Tds on salary

yes you can deduct the whole in march and should deposit the same by 30th april 2013

Or you can let him go. Ask him to pay self-assessment tax if there is any tax liability in his computation of income.

no.deduct tax else you have to pay interest for non deduction of tax.

As far as Income Tax Act is concerned one can and should deduct the entire TDS in the month of March if not deducted earlier, even if it amounts to 100% of salary for the month of march.

But you must also ensure, if there is any provision, in any of the labour laws restricting such deduction.