Facing Double Taxation: How Can I Resolve Ongoing Income Tax Notices?

I have a pending query related to Income Tax.

Brief Case Data:

In AY 2011-12, the Employer deducted TDS but failed to deposit the same to the IT department. Subsequently, they issued Form 16 claiming that the "Company has deducted TDS & not deposited it. The Company will deposit the same soon." I received a demand notice from the IT department under section 1431(a) under the main Section 245. I wrote back to the AO of the ward explaining my position. It is a case of double taxation (TDS deducted by the Employer from my Salary and the IT department demanding the same from me) but to no avail. The IT department is sending a notice every year with the addition of interest, and they are adjusting it against refunds from the next year onwards.

Please suggest a mechanism to handle this matter. You may reach me via email at [Email Removed For Privacy Reasons] providing your contact details so that I can reach you to discuss it further.

Regards,

Is TDS deduction shown in your salary slips? So there is a record of how much TDS has been deducted by the employer. This article may be referred: What to do if TDS is deducted by the employer but not deposited? - Goodreturns

Yes, sir. The salary slip and Form 16 mention the TDS amount deducted under the TDS heading. I need some expert consultation on how to address it permanently.

Employer's Responsibility in TDS Deduction

It is the primary responsibility of the employer to deduct the TDS and pay it to the department. If the employer has not done so, it attracts a penalty and fine. In your case, the tax department is trying to catch you instead of the employer.

Steps to Address the Notice

Write a letter to the officer issuing the notice to you, attaching the Form 16 where the employer has admitted that they have not deposited the tax deducted at source. A copy can be given to the employer who is responsible for this mischief.

The Income Tax officer (issuing you the notice) may want to see the original Form 16, which you may show to them.

Regards,
A S Bhat