Rachit (Analyst) (913 Points)
18 March 2013Does the liability of the employer to deduct TDS (on salaries) still exists, if the employee pays advance tax on salary income & the balance tax payable by employee is zero ?
Further, if the employee has paid advance tax on his own & if the employer does not deduct TDS on his salary, will the salary expenditure of employer be disallowed U/s 40(a)(ia) ?
Janani Subramanian
(Employed)
(151 Points)
Replied 11 June 2013
The employer is still liable for deducting TDS in salary of the employee. If the employee has paid advance tax he has to inform the employer the payment of such advance tax and if he has not informed the same still the employer should deduct TDS on the salary paid to employee. Non deduction of TDS on salaries will not attract the provisions of Sec 40 (a)(ia)
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