03 December 2012
Is company liability to deduct TDS on salary ???? like if one employee not want to get TDS deducted till Feb and say pls deduct my all TDS on march salary and before March he regined from the job. who will be responsible in this case. Company has declaration in respect of investments to be made by employee but not their proofs So wut will be consequences and is their any prevention of the same Thanks
03 December 2012
As per section 192, obligation is cast on the employer to deduct tax at source in respect of salary paid to the employees. In this case, the Company is liable to withhold tax at source if the salary paid to the employee exceeds the basic limit chargeable to tax.
Further, mere declaration without submission of proof will not be a good defense for not withholding tax at source.
Consequences: Company may be required to pay the tax alongwith interest if the employee has not paid tax thereon. but if the employee has paid the tax thereon then only interest will be applicable u/s 201(1A) of the Income tax Act.
04 December 2012
Sir but employee will pay tax at time of filing his ITR in July etc. So will company's auditor accept this view?? Further company will not have any proof regarding his payment of tax obligation and since he has left job, he will not provide any document. and interest will be charged from wut period to when Thanks
05 December 2012
Recently, Form 26A has been introduced which needs to be certified by a chartered accountant stating that the tax thereon has been paid by the payee.
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