Rights of Person from whose income (payment) the tax has been deducted

If tax has been deducted at source in accordance with the provisions of Chapter XVII-B of Income Tax Act, 1961, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted(Sec.205). Moreover u/s.199 such tax deducted at source shall be treated as payment of tax on behalf of the payee (assessee).

U/s. 203, payee (tax-payer) is entitled to obtain a certificate from the payer (tax deductor) specifying the amount of tax deducted and other prescribed particulars. As per the sub section 203(3) , where the tax has been deducted or paid on or after the 1st day of April, 2010 there shall be no requirement to furnish a TDS Certificate as required by section 203 (1) or 203(2).

Further, as per section 203AA the prescribed income tax authority or the person authorized by such authority (as referred in section 200(3))will be required to deliver to the person from whose income the tax has been deducted/paid, a statement of deduction of tax in the prescribed form. Such statement as per rule 31AB will be required to be furnished in Form no.26AS by the 31st July following the financial year during which the taxes were deducted/paid ( also refer Notification no. 928 E dt. 30.6.2005 of CBDT )

Form 16A: This form is certificate of deduction of tax under section 193 from “Interest on securities”, under section 194 from “Dividends”, under section 194A from “Interest other than interest on securities”, under section 194B from “Winnings from lotteries or crossword puzzles”, under section 194BB from “Winnings from horse races”, under section 194C from “Payments to any contractor or sub-contractor”, under section 194D from “Insurance commission”, under section 194E from “Payments to non-resident sportsmen or sports associations”, under section 194EE from “Payments in respect of deposits under the National Savings Scheme, etc.”, under section 194F from “Payments on account of repurchase of units by Mutual Fund or Unit Trust of India”, under section 194G from “Commission, etc., on sale of lottery tickets”, under section 194H from “Commission or brokerage”, under section 194-I from “Rent”, under section 194J from “Fees for professional or technical services”, under section 194K from “Income in respect of units” and under section 194LA from “Payment of compensation on acquisition of certain immovable property” etc.

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