Non payment of tds by employer

Dear CCI members,

Suppose, employer has deducted TDS on my salary for the F.Y. 2011-12. but due to their bad financial condition, they have not deposited the TDS till date and there is possibility they will not be able to pay the TDS at all in future. Then, what will be implication of it on my IT return in which i have shown the TDS deducted by employer and claimed the refund of same.

My queries are, :

1. Whether i will be asked to pay the TDS amount Myself if employer is not paying.

2. Whether the refund claimed after (assuming deposit of TDS by employer) will be available to me.

3. what will be consequences on me financially or otherise, due to this default by employer.

 

Hoping to get ealiest response from you

Warm Reagrds

Sandip

Replies (2)

the amount of TDS that would have been paid by your employer but remaining unpaid will be adjusted together with interets u/s 234B&C against the refund  payable to you.  If there's additional demand then you would be required to pay the same.

Query 1 - You will not be required to pay the tax deducted by employer as per section 205 " Where tax is deductible at the source under sections 192, the assessee shall not be called upon to pay tax himself to the extent to which tax has been deducted from that income."

 

Query 2 - Yes the refund will be paid to you after adjustment of interest u/s 234B & 234C.

 

Query 3 - You just need to pay interest u/s 234 B & C and if after adjusting the aforesaid interest any refund is due, you will be paid the same.

 

- Ruben Balooni

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