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Tds on salary not deposited by employer

Anand Banka (Sr Manager F/A) (57 Points)

12 January 2013

I AM EMPLOYED AND MY EMPLOYERS IS DEDUCTING INCOME TAX ON SALARY AND NOT DEPOSITING THE SAME FOR OTHER EMPLOYEE. MY SALARY IS LIABLE TO TDS AND THE SAME WILL BE DEDUCTED FROM JAN TO MARCH SALARY.

CAN I CALCULATE THE TAX AND DEPOSIT MYSELF AS ADVANCE TAX AND PRODUCE THE CHALLAN TO MY EMPLOYER

IS EMPLOYER IS STILL LIABLE TO DEDUCT TDS ON SALARY IF I PRODUCE THE CHALLAN AND CALCULATION SHEET TO THE EMPLOYER.

CAN EMPLOYER ISSUE FORM 16 TO ME WITHOUT DEDUCTING TDS AS THE SASME IS DEPOSITED BY ME.

PLEASE PROVIDE NOTIFICATION OR INCOME TAX RULE IF ANY REGARDING THIS.

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5 Replies

CA Mitesh Shah (Chartered Accountant) (68 Points)
Replied 12 January 2013

Mr. Banka, liability to deduct tax and deposit the same is of the employer. If does not deposit it, he will become defaulter under income tax and will be liable to be prosecuted under income tax act for interest and penalty. Your right to demand the TDS certificate Form 16 is always with you. Form 16 is the only proof for your tax liability. Further demand salary slips of all 9 months from person inchagre of salary.

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Shyam C.Pujara (Student (C.A Final)) (177 Points)
Replied 12 January 2013

Dear Mr. Anand Banka

Similiar problem is faced by many employees in the offfice. Here is answer to your query

Once the TDS has been deducted by the employer from the salary of the employee the responsibility lies on the employer to deposit the same with the government. If it fails to deposit the TDS with government, the income tax authorities cannot proceed against the assessee-employee for recovery of said tax once again. Because once it is established that the tax has been deducted at source from the salary of the employee, the bar under section 205 of the Act comes into operation.

The assessee is treated as "assessee in default" and is liable for

1)Amount of TDS u/s 201 amount

2)For interest @ 18% on TDS amount u/s 201(1A)

3)For creation of charge on all the assets of the company u/s 201(2) till the amount with interest is recovered

4) For penalty u/s 221

5)For imprisonment of the officer in default u/s 276B

hope i understood your query well......

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CA D.C. Bansal (Accounts Head) (283 Points)
Replied 12 January 2013

In my opinion company is liable to deduct the tax on your salary. Deposition of tax by you will not relieve the company from its liability to deduct the tax. However, if possible, tax may be deposited in the name of company and a return of TDS for your salary may be filed. Later on when company deposit the TDS for others, it may revise the return

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Sanket (!..Live to Give..!) (16427 Points)
Replied 12 January 2013

Because once it is established that the tax has been deducted at source from the salary of the employee (the fact which has not been disputed by the I.T. deptt. and employer company), the bar under section 205 of the Act comes into operation.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 13 January 2013

Originally posted by : !..SaNKeT..!
	Once the TDS has been deducted by the employerfrom the salary of the employee the responsibility lies on the employer to deposit the same with the government. If it fails to deposit the TDS with government, the income tax authorities cannot proceed against the assessee-employee for recovery of said tax once again. Because once it is established that the tax has been deducted at source from the salary of the employee (the fact which has not been disputed by the I.T. deptt. and employer company), the bar under section 205 of the Act comes into operation.