TDS deducted & deposited But payment not made or credited

650 votes

If they have deducted TDS on bill payment and its also showing in Form 26AS, it means they have accepted the fact that they were supposed to pay to the Firm ABC. Now Firm ABC can file suit for recovery of money before District Court or High Court depending upon the fact that how much money is involved.

Advocate Akash Vajpai LawRato

754 votes

TDS paid to Income Tax Department by XYZ is their legal liability and they did so to avoid any issues from Income tax Department. XYZ choosing not make your payment is their decision for any reason. Income Tax Department will be leasted interested in the fact that XYZ has not made your payment. Income Tax Department's prerogative ends with the fact that TDS is deposited. Moreover, they do not sanction from law also to persuade XYZ. What you could do in this situation is first sent a legal notice demanding your payment along with penalty and interest. The fact that TDS is deducted shows that XYZ had liability to make payment to you. It would be very difficult for them to prove that their is no liability of payment. And if even that does not work out then you have a remedy in civil courts.

Advocate Deepak Thackur LawRato