TDS not deposited by the employer – What’s next?


The amount from your salary or any other income that is transferred to the government by your employer is called TDS (tax deducted at source). This needs to be submitted within a specified period. In the wake of the scams which came to light recently, employees as individuals must be more cautious about their tax-related responsibilities.

TDS not deposited by the employer

In the case where you find out that your tax deducted at source not being deposited with the government, you should first bring it to your employer’s notice. If you are not getting much help here, you should then take the matter to the income tax department.

While filing your income tax returns, you have to compute how much you owe to the tax department and then subtract the TDS from this, since it, supposedly, has already been paid, and then arrive at the remaining amount, the tax payable, which could be a refund, surplus tax, or none of this.

The TDS amount to be considered here is from your Form 16 or Form 16A (TDS certificates), as applicable. However, the tax deducted at source during the year (as mentioned in the TDS certificate) must also be present in the department’s maintained record in Form 26AS. A mismatch in Forms 26AS and 16 allows the department to demand additional tax under section 143(1) of the Income-tax Act, 1961. It’s because the TDS claimed as paid by you will not appear in the department’s records. There may be cases where the employer does not issue TDS certificates at all and the employee comes to know of the TDS only from the salary slip or short payment of salary.

This may lead to litigation as an employee will claim that his/her tax has already been deducted by the employer and the same should be collected from the employer. However, the department will claim that since the dues are pending against the PAN of an employee, it is the employee’s duty to pay his/her dues.

Tax Deducted at Source

Hence, it is suggested that for every person, whose income is subject to TDS, to check his/her Form 26AS regularly during the year to ensure that all the tax deducted against the PAN is reflected in the form. You should also ensure that you have provided your correct PAN details to your employer.

Tax deducted at source returns are filed on a quarterly basis by a company. The due date for filing TDS returns is one month after the end of a quarter, with the quarter ending March 31 being an exception. The due date for filing of TDS returns for the quarter ending March 31 is May 31. It is a good practice that an individual checks his/her Form 26AS after 10 days of the expiry of the due date.

Tax Deducted at Source

Therefore, before you approach the tax department to complain about the employer of not depositing the deducted TDS, it is important that you bring this anomaly to your employer notice first for it to be corrected. But, even after multiple requests, if your employer does not take any action, you can then formally write a complaint to the Assessing Officer.


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