Tds deduction

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Preetam Singh Shekhawat (Querist)
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25 February 2014 Dear Sir/Madam,

If a deductor deduct tds of his employee on regular basis for 11 months but at last he came to know that the employee was now transferred to another office and he is a tds liabililty. After this if correlate with next employer to deduct required tds in the last month of that employee. Then in this case any liability will occur on account of previous employer for short deduction of TDS.

Please reply for the same as early as possible because its a present case and I have to make an stand in this case.

Waiting for urgent reply.

AVTAR SINGH

AVTAR SINGH (Expert)
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25 February 2014 The previous employer has to deduct TDS on the amount of salary paid by him to the employee. For any short deduction, he will be liable to pay TDS with interest.

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Preetam Singh Shekhawat

Preetam Singh Shekhawat (Querist)
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25 February 2014 Thanks for the reply.

But I am to say that the last employer deduct all the required TDS and for this there is no revenue loss to the Income tax department. Then why it may issue notice to the previous employer. And also the previous employer send a letter to the last employer to deduct the required tds and last employer replied in the positive sense.

Clarify this?

AVTAR SINGH

AVTAR SINGH (Expert)
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25 February 2014 As per the provisions of section 192B, it was responsibility of the previous employer to deduct and pay the same. but failed to comply that procedure but since the tax has already been paid you can refer the case of Hindustan Coca Cola Beverages P. Ltd. v. CIT, 293 ITR 226 (SC)where it was held that the Payer is not liable to pay the amount of short/non-deduction of tax u/s.201(1) in cases where the Payee has already included the relevant income in his total income and paid the tax.

Preetam Singh Shekhawat

Preetam Singh Shekhawat (Querist)
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25 February 2014 Thanks for the reply sir.

I understood all the facts of the case. Last question is in my mind that if employer or assessee is in default but not in the liability to pay any kind of tax then in what manner it affects the employer or assessee?

Just clarify me in this regard also.

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