Tds deposited but not deducted
Somsuvra Mukherjee
(Querist) 13 February 2015
This query is : Resolved
Dear all,
I have a query regarding TDS.
My client being a company have deposited TDS (Group TDS) with the ITD but have not, rather, forgot to deduct the same from the individual assessee. Now, after few years, on attempt to recover the TDS amount from the assessee, the assessee is not willing to pay the amount. What is the legal provision to recover the said amount from the assessee ?
Kindly provide with the Judgements also. if any .
Thank you in advance.
venkatesh Rao
(Expert) 15 February 2015
Kindly put this query with caclubofindia, a sister site of this LCI.
prabhakar singh
(Expert) 15 February 2015
IF THAT ASSESSEE IS STILL IN EMPLOYMENT ,DEDUCT FROM THE SALARY ELSE ONLY SUIT CAN BE THE COURSE SUBJECT TO LAW OF LIMITATION.
Guest
(Expert) 15 February 2015
To me, it seems to be a generic academic query, as not supported by any data.
However, please clarify:
1) To which FY/AY the TDS was due from the employee?
2) What do you mean to convey by the term individual assessee, i.e., employee of your client or a contractor or else?
Somsuvra Mukherjee
(Querist) 18 February 2015
Mr. Venkatesh Rao: I will certainly do that.
Mr. Prabhakar Singh: No, the assessee is not in employment anymore. The dues, the company having towards that person, we will be deducting from that amount.
Mr. P.S.Dhingra & Mr.T.Kalaiselvan: The F.Y. is 2010-11 & individual employee means employee of my client.
Thank you in advance.
Guest
(Expert) 18 February 2015
Thanks for yourclarification. But, another question arises, whether your client issued Form 16 to his employee showing tax due and recovered from him.
Somsuvra Mukherjee
(Querist) 22 February 2015
Mr. PS Dhingra: No, my client issued Form 16 showing the salary and the tax deducted.
Form 16 shows that the tax has already been deducted and deposited. But factually, Tax has been deposited but not deducted.
Somsuvra Mukherjee
(Querist) 27 February 2015
If anybody can kindly suggest on the above issue.
Thank you in advance.
Anirudh
(Expert) 27 February 2015
Dear Mr. Krish,
I have not so far found anybody so confusing.
According to you, overpayment (i.e. failure to effect TDS) happened in the financial year 2010-11.
Now it is more than 4 years passed.
Legally, you will not be able to recover the excess paid amount from the employee concerned.
However, you say that "The dues, the company having towards that person, we will be deducting from that amount."
If you can deduct from the dues of the Company, then what is the problem?
Guest
(Expert) 27 February 2015
You may now show as amount of loan advanced to the employee for discharge of his liability of tax.
T. Kalaiselvan, Advocate
(Expert) 18 February 2015
