Mumbai IT professional gets tax relief after employer fails to pay TDS

…remit it. Section 205 of the Income-tax Act, 1961 (corresponding to section 401 of Income-tax Act, 2025) draws a bright line: once tax is deducted, the obligation to remit it falls on the deductor, not the deductee. “ By directing verification and grant of credit, the Tribunal recognises the evidentiary value of Form 16, salary records and banking trails. For taxpayers and practitioners, the implications are both reassuring and instructive, ” he tells TOI. On the dispute resolution front, this decision makes clear that automated CPC processing under Section 143(1) - which matches TDS claims against Form 26AS - cannot be the final word where genuine…

…a useful reiteration of an important principle relating to TDS credit. There have been several other judgments of different Benches of the ITAT and various High Courts that have favoured the assessee in this regard. “ The legal position is now strongly supported by a consistent line of judicial decisions that, where tax has actually been deducted at source but has not been deposited by the deductor, the assessee should not be denied the corresponding TDS credit or be made liable to pay the same tax again, provided the assessee is able to establish that the tax was in fact deducted, ” Kumar tells TOI. Importantly, Kumar notes that this principle is not confined to tax deducted from salary. It can also apply to TDS deducted from other domestic payments, including contractor or professional fees,…