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Tax paid by employer on behalf of employee


mandar (senior accounts & tax executive)     04 October 2013

mandar
senior accounts & tax executive 
 28 points

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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

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@VaibhavJ (Believe!! Live your dreams!)     04 October 2013

@VaibhavJ
Believe!! Live your dreams! 
 4738 likes  33431 points

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Hi

 

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!!

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Mihir (Wealth Manager)     04 October 2013

Mihir
Wealth Manager 
 620 likes  5278 points

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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. 


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