Dear Sir, My employer deducted TDS from Salary 8 years back but till date the deducted TDS Challans still available in Employer TAN with this reason I am unable to apply refund for those 2 Financial Years. After repeated requests also the employer not responding and Assessment also not done. Now what to do to get my TDS amount back. Awaiting for your replay. Thank you.

Ans: I hope you have filed your ITR and claimed said TDS in ITR. If TDS is not deposited by employer, it will not appear in 26AS and you will not be able to get credit of the same. Thus, it is advisable to keep written communication with employer, requesting to deposit TDS and provide Form 16 downloaded from traces (income tax website) at the earliest.

If said TDS is not deposited within reasonable time, you have to contact CPC department of Income Tax.

Through telephonic talk you have to explain the issue and request them to transfer your ITR to jurisdictional assessing officer (AO) so you can get TDS credit.

Once ITR is transferred to AO, you can explain to issue to AO, file copy of your communication with employer along with documents related salary and TDS deducted.

You can request AO to grant credit and communicate with your employer for depositing the TDS amount.

Ans: 01. Please keep in touch with your employer & claim your unpaid salary.
02. I hope this is not a case, where you have not served proper notice before leaving the job & your employer has adjusted your salary payable against notice period salary.
Most welcome for any further clarifications. Thanks.

Ans: Matter is litigative and considering the cost of litigation you have to decide whether it is worth challenging it.

?In case TDS amount is substantial and you are not in position/you are not willing to pay tax already paid in the form of TDS then you can claim it in ITR provided you have proof of TDS deduction (salary slip/any letter/mail communication).

However, if you claim it in ITR, it is likely that the income tax system will not grant TDS credit of it as credit of the same will not appear in 26AS and you will get tax demand.

In response to the same you can file an appeal before CIT(A) and make submission with actual facts with proof TDS deduction.

You can rely on the Judgment of Delhi High Court. Delhi High Court in the case of BDR FINVEST PVT LTD (W.P.(C) 9043/2021 & CM No.55881/2023) allowed credit of tax deducted at source to the deductee (Assessee) which was not deposited by the deductor and holds that no recovery can be made against Assessee in view of the provisions of Section 205; HC relies on co-ordinate bench ruling in Sanjay Sudan and observes, “Section 205 read with instruction dated 01.06.2015, clearly point in the direction that the deductee/assessee cannot be called upon to pay tax, which has been deducted at source from his income”; Observes that since the deductor failed to deposit the tax with the government, recovery proceedings can only be initiated against the deductor.

CIT(A) may g?ive you relief?. In case, CIT(A) doesn't grant credit, you can file an appeal before ITAT wherein there is a high chance of getting relief.