A mismatch between what an employer computes and what an employee claims can drag both under the taxman’s glare. The Income Tax (I-T) department is using a fine-tooth comb to nab discrepancies in the tax deducted at source, or TDS, by companies and the declarations by its employees in the annual I-T returns. The companies are being asked to either ‘confirm the information’ or ‘furnish a correction statement’, two persons aware of the exercise told ET. Interestingly, if employees make fake claims and the companies endorse them, a gap will not readily show up in the tax office system. However, if a case is picked up by the tax office, chances are it would end up going through records of all employees.

Source: Economic Times December 27, 2023 01:27 UTC