Income Tax: Delhi High Court said in a decision that the responsibility of depositing TDS is entirely of the company i.e. the employer. The employer will be responsible for the delay in depositing TDS.
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 completely of the company i.e. the employer, the taxpayers will not be responsible for depositing TDS.
Important decision of Delhi High Court
Actually, the Delhi High Court issued an order giving a decision in the interest of the employees of the defunct Kingfisher Airlines. The 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 liability of TDS will not be of the employee. 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 this problem of salaried employees, the Delhi High Court has freed them from the worry of paying TDS. That is, now the responsibility of TDS deduction and its timely payment to the government will be of the employer. According to the Delhi High Court, this rule will be equally applicable 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 not depositing TDS by the company, then you can appeal against it in the court. While appealing, refer to 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 law and a crime. For this, a very heavy penalty can be imposed on the company.
