Our Recommendations :-
Follow CA Final FB Page

Income Tax TDS

Open uri20170510 32134 9p7be3?1494421783 rashmi asked about 3 years ago

Situation:TDS deducted from Salary but not paid to Central Government by Deductor due to which TDS Certificate was not issued.Assessing Officer (AO) had demanded such Tax from t employee irrespective of default from employer for non deposit of TDS.Please suugest whether AO is right for such demand?

    0       0 Answer Now Comment Report
6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 PURUSHOTTAM MUNDHRA answered about 3 years ago

hiii Nishant The AO is right for such demand. If the employee is shown TDS on salary in his IT return and this is not matched with the IT system (26AS) than the AO can send a demand letter or a notice under saction 143 (1) to the tax payer (so called employee) but the AO also send a notice to employer asking that the taxpayer is shown TDS on salary received from you (emloyee). If taxpayer is right than please deposit such TDS and upload the TDS rerturn. Againg the taxpayer has to show the proof of TDS dedected on salary to AO. I have already face the same situation.

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ravi answered about 3 years ago

Depositing tax with ITD is the responsibility of employer.but AO is justified here because he doesn't have and proof of your TDS deduction.you must produce other proof.and even if refuse to accept then AO is not justified.

    0       0 Comment Report
Open uri20170510 32134 ng4pv?1494421709 SONIYA answered about 3 years ago

I am Writing this Answer with reference to **Non-Deposit of tax deducted at source - Instruction No 275/29/2014-IT-(B), dated 01-06-2015 -** In this circular CBDT has mentioned that as per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII,so accordingly if there is tax payable due to mismatching of TDS due to non deposit of TDS by deductor,demand can not be raised from deductee/Assessee. **Therefore if employer not paid TDS then you can file petition with TDS Officer and they will recover from deductor , while filing petition be sure to attach all supportings llike bank statement , salary slip , TAN of Employer etc.**

    3       0 Comment Report
Picsjoin 2017224123730582 Archana answered about 3 years ago

Hie Nishant. AO is right for the demand because as per Section 192, once TDS has been deducted from salary then it has to be paid to the CG. Though mistake is of employer, but AO demand from employee is justified.

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered about 3 years ago

Dear Nishant, Action of Assessing Officer justify if you have no proof of such TDS deduction. you can provide other proof of tds deduction like Salary slip ( salary slip clearly shown tds deduction), you can produce appointment letter along with offer letter and bank statement which is clearly shown TDS deduction. If you are failed to prove TDS Deduction than you liable to pay tax however if you produce other document and still AO demanded tds certificate and not accept other document than the action of AO is not justify. Any other query feel free to contact us Writer CA Chitranjan Agarwal

    2       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Vishal answered about 3 years ago

Yes the AO is right because the the deducted has not paid the TDS to the government so beacuse of that it will not shown in 26AS statement and moreover id deductor has not issued the TDS certificate. So in this case the AO is right and he can demand the tax.

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.