
<p class="has-text-align-justify wp-block-paragraph">Byju’s deducted â¹1.49 crore TDS from Krishna’s salary But never deposited it with the Tax Dept. It happened with 23,621 employees Tax Dept sent Krishna a demand notice to pay the tax</p>



<p class="has-text-align-justify wp-block-paragraph"> But here’s how you can get away with ZERO liability even when your employer defaults on TDS</p>



<h2 class="wp-block-heading"><strong>[1] Fact of the case:</strong></h2>



<p class="wp-block-paragraph">ð¸ Salary slips showed full TDS deduction</p>



<p class="wp-block-paragraph">ð¸ Form 26AS showed zero deposit</p>



<p class="wp-block-paragraph">ð¸ CPC denied credit and generated a demand</p>



<p class="wp-block-paragraph">Krishna argued that he had already paid the taxes.</p>



<h2 class="wp-block-heading">[2] What Income tax says about it</h2>



<p class="wp-block-paragraph">Section 205 provides:</p>



<p class="wp-block-paragraph">ð¸ When tax is deducted at source,</p>



<p class="wp-block-paragraph">ð¸ The assessee “shall not be called upon to pay it again”</p>



<p class="wp-block-paragraph">Once deduction happens, liability shifts entirely to the employer, not the employee.</p>



<h2 class="wp-block-heading"><strong>[3] CBDT Instruction No. 275/29/2014 (1 June 2015) says:</strong></h2>



<p class="wp-block-paragraph">ð¸ Credit mismatch demands must not be enforced</p>



<p class="wp-block-paragraph">ð¸ Employee cannot be penalised for employer’s failure</p>



<p class="wp-block-paragraph">ð¸ Deduction = tax deemed paid</p>



<p class="wp-block-paragraph">This instruction directly supported Krishna.</p>



<h2 class="wp-block-heading"><strong>[4] CBDT’s 2016 Office Memorandum reiterated the same:</strong></h2>



<p class="wp-block-paragraph">ð¸ No recovery can be made from an employee</p>



<p class="wp-block-paragraph">ð¸ Non-deposit by employer cannot create enforceable tax liability</p>



<p class="wp-block-paragraph">ITAT noted both circulars as binding on the department.</p>



<h2 class="wp-block-heading">[5] <strong>Income Tax Appellate Tribunal</strong> [ ITAT] findings:</h2>



<p class="wp-block-paragraph">ð¸ Deducted TDS is treated as paid by the employee</p>



<p class="wp-block-paragraph">ð¸ Revenue must proceed against the Byju’s (employer)</p>



<p class="wp-block-paragraph">ð¸ Krishna cannot be revisited for tax already deducted from his salary</p>



<p class="wp-block-paragraph">Employer default doesn’t mean employee liability.</p>



<h2 class="wp-block-heading">[6] ITAT also addressed judicial discipline:</h2>



<p class="wp-block-paragraph">ð¸ Coordinate Bench rulings must be followed</p>



<p class="wp-block-paragraph">ð¸ High Court rulings like Om Prakash Gattani bind the department</p>



<p class="wp-block-paragraph">Denying credit contradicted established jurisprudence.</p>



<h2 class="wp-block-heading">[7] Final ruling:</h2>



<p class="wp-block-paragraph">ð¸ Full TDS credit granted</p>



<p class="wp-block-paragraph">ð¸ Entire demand deleted</p>



<p class="wp-block-paragraph"><strong>Case closed</strong> in favour of Krishna. <strong>The employer’s failure could not legally be transferred to him.</strong></p>



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thanks for sharing