(1) Any deduction or collection of tax, made in accordance with the provisions of this Part and paid to the account of the Government, shall be treated as a payment of tax on income of the person from whom tax has been deducted or collected.

(2) If income tax is paid under sub-section (1), credit shall be given to such person in determining the tax liability of the person in the income year in which the tax is deducted or collected.

(3) Where tax is paid at source by a person on behalf of another person, the credit referred to in sub-section (2) shall be given in determining the tax liability of that other person.