Wednesday, January 5, 2011

What to do If the Employer fails to issue TDS Certificate

       The employee has a right to obtain the TDS Certificate in Form16/16AA from his employer.  The certificate should be filed with the return of income since no credit for TDS can be given without it.  It case the employer fails to issue the TDS certificate, he shall be liable to a penalty of Rs. 100/- for each day of default, u/s 272A (2) (g) (maximum penalty up to the amount of TDS involved).  The employee, however has no other remedy against his employer in case he refuses to issue the certificate except that the employee may intimate about such default to the concerned Assessing Officer, who may take appropriate action or initiate penalty proceedings against the employer. 

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