Dear Friends,
My company had paid some Salary advances in April 2010. And in March 2011 we debited the whole amount to salaries since the managment does not want to collect it from the employees. however, no TDS was deducted on such income. Now when I am preparing form 16s, the Tax is payable for some employees. So i have the following question in this scenario:
1. Can I show TDS payable in the form 16? I can deduct the same amount in their July 2011 salaries and the company can bear the interest.
2. Can we ask the employees to pay the tax amount while filing the return? In such a case we can not ensure that all of them have paid and filed their tax returns.
3. Will there be any penalty for short deduction?
4. What will be the remedy in case of employees who have quit our organisation?
Please help me at the earliest.
Thanks in advance.
Bhargavi.
CAclubindia
