A Company fails to pay salaries to the employees within a specific accounting year but books the salary liability in its books.
Should the Company deposit the TDS on unpaid salaries even though it has not been deducted from the employees so far ?
If not, should it issue Form 16 on the basis of TDS on paid salaries only ?
If yes, What the employee will do ? Should he/she deposit the tax on unpaid salaries on his own ?
If the Company deposits only TDS on paid salaries and issue Form 16 accordingly, in case of Tax Audit there will be a difference between salary amount considered in Form 24Q and salary amount booked in accounts. Can it create problem ?
What are the way outs as the Company is really not in a position to disburse salaries in time ?
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