Should I Be Worried That My Company Didn't Deposit My TDS?

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.