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This query is : Resolved

CA.Sonia (Querist)

29 July 2010
1.If an employee has worked in co.x for a month in april and the co.x did not deduct any tax?
Do the employee need to pay interest under u/s.234b,c as the tax to be decduted exceeds Rs.5000?and he will pay the self asseessment tax after considering the total income but my question do he need to pay interest?
I feel it should not be calculated as its not the fault of the employeee?

2.For Co.y he worked from may to march 2010 wherein the tds was deduted for 11 months?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

29 July 2010 The liability to pay advance tax will arise only if the tax payable exceeds Rs. 10,000 and not Rs. 5,000.

Hence if the self assessment tax payable is less than Rs. 10,000/- interest u/s 234B and 234C doesnot arise.

Also there is no liability on Co. Y to deduct tax on employees income from previous organisation as he has not disclosed the same to the new employer.

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