Section 199

Credit for tax deducted.

⁸⁰ 199.    ⁸¹ [(1)] Any deduction made in accordance with ^82-92 [the foregoing provisions of this Chapter] and paid to the Central Government shall be treated as a payment of ⁹³ [tax] on behalf of the person from whose income the deduction was made, or of the owner of the security ⁹⁴[, or depositor or owner of property or of unit-holder] or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment ⁹⁵[***] ⁹⁶ [made under this Act for the assessment year for which such income is assessable] :

⁹⁷ [Provided that—

          (i )  in a case where such person or owner ⁹⁸[or depositor or unit-holder] or shareholder is a person, whose income is included under the provisions of section 60, section 61 , section 64, section 93 or section 94 in the total income of another person, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person;

         (ii )  in any other case, where the dividend on any share is assessable as the income of a person other than the shareholder, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person in such circum­stances as may be prescribed :

⁹⁹ [Provided further that where any property, deposit, security, unit or share is owned jointly by two or more persons not constituting a partnership, the payment shall be deemed to have been made on behalf of, and credit shall be given to, each such person in the same proportion in which rent, interest on deposit or on security or income in respect of unit or dividend on share is assessable as his income.]]

^1-2 [(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 and credit shall be given to him for the amount so paid on production of the certificate furnished under section 203 in the assessment under this Act for the assessment year for which such income is assessable.]

(3) Where any deduction is made in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 2005 and paid to the Central Government, the amount of tax deducted and specified in the statement referred to in section 203AA shall be treated as tax paid on behalf of the persons referred to in sub-section (1) or, as the case may be, sub-section (2) and credit shall be given to him for the amount so deducted in the assessment made under this Act for the assessment year for which such income is assessable without the production of certificate.