look news india
Income Tax: TDS is always a matter of concern for taxpayers. Employed people often complain that the company has deducted TDS but still they are getting notices from the Income Tax Department. Actually, what happens is that the company deducts TDS from the employee's salary, but does not deposit it to the government on time, due to which the employee has to face a notice.
However, after the implementation of the new rule, the responsibility of depositing TDS will be entirely of the company i.e. the employer, the taxpayer will not be responsible for depositing TDS.
Important decision of Delhi High Court
Actually, Delhi High Court issued an order giving its verdict in the interest of the employees of the closed Kingfisher Airlines. Delhi High Court said that if the company does not deduct TDS from the employee's salary and deposit it to the government, then the employee will not be liable for TDS. Many such cases were coming to light when the company did not deposit TDS on time, after which the employee had to pay tax again.
Understanding the problem of salaried employees, Delhi High Court has freed them from the worry of paying TDS. This means that now it will be the responsibility of the employer to deduct TDS and pay it to the government on time. According to Delhi High Court, this rule will apply equally to all companies.
What to do if the company has not deposited TDS?
If you are an employee and you have received an income tax notice for non-deposit of TDS by the company, then you can appeal against it in the court. While appealing, cite the decision given to the Kingfisher employee. According to the court's decision, not depositing TDS after deducting it from the employee is a violation of the Income Tax Act and a crime. For this, a very heavy fine can be imposed on the company.