Hello All,
Background:
One of our client is a very small firm. They have 3 employees and they do not do TDS on Salary as the overall salary payout for each employee is around 2lakhs per year. In May of 2019, they hired a new employee for special role. The employee left the organization on 31st of Dec 2019. The final settlement of his salary was done in Jan 2020, at that point of time, we pointed out that they need to have done TDS as the overall salary payment is around 5.5 lakhs, and hence they did TDS before making the final settlement payment to employee in Jan 2020.
Now the question is, can we just file Salary TDS for Q4 on the total salary paid during the year and report the TDS made in Jan 2020? OR, Do we need to file TDS for Q2 and Q3 as well for this employee showing nil TDS?
Please advice the best way to proceed.
Thank you.
CAclubindia
