tax deduction reg.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2011 Sir,
If employee wants his leave encashment during the year that is come under taxable income so is that compulsory that what ever
tax liability come on that leave encashment portion should be deducted from the that bill and not from his regular salary. whether it is must to deduct the tax from the concerned bill amount.

If I could not deduct the tax from his leave encashment bill and deduct all his tax liability from regular salary bill, it
is punishable ?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 April 2011 You can deduct the same from the regular salary. Leave encashment will be added to salary & your overall tax deduction should not be less than the total tax payable on the whole salary (including the leave encashment)