INCOME TAX DEDUCTED BY EMPLOYEE BUT NOT DEPOSITED TO INCOME TAX – IMPORTANT RULING.
IT Circulars dated 01.06.2015 and 11.03.2016 stipulating that “in case of an assessee 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.”
Click: 16.04.2025 IT RULING
