Deductor Not Depositing TDS - How to file ITR?

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  1. ChaCha Chaudhary

    ChaCha Chaudhary New Member

  2. ZED

    ZED Well-Known Member

    Ya, we are talking same thing . as you can see there is no tax deduction since you have not been issued the certificate. The only proof you have is the amount received by you in your bank account and in absence of any contract you can't even prove that that 10% pertains to tax deduction. It could be a discount provided by you.
    Prove to me that there was tax deduction.

    You know there is a section of Indian Evidence Act 1872 which I like a lot
    Its S.101 which says

    Whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts, must prove that those facts exist.

    When a person is bound to prove the existence of any fact, it is said that the burden of proof lies on that person.
     
    ChaCha Chaudhary likes this.
  3. ChaCha Chaudhary

    ChaCha Chaudhary New Member

    The only proof I have the payment received by cheque and invoice sent by me for the whole amount. Payment received was less 10% but I don't want to go down that route anyway. Seems like only practical way is to either wait till he files his taxes or convince him to pay me the amount in cash.
     
  4. Nikil Mohan

    Nikil Mohan Member

    This issue is troubling too many of us, across the salary and business clients. There appears no end to the problems of "not getting remitted of the TDS deducted".
     
    Last edited: Aug 24, 2015
    ZED and ChaCha Chaudhary like this.
  5. ChaCha Chaudhary

    ChaCha Chaudhary New Member

    It seems to be a difficult system. As Zed has pointed out, in the absence of TDS certificate and contract, there is no proof of anything. It seems the honest tax-payer is left with no option but to reconcile with the deductor - an unpleasant and unnecessary exercise.

    Some fraud or dishonest entities may easily end up not paying the tax or remitting the deducted amount to us.
     
  6. ZED

    ZED Well-Known Member

    Not a senior or an expert, but I do have something to say on the subject matter.

    I find the current system rather neat and better .We have just brought this new method , slowly as we use it we will find associated problems and will tackle it.

    Earlier when there was no reconciliation then there were many frauds, you might even remember a case wherein a CA firm was caught generating fake TDS certificates
    (I have the judgement, if you would like to read, but I will have to search it ).

    In some cases courts have allowed tax credit even if there was no form 16/16A or where entries were not appearing in 26AS on the basis of affidavit and an indemnity bond in favour of revenue. This is rather fair,but ofcourse not very pleasant. Amendments were made so that assessee can file an appeal to CIT(A)


    Now the provisions have been made more stringent,
    TDS certificate has to be generated from TRACES only.Penalties and Fees in this regards which are rather more strict now

    Sumit Devendra Rajani vs. ACIT (Gujarat High Court)
    "Upon issue of Form 16A TDS certificate, TDS credit has to be given to the payee even if there is Form 26AS mismatch or deductor is at fault for non-deposit of TDS with Govt."

    Deductee has got so much protection, I cited some provisions and cases earlier in this post. If your tax has been deducted you do not need to worry that much.

    Even on both my parents there is demand due to this tax credit mismatch and its for several years. I have submitted all the relevant docs , some of the demands have already been cancelled and they got refund too (which was not adjusted against the outstanding demand). SCN was also issued to my parents as to why not to treat them assessee in default but that too was cancelled when we submitted the relevant documents.

    I can not say much on this topic , but I will be reading the further comments.
     
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