Need help on mistake by employer in tds

TDS 2793 views 10 replies
I have received Demand Intimation from Income Tax department for AY 2009-10 against my refund for AY 2013-14. While investigating I found that my employer has deducted TDS from my salary for AY 2009-10 and issued the FORM 16 and accordingly my return was filled. Those days FORM 26 AS was not that much known, so I could not verify that. But my FORM 26 AS shows only 3 entries out of 6 entries in my FORM 16. I contacted Assesse Officer at Income Tax office and he informed me that they cannot do anything unless my employer do the correction and proper TDS is reflected in FORM 26 AS. Thus my question is as I am not the existing employee of that company (as I left that company 3 years back), what if they don't entertain my request and does not help me, what options I have to get this corrected as if I don't do anything my refund for AY 2013-14 will be adjusted against this wrong demand. Please help.
Replies (10)
Do you mean to say that the demand is only due to the non reflection of the three TDS entries in 26AS? please clarify
I think, there is no alternative way except asking your past employer to file/revise your TDS return for AY 2009-10 whose entries are not reflected in Form 26AS
Yes, Demand amount is exactly the same as missing entries on FORM 26 AS.
you may sight this case "The AO is not justified in denying credit for TDS on the ground that the TDS is not reflected in the computer generated Form 26AS. In Yashpal Sahwney 293 ITR 539 the Bombay High Court has noted the difficulty faced by taxpayers in the matter of credit of TDS and held that even if the deductor had not issued a TDS certificate, still the claim of the assessee has to be considered on the basis of the evidence produced for deduction of tax at source. The Revenue is empowered to recover tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. The Delhi High Court has in Court On Its Own Motion Vs. CIT 352 ITR 273 directed the department to ensure that credit is given to the assessee even where the deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond.”
Form 16 issued by the employer is the evidence for claiming TDS. As you have already paid the tax indirectly in that year only, the employer will only be responsible for non payment and interest.
Hi Abhishek, Thanks for your feedback, but how can I convince AO to understand this, as during my personal meeting with him, he keep on insisting that nothing can be done unless TDS does not reflect in your FORM 26 AS.

Presently you should request both IT dept and the previous employer. In case of IT Dept you should write the letter with enclose copy of IT return acknoledgement and copy of TDS cert i.e. Salary certificate and for previous employer letter to revise the TDS return (for rectification). This receiving copy of letter from employer can be added with the letter (which is given to IT Dept) - this may some responce from both.

I also received Demand Intimation from Income Tax department for AY 2007-08 against my refund for AY 2012-13 recently. While investigating I found that my employer has deducted TDS from my salary for AY 2007-08 and issued the FORM 16 mentioning "PAN Not Available" against my PAN. I filed my IT Return before due date without knowing this mistake in Form-16. As above TDS was not reflected in Form-26AS, hence demand  was raised by ITO on 31.03.2010 thru Intimation u/s-143 (1), which I came to know only recently. My previous employer has refused to do the correction. Now what options I have to get this mistake corrected? Please guide.

I have similar situation. I was working in motorola during AY 2008-2009 and the TDS was done to PAN with a typo (one letter mistake). Motorola representative says he cannot correct it because TRACES started only from AY 2009-10. He asked if i can see details of AY 2008-2009 in TRACES, only then he can do correction.  AO as in above cases is refusing to accept the certificate given by company. With the same name, same address, tax has been paid before and after, but IT department is not ready to accept that the TDS has been already done though with a wrong PAN with just one letter typo.

The old employer representative does not even pick up my phone or reply to my email - basically simply ignores me and his suggestion to me is to change the CA. My CA has given a consultant name who said they can help the company to do the consolidation for AY 2008-2009 which will correct.

 

I have received Demand Intimation from Income Tax department for AY 2016-17. While investigating I found that my department has deducted TDS from my salary for AY 2009-10 to 2017-18  and issued the FORM 16 and accordingly my return was filled. Those days FORM 26 AS was not that much known, so I could not verify that. But my FORM 26 AS shows no  entries in till date but TDS deduction shown  in my FORM 16.  These datas TDS is not  reflected in FORM 26 AS.  I am  existing employee of that govt depatment ,Pl help me or  request to you  I write a letter to Depatment and  Income tax depatment   what options I have to get this corrected  against this wrong demand. Please help.

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