Can TDS be claimed as a credit against the recipient’s tax liability?

Yes, TDS deducted from payments received by the recipient can be claimed as a credit against their tax liability. The recipient must provide their PAN (Permanent Account Number) to the deductor to ensure proper credit of TDS. The TDS amount is reflected in the recipient’s Form 26AS, which serves as a consolidated tax statement. The recipient can claim the TDS credit while filing their income tax return, effectively reducing their net tax payable. However, if the TDS deducted exceeds the recipient’s tax liability, the excess amount can be claimed as a refund.