TDS

Dear 

As per Income Tax provision employer responsibal to deduct TDS even his/her employee pay advance tax....nd if ur employer didnt deduct TDS so that is there responsibility.

No there is no need to deduct TDS if you have paid Advance Tax on such income.

Just take declaration from employee regarding investment and self assessment tax paid by him or tds deducted . and show it to your auditor. I think he will not argue more.. after see it.

THANKS FOR YOUR SUGGESTIONS
 

Hitesh T.D.S have to be deducted from your salary whether you have paid any advance tax to yes its your employer responsibility to deduct tax in form of T.D.S from your salary

Dear...

the normal procedure of Advance tax calculation is to deduct any TDS from the amount of tax payable...

So naturally TDS comes first...

therefore TDS is to be made irrespective of the Advance tax payments...

What TDS has to do with advance tax.

TDS has to be deducted, irrespective of the fact, that you have submitted advance tax or not. As subramanya says, for calculating advance tax, you have to deduct TDS, so TDS comes first and has to deducted anyways.

Hi everyone,

First of I would like to say that it is well known ,the TDS is liability of Disbursing Officer(employer) and he cannot escape it since starting months.

But in case of Advance tax being paid by employee at initial months suppose in month of MAY or JUNE for the upcoming all months during that F.Y(i.e not on quarterly format as prescribed but adhoc in starting)and produce the satisfactory documentry evidence to DO,  TDS on that income against which equivalent tax already has been deposited could be skipped.

Because as per my opinion, in this connection the decision of Supreme Court in Hindustan Coca Cola Beverages Ltd 2007 AIR 2930 may be of use, which confirms that –

• The department could not recover once again the tax from the deductor where the tax has already been paid by the recipient. 

• However, this will not alter the liability to charge interest under Section 201 (1A) of the Act till the date of payment of taxes(if it proves to be wrong) or the liability for penalty under Section 271C of the Income-tax Act.

Considering above, it may herculean task for employer to collect details of tax payments by  employee without which the liability of TDS can not be avoided, & in spite of doing this penal consequences may still become unavoidable. So the best option is to deduct tax in the first instance itself.   

So one has to borne in mind that TDS comes first if there is no such documentry evidence to substanciate the tax already deposited to department.

Thank you.

Dear Sir. CA.Ritesh Jain..,

Thanx for the case law.. that really vanishes all the doubts from the mind ...

Regards,

Bhagirath ks