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The Income-Tax Act casts responsibility on the employer for tax deduction at source (TDS) on Salary at the time of payment of salary to employees whose salary income is above the maximum amount not chargeable to tax. The employer is required to deduct TDS on salary at the average  rate of income-tax and deposit the same with the government within the prescribed time. The employer is also required to file withholding tax returns and issue TDS certificate to the employee.

Various penalties are levied on the employer in case of default, making the entire procedure equally painful for your employer.

So, you must have started realising that the grass on the other side is not as green as you thought. Though, from the above it is understood that TDS is solely the obligation of the employer but, if as an employee you are aware that there is a TDS default, then you may be held responsible too. If your total income exceeds the maximum amount not chargeable to tax and no TDS is being deducted by the employer, then you are under an obligation to pay tax through the advance tax route.TDS on Salary –Key Points every employee should know

You should estimate your total income for the year that could comprise of salary, house property, interest income etc. Relevant deductions applicable to each source of income, on account of eligible investments, interest on housing loans, etc, can be considered to calculate the taxable income. On this amount, you should calculate the tax payable as per the applicable tax rates.

Having arrived at the gross tax liability, reduce the amount of TDS suffered/ likely to be suffered on the above income. If the balance tax payable exceeds Rs 10,000, you will be required to comply with the advance tax provisions. The entire amount becomes payable as advance tax in four installments on or before June 15th, September 15th, December 15th and March 15th, during the financial year.In case you miss the advance tax installments, taxes can also be deposited by way of self-assessment tax post April 1 (after the end of financial year). In case the employer has defaulted in TDS, it would be your responsibility to deposit taxes by way of advance tax/ self-assessment tax as ultimately, taxes are to be deposited on your income.

Failure to deposit taxes could lead to concealment of income on your part, resulting in penalty to be paid by you equivalent to 100-300% of the tax amount not deposited.Further, there are interest implications as well , but there are judicial precedents which indicate that if taxes were required to be deposited by way of TDS and have not been done, the recipient of income is not required to pay interest.

Going forward, before you plan your month-end celebrations, just glance through your pay stub. Instead of creating a hue and cry over the tax figure, be thankful to your employer for taking care of your taxes and saving you from a lot of hassles.

(Republished With Amendments)

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112 Comments

  1. narpala says:

    hi
    My LIC half yearly due date passed in Feb2019, i have paid with fine on june19, can I show this under 80C for IT returns for AY 2019-2020 ?

  2. Narasimha says:

    Dear Sir,
    I was working from April 2012 to 8 Dec 18 for an MNC company which was properly deducting TDS and keep providing Form16 which was fine to fille returns and on 10 Dec 18 I joined a new company which is giving the same salary but not deducting any TDS now old company provided form16 AY2019-20 how to file returns, should I add existing new company salary details.

  3. INDRANIL says:

    Sir
    My boss being the Head of the Department wants to adjust his tax paid regarding property transaction. However as DDO I want to deduct the tax according to the salary disbursed to my boss. if the employee forcing to adjust the tax already paid by him, how as a DDO I be able to save myself. Please guide me.

  4. Hariom Kumar Gupta says:

    Dear Sir,
    Our Company is not depositing tax deducted from salary in last 2 years. In such situation, can an employee say to company for not deduction of tax from salary. Can employee give an undertaking regarding that i shall deposit my tax. In such condition obligation of company would be fulfill.
    What appropriate action should be taken by employees.
    Please give us best advice.

  5. MR RG.JANTJIES says:

    I was in a situation where my employer deducted my tax with incorrect information based mostly with my dependants on my medical aid.They deducted basically less tax now they say that i have actually received the money.Even if i did receive it,it did not state on my salary advice that money is being paid back to me.After a long debate with them they eventually acknowledge their mistake and offered to pay the said amount and then i have to pay them back as in a loan.I am sole provider for my family and R15000.00 is a hell of a lot to just give away like that.Any advice from any legal practioner.They dont even opt to partially pay the debt the put me in now.Please email me with advice

  6. Bharathi says:

    My daughter worked with kingfisher Airlines, they deducted TDS, but didn’t deposited tax to income tax Department, didn’t issue TDS certificate, on salary slip it shows tax deducted, now income tax Department sent notice to pay the tax again. The tax was collected by kingfisher airline because income tax Department authoriised kingfisher Airlines to collect and asked them to deposit, it is the income tax Departments responseibilty to collect money from kingfisher Airlines because they only authorised to deduct TDS , why they didn’t take bank guaranty when allowing someone to collect money on behalf of income tax Department . Once we paid TDS and because of the inability to collect money from kingfisher Airlines when it was existing, when it was functioning, is it correct to to pay TDS amount again with interest which was already paid. If income tax Department is failed to collect TDS from his authorised person it is the fault of income tax Department and not the worker who paid TDS to the income tax Department authorised person. It’s not at all correct to penalise a common man for mistake of the department, please help me the correct method not to pay again the TDS amount with interest, thanks

  7. Vijay Kumar Dadoo says:

    TDS and TCS Return Late filing attracts penalty of Rs. 200/- per day. It is certainly a negative way of working. So also the late filing of Income Tax Return effective AY 2018-19, attracting minimum Rs. 5000/- penalty, is again a negative working.

  8. Kitab Singh Nimbrayan says:

    Sir, I am an employee of Haryana Govt. I want to ask that my TDS was not deducted by the DDO and issued me Form No. 16 during last month. I got the form 16 and found that my Income Tax Rs. 4000/- not deducted from my salary which was already intimated to the office that the balance Tax may kindly be deducted from my salary. But with the irresponsibility tax was not deducted. It is requested that I am responsible or my employer in this case

  9. KASHI NATH MISHRA says:

    As far as it relates to the reflecting of salary paid in form 26 AS for first half year, there was no requirement as such in the law at that time also but the company voluntary files the TDS return of employees in the case of no TDS also.

  10. Param says:

    My employer is deducting tax from my salary every month. He has deducted foe eleven months and not deducted for last month. Now i have to deduct my last month salary tax and tax for other interest income. Sir i want to know how can I deduct my remaining tax.

  11. Sachin Patil says:

    Sir, my employer deducted amount but not credited to tax department, and issues a form 16 with deducted mode, and I am did the tax return with the help of form 16. But deducted amount not credited to income tax department. Please solve the problem

  12. Amar Deep says:

    Sir my employer deducted my TDS and deposited to IT department but he don’t upload the same on Traces site and didn’t provide the form 16 which was downloaded from site. when we efilled our ITR then we face the problem that our income tax was not uploaded and IT department send us demand notice. after a number of request the employer don’t solve the problem yet and it makes us defaulter. please give us suggestion to resolve this problem

  13. e ravi kiran says:

    i have worked for an realty organisation wherein they have deducted my TDS and given my salary deducting the same.
    Now when i ask for the form 16 they say they will give , but actually they haven’t paid any taxes to the government .

    Now what should i do kindly assist sir

  14. Dr. Somen Chanda says:

    Sir, as the Principal of a govt. aided college I could not deduct IT on 31st of March 2017 on which day my employees received a salary arrear directly in their a/c from govt. As we calculate the final IT on 28th Feb (FY: Mar-Feb) and the salary of March is done on 1st week of April, the said arrear has come as ‘extra salary’ in March. Therefore we are stuck. Now my query is how to do the TDS on this arrear and submit the same to the govt.

  15. SATHISH KUMAR says:

    Sir, I am working in a private company. During the last year 2015-16, my company had deducted some amount as TDS from my salary and remitted to Govt. But, due to some internal problems in the company, I myself paid balance taxes directly as self assessment tax. Is it allowed ?. Please clarify.

  16. BANA says:

    i earn 278000 yearly i am liable for tds or not because as per IT act am not liable to pay tax because i get 87A deduction but my question only that tds is deducted by co. or not

  17. Abhishek Verma says:

    Dear sir,

    What if my employer has deducted TDS for FY 2015-16 but deposited only 10 months the balance 2 months TDS he will deposit in next Quarter i.e. till May-16 and I have filed my return in March-16 will I get the refund of balance 2 months TDS which my employer will submitt in May-16 ?

  18. sonali says:

    sir,
    my company pays tds of all employees. now some of the employees are laborers and they dont file any income tax and are in lack of knowledge of tds rule.
    now when we pay their salary they demand full amount including tds amount and dont agree to file for return & all.
    so,indirectly company is making loss.
    so is their any rule for such employees either exemption or sumthing

  19. SANDEEP BANSAL says:

    My employer had deducted my income tax for FY 2014-15,2013-14 and computergenerated salary slip with signature having tax deduction detail.Also i did not get form -16A for the same two years so i am not able to file my return.Now my new company is depositing my TDS quarterly.My queries:
    1) If employer does not deposit my deducted tax then who will pay that tax?
    2) Computergenerated non signed salary slip can be presented as a proof or joining letter having salary breakup can be used as a evidence?
    3) Now new company is depositing tax quarterly can i file return for coming year without filing return of last two years:

  20. Sumit says:

    Tax deducted and deposited by employer (Limited company) fin. year 14-15 and given form 16, but we are still waiting our due salaries of last financial year.

    According to from 16 our all salary paid by employer based on CTC.

    Please answer my query

    Q1. Is any provision for employer to deduct employee TDS and deposit in advance, without paying salary to their employee?

    Q2. Can we return tax based on form 16?

    Q3. How to check our employee deducting tax online?

  21. Ankit says:

    How to deal with the situation?

    I was working for an MNC, due to some typo my PAN got updated in their system wrongly. Form 16 was generated and I filed the tax. After 3 yrs i got a notice from IT department that I need to pay Tax for all the three years as it was not paid by the company.But the company is saying they have already paid the tax for the given PAN.
    I am no more employee of that company now. How to resolve this issue ?

    Any help will be appreciated.

  22. Santosh says:

    In Karnataka, for government employees Form 16 is given from March to next year February.
    Is there any difference in filing income tax returns of government employees ?

  23. Sanjay Kuamr Gupta says:

    I am an salaried Tax payer, my employer is pvt. ltd. co.
    My employer has deducted TDS on salary for,FY-2012-2013 FY 2013-14 but not deposited the same. I haven’t recd my Form 16 for the said period. If I were to file my returns (ITR-2)for FY 12-13,13-14.
    if employer fail to deduct the tds on slary and at the end of year employer cut complete tds. when i am filed ITR but not showing TDS deduction in Form 26AS.
    can employee take any action with gov. rule,
    Please guide me.
    Sanjay Kumar Gupta
    9028550971
    sanjay_ramesh2007@yahoo.co.in

  24. SRIDEVI says:

    AN CENTRAL GOVERNMENT EMPLOYERS INCOME TAX AMOUNT OF RS. 2000/- FOR THE ASSESMENT YEAR 2015-2016(FY 2014-2015) HAS BEEN SHORT DEDUCTED. HOW CAN HE PAY THIS TO IT DEPT. IS THERE ANY TIME LIMIT TO PAY THIS AMOUNT IN THE CURRENT FINANCIAL YEAR 2014-2015(AY 2015-2016)WITHOUT PENALY. HE HIMSELF INDIVIDUALLY HAS TO PAY IN HIS PAN OR THE DEDUCTOR HAS TO PAY IN THEIR TAN.IS THERE ANY SEPERATE CHALLAN TO PAY BY CASH OR CHEQUE.
    thank you

  25. Shankar Dayal Prasad says:

    My employer has deducted TDS on salary for,FY-2011-2012 FY 2012-13 but not deposited the same. I haven’t recd my Form 16 for the said period. If I were to file my returns (ITR-2)for FY 11-12,12-13, would I be responsible for payment of tax on TDS.? Won’t that be equal to double taxation, which again is against the law.?

    KINDLY SUGGEST WHO IS RESPONSIBLE TO DEPOSIT THE TDS AS PER NORMS.Because IT department Issue the Letter under section 146 to deposit the pending TDS with interest.

  26. murari says:

    i am bank employee in Haryana. IN FY 2012-13 (AY13-14) i was posted in different branch. My bank deducted tax from my salary and issued Form16 but the some amount is not deposited to income tax account. I submitted ITR with correct figure, i got intimation from income tax department for mis-match amount. please suggest what to do now? is there any process to file rectification based on my Form 16 to income tax office? Please guide me here

  27. V. Krishna says:

    My employer has deducted TDS on salary for FY 2013-14 but not deposited the same. I haven’t recd my Form 16 for the said period. If I were to file my returns (ITR-2)for FY 13-14, would I be responsible for payment of tax on TDS.? Won’t that be equal to double taxation, which again is against the law.?

    Please comment as I am in a dilemma whether to file my returns before 31st March ,2015 or not….

  28. kunal says:

    I have filed a tax(company tax) from an online through using TAN no.Problem is that I have misspelled the TAN NO one digit using B instead used D. So mine RS 45000 have transfered to income tax department. Give me some information ASAP If possible.

  29. Tarun says:

    What if an employer refuses to pass on Tax rebates which are allowable under some sections like Section 23(b) or 10(3A) , using an overcautious approach

  30. Mrs.Sushila Sharma says:

    My TDS was deducted for 2013-2014 an amount of Rs.19,000/-and odd by
    employer.I have been asking for form 16 I was not given.Later
    I was informed that the amount was paid to the IT dept.towards my
    name. Inspiteof several requests for the receipt of my TDS,I was
    never issued.Later I took a printout from the SAME AGAINST MY
    PAN NUMBER.The statement clearly indicates that NO TRANSACTIONS PRESENT.
    i forwarded a letter to the Managing Trustee along with the printout.Iwas
    denied an acknowledgement. Kindly suggest how to get my money back and whom to complain and approach.Kindly suggest.

  31. RAJESH VIRKHADE says:

    dear Sir,

    my friend is salaried person & he also proprietor
    he get income from both side, so tell me which i can fill IT RETURN

    SALARY : 188000/-
    PROPRITER INCOME : 173500/-

    ITR -1 ?
    ITR -4 ?

    THANKS

  32. CA NIKHIL AGRAWAL says:

    That the employee has deposited advance tax and self assessement tax therefore the employer has deducted less tds on his salary but there is no column in 24Q for adjustment of advance tax and self assessement tax. the TRACES has raised the demand without considering the self assessement and advance tax. how this matter can be solved, because income tax officer tds has no option to correct the same online.
    Please give your valuable suggestion.

    Mobile No, 9981165775

  33. s.c.dhar says:

    MY SALARY IS CALCULATED FOR TDC FINANCIAL YEAR MARCH TO FEB, SO IF MY SAVINGS IS AFTER FEB THATMEANSE MARCH IS IT CAN BE SHOWN IN TDS FOR EXEMPTION

  34. RM says:

    Respected Sir,

    1) In current financial year, I have worked for 3 employers in financial year and also have one PF withdrawal which was deducted tax by my organization (having PF trust within).

    So, for filling my return which form should I use in next year?

    2) IT has demanded 6000 rupees on April -2014, using which form/challan I can clear out this demand?

  35. Srilatha says:

    im an employee of NMIT and i stay in the college qtrs i also pay a rent of 4000/m as rent towards the college am i applicaple for TDS my gross salary is 75000/m
    this is a quiry

  36. G. Nithyanand says:

    I am a retired Railway official, retired in the month of May 2014. Income Tax was being deducted from my salary regularly by the Employer. F16 Forms were also being issued and on the basis of it Tax returns were also filed on all the years.

    In the website of Income Tax department Outstanding Demand is shown as under.
    1) FY 2008-09 Rs.17430
    2) FY 2011-12 Rs.48770
    My Response is being demanded.

    For these two years in the F16 forms issued by the employer Tax due is shown as Rs.O. I have also file Tax returns in-time.

    In the 26AS Tax credit it is shown as under
    FY 2011-12 only Rs.21000 is shown credited. For the FY 2008-09 not available in the website.
    I have the copies of the F16 and Tax Returns filed forms.

    My personal inquiry at Income Tax office the concerned officers direct me to approach the Employer and they cannot do any thing. Railway authority are not responding for my request.

    In these circumstances what I should do. Please advise me how I should go about.

    regards

    G. Nithyanand
    g.nithyanand@gmail.com

  37. Suraj says:

    If employee is in taxable bracket, and he has declared house rent and investments.He leaves job in the mid of the year without depositing investment documents. If total amount paid to that employee in the financial year is less Rs.250000/-, do employer should deduct TDS from the last payment made?

  38. Jatin Bhavsar says:

    Hello Sir,
    My company deducting 10% of my salary every month as a security deposit up to 2 years. But when they give form 16 the deduction amount is not being mentioned in form 16. they mentioned entire CTC.so i have to pay taxes as per CTC even though i have not received that 10% amount.

    Can you guide me on this aspect?

  39. Akhilesh says:

    Dear Sir/Madam,

    I am going to Ghana for 9 to 12 months in the month of January 2015. My salary will be 3,000 US dollars when I will be at Ghana. The government organization will deposit my salary in my saving account in India when I will be in Ghana.

    Condition is this I am working at Ghana and staying in Ghana and I am receiving my salary in Indian saving account in India, the organization is Indian and I have only stay visa at Ghana not working visa.

    My question is this how much tax I have to pay in India. How much money will be deducted from my salary every month.

  40. Javier says:

    Hello… my employer has been deducting TDS from my salary since May when I joined the company, but my 26AS form still does not show anything.

    How often should they be filing TDS for salary? Shouldn’t this be already appearing in my 26AS?

    Thanks!

  41. Manmohan says:

    i joined a college as a teaching faculty in Dec 2012 upto Oct 2013… as the job was only for 3 months.. my employer gave me a form 16 upto march 2013 with rs 0 as TDS. In Nov 2013 I changed my the college with some dispute and they paid me a wholesome amt due to me as salary in cash. I paid an advance tax in 2014 calculating my gross income. But now my previous employer is not issuing me TDS form as they by mistake have not reduced TDS. My present employment requires me to submit form 16 from March 2013 to October 2013 which my previous employer is not issuing.
    When I ask they bluntly told me that nothing can be done as they paid me in cash and didnt show in their records… i made a mistake of not taking any receipt.. what can i do in this situation…

  42. Aman says:

    If employer is not deducting tax how can i complain to Income tax department regarding that.I have TAN of employer.Also Employer is not deducting PF whose salary is above 15000/- SO I want procedure for complaining both things

  43. Anurag says:

    Hi Sir,

    I am in a big problem, I am working in a IT company and i have declared my home loan, by mistake or wrongly my home loan was showing as an earning of 74 L.

    so my complete salary of month Sept-2014 was deducted as income tax and it is showing Income Tax around 2.23 Lakh in my salary slip.
    I have talked with payroll team and they are saying that my next month salary will also deduct.

    I am not able to understand what should I do even don’t know how I will manage next 2 month without money.

    Can you please suggest me what should I do now, how this my hard earned money can be recover?

    I am feeling helpless and thinking how hard rules are there in India for a salaried man who is working very hard for their bread and butter.

    Please help me………

  44. CHETAN says:

    i m the employee in industries i have got payment for year 300000. so there is no tds deducted but i want form 16 for loan so please can you give me a way for this situation.

  45. atul says:

    Sir my ddo has issued a so cause notice that says that I have not deposited income tax of Rs 6000/-but the tax has already been deducted. Can a ddo issue a so cause notice to the employee mentioning that if answer will not be given within two days he will write to the higher authorities for strict action

  46. Deepak Bhardwaj says:

    Mr Ashish if Ur office did,t file the TDS return or not Deposited the Tax by railway then their are lot of severe penalty for the railway and there is 100% chances for demand from the income tax department for safeguard u should approach to s r EDPM or the person who was appointed by northern railway for this(May be outsourced by Ur Railway) and Pls coordinated with the concerned person revise the return of correct the form 26 AS .

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