Archive · 19 Jul 2026
ITAT Ruling Protects Taxpayer in Byju's TDS Case
A former employee of Byju's, named Ajay, had tax deducted from his salary but the company did not deposit it with the tax authorities.
This meant that the tax deduction did not show up in Ajay's Form 26AS, and the tax department demanded the tax again.
The Income Tax Appellate Tribunal (ITAT) ruled that Ajay should not have to pay the tax again because the company failed to deposit it.
The law says that once tax is deducted from your salary, you should not have to pay it again if your employer does not deposit it.
Taxpayers are advised to check their salary slips and Form 26AS for any mismatches and to keep records of their salary slips, Form 16, and bank statements.
If the tax department demands the tax despite it being deducted, taxpayers can file a rectification request with the supporting documents.
Byju's deducted nearly ₹1.49 crore as TDS from an employee's salary but did not deposit it with the tax authorities, affecting 23,621 employees.
The employee's Form 26AS did not reflect the TDS credit, leading to a tax demand from the Centralised Processing Centre (CPC).
The ITAT ruled in favor of the employee, directing full TDS credit be allowed, as the employer's failure to deposit the tax cannot be shifted to the employee.
Section 205 of the Income Tax Act and CBDT instructions protect employees from additional tax liability due to employer's failure to deposit TDS.
Taxpayers are advised to compare TDS in salary slips and Form 26AS, claim eligible TDS credit, and keep records of salary slips, Form 16, and bank statements.
- Who
- A former Byju's employee named Ajay and 23,621 other employees
- What
- The Income Tax Appellate Tribunal (ITAT) ruled in favor of the employee, allowing full TDS credit despite the employer's failure to deposit the tax
- When
- The case involved the filing of income tax returns for FY 2025-26 (AY 2026-27)
- Where
- India
- Why
- To protect taxpayers from bearing the consequences of their employer's failure to deposit TDS
- Amount Deducted
- ₹1.49 crore
- Number of Employees Affected
- 23,621
- Legal Protection
- Section 205 of Income Tax Act
- CBDT Instruction
- No. 275/29/2014 dated June 1, 2015
- CBDT Office Memorandum
- 2016
- Rectification Request Section
- Section 154