TDS ON UNPAID SALARY

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RAKESH TRIKHA

ASSOCIATE PROFESSOR

42 Points Posted on 18 March 2011

I am working as professor in government aided college. my total salary is around 10,000,00( 10 lakhs) .I have been paid salary up to month of September 2010 . and TDS deducted till date is Rs. 65000/- and total tax is around 1,25,600/-. the college is planning to pay salary for the month of October and November 2010 before 31st march 2011 with a plan to deduct total remaining INCOME TAX of around Rs. 60000/- from these TWO salaries for the month of October and November 2010 ( arrears around rs. 40000/- are also pending which are included in total income.)

Please Clarify As per Income Tax Act

1. Can an employer deduct complete INCOME tax in 8 salaries ( specially as they are doing in oct and Nov. salaries)?

2. Can an employer Show the amount not paid in F-16-A.?

3. Please suggest remedies and Tell me about the Laws w.r.t. to This.

Replies (2)

Athmaram

Articled Assistant

170 Points Posted on 19 March 2011

Dear Sir

Arrears of Salary has a Relief u/s 89 (1) of the Income Tax Act.

As per Circular : No. 331 [F. No. 174/102/79-IT(A-I)], dated 22-3-1982.

Please Find the Attachment.

The employer can deduct TDS in any month of Salary there is no restriction to this regards.

Thanks & Regards

Ram.

RAKESH TRIKHA

ASSOCIATE PROFESSOR

42 Points Posted on 19 March 2011

Thank you for reply. But think this circular doesnot apply to us as the section /Rule 21-a is applicable when you receive salar for moe than 12 months in a calendar year in or case we r receiving salary for 6-8 months in a year i.e. we are underpaid by e mployer and over and above salary received in actual further reduced by deducting more than 50% of salary as Income TAX.

Please Guide