Indemnity to Tax Deductor - Payer

Section 518 — - INDEMNITY TO TAX DEDUCTOR / PAYER

Section 518 of the Income-tax Act, 2025 corresponds to s. 290 of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Person deducting / retaining / paying tax in pursuance of the Act is indemnified for the act of deducting / paying.

PRACTITIONER PLANNING NOTES

• Statutory protection for deductors against deductee suits; reinforces TDS regime.

CROSS-REFERENCES

• s. 533 [295] -- Rules.
• s. 535 [298] -- Removal of difficulty.
• s. 536 [Repeal] -- Saving clause.