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treatment of tax paid by employee in F-16

Tax queries 787 views 3 replies
One of our employees show less investment due to which we deducted less tds from his salary. During form 16 more than 3000/- tax is showing. We intruct him to pay this tax in may-09. He paid it by cash in SBI. Now how we treat this paid tax in Form-16 Its urgent plz Thanx
Replies (3)

Dear Hanif

In form 16 you show only whatever TDS you deducted ....  Whether it is less or more . SO you dont need to show tax paid by him in cash . Employee can show this cash payment in his perosnal return............

You have to show in Form No 16 actual amount to be deducted and tax paid by you balance amount will be shown as still payable.

If a person responsible for deduction of tax fails to deduct appropriate Tax, he is deemed to be assessee in default unless such tax has been directly paid by the receipient himself. In your case, since emplyee has paid the balance amount f Tax, you will not be treated as Assessee in Default. You should take a xerox copy of the challan from employee. If any time you receive query from IT department, you may show the proof of the payment

Thanx Sorabh and Sunil ! If I show tax payable in form 16 What will be legal obligation will occure ?


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