 [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.] 3 [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 3A [not] be deemed to be income received. ] ------------------- Notes :- 1. 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 . 2. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. 3. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 3A. As per Finance (No.2) Act, 2019 the word Not is not appearing , however as per the Debate while passing the Finance (No.2) Bill, 2010 in the LokSabha, the word Not was present . 4. Inserted vide Section 66 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025