Taxabllity of Resident employee

Mr. Naidu,

In your case although company is a foreign company then also it has to deduct TDS on Salary u/s 192B. If company has not deducted TDS and salary amount of employee is taxable then employee has to deposite the Tax with interest u/s 234A, 234B, 234C. For ITR section 139(1) will be applicable to him and he has to file ITR with Income Tax Deptt.

As you are talking since 2007 which means F.Y. ending March31, 2008. Then Section 139(4) Belated Retun will be applicable and he should file his return before March31, 2010 and there can be a penalty also u/s 271F upto Rs. 5,000 depending upon A.O.

For company this salary amount will not be allowed as expense u/s 40(a)

Dear Wanishree........

According to me..........

Since he is a Resident of India and income received in India........He is required to file his IT return......

For F.Y. 07-08 - 31.03.2010 is the last date.....So file ur return after payment of tax.....

You are right Mr. Nayak, employee may opt for Advance Tax but what i think no foreign company will forget to deduct TDS on salary amount because of Section 40(a) as on this expense also they have to pay tax. So practically i dont think any company will forget this.