ITR

Demand because employer deducted TDS but did not deposit it

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Sec 205 says you cannot be asked to pay tax again to the extent it was deducted from your income. CBDT has directed officers not to enforce such demands against the employee where tax was deducted but not deposited.

Provisions

Sec 205, Income-tax Act 1961; Sec 199, Income-tax Act 1961

Analysis

If your payslips and Form 16 show ₹72,000 deducted but 26AS shows nothing, the employer is the defaulter. Collect proof of deduction, such as payslips, Form 16 and bank credits of net salary. Respond to the demand as disagree, citing tax deducted but not deposited, and write to your officer citing Sec 205. Ask the employer in writing to deposit and file the TDS statement.

Close

  1. Gather payslips, Form 16 and salary bank credits showing deduction.
  2. Respond to the demand as disagree with the reason.
  3. Write to your jurisdictional officer citing Sec 205 and attach proof.
  4. Ask the employer in writing to deposit and report the TDS.
  5. If unresolved, raise a grievance on the portal.

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