No Tax Demand on Employee If Employer Fails to Deposit TDS: Gujarat HC

Gayatri Snehal Rao Vs Income Tax Assessing Officer & Ors. (Gujarat High Court)

In Gayatri Snehal Rao v. Income Tax Assessing Officer & Ors. (Gujarat High Court, 2025), the Court addressed whether the Income Tax Department could raise tax demands against employees when their employer had deducted but failed to deposit Tax Deducted at Source (TDS) with the government. The petitioners, both former employees of Karvy Stock Broking Limited, faced tax demands for Assessment Years (AY) 2020–21 and 2021–22 due to a TDS credit mismatch arising from the employer’s defa

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