04 November 2011
In connection with the above, I have few queries as follows:- 1. Is documentation must for the employee to prove his/her savings details. 2. If not submittted can TDS be calculated on the basis of declaration. 3. If calculated and deducted on the basis of the declaration but proved wrong later,should I be responsible as employer. 4. If an employee leaves the job mid in the year and having a taxable income,should I deduct TDS if not submitted the required documents.
04 November 2011
1 documents are must to prove saving. 2 if documents are not submitted then giving benefit only on declaration is not a good practice. because if there is checking of tax income tax authority can make liable company for default. 3 point 2 clear it. only on declaration benefit is not accepted. 4 if employee didn't provide proof of saving then deduct TDS on basis of calculation of given salary. i.e. if employee left company in Nov calculate salary from april to nov and deduct tds on this basis. when employee will join new company they will add this salary and exemption in their calculation
CAclubindia
