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Tds deducted from salary & not reflecting in form-16

YVS Nageswara Rao (Private Service) (60 Points)

14 August 2013

Hi!

My Friend is working in Ltd co, through hiring Company. He is receiving his salary through the Hiring Copmany, after deduction of TDS & Provident fund and getting the Monthly Salary slips. Recently, the Hiring Company issued Form-16 with Tax payable/due as @ 4950/-. There is no details of TDS deduction/deposit. I request your openion and advice, how to proceed in this case and is there any protection in Tax Law to the deductees, when the TDS deducted and not deposited by the employer.

With Best Regards,

Nagesh

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1 Replies

CA Mukesh Jain S (Chartered Accountant in Practice) (692 Points)
Replied 14 August 2013

The form 16 should contain the amount of monthly tax deducted & details of tax deposited monthly. Further the employer cant issue a form 16 showing tax as payable. According to sec 192 of the IT act, the employer should prepare the tax computation of the employee & deduct all the taxes payable by employee. Hence issuing of form16 with tax as payable is not correct.