Salary certificate

This query is : Open

Saranjha (Querist)
Follow

29 May 2009 Dear All,

Can a company issue a salary certificate with tax remaining payable? Are there any consequences if issued?

CA PARVEEN GAMBHIR

CA PARVEEN GAMBHIR (Expert)
Follow

30 May 2009 There is no bar in doing so.

Non deduction and payment of salary TDS on time will attract its own consequences as provided in the IT Act, like disallowance, interest, penalty, etc.

Saranjha

Saranjha (Querist)
Follow

30 May 2009 It is a newly incorporated company and voluntary PF was applied for all the employees. TDS was deducted and paid (Quarterly returns also filed) after giving 80C deductions for the employees. But due to some problems, the PF dept refused to give voluntary PF to the company and so the PF amount which was deducted earlier was refunded to the employees hence increasing thier taxable income. As the department refused near the end of the year(31st march), the balance tax could not be deducted hence resulting in tax payable for the employee.

In this case "Can a company issue a salary certificate with tax remaining payable? Are there any consequences if issued?"

Upgrade to CAclubindia Pro. Subscribe Now!