treatment of tax paid by employee in F-16

Dear Hanif

In form 16 you show only whatever TDS you deducted ....  Whether it is less or more . SO you dont need to show tax paid by him in cash . Employee can show this cash payment in his perosnal return............

You have to show in Form No 16 actual amount to be deducted and tax paid by you balance amount will be shown as still payable.

If a person responsible for deduction of tax fails to deduct appropriate Tax, he is deemed to be assessee in default unless such tax has been directly paid by the receipient himself. In your case, since emplyee has paid the balance amount f Tax, you will not be treated as Assessee in Default. You should take a xerox copy of the challan from employee. If any time you receive query from IT department, you may show the proof of the payment