Assessee-in-default

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Bhargav (Querist)
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20 January 2011 Dear Sir,

What is the meaning & consequences of
Assessee-in-default?

If employer doesnt deduct or deducts short-tds, then does he become assessee in default?

The salary expense will be allowed as deduction even though no tds made?

Regards,
Bhargav

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 January 2011 If employer doesnt deduct or deducts short-tds, then he become assessee in default.

The salary expense will be allowed as deduction even though no tds made as there is no provision to disallow salary u/s 40(a)(ia)

however if salary paid to non resident and no TDS deducted then salary disallowable.

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