liab to the employer for short deduction at source on salary

TDS 1694 views 6 replies

AS PER INCOME TAX ACT THE COMPANY IS RESPONSIBLE FOR DEDUCTION OF TAX AT SOURCE FROM THE SALARY BEING PAID TO ITS EMPLOYEE, IN CASE THERE HAPPENS TO BE OMMISSION IN DEDUCTION OF TAX BY THE EMPLOYER COMPANY AND THE EMPLOYEE FROM WHOM THE TAX WAS SUPPOSED TO BE DEDUCTED FROM SALARY RETIRES FROM THE SERVICE AND THE DEDUCTOR COMAPANY NOW DOES NOT HAVE ANY OPTION TO RECOVER THE SAME FROM ITS EMPLOYEE THEN AS PER INCOME TAX ACT WHAT RECOURSE IS AVAILABLE WITH THE DEDUCTOR CO. ? WHETHER THE TDS CERTI CAN BE ISSUED SHOWING LOWER DEDUCTION AND THE CO CAN GET RID OF ITS LIABILITY AS THE IT DEPTT SHALL HAVE THE ONLINE DATA TO RECOVER THE TAX?

 

PLS LET ME KNOW THE IMPLICATIONS ON URGENT BASIS.

Replies (6)

Dear Rajendra,

Since, Final settlement has been done with the employee & as u have said that TDS cannot be recovered...

Now only option left with U -

1) If u can convince employee to pay the the amount as Advance tax(or self assessment tax), then by obtaining the copy of that challan u can be saved..Provided u have to pay interest for the defaulting period...

2) If u cannot convince emplyee then u have to deposit the amount of tax along with interest from ur own pocket..Needless to say it won't be allowed as deduction.

No the company does not get rid of the liability.
Agree with mukund, Company has made default in deducting TDS at the time of payment of salary how can it escape further deposit of self assesment tax by assessee, not a good reason for eaacaping from its liability
the company can ger rid of it by two ways 1) collect cash from employee and deposit to cbdt 2) get FORM-15 Singned from Employee

Jo deduct kiya hai usi ka tds certificate issue kar de...koi prob nai hoga...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register