Sec 80AC of Income Tax Act, 1961: Deduction not to be allowed unless return furnished.

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A deduction is an expense that can be subtracted from a taxpayer's gross income in order to reduce the amount of income that is subject to taxation. The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as "Gross Total Income". In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income.

As their names suggest, tax deducted at source (TDS) and tax collected at source (TCS) both attempt to collect money right from the source of income. In essence, it is a backdoor way of combining taxation with the "pay as you earn" principle additionally, "collect as it is earned." What's important to the government is the fact that it delays tax collection and guarantees a steady source of funding, enabling a wider and more effective tax basis. At the same time, it gives the taxpayer the incidence of tax and offers a quick and easy method of payment.

Section 80AC:When an assessee is entitled to a deduction under Section 80-IA, Section 80-IAB, Section 80-IB, Section 80-IC, Section 80-ID, or Section 80-IE in determining his total income, he is not eligible for that deduction unless he provides a return of his income for that assessment year on or before the due date specified under Section 139(1).