My employer didnt give me form 16, and form 26AS is also not showing the TDS deducted by employer. So, I want to manually add TDS deducted by my employer.
On Quicko website, I click on “Tax Credits”. There are 3 options: Import from ITD using Auto fill, Upload Form 26AS, and Add Manually. I selected “Add Manually”. Then there are four options: Tax Deducted at Source, Tax Collected at Source, Taxes Paid by You, and Taxes Withheld Outside India. I selected “Tax Deducted at Source”.
There are four options for “Source of Income”: House Property, Capital Gains, Business and Profession, and Other. Which one should I select for salary?
Also, after that, what should be selected for “TDS Section”?
When your employer has not paid the TDS to the income tax department, the TDS would not be available against your PAN in your Form 26AS. You cannot take a tax credit of the TDS while filing your income tax return. If you take the tax credit for this amount, you will receive a notice from the income tax department for the mismatch in the TDS claimed and taxes paid. I
It is recommended to preserve the proofs related to TDS such as payslips, bank account statements, any form of communication is done with the employer in this regard, and others.
If you have solid proof about your employer not depositing the taxes deducted, it is best to bring this to your employer’s notice before taking further steps. If your employer does not respond even after repeated requests, you can take action by filing a written complaint to your assessing officer.
I have all the salary slips showing income tax deducted. I also have form 26AS, downloaded today on Sept 15, showing no TDS deposited by the company. I have email proof with the finance head, HR head, and CTO where I asked them whether they have paid the taxes or not, and they did not respond. I sent 3-4 follow up emails, including one today morning, but they still haven’t responded.
I found out from someone at senior position in the company that the company will pay the tax to the IT dept by the end of this month, and we will also get form 16.
A Chartered Accountant told me if I know for sure that the company will pay the tax within 30 days, then I can file ITR stating the income tax as paid as per my salary slips. So, I am adding up income tax from the salary slips and manually mentioning it as paid. The CA also said that if there is a mismatch between the tax the company pays and the one I mentioned in ITR, we can file revised ITR.
I need to file ITR today at any cost because I need to carry forward some losses.
Some one also suggested that I should file ITR now without showing salary income because it is not there in Form 26AS. So, I should show only trading activity as income right now. This way there is no chance of me getting any notice from the IT department because I don’t have any salary and thus tax.
Later on, when the company pays the tax and shares form 16, I should file revised ITR, which will contain both salary and trading income.
If anyone has any suggestion about which approach I should take, please let me know.
It is better to report the salary income in the ITR and claim the TDS based on payslip by mentioning the TAN of your employer in the TDS/taxes paid schedule of the ITR.
Any salary due from an employer, whether paid or not, is chargeable to tax under the head ‘Salaries’, which indicates that the salary income becomes chargeable to tax at the time of either receipt or becoming due, whichever is earlier.
The problem with the above approach is that, if the employer is yet to pay the TDS and yet to file TDS returns before your Income Tax return is processed, you will get an intimation from the department for the mismatch between the TDS claimed v/s the actual TDS reflected in 26AS.
Although there are case laws/ judgements favouring the employee’s right to claim TDS irrespective of whether the TDS is deposited by the employer, unfortunately, this is not an easy path.
There is going to be a lot of back and forth with the assessing officer, who, most probably will raise a demand notice, despite knowing that case laws favor employees.
This is because the Assessing officer will not have access to the TDS records unless the same is reflected in form 26AS and would consider this as invalid claim.
You and your CA would probably have to fight this showing proofs and stating facts.
As long as you have proof that TDS has been deducted from your salary, the law does seem to be in employee’s favor, but you might have to fight for it.
PS:
Deposting the TDS with the government alone won’t be sufficient, the employer would have to report the same by filing the TDS returns, for it to actually reflect in the form 26AS against your PAN