Income tax of pending salary

D/Sir,

    If an employee's salary is pending for 6-7 months upto March & monthly salary is approx.25K. Plz.tell me who will responsible to pay Income Tax : Employee or Employer ?

Thanks

Replies (3)

2 Aspects looking into this question :

U/s. 192 TDS is to be deducted only at the time of Payment

Since payment has not been received to the assessee then TDS will be 0.

Secondly when it comes to filing of individual returns the duty to pay tax should be only on the employee and not on the employer. 

 

my similar query- what if pending salary as above is earned and mentioned in tds certificate but there are 99% chances that employer wont pay it. Police complaint made by employee but no recovery chances.

The Company, even if not in a position to pay salary, cannot ignore its accounting responsibility. The company has to book the expenses, in your case, your salary, and deposit TDS , if any, in the bank, and then issue TDS certificate after filing e-TDS returns.

 

You must ask your company to book your salary expenses, as payable to you, and deduct TDS and deposit the same in the bank, file e-TDS return, and obtain TDS certificate form 16 from the company. Even if you do not receive the salary in the current FY, at least a liability has been created in the books of accounts of the company,  - salary payable to you.

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