TDS u/s 192

Hi,, i think company is the income payer and tax deductor.... So, as per section, no compulsion can be put on to not to deduct tax.., but let others also answer for the same...

And TDS is not ADVANCE TAX, its on employee if he himself, on his will, pay such amount individually, but company has to deduct TDS...

And if TDS amount is more than the salary of the employee, i think company can fetch whole of the salary and pay TDS to that limit only.... But this sounds impossible, as TDS rates are obviously less than salary., and company has to deduct it from the beggining.. So, this sounds not possible

TDS has to be deducted on salary paid by the employer irrespective of the fact whether employee paid advance tax or doesnt want deduction of TDS.

In your case according to me there is an internal solution which is available with the company. If employees take home is adversly affected with the salary then they can show that employee as a creditor in the books and pay him the amount and in the next year they can recover that amount from the salary of the employee.

But i dont have any idea if my opinion has any problem with legality. If there is an issue please tell and correct me.

Originally posted by : HARIHARA SUBRAMANIAN.S
	A company which is liable to deduct tax at source on salary paid to its employee on average rate basis to the extent of Rs.1,02,000 has deducted only Rs.25,000 so far. The employee is requesting the finance manager not to deduct rest of the tax from his salary and he promises to pay later after the end of financial year. Queries: 1. Is this possible or is it in contravention to the section? 2. What if the employee pays it by way of Advance Tax before financial year. Will that relieve the person responsible for deducting tax? 3. What if the amount to be deducted i.e. Rs.75000 over the next 2 months is more than the salary paid to the concerned employee? Please do respond as soon as possible

Dear Harihara,

1. Your company will be deemed to be in default of the provisions of the act as per section 191, and you could face the provisions of interest u/s 201. You would have tp pay 1% interest per month of default and AO may impose a penalty equal to the amount of TDS not deducted.

2. There appears no provision to avoid TDS on salary by paying advance tax. Tell the employee not to pay tax on his own.

3. Give the employee an advance against salary (not Salary advance) of Rs.75,000/- by depositing TDS with govt and booking employee as a debtor. Recover the money from next year's salaries.

i agree with g.k

i too agree with g.k.............