Tds on salary deducted but not deposited by the employer

This query is : Resolved

Mohit Jain (Querist)
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21 March 2013 Hi,

The TDS on my salary has been deducted every month but the same is not showing as credit when I view my tax credit (Form 26AS) for the AY 2013-14.

Further I have already resigned from the company and hence I am unable to talk to the management about it. When I tried to get a reply , I was told that they have entered wrong PAN No. and the amount has been credited to the other person's account.

Kindly suggest what remedial action can I take. Will I be able to claim tax credit without Form 26AS.

CMA RAVI

CMA RAVI (Expert)
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21 March 2013 Ask them form no. 16 which will give u details of ur tax deducted and deposited

Mohit Jain

Mohit Jain (Querist)
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22 March 2013 Ravi: Thank you for your response.
I am not even able to get form 16 from them.
What should I do to claim tax credit?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 You've raised a **serious and unfortunately not uncommon issue**: TDS has been **deducted from your salary**, but the **employer has either not deposited it**, or **deposited it with the wrong PAN**. Here's how you can proceed:

---

## 🔴 Problem Summary:

* **TDS was deducted**, but **not reflecting in Form 26AS**.
* Employer claims **wrong PAN was used**.
* You have **resigned**, so communication is limited.
* **No Form 16** provided.

---

## ✅ Legal Position:

* As per **Income Tax Act**, if TDS is **deducted but not deposited**, the **deductor (employer) is at fault**.
* **You are still entitled** to claim the TDS credit **if you can prove deduction** (e.g., salary slips or email records).
* But **without TDS showing in Form 26AS**, the Income Tax Department **will not grant automatic credit**.

---

## 🧾 Step-by-Step Remedial Actions:

### 1. **Collect Proof from Your Side**

Try to gather:

* **Salary slips** showing monthly TDS deductions.
* **Bank statements** showing net salary credited.
* **Emails or letters** from employer confirming deduction.
* If possible, **written/email acknowledgment** that they used the wrong PAN.

---

### 2. **Send Legal/Official Notice to Employer**

* Send a **formal notice/email** demanding correction of PAN and **TDS filing with correct details**.
* Mention that you're prepared to escalate to **Income Tax Department** and possibly file a **complaint for non-compliance**.
* Keep copies of all communication.

---

### 3. **File a Grievance on the TRACES / Income Tax Portal**

* File a complaint under **“Grievances > Submit Grievance”** on the [e-filing portal](https://www.incometax.gov.in/iec/foportal/).
* Select issue type: **TDS mismatch or credit not showing in 26AS**.
* Attach supporting documents (salary slips, employer reply).

---

### 4. **Approach Your Jurisdictional Assessing Officer**

If no response from employer:

* Write to the **TDS Assessing Officer (AO)** of your **jurisdiction** with your complaint and documents.
* AO can **initiate action** against the employer for failure to deposit TDS or misreporting PAN.

---

### 5. **File ITR with Disclosure**

If time is short and TDS is still not showing:

* You can still **file your ITR** using **Form 16 (if available)** or **salary slips**, **manually entering TDS claimed**.
* However, be ready for a **notice or query from CPC**, since credit won’t match 26AS.
* When you receive the notice, respond with all proofs and raise the issue again.

---

## ⚠️ Important:

* **You cannot claim TDS in ITR unless it appears in 26AS**, or unless you are ready to defend it with **sufficient supporting proof**.
* The **employer can be penalized** under **Section 271C** and prosecuted under **Section 276B** for failure to deposit TDS.

---

## 🟠 In Short:

| Action | Description |
| ------------------ | ---------------------------------------------------------- |
| ✅ Collect Evidence | Salary slips, emails, PAN misstatement |
| ✅ File grievance | On Income Tax portal (TRACES / e-filing) |
| ✅ Contact AO | Jurisdictional Assessing Officer |
| ⚠️ File ITR | Only if necessary, with caution and full documentation |
| 🛑 Legal remedy | You can take legal action if employer refuses to cooperate |

---

Let me know if you'd like help drafting a formal complaint or finding your jurisdictional AO.

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