HomeTax PlanningWhat if Your TDS is Not Deposited with the Government?

What if Your TDS is Not Deposited with the Government?

It’s a common problem among taxpayer, as it may happen, your employer may have deducted the tax from your salary but has failed to deposit the same against your PAN with the government.

Not only your employer, if any other income received after deduction of TDS but not deposited with the government.

What to do?

This article will definitely clear all your doubts about TDS deducted but not deposited.

First we will start with:

What is TDS (Tax Deduction at Source)

Tax deduction at source (TDS) is the certain percentage tax amount required to deduct while making a payment such as a salary, commission, professional fees, interest, rent, etc.

The amount deducted is deposited with the government by the deductor in the account of PAN number of the person whom payment is made.

And in return, the deductor will arrange TDS certificate (Form 16 or Form 16A).

When the deductor deposits the deducted amount in the PAN number of payee the same amount is reflected in Form 26AS, and also in income tax return form, which is dedicated from your tax liability.

TDS Deducted is Not Deposited

The circulars issued by the Income-tax department in cases where TDS is deducted by the employer or deductor not been deposited in the PAN number of an employee with the government, in that scenario,

Income tax officers must not ask the employees (deductee) and the same must be recovered from the employers/deductors.

There is no specific format you can fill your complaint to the Income-tax department. You can file your complaint simply on plain paper, you must also attach the following proofs:

  • Salary slip showing the deduction of TDS.
  • Copy of Form 26AS not reflecting the deposit of TDS
  • Form 16
  • Copy of letter written to your employer pointing out the discrepancy
  • Bank Statement
  • Any other relevant documents related to TDS deduction.

Also Read: How to Save TDS from Using Form 15G

The Process of Tax Deduction and Deposited

When you get the payment in the form of salary or any other form, your employer deducts TDS and liable to deposit quarterly in Form 26Q with income tax department revealing complete details of deducted along with PAN number.

When Form 26Q is accepted by the department the same amount is reflected in Form 26AS.

If the deductor doesn’t comply and refuses to deposit the TDS in deducted PAN, they will have to pay a heavy penalty.

As per recent, announcement if the employer fails to deposit the TDS deducted the penalty of ₹ 200 per day is levied on the employer.

Amit Kumar
Financial control is a blog focused on personal finance, Taxes, and Stock market advice. I hope to provide the best advice to help you learn and grow along the way.


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