Deduction of Tax from employee

This query is : Resolved

CA KISHORE VANAMA (Querist)
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12 August 2010 Hai Experts,
One of my client is employee of one MNC and for the A.Y 2009-10 we have filed the return ITR-1 on the basis of Year Pay Slip which is signed by the pay roll officer. The employer has not issued form 16 for employees.
In that pay slip all pan and tan numbers of the employer, and the details of the tax deducted has also given.
On the basis of that ecidence we have filed the return
What is my problem is that employee has recevied notice from IT department to pay tax along with interest because employer has not paid tax.
Is it correct intention of department for payment of tax from employee or it has to collect from employer.
Please clarify my doubt with relevent case laws and sections is possible

Thanking You in Advance

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 August 2010 Check out 26AS statement to see whether your employer has actually deposited tax on your behalf.

If TDS has been deducted from your salary but deposited by your employer then IT deptt will issue notices of demand & penalty to your employer.

But, that in noway, give you relief as you have to pay the due tax & interest thereon.

CA KISHORE VANAMA

CA KISHORE VANAMA (Querist)
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12 August 2010 But Subhash sir they have not paid TDS , but they deducted noo, i think it is the responsibility of the employer to pay tax, can u refer section for the same

Suresh Agrawal

Suresh Agrawal (Expert)
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13 August 2010 The primary responsibility of Deducting TDS from salary and making payment to the govt. is that of the employer. If the employer has deducted and not paid to the govt then your client employee is not liable.
But if the employer has failed to deduct then I.T. deptt can recover the same from the client employee.

CA KISHORE VANAMA

CA KISHORE VANAMA (Querist)
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13 August 2010 Thanks Suresh Sir, But in our case they have deducted TDS from employee and not paid. We have proof for that but they IT department issued notice to employees. can we file in the department that there is no liability for us to pay the amount.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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13 August 2010 IT IS BETTER TO APPLY FOR 154 WITH SUPPORTING FORM 16.AND IF POSSIBLE A DECLARATION FROM THE EMPLOYER THAT THEY HAVE DEDUCTED TDS ON SALARY.
HE MAY CONSIDER THE MATTER .

CA KISHORE VANAMA

CA KISHORE VANAMA (Querist)
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13 August 2010 But they have not issued form 16 also . they have given copy which is signed pay roll officer which contains Tan and pan of the employer and deducted details . now can we apply for 154

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 August 2010 File for rectification along with supportings which u have like pay slip with you.

CA A RAMVEL

CA A RAMVEL (Expert)
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13 August 2010 It is better to file rectification of order u/s 154 and attach the Form 16 and request the office to drop the demand raised based on Form 16.

CA KISHORE VANAMA

CA KISHORE VANAMA (Querist)
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14 August 2010 Thanks to all experts for clarification of my doubt

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