Explanation
Section 205 of IT Act 1961 (IT Act 2025 §400 area) provides an important protection to taxpayers: if a payer has deducted TDS (or should have deducted TDS but didn't), the CPC cannot raise a demand on the taxpayer for that TDS amount. The liability to pay TDS belongs to the deductor. This is relevant when: (1) the payer deducted TDS but didn't deposit it — the CPC may deny credit but Supreme Court has held that credit must be given to the deductee (CIT vs Yashpal Sahni); (2) a demand is raised in intimation §143(1) because TDS credit is unmatched. The taxpayer can contest such demand citing §205. Verify on the income-tax portal before filing.