I-T notice under Section 133(6): Here's what employers should do

IT notices

• Tax Dept may send notices to employers for TDS checks under Section 133(6)
• Employers must verify notices and provide documents to authorities upon request.
• Keep evidence of claims; file Updated Return if claims are incorrect.

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Income-tax notices are generally send to employees but in some cases, the I-T department can issue them to employers to verify salary-related deductions and exemptions claimed by employees.

The verification is commonly carried out under Section 133(6) of the I-T Act.

The authorised officer is empowered to call for information from taxpayers where such details are considered necessary for matters arising under the Income-tax Act, 1961.

“Section 133(6) of the Income Tax Act empowers tax authorities to call for information from any person for the purpose of any inquiry or proceeding under the Act. Accordingly, tax authorities may require any employer to furnish information in relation to various documents submitted by employees for the purpose of deduction of tax at source, which may be useful for or relevant to any enquiry or proceeding under the Act,” said Gopal Bohra, Partner -Tax NAShah Associates.

What should the employer do?

With increasing digitisation, the I-T department has shifted toward data-driven verification of deductions claimed by taxpayers. Using advanced data analytics, authorities now identify high-risk cases of potential tax evasion and call for records to validate claims made in tax returns.

While the ultimate responsibility for an accurate claim lies with the employee, “the employer is legally obligated to verify the genuineness of the proofs before adjusting TDS. The department targets salary-disbursement offices because it is administratively efficient; a single notice can audit a large cohort of employees simultaneously”, said Ankit Jain, Partner, Ved Jain and Associates

Documents held by employers are considered 'contemporaneous evidence' proofs submitted at the time of the transaction. Obtaining these directly prevents employees from retroactively manufacturing evidence once an inquiry begins added Jain.

An employer’s primary obligation is to authenticate the notice via the Document Identification Number (DIN) and furnish the requested information even if no formal proceeding is pending against the company.

If an employer failed to collect or verify documentation during the TDS process, they may be deemed an "assessee in default". This makes the employer liable for the tax shortfall, along with mandatory interest under Section 201(1A) and potential penalties.

What it means for employees?

In most cases, these are generally for checks and verifications from employers, and there is usually nothing for employees to be worried about.

“The notice is primarily meant to verify information and documents already relied upon for TDS purposes and does not automatically mean scrutiny or wrongdoing by the employee. However, if an employee has claimed incorrect or unsupported deductions or exemptions, the tax department may later seek clarification directly from the employee during assessment. As long as the employee has made genuine claims supported by proper evidence, there is usually no adverse consequence beyond routine verification,” said Ritika Nayyar, Partner, Singhania & Co.

Employees should keep copies of rent receipts, interest certificates, insurance proofs and other evidence readily available in case the department seeks clarification later.

It is also good to cross-check Form 16 with AIS/26AS and file the return accordingly, even if the employer has already deducted TDS. If an employee anticipates that their claims cannot be substantiated, they should consider filing an Updated Return (ITR-U) under Section 139(8A).

This allows a taxpayer to disclose additional income or reduce wrongful claims and pay the resulting tax. As of 2026, an ITR-U can be filed for up to 48 months (4 years) from the end of the relevant Assessment Year (effectively 5 years from the end of the Financial Year).