Mumbai IT professional gets Rs 3.36 lakh tax relief after employer fails to pay TDS
For Assessment Year 2019-20, the woman reported an income of Rs 18.41 lakh in her ITR and claimed credit for Rs 3.91 lakh in TDS. However, she was given credit for only Rs 79,030, resulting in a tax demand of Rs 3.36 lakh.
A Mumbai IT professional received a tax demand of Rs 3.36 lakh, despite having claimed Rs 3.91 lakh in TDS credits in her income tax return. She approached the Centralised Processing Centre multiple times without success and then filed an appeal, which was rejected. The income tax appellate tribunal ruled in her favor, stating that the employer, despite deducting TDS, failed to deposit the amount with the government, thus denying her the credit.
The tribunal acknowledged that employees can rely on Section 205 of the Income Tax Act, 1961, if they can provide evidence of TDS deductions, such as salary slips and Form 16. This decision highlights the importance of maintaining proper documentation to establish TDS deductions and ensures employees are not penalized for their employer's failure to remit taxes.
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