Report No. 12

207.3 Credit for tax deducted.-

Any deduction made in accordance with the provisions of sections 201 to 204 [18(2) to 18(3D)] shall be treated as a payment of income-tax or super-tax, as the case may be, on behalf of the person from whose income the deduction was made, or of the owner of the security or of the shareholder as the case may be, and credit shall be given to him for the amount to deducted (exclusive of any portion of such tax for which he obtains, in accordance with the provisions of this Act, a refund) on the production of the certificate furnished under section 211 [sub-section (9) of section 18] , in the assessment, if any, made for the immediately following assessment year under this Act .....

[Section 18(5), main para., and 1st proviso]

Provided that where such person or owner or share-holder is a person whose income is included the under the provisions of section 63 or 64 [clause (c) of sub-section (1) of section 16], section 67 [sub-section (3) of section 16] section 96 [44D] or section 97[44E] 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.

[Section 18(5), 2nd proviso, part]

Provided further that where any security or a share in a company is owned jointly by two or more persons not constituting a partnership, credit in respect of the tax deducted may be given to each such person in the same proportion in which the interest on such security or dividend on such share has been included in his total income.

[Section 18(5), 3rd proviso, part]