Salary slips are primary proof of TDS. In the case report [2025] 179 taxmann.com 134 (Bangalore – Trib.)[30-09-2025] the assessee was an employee of Dunzo Digital Pvt. Ltd. From the verification of the salary slips in possession of the employee it was apparent that tax was deducted from the salary by the employer. The employer has however not deposited such tax to the Central Govt. Due to this, there was no credit appearing in Form 26AS of the employee. Due to this, credit was denied by the CPC.
Insolvency action is admitted/initiated in this case against the employer company. The Tribunal held that insolvency is not a bar to credit and even though such tax may not be instantly recoverable from the employer due to moratorium period there is nothing that prevents CPC to extend credit for taxes deducted on the basis of salary slips.
The Bangalore Tribunal held that when the employee shows that TDS from salary as per salary slips, credit for the same cannot be denied in the hands of the employee.
Besides the Tribunal insisted that in such cases the revenue should also unhesitatingly take action against the employer for penalty and prosecution.