TDS Credit Cannot be Denied to Employee for Employer’s Non-Deposit: ITAT Kolkata

Rakesh Kumar Bhutoria Vs ADIT, CPC, Bengaluru (ITAT Kolkata) A recurring controversy in income-tax assessments is whether credit of TDS can be denied to an employee when the employer deducts tax from salary but fails to deposit it with the Government. The ITAT Kolkata in the case of Rakesh Kumar Bhutoria has reaffirmed the principle that a salaried employee cannot be penalized for the employer’s default, and once tax has been deducted at source, credit must be allowed to the employee. 1. Statutory Framework (a) Deduction of Tax at Source on Salary – Section 192 Employers are mandated to...