Mumbai IT professional gets Rs 3.36 lakh tax relief after employer fails to pay TDS
An IT professional won a tax dispute after her employer failed to deposit deducted TDS funds to the government. The tribunal ruled that employees should not be penalized for an employer's failure to remit taxes.
Why it matters
Sets a significant precedent for taxpayer rights in cases of corporate negligence regarding payroll taxes.
Your employer cuts Tax Deducted At source or TDS from your salary, but doesn’t deposit it. You get a tax demand notice. What do you do?A Mumbai-based IT professional faced this very situation when she received a tax demand of Rs 3.36 lakh, even though she had claimed Rs 3.91 lakh as TDS credit in her income tax return (ITR).What the case is aboutFor Assessment Year 2019-20, the woman reported an income of Rs 18.41 lakh in her ITR and claimed credit for Rs 3.91 lakh in TDS.
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