Can an employee pay tax and inform the employer

TDS / TCS 810 views 4 replies

Guest

My friend working for a 'BIG' indian had bitter experience last year. Keeping that in view he wants to pay the Income Tax on his own through challan and inform his employer- rather than the employer deducting the TDS

- paying / not paying the amount inspite of issuing Form 16

-filing imporperly / not filing e-tds return.

If he pays on his own both the above 2 possible errors and mind consuming exercises can be avoided.

But his employer is not agreeing to the above proposal.

He says that he is under obligation to deduct hence he wants to deduct.

kindly advise whether there are any legal remedies to the employee under these circumstances.

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Posted on 19 February 2012

emplouyer will do his duty by deducting tax and paying the same to Incometax, and would issue form 16 for claim.

if any excess taxable amount is deducted/payable then the employee can file his return by self, but TDS can not be avoided.

if the employee want to get nil / lower tds deduction , then he has to obtain permission from commissioner of his own circle, for non decuction / lower dedcuction.

adamya

Consultant

50 Points Posted on 21 February 2012

if you have documenets for deduction, you can claim the benefit

even if deductor is in default.

you can talk to employer and pay complete tax in full and submit the challan to him, if it make sence to you

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Posted on 21 February 2012

Mr.Adamya

Please refer to Rule 37BA of Income-tax Rules, 1962 - Credit for tax deducted at source for the purpose of Section 199.

Simply holding or possessing documents for deduction of tax at source (TDS Certificates) does not entail any person to claim creidt for the TDS. Even the claim is made it will not be entertained (no credit for TDS will be given), unless the condtions laid down in Rule 37BA are fulfilled.

Best Wisehs

Sathikonda