Tds on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2014 Hi friends,

One of my friends owns a Proprietorship company, has not deducted TDS on salary for any of the employees through out the year. No advance tax was even deposited by employees from their side as well. Now, what are the consequences, how to correct this default. My Freind says he cannot afford to disallow salary expenses, he is willing to comply with the law and do everything necessary.

Should i approach a CA for Form 26A Certificate ?
Or Whether, tds amount can now be recovered from employees and deposited with Governement along with Interest and TDS returns ( with late fees)

Kindly solve the problem.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 April 2014 he needs to pay int in addition to tds amount.

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2014 Tushar Sampath

Thank you , can you kindly elaborate. Can we recover the amount from employees now and remit to government

Or

Just a Form 26A from a CA, plus Interest for non deduction would be sufficient to claim allowance of salary expenses, since the employees are filing ITR and paying taxes thereon ???

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 April 2014 recovering from them is diff issue as compared to payment to be made to govt...as its employers responsibilty for ensuring the same.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 April 2014 Form 26A shall be sufficient in this case...

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Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2014 Hi nikhil

Thank you so much, Can you kindly tell me if i get a Form 26A certificate from a CA, will my salary expense be allowed ?

Where to file form 26A ? Online submission or any particular letter to dept ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 April 2014 obtaining Form 26A should be sufficient..by the way, since when 40(a)(ia) starting applying on salary? salary expense wont be disallowed anyways...

However, Form 26A shall be required to avoid the consequences under section 201.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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08 April 2014 you dont have to submit form 26A anywhere just need to preserve it and when in future if at all AO demands then u need to provide him a copy for the same.

VEDANTA DESHIKA

VEDANTA DESHIKA (Expert)
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08 April 2014 Thank you tushar n nikhil for your valuable advice

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