Credit for tax deducted
Section 199 of the Income-tax Act, 1961 deals with credit for tax deducted. 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 The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
(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.
Duty of person deducting tax.
Section 199, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 390 Deduction or collection at source and advance payment Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 17
- Finance Act s. 15 Amendment of section 199
- Finance Act s. 52 Amendment of section 199
- Finance Act s. 60 Amendment of sections 198 to 200, 202, 203, 203A and 205
- Finance Act s. 78 Amendment of sections 198 to 200, 202 to 203A and 205
- Finance Act s. 30 Amendment of sections 198 to 200, 202 to 203A and 205
- Finance Act s. 43 Amendment of sections 198 to 200 and 202 to 205
- Finance Act s. 40 Amendment of sections 198 to 200 and 202 to 205
- Finance Act s. 50 Amendment of section 199
- Finance Act s. 78 Amendment of section 198 to 200, 202 to 203A, 204 and 205
- Finance Act s. 87 Amendment of section 199
- Finance Act s. 41 Amendment of section 199
- Finance Act s. 50 Amendment of section 199
and 5 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Rajeswar Tiwari vs Nanda Kishore Roy
Court's Decision & Legal Precedent
Where an employer has made statutory deductions from an employee's salary in accordance with the mandatory provisions of the Income Tax Act (Sections 192-206) and has properly deposited the deducted amounts to the credit of the employee or Central Government as required, allegations of illegal deduction do not disclose a case for criminal prosecution under Sections 406 or 120B IPC. Such disputes are essentially civil in nature and must be resolved through appropriate civil, administrative, or income tax authority channels, not through criminal prosecution. The High Court has an obligation under Section 482 CrPC to prevent abuse of criminal process by quashing proceedings that convert civil disputes into criminal cases, particularly when statutory obligations have been performed and the dispute concerns the legitimacy or correctness of those actions rather than their performance itself.
On this section: Section 199 provides that tax deducted at source shall be credited to the employee's account. The appellants produced Form No-16 evidencing proper deposit of deducted amounts under this section, which was accepted by the court as proof of compliance.
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Commissioner of Income Tax-I v. Bhooratnam and Co.
Court's Decision & Legal Precedent
TDS credit under s.199 cannot be denied where certificates are in the name of a joint venture or director if the related contract receipts are assessed in the assessee’s hands and the JV did not claim the credit; Rule 37BA is procedural and applies to pending proceedings. DATE VERIFIED Common Judgment 23-11-2012 (order-1.pdf).
On this section: Leading HC isolate on s.199/Rule 37BA credit for JV/director-named TDS certificates.
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Commissioner of Income Tax, Jalandhar v. Northern Carriers P. Ltd.
Court's Decision & Legal Precedent
Where Form 16/TDS certificates stand in the assessee’s name and corresponding income (agency/royalty) is offered, credit under s.199(1) cannot be denied merely because gross freight was booked by agents; Revenue cannot retain TDS with credit to nobody. DATE VERIFIED Final Order 20.7.2010 (order-1.pdf).
On this section: Teaches credit-for-TDS under s.199 where income is assessable in assessee’s hands.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 199
What have the courts held on Section 199 of the Income-tax Act?
Rajeswar Tiwari vs Nanda Kishore Roy (19 Aug 2010) is the leading judgment on this section among those set out below: Section 199 provides that tax deducted at source shall be credited to the employee's account. The appellants produced Form No-16 evidencing proper deposit of deducted amounts under this section, which was accepted by the court as proof of compliance. Another 2 judgments on this section are set out below, 1 of them from the Supreme Court. They run from 2010 to 2012.
How do I find court cases under Section 199 of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 199, section 199 Income Tax Act, section 199 of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Rajeswar Tiwari vs Nanda Kishore Roy (19 Aug 2010).
What should I read with Section 199 of the Income-tax Act, and has it changed?
Its own text turns on section 192 (Salary), so none of them can safely be read on its own. 17 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 390 (Deduction or collection at source and advance payment), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 199 of the Income-tax Act come into force?
Section 199 of the Income-tax Act, cited as Income Tax Act 199, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.