TAX QUERY ON SALARY : Experts, please help..

Tax planning 969 views 5 replies

CA Hardik Vyas

Practicing Chartered Accountant

130 Points Posted on 23 September 2010

Hi..

My Client is a Govt. Emp.

He Wants that his entire TDS may be deducted at a time..i.e. in 1st Qtr by his employer.

But his employer rejects his request to deduct whole TDS in 1st Qtr.

So. My Question is , whether my client compell his employer to deduct whole TDS at a time or not? If yes, kindly quote section under which he can do so.. Or if not, My client wants to relieve from the hurdles of TDS, so is there any other way to make directly payment fo Govt. by way of Adv. payment of self assessment Tax?

Sir,

I have to answer my client, so help me by quoting detailed provisions of I.Tax in this regard.

waiting for your responses...

Replies (5)

CA.G.Muguntha Narayanan

Internal Auditor at TVS Motors

2195 Points Posted on 23 September 2010

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

vkbothra

Learning

690 Points Posted on 23 September 2010

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.

;)

Santosh

Student ( Final Year - New )

348 Points Posted on 23 September 2010

Originally posted by : CA.G.Muguntha Narayanan
	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

CA SHANKY KANSAL

Doing Job

35 Points Posted on 27 December 2010

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.