31 October 2010
My client's previous employer had deducted 1.5 lakhs TDS from his salary in year 2007-08. The employer had also issued a form-16 to my client, who had filed returns based on that.
But now my client gets a notice from income tax department that he still needs to pay Rs 1.5 lakhs income tax with penalty.
When my client checked the NSDL records, he found that his employer had not submitted this Rs 1.5lakhs amount to Govt while he had issued a form 16 to my client.
How should my client take this matter up with the income tax dept?? How should he also take the matter up with his previous employer??
This notice does not have any significance as far as your friend is concerned.One question I just want to ask with you is whether Tax was deducted from the salary of your friend? or is it only with your case the company has done like this? If yes, then it is the responsibility of the employer to remit the tax to Income Tax department. In case even after deducting if he has not remitted means it is serious case and Income tax department can take serious action on the employer. So, in this regard ask your friend to reply to the notice and give sufficient proof regarding deduction of tax from salary to income tax department and it is left to income tax department to take action against company.
As far as law is concerned, it is the company which is accountable and responsible to deduct tax and remit the same to IT department.
01 November 2010
Hi, Check form 16 & take details of TAX paid.Make yourself double sure of the matter.IT Deptt also have issues like this may be you have to file rectification with deptt.