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TDS NOT DEPOSITED BY DEDUCTER????

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

18 January 2009

WHAT CAN BE DONE IF DEDUCTER NOT DEPOSITED THE TDS??

WHAT IS THE REMEDY LEFT FOR THE DEDUCTEE??

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3 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 27 January 2010

Mr.Sudhi Halakhandi

Many people are facing the same problem. No remedy is found in the statute. Assessees have to make representations to CBDT for the remedy.

Best Wishes

Sathikonda

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 27 January 2010

Yes i do feel that way that if deductor not deposit the TDS.

No real remedy available. need to contact deductor for refund of money

J.K.Shahi (Service) (44 Points)
Replied 28 January 2010

Dear Sirs Undermentioned is two judgement which may be of help to you & other assesses IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.950 OF 2006 Yashpal Sahni, It was held Where a company deducts tax at source (‘TDS’) from the salary payable to an employee, but fails to deposit the said amount into the Government treasury, the revenue can not recover the TDS amount with interest from the concerned employee. Similar is the judgement of Tribunal [2008] 115 ITD 113 (MUM.) IN THE ITAT MUMBAI BENCH ‘C’ Pranab Kumar Chakraborty v. Deputy Commissioner of Income-tax, Circle 23(1), Mumbai Whether once an employer has deducted tax at source, employee-assessee cannot be held responsible for payment once again and any such demand raised against employee-assessee cannot be recovered - Held,yes Regards J.K.shahi