18 March 2013
Does the liability of the employer to deduct TDS (on salaries) still exists, if the employee pays advance tax on salary income & the balance tax payable by employee is zero ?
In other words, if the employee has paid advance tax on his own & if the employer does not deduct TDS on his salary, will the salary expenditure of employer be disallowed U/s 40(a)(ia) ?
18 March 2013
the thing is employer should issue form 16 to employee... in that employer should clearly give details of advance tax paid and balance no taxes payable, so employer liablity doesnt exist... expenses will not be disallowed... because section 192 indirectly says that all tax liablity of employee is charged on employer only (i mean at least salary income)
18 March 2013
But in Form 16 there is no specific line item for giving details of advance tax paid. Is is permissiable to customise Form 16 according to the needs of the employer.
18 March 2013
no, form 16 we can't generate. its generate online from TDSCPC. so we wont allowed to modify it. and there is no scope of adding. if we go by law, then no liablity on employer to deduct TDS if advance taxes paid by employee.
19 March 2013
Central Board of Direct Taxes (CBDT) via circular No 3/2011 dated 13-5-2011 had made it compulsory for the assessees to issue Form 16A generated through TIN website for TDS deducted on or after 1-4-2011. Now CBDT via circular No.01/2012 dated 9-4-12 has made it compulsory for all types of Deductors including Government deductors who deposit TDS in Central Government account through book entry, to issue TDS certificates generated online through TIN website for the TDS deducted on or after 1-4-2012.
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