I am working as Dy Manager Finance in a government concern and I am resposible for deducting Tax for the employees. During first nine months based on employees declaration I will deducted the TDS and for remaining three months I will calulate the liability. For some employees TDS will be deducted only during last three months in a financial year. Internal Auditors insist to deduct TDS monthly otherwise company will be liable for interest.
Please clarify me is that correct to deduct TDS during the end of the year.
30 April 2014
If employee is agree for monthly deduction of TDS then only TDS should be deducted. you are calculating liability after nine months on the basis of declaration given by the employee, and deducting TDS on the remaining part is proper policy. Employer is liable to pay interest only if he deduct less TDS then required.
23 May 2014
Its not necessary to deduct tds every month, you may even deduct in last month all together, on the basis of declaration you can defend yourself, but you must take declariton in the startting of the year.
CAclubindia
