What to do if Your TDS Is Not Deposited With The Government?

Jul 02, 2018 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

Every employer or deductor who deducts TDS (Tax Deducted at Source) from your salary/income is obligated to deposit it with the income tax department against your PAN. However, sometimes, they fail to do so. In such cases, the taxpayer gets between the tax department, who demands that they pay the balance tax, and the deductor who fails to deposit the already deducted tax.

What is TDS?

It is an abbreviation for Tax Deducted at Source. It was introduced with the aim to deduct the tax at the source of income. Ideally, it is the responsibility of your employer to deduct this tax from your income directly. Thus, ensuring that the tax is deposited with the government.

How does TDS work?

The entity that makes the payment deducts a percentage of the amount paid, as tax and pays the balance to the recipient. The recipient gets a certificate stating the amount of TDS paid. The deductor is duly bound to deposit the TDS with the government. Once the amount is received it will reflect in the 26AS form of the individual.

How do you know that your TDS has not been deposited?

To know your total tax payable, you need to subtract TDS, mentioned in the TDS certificate (Form16 or Form 16A) from your total tax liability. This could even be additional tax due to pay, a refund or no tax at all. Your TDS must also match the department’s record which is reflected in Form 26AS. If the amount in your TDS certificate does not align with the IT department’s records, it is a sign that something is amiss.

In some cases, the employer does not issue TDS certificates at all and it only comes to the employee’s notice through salary slip entries or in the form of short payment of salary.

What can you do in such a situation?

The first thing you should do is bring it to the notice of your employer and request him to do the needful, before the deadline. If, in spite of your repeated reminders and complaints, the employer does not address the issue, you have the right to approach the tax authorities.

Thankfully, the tax department has provided respite to taxpayers in such situations. The income tax department has stated that in case of failure to deposit tax that has been deducted, demand to pay must not be made on the taxpayer. It further states that the tax dues must be recovered from the employer instead.

If your employer fails to take action regarding this, you can alert the tax department by making a complaint in writing to your assessing officer.

Important things to note:

Since this matter is concerning the Income Tax Department, you must ensure that all the documents and required paperwork to prove your innocence is in order. Here are some things you must take to note:

  • Maintain proof of TDS deduction including salary slips, bank statements and any other documents as evidence that TDS has been deducted.
  • Review your 26AS and tally it with your TDS certificate (Form 16 or 16A) as applicable, to detect and rectify any discrepancies.
  • Ensure with your employer that TDS has been deducted against your correct PAN. It could happen that you may have provided your employer with an incorrect PAN. In that case, request your employer to revise the same.


Although it is the employer’s duty to remit the deducted tax to the government, you must ensure there is no pending liability in your name. Take recourse from the redressals provided by the Income Tax department, in case of non-compliance by the employer or deductor.

Advt. no: IA/Jun 2018/4143

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