Non Deposit of TDS by the deductor – no direct demand on tax payer says CBDT

Any TDS which is deducted from your income is deposited by the deductor to the government against your PAN number. This way, TDS deducted against your income is linked to your PAN and can be viewed and verified from your Form 26AS.

But what happens if the deductor fails to deposit TDS or has deposited it against an incorrect PAN?

The income tax department will only allow you to claim TDS in your income tax return which is mapped to your PAN and is reflected in your Form 26AS.

Several tax payers have been aggrieved with this situation where the employer or another deductor deducted TDS but did not deposit with the govt which leads to disallowance of TDS in the tax payer’s return and a subsequent demand for paying tax received by the tax payer.

The CBDT has recently released a circular directing its assessing officers to check the facts of the case and not put tax payers at an inconvenience where there is default in depositing tax by the deductor.

In case TDS has been deducted from your income and has not been deposited –

  • Maintain proofs of your TDS deductions from sources such as payslips, Form 16, Form 16A
  • You can write a clarification to the AO with the details of the matter
  • If you have received a demand you can raise a rectification request


If you need help, please reach out to us our experts can help you create a rectification request or file a clarification.

Reach out to us


As per CBDT’s circular No. 275/29/2014-IT-(B) dated 1st June 2015.

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