Answer

1. F

   Facts

   Sec 205 says you cannot be asked to pay tax directly to the extent it was deducted from your income. A CBDT Office Memorandum of 11 March 2016 tells officers not to enforce such demands against the employee. You need proof that tax was actually deducted.

2. P

   Provisions and law

   • Sec 205, Income-tax Act 1961Where tax was deducted at source, you cannot be asked to pay that tax again directly
   • CBDT Office Memorandum dated 11 March 2016 (Sec 205)Demand will not be enforced against you to the extent tax was deducted but not deposited by the deductor
   • Sec 201(1A) (now Sec 398(3))Deductor pays interest of 1.5% a month for tax deducted but not paid to the government
3. A

   Analysis

   If your gross salary was ₹10 lakh and payslips show ₹70,000 TDS with net pay credited to your bank, that ₹70,000 should not be recovered from you again under Sec 205. CPC may still show a demand because the credit is missing, so respond to the demand disagreeing and cite the OM, and raise a grievance with the Assessing Officer. The department can recover the money from the employer with interest under Sec 201(1A). Keep payslips and bank credits as your main proof.

4. C

   Conclusion

   1. 1Collect payslips, Form 16 if any, and bank credits of net salary.
   2. 2Respond to any outstanding demand as disagreeing, citing Sec 205.
   3. 3Raise a grievance to the Assessing Officer with the proof.
   4. 4Ask the AO to apply the March 2016 OM.

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