19 July 2024
Yes, a person can file a complaint against a deductor (employer or entity deducting TDS) if they fail to file TDS returns or deposit TDS with the government. Here’s how the process generally works:
1. **Filing Complaint**: If a deductor fails to file TDS returns or deposit TDS with the government within the stipulated time frame, the deductee (the person from whose income TDS is deducted) can file a complaint with the Income Tax Department. This complaint can be filed online through the Income Tax Department's e-filing portal or directly with the Assessing Officer (AO) of the deductor.
2. **Claiming TDS Credit**: Despite the deductor’s failure to file TDS returns or deposit TDS, the deductee can still claim the TDS credit while filing their income tax return (ITR). The Income Tax Department allows taxpayers to claim TDS credit based on Form 26AS, which is a consolidated tax statement that shows all TDS deductions made by deductors on behalf of the taxpayer. Form 26AS is updated periodically by the Income Tax Department and reflects the TDS details reported by the deductors.
3. **Verification**: When filing the income tax return, the deductee needs to verify the TDS details from Form 26AS and enter the relevant information in the ITR form. Even if the deductor has failed to deposit the TDS with the government, as long as the TDS deduction is reflected in Form 26AS, the deductee can claim credit for the TDS amount while computing their tax liability.
4. **Consequences for Deductor**: The Income Tax Department can take action against the deductor for failure to deposit TDS or file TDS returns. Penalties may be levied, and legal proceedings can be initiated against the deductor. However, this process is separate from the deductee's ability to claim TDS credit while filing their tax return.
In conclusion, while a person can file a complaint against a deductor for failure to comply with TDS obligations, the deductee can still claim TDS credit while filing their income tax return based on Form 26AS. It’s important for deductees to ensure that the TDS details reflected in Form 26AS are accurate and match the TDS certificates received from deductors.
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