Belated FY2025-26 TDS by Employer – what is to be done

To avoid tax demands and penalties for the employer's delayed TDS deduction:

1. Legally Safe: Mr. Z cannot be penalized or charged interest for his employer's administrative delay.

2. ITR Filing Action: Mr. Z must report his full salary income for FY 2025-26 in his current ITR filing and manually add/edit the missing TDS amount in the TDS Schedule so his tax liability becomes zero.

3. Be Prepared for a Notice: Because Form 26AS won't match immediately, the tax department might issue a mismatch notice. Mr. Z can easily resolve this by replying online with his April/May 2026 salary slips and Form 16, proving the deduction was for the previous year's salary.

@ Aashok FC Advisory

Many thanks for your prompt advice.