Filling return is compulsory

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2014
MANY EMPLOYEES DO NOT FILE INCOME TAX RETURN EVEN THERE GROSS SALRY IS ABOVE RS 2,00,000/-(Before deduction under Sec 80c to 80 U).

What is the responsibility of Employer to deduct TDS. In which section of INCOME TAX ACT the responsibility of Employer is accountble or violation of law against employer even if his income is more than Rs 200000/- but he saves u/s 80c and make the taxable income is below Rs 2.00 lakhs. Because some employee says that we will save but do not produce documents till the end of FY and accordingly employer do not deduct the TDS. Is the employer is liable to be penalised.

AVTAR SINGH

AVTAR SINGH (Expert)
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17 January 2014 The employer has to deduct TDS on the basis of documents related to investment u/s 80c. If TDS is not deducted or lesser amount is deducted then the employer is responsible. And the TDS alongwith interest can be recovered from the employer. Further the expense will not be allowed and this will result in additional income tax liability.