consequences of non deduction on salary

A employee work for 6 months and then leave the company , his salary was 25000 PM...we forgot to deduct tds on his salary ...what are the possible consequences for non deduction??
Replies (2)

U/s 192 the employer is under statutory obligation to deduct tax at source, but there is no such rule frame for monthly deduction of Tds from salary.

the employer at any time during the previous year has to forecast the salary payable after considering the excempted parts of income, like HRA, Eduction allowance etc., and savings made by the employee during the year.

on the assessed tax after taking into consideration the above matters if the employee in tax brakets, the employer should deduct the tax.

in your case the employee worked for 6 months salary paid by u is Rs.25000/-, total salary paid by you to the employee is Rs.150000/-(i have ignored the excempted portion of income)total payment made by you to the employee, income which will not liable for TDS U/s 192

SINCE THE SALARY DRAWN BY THE ASSESSED EMPLOYEE IS LESS THEN THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX  THEREFORE NO TDS IS TO BE DEDUCTED FROM THE SALARY AMOUNT .

BUT IN A DIFFERENT SCENARIO IF THE AMOUNT EXCEEDS THE EXEMPTION LIMIT AND YOU DO NOT DEDUCT TDS FROM HIS SALARY OR YOU DEDUCT THE TDS AMOUNT BUT DO NOT DEPOSIT THE AMOUNT THEN  THIS EXPENDITURE WILL NEVER BE ALLOWED EVEN IN THE COMING PREVIOUS YEAR WHERE THE TDS AMOUNT IS DEPOSITED.

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