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Tax paid by employer on behalf of employee

mandar (senior accounts & tax executive)     04 October 2013

senior accounts & tax executive 
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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.




Mandar Hingne


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

Believe!! Live your dreams! 
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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.




Mihir (Wealth Manager)     04 October 2013

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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