Income tax return-Personal

This query is : Resolved

Jiwan singh (Querist)
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18 March 2009 Dear ALL

In our company TDS from employee salary deducted on declare basis,we have not received any proof of investment,House rent paid,etc.and Return is also filed in income tax dept.

what is the income tax law if employee could not produce investment & house rend paid proof.

& whose liability to collect proof of investment.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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18 March 2009 You need to deduct TDS on the gross salary assuming no investment made and no house rent paid by employees.

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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18 March 2009 U NEED TO COLLECT ALL THE DOCUMENTARY PROOF OF PAYMENTS OR SAVINGS BEFORE THE YEAR END AND FINAL DEDUCTION OF TDS. IF THE EMPLOYEE COULD NOT PRODUCE THE PROOF THAN UR SUPPOSE TO DEDUCT TAX ON GROSS PAYMENTS ASSUMING NO SAVINGS HAS BEEN MADE.

FOR TDS IT IS DEDUCTORS RESPONSIBILITY TO CONFIRM THE PAYMENTS HAS BEEN MADE BY THE EMPLOYEE

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 March 2009 Employer is bound to take proof of investments/ exemptions/claims availed by the employee before deducting tax. In the cited case employer had not done so. So the employer is liable to pay interest u/s 201(1A).In addition to interest penalty proceedings shall be initiated u/s 221 of the income tax act,1961.

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