Tax paid by employer on behalf of employee

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mandar

senior accounts & tax executive

22 Points Posted on 04 October 2013

Dear Freinds,

As I have came across one case recently, where a employer have deducted tax at source from their emloyees; which employer didn't deposited and not declared.

Due to financial crises employer couldnot able to pay it at one time (company is at the eve of liquidation); so he decided to pay it one by one OR case to case basis.

Could you please share the way, how can that employee pay the tds for employee ? Can he pay on behalf of employee directly, if Yes then what is procedure ? what will be the taxability and allowability as per IT rules and companies rules.

Kindly advice.

Regards

Mandar Hingne

Replies (2)

@VaibhavJ

Believe!! Live your dreams!

19752 Points Posted on 04 October 2013

From you case it appears that Employer has deducted TDS & did not deposited with govt.

So employer has to remit TDS to govt through net banking. Employer has to deposit TDS along with interest.

Thanks!!

Mihir

Wealth Manager

5358 Points Posted on 04 October 2013

If the employer deducts TDS from employee's salary and does not deposit the same and file TDS return, the employee cannot claim the TDS amount in his/her IT return.

So it is, by law, the liability of the employer to deduct TDS, deposit and also file TDS return in time, failing which will attract interest and/or penalty.