The concept of Tax Deducted at Source (TDS) seems simple but has many twists and turns in it. We presume that we are familiar to most of the provision of TDS but every time we are proved wrong. In addition, laws are such that even when we pursue all the provisions accurately, sometimes we find our self in trouble.    Like, we are aware that if the deductor deducts TDS but did not deposited with the government within due date then such deductor shall pay interest of 1.5% per month or part thereof on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid. Further, as per section 201, the person who is required to pay TDS and has failed to so, shall be deemed to be a assessee in default and shall be liable to pay penalty of up to 100 percent of the amount of TDS not paid. In addition, rigorous imprisonment up to 7 years can be imposed on willful defaulters. The above consequence i.e., interest and penalty for delayed/ non- payment of TDS to Government is laid down for the deductor. But what on the part of deductee for the fault of deductor? For instance, deductor deducts tax while making payment to the deductee. Tax so deducted on the income of taxpayers to be claimed by him while filing his return. But to his surprise, he received tax demand regarding the said tax deduction. Due to circumstances where deductor has failed to deposit TDS into the account of Government leading to the denial of credit of such deduction of tax to the taxpayers and consequent raising of demand, CBDT issued a clarification dated 1^st June, 2015 to deal with the same. Thus, through the said notification, Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively. Technically, section 199 of the Act specifies that credit of TDS shall be given to the deductee only if paid to the Government. However, section 205 lays that assessee shall not be called upon to pay tax to the extent tax has been deducted from his income. With this, relief has been provided to all taxpayers who used to face agony from their Assessing Officers. This shall lead to relief from inconvenience that was faced by the taxpayers for the fault of deductors. Hence, no more demand to be raised for non- payment of TDS to the Government.   For any assistance regarding TDS payment, visit: business maintenance ____________________________________________________________