Form 24q

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 Dear Sir,
If any employee has deposited his income tax, computing his gross liability by challan no. 280. In such a case whether the deductor can give benefit of tax deposited by employee. If deductor does not deduct tds by considering tax deposited by employee, then how he can show that effect in form 24Q.
Please advise me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 January 2013 In case of an employer- it is compulsory to deduct tax for him at an average rate of tax, if the income of his employee is taxable. The employer can consider only TDS -if any, deducted on other income of the employee. Such other income is also taken into account for the purpose of TDS on Salary.

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The amount deposited through S A challan by the employee, has to be claimed as refund in his return.
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Hemant Kumar

Hemant Kumar (Expert)
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22 January 2013 Because deductor computing employee liability against salary.

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Hemant Kumar

Hemant Kumar (Expert)
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22 January 2013 Because deductor computing employee liability against salary.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 January 2013 Employees liability to pay tax is always against his salary income. On Salary, Deductor does not pay the TDS amount out of his own pocket except in cartain cases of tax on perquisites.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 Actually in the above case, deductor is a state govt. department and treasury office does not provide them acknowlegement no. of form 24G. Therefore in form 24Q, status of book entry system always come as "provisionaly booked". Hence some unsatisfied employees taking there salary without deduction and they wish to deposit their tax by themself in the month April 2013. In such a case what should deductor do among following -
1. Collect the tax amount from employees in cash and deposit the same on challan No. 281 and mention it in 4th quarter 24Q form.
2. Let the employees to deposit their self assessment tax and consider the same while filing 4th quarter return.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 January 2013 Option 1 is better, however, interest on late deposition and late deduction will be applicable.
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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 Suppose deductor deposits it in ther first week of April 2013 and adjust the whole tds amount against the salary of March 2013, even then whether he would be liable to pay interest or not?

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 January 2013 He will be liable for interest as the amount was supposed to be deposited on 7th of the next month of the payment.
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