Tds on salary???

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This query is : Resolved

madhur gupta (Querist)

03 December 2012 Is company liability to deduct TDS on salary ????
like if one employee not want to get TDS deducted till Feb and say pls deduct my all TDS on march salary and before March he regined from the job. who will be responsible in this case.
Company has declaration in respect of investments to be made by employee but not their proofs
So wut will be consequences and is their any prevention of the same
Thanks

Chintan Shah

Chintan Shah (Expert)

03 December 2012 As per section 192, obligation is cast on the employer to deduct tax at source in respect of salary paid to the employees. In this case, the Company is liable to withhold tax at source if the salary paid to the employee exceeds the basic limit chargeable to tax.

Further, mere declaration without submission of proof will not be a good defense for not withholding tax at source.

Consequences: Company may be required to pay the tax alongwith interest if the employee has not paid tax thereon. but if the employee has paid the tax thereon then only interest will be applicable u/s 201(1A) of the Income tax Act.

Message likes : 1 times

@VaibhavJ

@VaibhavJ (Expert)

04 December 2012 Agreed with Expert Chintan Shah..

Thanks for sharing..

madhur gupta

madhur gupta (Querist)

04 December 2012 Sir
but employee will pay tax at time of filing his ITR in July etc.
So will company's auditor accept this view??
Further company will not have any proof regarding his payment of tax obligation and since he has left job, he will not provide any document.
and interest will be charged from wut period to when
Thanks

Chintan Shah

Chintan Shah (Expert)

05 December 2012 Recently, Form 26A has been introduced which needs to be certified by a chartered accountant stating that the tax thereon has been paid by the payee.

https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62form26a.pdf

Above link will open Form 26A.

As regards interest on short deduction or non-deduction, it will be calculated from the date of payable to the date of tax paid by the payee.

Trust the above clarifies.

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