Tds on salaries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2013 There was a practice of sending Investment Declaration Forms to all the employees for declaring thier investment for the deduction of tax on thier respective salaries.
The Investment declaration included a note by the employee that all the infomration provided is true and correct and any liability arising due to short or misinformation of the invetsment shall be the sole responsibility of the employee and the company shall not be responsible.
The note acopmpanying the form also bore the same infomration to the employee.
On the basis of the declaration the tds was calculated and tax was deducted on salaries.Investment proof as not collected from the employees as the tds was on the basis of the declaration.

Is the company still liable incase of any wrong declaration by the employee.

Are there any instances or case laws/judgements in favour of EMPLOYER in this such scenarios.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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06 November 2013 The company has to ask for submission for proof of investment before closing of Financial year like For FY 2013-14 closing , The company has to ask investment proof submission before 31st Jan 2014, if employee do not provide it, then deduct average tds amount after considering investment only for which Proof submitted in Jan to March salary.
Employer can't say that employee has given wrong data and he is not deduct tds due to it. He has to take care of it.

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