If in case there is an employee who has deposited his self assessment tax and there is not any additional income tax liability to be paid. in that case employer has not deducted TDS on same, please clarify that whether he is complying the TDS provisions or not?? thanx in advance
Employer is liable to deduct TDS from employees even if employee wishes to pay self-assessment tax. Self-assessment tax is paid when there is a short deduction of TDS by the employer. Failing to deduct TDS, the employer may receive a notice from IT dept for short deduction.
Dear Gaurav
As per latest amended Sec.201, w.e.f. 01.07.2012, the payer shall not be deemed to be an assessee-in-default if the resident receipient has included such income in the ITR u/s 139 and the receipient has paid tax on such income. The payer will have to submit a certificate in Form.26A to this effect from a CA.
Regards
Ajay
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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