Tds on accrued income

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During year 2011-12, I was working in a company which did not pay salary for five month(Sep'11-Jan'12)but kept giving the salary slip showing TDS deduction. Based on the salary slip, I filed my income tax return showing the income on accrual basis. Company is now closed and Neither they have paid due salary nor they have deposited TDS. They also not issued form 16 to me. Based on my return, income tax deptt has generated demand notice to me to submit the tax amount equal to TDS (Rs 21K)which was not deposit by company. Now I cannot revise the return also. Kindly advice what should I do.
Replies (3)

Hi,

Please make a visit to the concerned Income tax officer and explain the scenario wiht the supporting documents like your Salary Account Bank statement, payslips to prove that you are not in receipt of such income on which Tax was demanded.

I assume officer expects somethin in return from you  to clear your tax demand.

 

Thanks,

Suri

Hi,

Please visit the concerned Income Tax assessing officer and tell him about your situation. It is duty of the AO to forward the case to the Company TDS cell to demand TDS from the company, otherwise they have to remove your demand by taking your records into account.
But I feel, It would have been better if you haven't taken salary into account while filing your tax return as you haven't received either salary or your Form 16.

Regards
Korada Devivaraprasad

Hi Jitendra,

 

As CA Suri Kota rightly mentioned. please visit your jurisdictional AO and make him understand the full facts of your case. Thats the best and only option available in your case in my opinion.

 

Thanks and Regards,

Manoj B. Gavali

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