A Company has Deducted TDS for an amount Rs.1,70,000 from an employee and havent paid the same to the government and the employee has filed the return for the same. and now a notice u/s. 143(1) has been issued to the employee and he has been asked to the same along with interest as the TDS is not reflecting in 26AS.
the company is under liquidation and no proceedings can be taken against them.
what are the options available to the employee ?
As the company is in liquidation it is diificult to get the Tax credit, if the company was running there would we can ask the company people to get file.
As you are saying that company is about to liquidate you can ask to pay the TDS amount through cash or cheque if they have no filed or paid the TDS.
As the company is about to liquidate, you can ask them to pay the TDS amount if they have not paid or filed the IT return
The Employee can write or produce before the department Form 16 based upon which he had filed the Return. There is an Annexure in Form 16, in which details of Tax deducted and paid to the government, bank details etc., were given. Check all these. If the TDS deduction not shown by the company nor any of its details, then the employee has to pay the tax.
Ask the employee to check Form 16 whether PAN of the employee, Company and other details etc were correctly given or not. Also Payslip received from the employer whether TDS deducted had shown or not.
If the company is under liquidation process, TDS department can serve notice of demand to pay the TDS amount with interest and penalty. And the Company has to pay the statutory payments first out of its disposed assets etc. in case of liquidation by the liquidator.
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