TAX QUERY ON SALARY : Experts, please help..

Dear Hardik,

              As per Sec.192 of the Income Tax Act, deduction has to be made by employer on the salary paid to employee. In the given section, there is an exemption for loss from HP only, apart from this, he is entitled for exemptions under sec.10 and chapter VI-A(except 80G). However, exemption is not given to advance tax payments. So he cannot say to the employer that he will pay tax. It is the duty of the company to deduct tax. He can however request the employer to deduct the entire tax in the Ist quarter itself. However, he should not opt for 2nd, 3rd or 4th quarter. if he opts so, he will end up paying interest u/s.234C

Nice reply Dear.

thankx and this is true that, we cannot request to employer to deduct tax in one single quarter. thats why ITD optioned for 4 different quarters. and this decision is made for normal person.

;)

Hi Hardik,

It is clear that employer is liable to deduct TDS u/s 192 but if employee payes the advance tax equivalent to TDS which is need to be deducted by employer along with challan xerox & declaration than it is possible because ther is no loss of revenue to government.

advance TDS can not be deducted by employer unless your salary or wages is not accounted for ...... 

advance TDS forces the employer to keep your wages / salary figures payable UNCHANGED as he has deducted and paid TDS for whole year, 

in case of any non payment period, or termination , the employer will face music if he deducts TDS for whole year.