TDS not deposited by deductor, what action to be taken

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2010 One of my clients has received tds certificate for tds deducted by the person paying him rent.

He has filed his return online.

He has received statment from the departments, by email; stating that this amount doesnot match with IT records.

On verification at TDS site we can ascertian that the deductor has not deposited the amount and given wrong information in the TDS certificte issued by him.

Now he is not attending the phone calls, and refused to do pay back the amount or deposit in government account.

As per my return filed, I have to receive refund. I have not yet received intimation for the department disallowing my tds claim and refusing the refund.

Will the department allow credit on production of TDS certificate issued by the Deductor, even if statement is not matching, and grant me refund.

If not what action should be taken to get my refund.

KRISHNA KUMAR R C

KRISHNA KUMAR R C (Expert)
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21 January 2010 If tax has been dedcuted by tenant from rent and not deposited, Income Tax Department CANNOT recover the same from the landlord.{Case Law: Anusuya Alva(Kar.)[2005] TIOL 154.
Also see section 205 of the Income Tax Act,1961.

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