If Payroll admin have deducted less tax for employee e.g while doing Final settlement payroll person processed employees tax on basis of declaration and not deducted on the basis of proofs and short deduction case happened ? What can be solution for such scenario ?
The deductor is responsible to deduct TDS as per rules and declarations/proofs submitted but if there is any short deduction of TDS then the deductor will be treated as “Assesse in default” by the Income Tax Department.
However, if the Assesse files ITR and pay the requisite taxes then the deductor is not longer can be considered as in default.