My employer has not deposited the TDS collected from Salary and not issued Form 16 also. How can we file the Income Tax return when it is not paid and not reflected in form 26AS.This is for the A.Y.14-15
SHIVAKUMAR (F & A MANAGER) (28 Points)
01 December 2015My employer has not deposited the TDS collected from Salary and not issued Form 16 also. How can we file the Income Tax return when it is not paid and not reflected in form 26AS.This is for the A.Y.14-15
M Sairam
(Semi Qualified CA)
(421 Points)
Replied 01 December 2015
HI Sivakumar,Basically,you have to deduct tds when you filling return if your employer has already deposit TDS on your salary to govt.in your situation tds is not deposited,so you can filling return without claim TDS and you have to pay interest u/s 234A,234B and 234C for delay to file the return
SHIVAKUMAR
(F & A MANAGER)
(28 Points)
Replied 01 December 2015
Sairam,
If you know the exact solution then please reply, please dont bluff in a good forum like this.
TDS has been deducted from Salary by my employer,but not deposited by them to the Govt.
How can i file my return without claiming the amount.?
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 01 December 2015
Dear Shiv Kumar,
This is a very negative issue where the Tax dedutor deduct TDS fromthe payments made to other and do not Pay it to the credit of Government. In such case there is stiff penal provisions for your employer but in the mean time Form 26AS will not reveal any tax credit to you. If you are to file Income Tax Return, then You will have to pay Income Tax.
You may ask your employer to pay TDS to Govt, or you may complain to IT Department, but untill your employer pay tax, you are under liabilty to pay it by your own irrespective of whatsoever amount deducted by your employer
SHIVAKUMAR
(F & A MANAGER)
(28 Points)
Replied 01 December 2015
Excellent reply.
Thank you very much.
Umesh Sharma
(student)
(350 Points)
Replied 10 December 2015
Dear shiv kumar i hope this will help you a lot
The court said it was the employer’s responsibility to employees to deduct the applicable tax at source on their income at the applicable rates. Further, such taxes had to be paid to the credit of the central government within the prescribed time limit. In case the company defaulted on depositing the TDS collected, it shall be liable to pay interest at the prescribed rate on the tax amount. Also, the Act had enough provision to both punish the defaulter and recover the TDS from the person who had deducted it.
The HC also noted Section 205 of the I-T Act said that where tax was deductible at source, the taxpayer shall not be called upon to pay the amount himself to the extent of deduction. The court deduced from the language of this section that once it was established that the tax had been deducted at source from the salary of the employee, the bar under Section 205 comes into operation.
It matters not whether the tax deducted at source was paid to the central government or not, because elaborate provisions are made under the Act for recovery of TDS from the person who did the deduction. In this case, Sahni had furnished monthly pay slips and bank statements to show that the employer had deducted taxes at source from his salary; the department hadn’t disputed this.
In the absence of the TDS certificate being issued to the taxpayer, said the court, it may not be possible to give credit for the TDS to him. Still, if he was made to pay the tax again, it would amount to double taxation, which was illegal. The fact that the employer had not issued the TDS certificate to the employee did not mean the liability ended. The liability to pay income tax, if deducted at source, was on the employer. And, even if the credit of the TDS amount was not available to the taxpayer for want of the TDS certificate, the fact that the tax had been deducted at source from his salary would be sufficient to ensure the department could not recover the amount with interest from him again. The department was asked to refund the demand amount paid by the former (at the time of filing the appeal to the court), along with the prescribed interest.
This case should be noted by taxpayers. To summarise:
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