TDS on Salary deducted but not paid by the employer

Check with employer: First, confirm with your employer whether they've deducted TDS but not deposited it. Request them to deposit the TDS amount with the authorities. 

Verify Form 26 AS properly.

Claim Credit in INcome Tax Return: If the employer hasn't deposited TDS, you might still need to pay tax on your income. However, when filing your income tax return, you can claim credit for the TDS deducted by the employer if you have proof of deduction. 

Communicate with tax authorities if needed. 

Thanks for your reply sir...

Shall we file a complaint to the Concerned Assessing Officer with the proofs such as 

1. Payslip having deduction of TDS
2. Bank Statement having salary credit after TDS

Dear Sangeeth Kumar,

Advise: First check with employer, they may have paid the TDS but not filed TDS returns / or there may be some error in filing TDS returns - that could be reason for your TDS not showing in 26AS.

Ask them to file TDS returns if not filed, ask them to make corrections if returns are filed but some error occured.

Clear above points before making any complaint against them.

Regards.

Thanks for your reply Manoj sir...

Confirmed with the employer about it.

TDS amount not paid and TDS return not filed by the employer because of loss in the company.

Sir

can we address in Grievance in IT portal

All of you sufferers.

Plz read the Byju story.

2 Brothers and wife of the elder one are having a jolly time in UAE, while all the ex employees have got notice from Income Tax Department to clear the TDS, which Byjus had deducted and not paid to the Govt.

I T Dept. should make strict actions regarding this issue.

Many employers deducted TDS and not deposited to the govt.

At last, the employees paying the Income tax for the notice.

This is unfortunately a common problem and the legal position is clear: if your employer deducted TDS from your salary but did not deposit it, you are still entitled to claim credit for that TDS in your ITR ,  but ONLY if the employer has filed their TDS return reflecting the deduction.

If the TDS is not showing in your Form 26AS or AIS:

1. First, ask your employer in writing to provide Form 130 (the new Form 16 under Income Tax Act 2025) or a certificate showing the TDS deducted. If they provide it, attach it to your communications with the tax department later.

2. If the employer refuses or delays, you can raise a complaint on the income tax grievance portal at incometax.gov.in under e-Nirvan. The department can issue notices to the employer to deposit the TDS.

3. For your ITR: if the TDS amount is significant and you want to claim credit, file your ITR first and claim the TDS credit based on what was deducted (even if 26AS does not reflect it). Attach the salary slip showing the deduction. The CPC will process and may raise a demand for the difference ,  at that stage, you can respond with evidence that the deduction was made by the employer.

4. The Supreme Court has held in multiple cases that the onus to deposit TDS lies with the employer, not the employee. You cannot be made to pay the tax twice ,  but getting the credit recognized requires actively pursuing the matter.

For the challan-level TDS payment verification process, this [TDS online payment and challan 281 guide](https://taxgarden.in/blog/how-to-pay-tds-online-challan-281-281n-step-by-step-india-2026) explains how to check if a deposit was actually made.