Query - tds on salary and penalty for non payment of adv.tax

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Anil (Querist)
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03 July 2012 Is penlty leviable on SALARIED person for non payment of advance tax in time as per slabs prescribed?

(Normally TDS is deducted by company evenly throught the year. But due to oversight / negligence company may deduct the whole of TDS amount out of employee's salary during the month of March and remitt it to Department. Hence this question.)

Kindly quote section / rules whenever possible.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 July 2012 If the whole amount of tax has been deducted by way of TDS, NO interest shall be levied on the employee, even though TDS may have been deducted in the month of March.

Rajesh

Rajesh (Expert)
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03 July 2012 Section 234B the tax has to be reduced by the amount of TDS for the purpose of calculation of interest. The only issue here is that TDS has to deducted as per the provisions of Chapter XVII. But normally there is no problem of penalty on salaried class. The employee cannot be held liable for the default committed by the employer.

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Anil

Anil (Querist)
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03 July 2012 Dear Siddartha Sir and Rajesh Sir,

I thank you both. Would it be possible for any of you to quote relevant section of Income Tax which says penalty on salaried employee cannot be levied in above mentioned case?

In above case, assuming total TDS is deducted in march and paid to department, is any penalty leviable on the company? If yes, which section of IT Act deals with the same.