Expression "immediately following assessment year". - Income Tax - 1230/CBDT

INSTRUCTION NO. 1230/CBDT Dated : January 20, 1979 Section(s) Referred: 199 Statute: Income - Tax Act, 1961 It has been brought to the Board's notice that expression "immediately following assessment year" used in sec.199 of the I.T.Act has been interpreted by some officers to mean the assessment year following the financial year in which tax was deducted under the provisions of sec.192 to assessable in that year or not. The Board are advised that this construction is not correct. 2. U/s.198 all sums deducted at source in accordance with the provisions of sec.192 etc., shall, for the purpose of computing the income of assessee, be deemed to be income received. Thus, the TDS is a part of the income of the assessee. An assessee's total income from all sources can only be determined at the close of the relevant previous year. It is with reference to that relevant year-that assessment is made and credit should be given to the assessee for the TDS. The words "immediately following assessment year" should therefore be read as "immediately following assessment year" of the concerned assessee". For example, where tax is deducted at source, say in March, 1978 in respect of interest payments to an assessee whose accounting year ends in July, 1978, the credit for tax deducted at source should be given in the assessment for 1979-80 and not 1978-79.