05 July 2012
Dear expert, Hereby I want to discuss a problem with you. Generally salaried person use to invest in Sec.80C in the month of March means last of FY and they dont give any hint about their investment to deductor before the month of March. Suppose an employee whose annual salary in FY 2012-13 is 240000/- and he invests Rs. 40000/- in March 2013, thus his total tax liability get reduced to nil. Then how a deductor should deal in the TDS returns of 1st, 2nd and 3rd quarters. Do the deductor should deduct TDS in first 3 quarters or not? Please advise me urgent.
05 July 2012
Employee should give signed Investment declaration form in the beginning of financial year, and on the basis of declared investment employer should deduct tax every month. In march employee is asked to submit actual investment proofs and on the basis of actual investment made and tax deducted in earlier months employer should deduct balance tax in March.
CAclubindia
