To Every One ,
I want know one thing i the Employer make calculation on the Employee salary and deduct TDS from thier salary , but if employer make mistake to calculation of the Taxable income of Particular Employee and deducted less TDS what can do the Employer now , Can make payment of remaining TDS with the Interest , or it is accepteable if the Employee make payment at the time of filing of his personal IT return?
yes..
To deduct TDS correct & pay is liability of employer. But if employer fails to deduct then it is the employee who has to pay the tax on his income.
Thanks to give information ,
But are there any penalty charg on the employer for this mistake ?
TDS on salaries in case not deducted properly by the employer, the employee has to pay the remaining TDS before March . Otherwise it can be paid along with interest as self assesment tax U/s 140a ....
Dear Friends!
Any tax payment made directly by employee in their PAN by way of advance tax or self assessment tax can not be equated to TDS and would not discharge the employer of his responsibi;lity to make TDS.
Short deduction on the part of employee would provide scope for levy of the same amount as a demand on the employer under 201.
If it can be later on proved that the employee has discharged his liability to tax, even then interest under 201(1A) needs to be paid.
Therefore, wherever mistakes identified before the filing of the e-TDS retruns, it would always be advantageous to set right the problem in the TDS angle and then issue the relevant TDS certificate to the deductee.
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O P Bagla & Co LLP
New Delhi
CA Inter
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Shaswat initial support private limited
Ahmedabad
CS
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