TDS certificates

TDS / TCS 668 views 4 replies

bhargavi

Finance manager

90 Points Posted on 10 July 2011

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.

Replies (4)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3505 Points Posted on 10 July 2011

You cannot generate F16 with tax payable.

Yes, for those who have quit, you are in an uncomfortable position.

You can always ask the employees to pay the balance by themselves as self assessment tax.

There will may or may not be penalty. It depends.

U S Sharma

glidor@gmail.com

21068 Points Posted on 11 July 2011

pay it from out of pocket and regularize.

bhargavi

Finance manager

90 Points Posted on 11 July 2011

Thanks Dipjyothi and Mr.Sharma. But i am still a little confused. can you please elaborate.

Do you mean i should show the income for the year without the advance amount and show the taxpayable as nil. And advise the employees to pay the amount from their end when filing the return. or the company should pay the Tax amou nt with interest without reflecting in form 16 at all.?