Tds not deposited
TARUN KUMAR SARKAR
(Querist) 18 March 2012
This query is : Resolved
My client deducted TDS from my remuneration but deposited hardly 15% of it. Tax Credit Statement (Form 26AS) shows the details of Tax deposited and they are not issuing Form 16. I was made to deposit the balance amount to the Tax department on my accountant's advice. The amount was quite big. I had no idea about this site. Can you please suggest me what to do at this stage? If I have to complain to the concerned authority, please provide me the details. I am staying in Kolkata. Also, is there any chance of getting the money back?
Guest
(Expert) 18 March 2012
Are you an architechtural contractor of the firm?
Anirudh
(Expert) 18 March 2012
1. It is not clear on what basis that you claim that your client had effected 'TDS'?
2. It is also not clear what are the periods during which you received your payment?
3. The person effecting TDS is required to give you a certificate (in your case Form-16A) every quarter - within 15 days
from the due date for furnishing the statement of tax deducted at source under rule 31A, i.e. on 15th July, 15th October, 15th January and 15th May. You should have insisted and obtained the Form-16A from him. If he refuses to give, then you should make a formal complaint to your ITO.
4. If he had not furnished the Form-16A, it will be difficult for you to prove that he had effected TDS from the payment made to you, UNLESS you have any covering letter indicating that he had effected TDS.
5. If you do not have Form-16A or any covering letter from him saying that he has effected TDS, you have no other go than to pay the tax yourself, and take steps to recover the dues from him later on within the period of limitation.
6. If he has given any covering letter saying that he has effected TDS, but has not furnished the certificate Form-16A to you, you can make a complaint to your Income Tax Officer.
7. In case you remit the tax, and thereafter he gives you the certificate for TDS Form-16A, then you have to claim the refund from the IT Department by filing the return.
Raj Kumar Makkad
(Expert) 18 March 2012
Anirudh has raised legal issues which require your reply but if your statement is true then you are required to make a written complaint to the local income tax officer of your circle and a criminal case under section 406/409 IPC can be got lodged against your employer.
Your employer cannot digest your hard earned money in the name of TDS deduction which he has not deposited with the IT department and has even not issued you for 16 despite of your repeated demands.
Sanjeev
(Expert) 18 March 2012
TDS provisions are governed by Income tax act so I disagree here with Mr Makkad that any criminal proceedings can be lodged.
mahendrakumar
(Expert) 19 March 2012
do you have any proof of deducting the tds other than form 16?
are you an employee?
do you have a copy of the payment vouchers,wherein the details of deuction of tds would be mentioned?
C. P. CHUGH
(Expert) 19 March 2012
I agree, the remedy availble is to complain to jurisdictional CIT in whose jurisdiction the employer exist and then meet him personaly and request him to take appropriate action against him
C. P. CHUGH
(Expert) 19 March 2012
And also what do you he hardly deposited 15% of the amount. It appears either you are hiding some thing or trying to get experts opinion on vague querry
TARUN KUMAR SARKAR
(Querist) 20 March 2012
Thanks a lot to all for sparing time in trying to resolve my issue. I am a self-employed Architect by profession. The year was 2010-2011. I signed an agreement with my client regarding my remuneration against the services to be rendered. As a proof I have this agreement and a statement of payments in a tabular form mailed to me by my client's accountant showing the total amount to be paid, tax to be deducted and the service tax to be paid. Accordingly, I received the full payments obviously minus TDS. As per the norms, they were supposed to issue Form 16A. I regularly mailed them and also phoned them requesting to issue Form 16A but they kept promising initially but ultimately they did not issue the said certificate. Then I had to submit the Tax return and my accountant naturally showed a big amount as outstanding. After a few months, I received a notice from the Tax department to make the outstanding payments. So, I have deposited the Tax twice for the same amount I received. It is a big amount. I checked with the Tax Credit Statement (Form 26AS) where it is shown that only 15% of the TDS was deposited against this client. Now, I request you experts to suggest me what shall I do to get the money back.Is there any other solution other than complaining to the TDS Cell of IT department? What about complaining to CVO?
Anirudh
(Expert) 20 March 2012
Dear Mr. Tarun,
You have to issue a legal notice demanding payment of the balance amount to you as per the agreed terms of the contract, or in the alternative to issue the Form-16A.
If you do not get appropriate remedy, then you have to file a suit for recovery of money.
While you can separately make a complaint to the TDS Cell of IT Department, if you do not file a suit for recovery, you will lose your chance of getting your money or TDS certificate will be lost for ever.
Better contact a local lawyer and do the needful without wasting further time.
TARUN KUMAR SARKAR
(Querist) 20 March 2012
Dear Mr. Anirudh,
Thank you very much once again for your valuable suggestions and helpful advice.
