Mr. A an employer, fails to deposit the tax deducted at source on salary income of his employees. He…
The employer is an assessee in default in respect of the unpaid tax. Section 398(1) of the Income-tax Act, 2025 applies when a person deducts tax but fails to pay it as…
Choose your answer
Mr. A an employer, fails to deposit the tax deducted at source on salary income of his employees. He will be treated as:
Answer and explanation
Correct answer C
The employer is an assessee in default in respect of the unpaid tax. Section 398(1) of the Income-tax Act, 2025 applies when a person deducts tax but fails to pay it as required. This is a default status, rather than a description of the employer’s legal personality.
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West Bengal SET (WB SET)