IMPORTANT CLARIFICATION BY THE Central Board of Direct Taxes, New Delhi on responsibility of deductor to deposit IT
The CBDT clarification issued vide F.No. 275/29/2014-IT (B) dated 11th March 2016 reiterating that as per instructions contained in its letter dated 01.06.2015 that “that “in case of an assesse whose tax has been deducted at source but not deposited to the Government’s account by the deductor, the deductee assessee shall not be called upon to pay the demand to the extent tax has been deducted from his income. It was further specified that section 205 of the Income-tax Act, 1961 puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch in such situations cannot be enforced coercively.”
