Please Help: tds on salary
Posted Date : 23-Apr-2012 , 03:34:36 pm | Posted By sourabh mehra
A Co. has an employee on which salary tds of rs. 5000 (which should be divided by no. of months and every month 417 rs. )was required to be deducted in the whole year, but tds was not deducted from april-feb, now co. can deduct tds of rs. 5000 in the last month?
whether co. is liable to pay any interest or penalty for not deducting tds on the salary during the year?
whether co. is liable to pay any interest or penalty for not deducting tds on the salary during the year?
Category : Income Tax | Answers : 3 | Comments : 1 | Hits : 387
Answers
Answer By: CA VIPIN GARG
Dear Sourabh, Yes the company can book and pay the whole amount of TDS (i.e. Rs. 5000/-) in the month of March and there will be no interest penalty will come on the company in that case.
I can explain the same with a practical example which every organisation can face : -
Suppose a employee declared that he will save Rs. 100000 and will provide u the proofs of the same in the end but in actual due to any reason he was not able invest and his deduction u/s 80c will not be available then the company has to deduct the whole amount in the month of March and we can refer numerous of such type of cases which department also agrees.
Hope you got the answer you were looking for, have a nice day.......
I can explain the same with a practical example which every organisation can face : -
Suppose a employee declared that he will save Rs. 100000 and will provide u the proofs of the same in the end but in actual due to any reason he was not able invest and his deduction u/s 80c will not be available then the company has to deduct the whole amount in the month of March and we can refer numerous of such type of cases which department also agrees.
Hope you got the answer you were looking for, have a nice day.......
Answer By: Rishabh Upadhyay
no, in this case there will be no interest charges, provided that the accumulative salary payments to employee for the first 11 months does not exceed his minimum taxable slab after adjustment of investment and other deductions
Answer By: CA. SURESH Kr. AGARWAL
Dear Company can deduct TDS in the last month of the year also, hence there will be no Interest or penalty.
Comments
Gaurav Agarwal
24-Apr-2012 , 03:19:57 pmYes, the company can rightfully deduct Whole amount of TDS in the M/o March & no interest or penalty will be applicable on the company. For further details u can also refer circular No.696 dated 16-12-1994. Hope u will find ur query to get resolved.