Non deduction of tds
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 May 2014
suppose an assessee is a salaried person earning about 5.00 lakhs, don't want his employer to deduct his TDS & instead of that assessee is ready to pay his tax liability by paying advance tax challan. can he do that?? if yes then how?. plz reply along with reference.
25 May 2014
No, it is the employers responsibility to deduct TDS on the salary being paid; that responsibility cannot be shifted.
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 May 2014
main problem is this that employee is working in municipal corp. (local authority), as govt. dept. works slowly (w.r.t TDS payment & filing return) assessee has received notice from IT Dept. many times as TDS claimed by assessee in his IT return does not match with 26AS. assessee is tired of it. is their any option available to him to avoid it???
04 August 2024
Yes, it is possible for a salaried individual to manage their tax payments themselves and avoid TDS deductions by the employer, but this involves specific steps and considerations. Here's how it can be done:
### 1. **Inform the Employer to Not Deduct TDS:**
The employee can request their employer to not deduct TDS by submitting a written request. However, the employer is not obligated to comply with this request if the employee's taxable income exceeds the basic exemption limit and TDS is mandated.
### 2. **Paying Advance Tax Directly:**
If the employer agrees not to deduct TDS, the employee must ensure to pay the entire tax liability themselves through advance tax payments. Here's how:
#### **Steps to Pay Advance Tax:**
1. **Calculate Tax Liability**: Determine the total tax liability for the financial year. This includes calculating income tax on the salary and any other sources of income.
2. **Pay Advance Tax**:
- **Challan Payment**: Use Form 280 to pay advance tax. The challan can be paid online through the [e-payment portal of the Income Tax Department](https://onlineservices.tin.egov-nsdl.com/etaxnew/).
- **Ensure Timely Payment**: Advance tax should be paid in four installments as follows:
- 15% by 15th June
- 45% (cumulative) by 15th September
- 75% (cumulative) by 15th December
- 100% by 15th March
3. **Keep Proof of Payment**: Ensure to keep the receipts or acknowledgments of the advance tax payments.
4. **File Income Tax Return**: File your return accurately by declaring the advance tax paid. Use [e-filing portal](https://www.incometax.gov.in/iec/foportal/) to file the return.
### 3. **Handling Discrepancies with Form 26AS:**
If the employee has received notices due to discrepancies between TDS claimed in the return and what is reflected in Form 26AS, the following actions can be taken:
1. **Reconcile Form 26AS**: Check Form 26AS on the [TRACES website](https://www.tdscpc.gov.in/app/login.xhtml) to ensure all TDS entries are correctly recorded.
2. **Request Correction from Employer**:
- **Submit Form 15G/15H**: If the employee's income is below the taxable limit and the employer still deducted TDS, submit Form 15G (if below the taxable limit) or Form 15H (if a senior citizen) to the employer.
- **Follow Up**: Follow up with the employer to correct TDS entries if they were wrongly reported.
3. **Submit a Revised Return**: If there is a mismatch and TDS entries need correction, file a revised return to reflect accurate details.
4. **Contact Income Tax Department**: If discrepancies persist, contact the local Income Tax office or the CPC (Centralized Processing Centre) for assistance. Provide proof of advance tax payments and explain the issue.
### **References:**
1. **Income Tax Act, Section 207**: Deals with advance tax payments.
2. **Income Tax Act, Section 234B**: Specifies interest for default in payment of advance tax.
3. **Income Tax Rules, Rule 119A**: Provides details about advance tax payments.
### Summary:
- An employee can request not to have TDS deducted and instead pay the tax through advance tax payments.
- Proper calculation and timely payment of advance tax are crucial.
- Any mismatch in Form 26AS should be reconciled, and necessary corrections should be made either through the employer or by filing a revised return.
For precise and updated guidance, consulting a tax professional or financial advisor is always advisable.
### 1. **Inform the Employer to Not Deduct TDS:**
The employee can request their employer to not deduct TDS by submitting a written request. However, the employer is not obligated to comply with this request if the employee's taxable income exceeds the basic exemption limit and TDS is mandated.
### 2. **Paying Advance Tax Directly:**
If the employer agrees not to deduct TDS, the employee must ensure to pay the entire tax liability themselves through advance tax payments. Here's how:
#### **Steps to Pay Advance Tax:**
1. **Calculate Tax Liability**: Determine the total tax liability for the financial year. This includes calculating income tax on the salary and any other sources of income.
2. **Pay Advance Tax**:
- **Challan Payment**: Use Form 280 to pay advance tax. The challan can be paid online through the [e-payment portal of the Income Tax Department](https://onlineservices.tin.egov-nsdl.com/etaxnew/).
- **Ensure Timely Payment**: Advance tax should be paid in four installments as follows:
- 15% by 15th June
- 45% (cumulative) by 15th September
- 75% (cumulative) by 15th December
- 100% by 15th March
3. **Keep Proof of Payment**: Ensure to keep the receipts or acknowledgments of the advance tax payments.
4. **File Income Tax Return**: File your return accurately by declaring the advance tax paid. Use [e-filing portal](https://www.incometax.gov.in/iec/foportal/) to file the return.
### 3. **Handling Discrepancies with Form 26AS:**
If the employee has received notices due to discrepancies between TDS claimed in the return and what is reflected in Form 26AS, the following actions can be taken:
1. **Reconcile Form 26AS**: Check Form 26AS on the [TRACES website](https://www.tdscpc.gov.in/app/login.xhtml) to ensure all TDS entries are correctly recorded.
2. **Request Correction from Employer**:
- **Submit Form 15G/15H**: If the employee's income is below the taxable limit and the employer still deducted TDS, submit Form 15G (if below the taxable limit) or Form 15H (if a senior citizen) to the employer.
- **Follow Up**: Follow up with the employer to correct TDS entries if they were wrongly reported.
3. **Submit a Revised Return**: If there is a mismatch and TDS entries need correction, file a revised return to reflect accurate details.
4. **Contact Income Tax Department**: If discrepancies persist, contact the local Income Tax office or the CPC (Centralized Processing Centre) for assistance. Provide proof of advance tax payments and explain the issue.
### **References:**
1. **Income Tax Act, Section 207**: Deals with advance tax payments.
2. **Income Tax Act, Section 234B**: Specifies interest for default in payment of advance tax.
3. **Income Tax Rules, Rule 119A**: Provides details about advance tax payments.
### Summary:
- An employee can request not to have TDS deducted and instead pay the tax through advance tax payments.
- Proper calculation and timely payment of advance tax are crucial.
- Any mismatch in Form 26AS should be reconciled, and necessary corrections should be made either through the employer or by filing a revised return.
For precise and updated guidance, consulting a tax professional or financial advisor is always advisable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
