tds on salary

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ankur mittal (Querist)

18 December 2008 i know that company is liable to deduct the tds on salary paid to employees. my question is that if a employee filed a declaretion to company that he will be invested rs.100000/ u/s 80c, & company give the deduction for same while deducting tds, but later on employee could not invest the same,& company deducted whole short tds in the month of mar. Is company liable for interest for short dedution in earlier month liability of tds.or what is provision in this regard. please refer the circular or notification or sec. in this regard
(if any).

thanks& regards
ankur miital

Rakesh R Kabra

Rakesh R Kabra (Expert)

18 December 2008 Yes, company liable for interest on short deduction. And also salary shall be disallowed to the extent tds is not deducted u/s 40(a). But normally company take proof, otherwise deduct tds in match

MAYUR JOSHI

MAYUR JOSHI (Expert)

18 December 2008 Yes company will be liable for interest on short deduction and late payment.
But I am of the opinion that salary and rent are not disallowed due to non deduction of TDS U/s 40(a).