What happens if your employer doesn't deposit your TDS?
What happens if your employer doesn't deposit your TDS?
After working for a full month, 9 hours a day for 5 days a week and sometimes, even more, you get your salary at month end. You might have noticed that your employer pays salary after deducting taxes (called as TDS too). He should deposit this TDS with Govt. This TDS is basically your tax that he deposits (because he deducted it from your salary) with Govt. What if he doesn't deposit it? If he doesn't deposit, then you would have to pay again.
I am not sure whether you already knew this or not?
Did you know that TDS deducted from your salary (or any other income) is your money retained by your employer?
Yes, it is. It is your income tax that your employer calculates and deducts.
Your employer should deposit this money (TDS) with the Government on your behalf.
What if he doesn't deposit? And how would you come to know of it? And how should you react to it?
With the volumes of fraud cases unearthing, you can't sit idly under the belief that your employer would have deposited TDS. And this gets more serious as if he doesn't bank it in government account then you would have to.
Yes, that's right, if your employer doesn't deposit tax deducted from you, then you would have to pay. And that too along with interest.
But, how would you know that he hasn't deposited?
You can know it in 2 ways. I have described them in my next ripple.
