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IT"S URGENT PLS HELP

TDS 696 views 5 replies

Hi guys...

I have a querry...Pls help me on dis...

Under Section 40(a) amount on which TDS is not being deducted is disallowed...Now my querry is that if a company has not deducted TDS on Salary and has issued Form 16 with clearly stating the employees name and Tax Payable by him...

In this case would salary amount be disallowed or it would still qualify for deduction???

Pls help me...its urgent....

Replies (5)

Yes it will be disallowed. As ANY EXPENDITURE includes Salary.

Yes , still it will be disallowed even when Company has declared in Form-16 of  the employee as tax payable.

because the IT department has conferred liability on the Employers to deduct tax from employee's salary a/c if it is payable.so just declaring that tax payable in Form-16 and not deducting tax from employees salary, the very much purpose of TDS shall be defeated.

 

Dear Shashi

Section 40(a)(ia) is an inclusive section. It includes all expenses on which if TDS not deducted would be disallowed and in this section SALARY is no where mentioned than this salary expense will be disallowed under which section????

 

Dear Harshal

As you said Sec40(a) doesnot cover the concept of TDS on salary so the expenditure is not disallowed.As per Sec 192 if the employer doesnot deduct the tax and remitt within the specified limit then the interest should be paid.

 

 

Dear Harshal,

I fully agree with Manasa.  Further to add on

Disallowances of expenses on which TDS not deducted is specifically mentioned as per the provisions of section 40(a)(ia) which does not include Salary.  Accordingly even if TDS is not deducted on Salary, Salary paid will be allowed as an allowable expenditure as there is no specific section asking for disallowance.

 


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