Salary Certificate

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Saranjha (Querist)
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29 May 2009 Dear All,

Can a company issue a salary certificate with tax remaining payable? Are there any consequences if issued?

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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29 May 2009 There shall be no use of issuing salary certificate when tax is remaining payable. If the company has deducted TDS and not depositing, then it can lead to prosecution also. And if the tax has not been even deducted at all, then its a fault in provisions of TDS and may lead to penalties. Otherwise too, when tax not deposited, the employee shall not be able to take tax credit while filing his/her ITR, then what shall be the use of salary certificate to them.

Saranjha

Saranjha (Querist)
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30 May 2009 It is a newly incorporated company and voluntary PF was applied for all the employees. TDS was deducted and paid (Quarterly returns also filed) after giving 80C deductions for the employees. But due to some problems, the PF dept refused to give voluntary PF to the company and so the PF amount which was deducted earlier was refunded to the employees hence increasing thier taxable income. As the department refused near the end of the year(31st march), the balance tax could not be deducted hence resulting in tax payable for the employee.

In this case "Can a company issue a salary certificate with tax remaining payable? Are there any consequences if issued?"

Saranjha

Saranjha (Querist)
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30 May 2009 Please reply at your earliest

Pankaj Jhawar

Pankaj Jhawar (Expert)
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30 May 2009 Please pay the balance TDS amount along with interest and then issue the Form 16

Saranjha

Saranjha (Querist)
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30 May 2009 Does that mean that the company should bear the undeducted TDS and pay the amount?

Are there any consequences if Form 16 is issued with tax remaing payable?

Jiwan singh

Jiwan singh (Expert)
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30 May 2009 Company is liable to deduct TDS & deposit . if any case company could not deduct & deposit than whole amount will be disallow . so company should be deposit tds & than issue form 16

CA.Varun Ranjan

CA.Varun Ranjan (Expert)
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08 July 2009 non deduction would attrect penalty

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