Tds on salary not deposited by employer

TDS 2529 views 5 replies

Anand Banka

Sr Manager F/A

57 Points Joined January 2010

I AM EMPLOYED AND MY EMPLOYERS IS DEDUCTING INCOME TAX ON SALARY AND NOT DEPOSITING THE SAME FOR OTHER EMPLOYEE. MY SALARY IS LIABLE TO TDS AND THE SAME WILL BE DEDUCTED FROM JAN TO MARCH SALARY.

CAN I CALCULATE THE TAX AND DEPOSIT MYSELF AS ADVANCE TAX AND PRODUCE THE CHALLAN TO MY EMPLOYER

IS EMPLOYER IS STILL LIABLE TO DEDUCT TDS ON SALARY IF I PRODUCE THE CHALLAN AND CALCULATION SHEET TO THE EMPLOYER.

CAN EMPLOYER ISSUE FORM 16 TO ME WITHOUT DEDUCTING TDS AS THE SASME IS DEPOSITED BY ME.

PLEASE PROVIDE NOTIFICATION OR INCOME TAX RULE IF ANY REGARDING THIS.

Replies (5)

CA Mitesh Shah

Chartered Accountant

68 Points Joined April 2009

Mr. Banka, liability to deduct tax and deposit the same is of the employer. If does not deposit it, he will become defaulter under income tax and will be liable to be prosecuted under income tax act for interest and penalty. Your right to demand the TDS certificate Form 16 is always with you. Form 16 is the only proof for your tax liability. Further demand salary slips of all 9 months from person inchagre of salary.

Shyam C.Pujara

Student (C.A Final)

177 Points Joined August 2009

Dear Mr. Anand Banka

Similiar problem is faced by many employees in the offfice. Here is answer to your query

Once the TDS has been deducted by the employer from the salary of the employee the responsibility lies on the employer to deposit the same with the government. If it fails to deposit the TDS with government, the income tax authorities cannot proceed against the assessee-employee for recovery of said tax once again. Because once it is established that the tax has been deducted at source from the salary of the employee, the bar under section 205 of the Act comes into operation.

The assessee is treated as "assessee in default" and is liable for

1)Amount of TDS u/s 201 amount

2)For interest @ 18% on TDS amount u/s 201(1A)

3)For creation of charge on all the assets of the company u/s 201(2) till the amount with interest is recovered

4) For penalty u/s 221

5)For imprisonment of the officer in default u/s 276B

hope i understood your query well......

CA D.C. Bansal

Accounts Head

283 Points Joined November 2007

In my opinion company is liable to deduct the tax on your salary. Deposition of tax by you will not relieve the company from its liability to deduct the tax. However, if possible, tax may be deposited in the name of company and a return of TDS for your salary may be filed. Later on when company deposit the TDS for others, it may revise the return

Sanket

!..Live to Give..!

16432 Points Joined December 2010

Because once it is established that the tax has been deducted at source from the salary of the employee (the fact which has not been disputed by the I.T. deptt. and employer company), the bar under section 205 of the Act comes into operation.

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

Originally posted by : !..SaNKeT..!
	Once the TDS has been deducted by the employerfrom the salary of the employee the responsibility lies on the employer to deposit the same with the government. If it fails to deposit the TDS with government, the income tax authorities cannot proceed against the assessee-employee for recovery of said tax once again. Because once it is established that the tax has been deducted at source from the salary of the employee (the fact which has not been disputed by the I.T. deptt. and employer company), the bar under section 205 of the Act comes into operation.