Deduction of tax at source

Salary — Complete machinery is provided under the Act for recovery of tax deducted at source from the person who has deducted such tax at source, and the revenue is barred from recovering the amount from the person from whose income the tax had been deducted at source — as held by MumHC in Naresh Govind Vaze v ITO — In favour of: Others.

When tax at source is deducted from salary, it is most unlikely that it has not been deposited in the treasury by the State Government and credit for tax cannot be denied merely because Form 16 was not attested by employer. However, the AO is directed to decide whether tax was deducted at source from the salary of the Petitioner.

Decided on: 5 October 2011.