Salary without tds entire disallowed?

4381 views 5 replies

Hi, 

If a person pays salary to employees but failed to deduct TDS as per s.192, is the full annual salary disallowed as expense? 

Is there any step that one can take to make it allowable? 

Please suggest the same. 

Thank you. 

Replies (5)
TDS on Salary. At the time of payment of salary by the employer to the employee, the employer is also required to mandatorily deduct TDS on Salary under Section 192 and the balance amount after deduction of TDS is payable to the employee. .

Thank you,

I am asking for partnership firm, We have 4 employees but did not deduct TDS as we are only new firm and did not know about provisions. 
Is any way possible to get the salary allowed as expense? 

Apply for TAN no and submit the TDS and claim the expenses
only 30% of salary is disallowed u/s 40(a)(ia) while making payment to resident if paid to non resident then 100% disallowed u/s 40(a)(iii).
Best way for escaping from above disallowance is
If payee is resident-
1. U don't deduct TDS but employee is to file compulsory return if required & pay also tax on his income
2. deduct & Pay full TDS before 30th Sep 18 for FY 17-18
Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident—

  (i) has furnished his return of income under section 139;

 (ii) has taken into account such sum for computing income in such return of income; and

(iii) has paid the tax due on the income declared by him in such return of income,

and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register