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August 2025

TDS — Credit for TDS — Tax deducted by employer but not deposited with Government — In view of provision of section 205, it is made clear that the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income — Both the circular dt. 1st June 2015 and the Office Memorandum dt. 11th March 2016 have been issued in consonance with the provisions contained in section 205 — Department shall not deny the benefit of tax deducted at source by the employer during the relevant financial years to the assessee — Credit of the tax shall be given to the Assessee and if in the interregnum, any recovery or adjustment is made by the Department, the assessee shall be entitled to the refund, with statutory interest

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

27. [2025] 343 CTR 133 (Ori):

Malay Kar vs. UOI:

AY. 2013-14: Date of order 03.05.2024:

Sections 199 and 205

TDS — Credit for TDS — Tax deducted by employer but not deposited with Government — In view of provision of section 205, it is made clear that the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income — Both the circular dt. 1st June 2015 and the Office Memorandum dt. 11th March 2016 have been issued in consonance with the provisions contained in section 205 — Department shall not deny the benefit of tax deducted at source by the employer during the relevant financial years to the assessee — Credit of the tax shall be given to the Assessee and if in the interregnum, any recovery or adjustment is made by the Department, the assessee shall be entitled to the refund, with statutory interest.

The Assessee is an employee of M/s. Corporate Ispat Alloys Ltd. During the previous year relevant to A. Y. 2013-14, the Assessee received gross salary of ₹25,39,766 out of which a sum of ₹5,90,112 was deducted at source u/s. 192 of the Income-tax Act, 1961. However, in the Form 26AS, TDS of only ₹3,21,379 w

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