Failure to deduct tds on salary

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This query is : Resolved

maitry desai (Querist)

27 December 2014 Dear Experts,

My Client has paid salary of Rs. 300000 to one of his employees but he has not deducted TDS on the same.

The employee will be paying the taxes due.

Kindly throw light on the consequences on the part of the employer and employee.

Thank you.

Ketan Shah

Ketan Shah (Expert)

27 December 2014 The employer is liable to deduct tax and in case of non deduction of tax will be liable for interest and penalty for non compliance of tax deduction provisions. In case of employee he will be liable to file return as per provisions of IT Act 1961.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)

27 December 2014 if employee directly pay taxes on the income on TDS has not been deducted and file his return of income then employer need to pay interest only @ 1% from the due date of TDS deposit till the date of filing of return of Income by Employee. And further Certificate from a Chartered Accountant has been obtain for such compliances.

The above opinion are based on proviso to the section 201(1A) of Income Tax Act, 1961 as amended by finance act 2012

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