Advance tax liability for income on salaried income...

This query is : Resolved

SIDDAROODHA HIREMATH (Querist)
Follow

30 December 2011 RESPECTED SIR...

ONE OF MY FRIEND IS WORKING AS PRINCIPAL IN AN EDUCATION INSTITUTION...&HIS MONTHLY PAYMENT IS RS..50,000.00 & OTHER PERQUISITES LIKE RFA,VEHICLE NEAR ABOUT 10,000.00...WHILE PAYMENT THE EMPLOYER HAS NOT DEDUCTED THE TDS ON SALARY....
MY QUERY IS THAT ..

1.WHETHER HE IS LIABLE TO PAY THE ADVANCE TAX ON HIS SALARY INCOME…

2.IF TDS IS NOT WHETHER THERE IS ANY LIABILITY ON EMPLOYEE…

3.WHETHER AN EMPLOYEE CAN PAY THE TAX AT THE TIME OF FILLING THE RETURN (LAST DATE 31.07.)

4.WHAT ABOUT INTEREST PART….

5. AS PER SEC 191 OF IT ACT 1961…. WHETHER HE CAN ESCAPE FROM TAX LIABILITY & EMPLOYER CAN TREATED AS DEEMED ASSESSEE….

MOST URGENT PLS REPLY IMMEDIATELY..

S B HIRENMATH
AUDIT ASSISTANT
MATHAPATI & CO
CHARTERED ACCOUNTANTS
BELGAUM

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

31 December 2011 The primary and ultimate liability to pay tax is that of the assessee.
.
Employer can be treated as an assessee in default. He can be made liable to pay tax, Interest and penalty.
.
In case the employer does not deduct Tax at source, the employee has to pay tax. If Adevance tax has been duly paid by him, he saves interest leviable U/s 234A, 234B and 234C, where ever applicable.
.
Your Principal Friend may be treated as Principal Officer of the company and may be made responsible for non deduction of TDS. If he is really a principal, he must be in a position to persuade his employer to follow the principles of taxation.

jagadish hiremath

jagadish hiremath (Expert)
Follow

01 January 2012 It is obligation on the part to the Employer to make TDS on salaried taxable income of the employee u/s 192.
If the Employer not deducted the tax from employee, then the employee has to pay advance income tax u/s208. For this you to prepare tentative Computation of income of the assessee and pay advance income tax as mentioned under section 208.
Where the employee has failed to pay advance income tax for that previous year, interest has to calculated on tax liability
u/s.234B and 234C if the return has been filed within due date. In case the return has not been filed within due date (31.07) then you have to compute Interest u/s 234A, 234B And 234C. up to the date of actual filing. The employee can not escape from direct payment of tax u/s.191.

Upgrade to CAclubindia Pro. Subscribe Now!

DIVYA MITTAL

DIVYA MITTAL (Expert)
Follow

06 January 2012 1. Salaried people are normally not required to pay any advance tax. However, in case the tax liability estimated for the year is more than the TDS, then such employees shall be liable to pay advance tax. If advance tax liability is Rs. 10000/- or more during the financial year.

2. IF TDS IS NOT WHETHER THERE IS ANY LIABILITY ON EMPLOYEE?
Yes, Liability is on the employees.

3. WHETHER AN EMPLOYEE CAN PAY THE TAX AT THE TIME OF FILLING THE RETURN (LAST DATE 31.07.)
Yes, He is liable to pay the tax before filing the return.

4. WHAT ABOUT INTEREST PART.?
Sec 234B & 234 C is levied.
Sec 234B- Interest for short payment/ Non - payment of Advance Tax
Sec 234C- Interest for Deferment of Advance Tax.

5. AS PER SEC 191 OF IT ACT 1961? WHETHER HE CAN ESCAPE FROM TAX LIABILITY & EMPLOYER CAN
TREATED AS DEEMED ASSESSEE.

Employees shall be liable to pay tax.