Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

What To Do If Your TDS Is Not Deposited With The Government?

Save Tax Now
  • 15th Mar 2021
  • 454
What To Do If Your TDS Is Not Deposited With The Government?

TDS refers to tax deducted at source. This is the tax that the employer deducts from the salary of an employee before transferring the money. The TDS is then submitted to the government with the Tax Account Number (TAN) of the employer. This TDS reflects against your PAN (Permanent Account Number) and shows up at the time of filing your income tax return (ITR). In case the employer does not submit the TDS to the government, the excess tax can show up when you file your ITR.

How to check if the employer has not deposited your TDS?

The TDS that the employer deducts shows up on your Form 26AS. When the employer deducts tax from your salary, they also issue a TDS certificate or Form 16/ Form 16A. You can compare the information on Form 16 with Form 26AS to check if the amounts match. If there are any discrepancies, they will reflect here.

If your employer does not issue a Form 16, you can check your salary slips.

What are the reasons behind discrepancies in Form 16 and Form 26AS?

There could be discrepancies in Form 16 and Form 26AS for the following reasons:

  • The employer may have forgotten to deposit the TDS within the stipulated time.
  • The PAN entered could be incorrect.
  • The TAN entered could be incorrect.
  • There could be a technical error created by the system.
  • The assessment year could be entered incorrectly.

What to do if the TDS amount does not match?

If the TDS amount does not match, you can do the following:

  • If the discrepancy has been caused due to your employer’s negligence, you must contact the deductor as soon as possible. Once the difference has been corrected, Form 26AS will reflect the new amount automatically. If the employer does not respond to your request, you can directly contact the tax authorities and file a complaint.
  • If the details of the PAN or TAN are incorrect, you will again have to contact your employer and ask them to rectify the same. Once the employer has corrected the information, your Form 26AS will be updated with the correct amount.
  • In case of small errors, the income tax website will ask you to specify the reason for the tax discrepancies. You can mention the reason and continue with your tax return. If the difference is negligible, the website may accept your submission and initiate your return.

Who pays the tax if TDS is not deposited with the government?

In case of any TDS dues, the liability to pay the tax falls on the employer and not the employee. Since the tax is deducted on the source before the payment reaches the employee, it is the employer’s responsibility to file a TDS return on time.

The Central Board of Direct Taxes (CBDT) can also charge a penalty to the employer for not depositing the government’s tax on time.

What can employees do on their part?

  • It helps to check your Form 26AS every quarter to check if the TDS amount is being correctly shown or not. If you find any issues, you should bring it to your employer’s notice at the earliest.
  • You can keep a copy of your salary slips, bank account statements, etc. that reflects the TDS amount as proof.
  • It also helps to remind your employer to file TDS returns on time to avoid hassles later.

Conclusion

TDS is an important component of your tax returns. Therefore, you must check for irregularities and bring it to the employer’s notice.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • How to File Income Tax Return without Form 16

    How to File Income Tax Return without Form 16

    How to file ITR without Form 16? Filing ITR without Form 16 is a simple process if you do it systematically. Here’s step by step guide on how to fil...

    Read more
  • How to Check ITR Status Online?

    How to Check ITR Status Online?

    An income tax refund is due to a taxpayer if he has paid taxes higher when compared to his actual tax liability, the status of refund can be checked e...

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator ensures that you get Guaranteed Income every year on the same amount of savings and that the Guaranteed Income increa...

    Know more