TDS on Salary : Doubt

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This query is : Resolved

Devendra (Querist)

15 February 2011 Mr. X is having a Tax liability of around Rs. 3000. But the Co. in which he works deducts TDS Rs. 1000 p.m . Whether he can instruct the co. not to deduct any TDS from his salary? He says that he will pay the liability at the time of filing the return. He does not want the Co. to deduct TDS. Is it possible?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 February 2011 In case of short deduction of TDS, the company is liable to pay penalty as well as
the expenditure on which TDS has not been deducted, can be disallowed.

So, TDS deduction for the company is compulsory and Mr X can not instruct company for non deduction.

Devendra

Devendra (Querist)

16 February 2011 But section 40(a)(ia) does not apply to salary.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 February 2011 Mr. Devendra ,
you have rightly pointed out that Section 40(a)(ia) is not applicable for salary.

Yet, penalties on non deduction of TDS will be still there.

Devendra

Devendra (Querist)

18 February 2011 Does any section penalise the non deduction of TDS on any payment? If yes, then what are the penalties?

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