Tax deducted at source

[CHANDRAMANI NAND]

Dear sir

My query is,,

TDS is deducted by employer on salary paid by him to my uncle in A.Y 2007-08. my uncle is filed ITR offline and adjust that TDS amount against tax liability for the AY 2007-08.

So after few year he receives demand notice for the AY 2007-08 in AY 2011-12, Consequently he paid such demand. but in wrong head.

CPC still makes adjustment against his refund amount in current year as well as last few year.

So my question is as TDS is deducted by his employer in AY 2007-08,, than why did CPC raise demand for AY 2007-08.

and please guide me can we recover the amount paid against demand for AY 2007-08. by my uncle mistakenly.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

It is the liability of the employer to deduct tax at source. In some cases short deduction may occur. In such case the department may issue notice for the payment of balance tax. At that time the employer is to be approached to rectify the mistake and to make balance payment by them by recovering it from the salary.

[RAJA SWAMINATHAN]

In respect of Demand Notice issued Form 16 received from the employer should have been submitted to the Department in proof of Tax deducted at source by employer. In case the employer had not remitted the TDS as per form 16 action will be initiated against employer under Section 221, 271 of the Income tax act.

AI Summary

Tax Deduction at Source liability: employer's failure to remit can trigger taxpayer demands and refund adjustments.
Tax deduction at source credit claimed by a taxpayer may not prevent a demand if the employer did not remit the deducted tax or if CPC records lack matching remittance; the taxpayer must submit Form 16 or other proof to establish credit. The employer is primarily liable for remittance and should be asked to rectify or pay the shortfall, and administrative or penal action may follow against the employer for non-remittance.