New Delhi, June 28 -- Most salaried employees assume that once TDS is deducted from their salary, the tax has been duly paid to the government. However, problems can arise if the employer deducts the tax but fails to deposit it with the income tax department.

This is exactly what happened to a Mumbai-based IT professional Sophia Rick. While filing her income tax return for Assessment Year 2019-20, she declared an income of Rs.18.41 lakh and claimed a TDS (tax deducted at source) credit of Rs.3.91 lakh, according to a news report by The Economic Times.

However, she received a refund of only Rs.79,030 and was instead served with a tax demand of Rs.3.36 lakh because her employer, an IT services company, had failed to deposit the TDS deduct...