Explanation
Section 198 of IT Act 1961 (§398 area in IT Act 2025) provides that TDS deducted from any payment is treated as income of the recipient in the year of deduction. This is why an employee who has TDS deducted on salary in April must declare the full salary (not net-of-TDS) in their ITR and then claim TDS credit. The credit appears in Form 26AS/AIS. Key point: if the payer deducts TDS but does not deposit it, the recipient still gets credit — the payer becomes liable to pay, not the deductee. Verify on the income-tax portal before filing.