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QUERY: By mistake deduction of tax at source has been made at wrong rate / lower rate / due to omission in the calculation of surcharge / education cess. While filing return of income, the employee pays the differential amount as self assessment tax. Subsequently on TDS assessment, demand is raised on the employer for the same differential amount. Employer proposes to recover the said amount from the employee. Is the employer justified in doing so or is there any remedy available to the employer?
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– Basic duty to pay the tax is of the employee, however, as a vicarious liability, the employer has to deduct the tax. So, if the employee has paid the difference; no tax could be recovered from the employer.

QUERY: While making the assessment, the Assessing Officer has disallowed certain of expenses mentioned in section 40(a)(ia) of the Act, on the ground that no tax been deducted at proper rate, whether disallowance is justified?
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In DCIT vs. S. K. Tekriwal [48 SOT 515 (Kol)], the Tribunal held that the condition laid down under section 40(a)(ia) for making addition is that tax is deductible at source and such tax has not been deducted. If both the conditions are satisfied, then such payment can be disallowed under section 40(a)(ia). But where tax is deducted by the assessee,