Responsibility of employer if tds is not deducted

This query is : Resolved

kundan choudhary (Querist)
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24 January 2014 An employee is transferred from one unit to another unit of a company. both units have different TAN. No tax was deducted from his salary in first unit. However in 2nd unit tax was calculated considering his salary income from 1st unit and the tax was deducted and deposited.

Now the first unit has received intimation u/s 200A for short deduction of tax.

Is the 1st unit liable to deposit tax and/or penalty even if total tax on employee's total income has been deposited to Govt. by the 2nd unit?

@VaibhavJ

@VaibhavJ (Expert)
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25 January 2014 HI

No if actual tax liability is met by 2nd unit no Int / Penalty to be paid.

While filing E-TDS return you should show pro-rata income less all investments so that liability will be NIL for 1st unit.

Thx