What to do if the company has not deposited with the government after deducting TDS?
There are many such cases, when TDS is deducted from the company but is not deposited with the government. To deal with this situation, complete information has been given in the circular on the CBDT website.
Tax deducted at source (TDS) is deducted from your salary or other income and deposited with the government. There is a fixed time limit for this. About 3 years ago, the Income Tax Department busted a scam in which TDS worth Rs 3,200 crore was stolen. The Income Tax Department had issued a circular in this regard and also asked the working people working in different sectors to be careful.
Actually, many times it happens that the employer/company deducts TDS from the salary of the employee, but does not deposit his TDS with the government. If your company also does this, then you can file a complaint against it in the Income Tax Department. Complete information about this has also been given on the official website of the Central Board of Direct Taxes (CBDT).
The tax department will recover TDS from the company
It says that if TDS has been deducted from the company and it has not been deposited with the government that income tax officers cannot harass the employee. The tax department will recover it from the company itself.
How to know if TDS is disconnected?
While filing income tax returns, TDS is deducted from them by calculating your total tax liabilities. Information about TDS is given in Form 16 or Form 16A to the employee. Form 16A is also called the TDS certificate. Information on tax deduction from any person is also available in the tax department records and Form 26AS. If there is a mismatch in Form 26AS and 16, then the tax department examines it and asks for additional tax under section 143 1 of the Income Tax Act, 1961.
TDS Cutting Company Responsibility
Many times it happens that the TDS certificate is not issued to the employees on behalf of the company and they get information about deducting TDS from salary slip. In case of this, the employee can also take legal action against the company, because even after giving TDS to them, it has not been deposited with the government. According to the rules, it is the responsibility of the employer/company that if TDS is made payable to an employee, then they deduct it and submit it to the government.
Periodically check Form 26AS
Tax experts recommend that people with TDS liability keep checking Form 26AS. This will allow them to know whether TDS has been deposited on their PAN number. Also, make sure that you have given the correct PAN number. There are also many cases when TDS has been deposited on the wrong PAN number from the company. Companies submit TDS returns on a quarterly basis. The next one month is after its deadline quarter ends. However, this deadline is 31 May for the March quarter. A person should check his Form 26AS 10 days after the end of this deadline.