Find
You are protected. Sec 205 bars a direct demand on you to the extent tax was deducted, and CBDT has directed officers not to enforce such demands against the deductee.
ITR
Tax deducted but never deposited by the deductor
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Provisions
Sec 205, Income-tax Act 1961; Sec 199, Income-tax Act 1961
Analysis
Your credit in 26AS will be missing, so CPC may raise a demand. Respond as disagree with the reason that tax was deducted but not deposited, attach payslips and Form 16, and write to your officer citing Sec 205. The employer remains liable with interest and penalties.
Close
- Keep payslips and Form 16 showing deduction.
- File your return with correct income.
- If a demand comes, respond as disagree citing Sec 205.
- Write to your officer with proof.
- Report the employer through a grievance.
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