Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS to the Government

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..... s Ltd., to BDR Finvest Pvt Ltd. The court's decision, delivered on October 31, 2023, revolved around the complex interplay of various sections of the Income Tax Act 1961, particularly in the context of tax credit entitlements when the deductor fails to deposit the TAS with the revenue​​. Case Details BDR Finvest Pvt Ltd lent money to Ninex Developers Ltd. in FY 2018-19 at an agre .....

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..... primarily involved the interpretation of Sections 199 and 205 of the Income Tax Act. Section 199 stipulates that credit for TAS is given only if it is paid to the Central Government account, while Section 205 bars direct demand on the assessee for tax deducted at source​​. Court's Rationale and Decision The Delhi High Court, referring to its judgment in Sanjay Sudan v. Assistant .....

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..... Implications of the Judgment * Protection of Deductee's Rights: The judgment safeguards the rights of deductees, ensuring they are not penalized for the deductor's failure to deposit TAS with the government. * Clarity on Tax Credit Entitlement: It clarifies that the deductee is entitled to credit for TAS deducted from their income, irrespective of its deposit by the deductor. * Prece .....

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