Investment Declaration by Employee

This query is : Resolved

Jayesh Jagetiya (Querist)
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28 December 2009 If one emoployee give us Investment declaration saying that he will invest Rs. 1 Lac in 80C.

But in March on demanding investment proof we come to know that he has invested only Rs. 10k.

Upon asking him the reason, he say that i have invested / Expensed my money somewhere else (Other than 80C investment), so i don't have money to invest u/s 80C.

By this he has deferred his tax deduction. (We would have deducted his tax in Monthly installments instead of March)

Now is any liablity on the Company for short deduction of tax in initial months?

Is there any liablity on the Emploeyee for giving wrong declaration even he has justification for not having money for investment u/s 80C, even he has planned?

Arjuna Raina

Arjuna Raina (Expert)
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28 December 2009 deposit the amount deducted as per form 16 given to employee and actual tax payable.
i,e Amount as per From 16(deposited in adv)+extra tax=actual tax payable by employee.

There will be no liability of company company has to recover the balance tax and deposit in IT dept

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 December 2009 Generally based on the Employee declaration employer need to deduct if the employee fails to make the investment in MARCH employer has to deduct the total actual amount. one liability is possible while scruitny Assessing officer can demand Penalty for non payment & Shor payment of Advance tax for the particular employee for his personal returns

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