TDS Deducted but not remitted

There is no way of assesse claiming TDS for his income tax return. Assesse should pay the tax amount out of his own pocket. The TDS amount which was deducted by the tenant but nt remitted to the govt can be claimed back along with interest which can be equal to the self assessed tax remitted by the assesse.

Failure to remit the TDS to Government account:

Payment of the tax not remitted

Payment of interest u/s 201 (1A) @ 12% p.a on the amount in default.                                                                                   Penalty u/s 221 upto the amount of tax in default                                                                                                             Prosecution u/s 276B involving rigorous imprisonment for a period of  7 months or 3 years

Where tax has been deducted but certificate is not issued, it is not the fault of the person who suffers tax deduction. A reasonable construction of law in such cases is that where a taxpayer asserts that tax has been deducted at source and is also able to show by some evidence that he had received payment less tax, the Income-tax Department after verification of the claim should grant credit and take appropriate action for recovery against the defaulter, who had failed to deposit the tax deducted.

Dear Arti

  The asessee should get the certificate of TDS deducted the deductor can issue the certificate saying that TDS is to be deposited.The person deducting the TDS will exempt from the penalty for late issuing of the TDS and deductee on the basis of TDS certificate can claim the benefits