non deposit of tds by banks - order of madras high court

executive - finance

For A.Y. 11-12, an amount of TDS approx Rs. 20,000/- has been deducted from salary of a bank employee. It is mentioned on Form 16 that, the said amount has not been deposited to the govt a/c due to order of Hon. Madras high court. Now the Income tax department has started raising the notice of demand since the amount is not reflecting in form 26AS.

My query:- Please provide me the details of this order of Madras high court. I tried to search a lot, but could not find it anywhere on net.

(I guess the order was in relation to 'arrears of salary when bank employees shifted from PF option to Pension option'. The appealant was 'All India Bank Employees association')


Please help. Also let me know the present status of this order


The 'All India Bank Employees association' and Your Bank union must be having the copy and current status. You may alert your employer on initiation of demand notice by IT authorities and seek remedy from your employer in writing. You may also add that penalty if any levied by authority shall not be born by you as you have been subjected to TDS, hence employer may clarify the matter to IT authority with a copy to you. The Form 16 issued to you with comments “the said amount has not been deposited to the govt a/c due to order of Hon. Madras high court.” should cover and protect you. Valuable advice of learned experts/members is sought.


In fact Mr. Kumar Doab gave you excellent advise in this matter. Please pursue your employer to do needful in the matter. However you may get the matter incorporated in form No.16 as advised by Mr. Kumar Doabby your employer. It is mistake of your employer in not depositing the amount of income tax deducted  irrespective of the fact of your conversion from PF option to pension option. It is for your employer to answer the IT department. We do not have Madras H/C order. You have to procure it and send it to us by way of an attachment in this reference for further clarification if any.




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