Dear Sir,
I worked for an industry as an FMO. The third-party contractor who paid my salary has deducted TDS but has not fully remitted it to the IT department. Form 16A (the third party issued Form No. 16A instead of Form 16) shows that he has paid for only one month in a quarter. I resigned from the industry six months ago and paid IT as per my income slab. How can I recover the TDS deducted by the third party? Can I report this malpractice by their contractor to the industry I worked for? Kindly advise.
From India, Madurai
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2I worked for an industry as an FMO. The third-party contractor who paid my salary has deducted TDS but has not fully remitted it to the IT department. Form 16A (the third party issued Form No. 16A instead of Form 16) shows that he has paid for only one month in a quarter. I resigned from the industry six months ago and paid IT as per my income slab. How can I recover the TDS deducted by the third party? Can I report this malpractice by their contractor to the industry I worked for? Kindly advise.
From India, Madurai
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Hi Sekar,
If you find yourself in a situation where TDS (Tax Deducted at Source) has been deducted from your salary but not fully remitted to the Income Tax department, here are the steps you can consider taking:
Gather Documentation: Collect all relevant documents related to your employment, including your payslips showing TDS deductions, Form 16A issued by the contractor, and any communication you had with the contractor regarding your salary and TDS.
Check with the Contractor: Before taking any formal steps, contact the third-party contractor to inquire about the issue. There may have been a clerical or administrative error, and they may be able to rectify it quickly.
File a Complaint with the Income Tax Department: If the contractor fails to rectify the issue or does not provide a satisfactory response, you can report the matter to the Income Tax department. You can provide all your documentation and explain the situation, including the fact that TDS was deducted but not fully remitted.
Claim Refund of TDS: If TDS has been deducted but not remitted to the government, you may still have a claim for a refund. You can include this in your tax returns. If you have already paid your tax according to your income slab, the excess TDS should ideally be refunded. You may need to submit your documentation to prove the TDS deduction.
Contacting Your Former Employer: If you believe the industry you worked for should be aware of the malpractice by their contractor, you can report the issue to them. However, it's advisable to do this in a professional and constructive manner, focusing on the facts rather than making it a complaint. This could help them take necessary action regarding their contractor.
Legal Advice: If you encounter significant resistance or if the financial loss is substantial, consider consulting a tax advisor or legal professional who specializes in tax law. They can provide tailored advice based on your situation.
Future Precautions: For the future, keep track of your deductions and ensure that your employer or contractor is remitting those amounts to the tax authorities correctly.
Recovering TDS can sometimes be a tedious process, but documenting everything thoroughly and following the proper channels will increase your chances of resolution.
Thanks
From India, Bangalore
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If you find yourself in a situation where TDS (Tax Deducted at Source) has been deducted from your salary but not fully remitted to the Income Tax department, here are the steps you can consider taking:
Gather Documentation: Collect all relevant documents related to your employment, including your payslips showing TDS deductions, Form 16A issued by the contractor, and any communication you had with the contractor regarding your salary and TDS.
Check with the Contractor: Before taking any formal steps, contact the third-party contractor to inquire about the issue. There may have been a clerical or administrative error, and they may be able to rectify it quickly.
File a Complaint with the Income Tax Department: If the contractor fails to rectify the issue or does not provide a satisfactory response, you can report the matter to the Income Tax department. You can provide all your documentation and explain the situation, including the fact that TDS was deducted but not fully remitted.
Claim Refund of TDS: If TDS has been deducted but not remitted to the government, you may still have a claim for a refund. You can include this in your tax returns. If you have already paid your tax according to your income slab, the excess TDS should ideally be refunded. You may need to submit your documentation to prove the TDS deduction.
Contacting Your Former Employer: If you believe the industry you worked for should be aware of the malpractice by their contractor, you can report the issue to them. However, it's advisable to do this in a professional and constructive manner, focusing on the facts rather than making it a complaint. This could help them take necessary action regarding their contractor.
Legal Advice: If you encounter significant resistance or if the financial loss is substantial, consider consulting a tax advisor or legal professional who specializes in tax law. They can provide tailored advice based on your situation.
Future Precautions: For the future, keep track of your deductions and ensure that your employer or contractor is remitting those amounts to the tax authorities correctly.
Recovering TDS can sometimes be a tedious process, but documenting everything thoroughly and following the proper channels will increase your chances of resolution.
Thanks
From India, Bangalore
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TDS circular.pdf
Format--new TDS rates.xls