12 June 2009
if a salaried employee is getting salary more than the exemption limit than the employer of that employee is liable to deduct tax at source for that year .generally tax should be deducted every month from the account of employee.my querry is that if the employer decides to deduct tax of the employee from july or aug or sep onwards for the whole year,than is he liable to pay interest as tax of every month is due on 7th of succeeding months and the tds has not been deducted for the month of april,may ,june.No liability for tds has been created for the month of april,may,june
12 June 2009
Logically as per tds chapter employer needs to follow the provisions given in sec 192B. In ready reckoner of Taxmaans they have given the rate & tax amount to be deducted per month.
But employer can do so. He just needs to take care of advance tax provisions. Let say for eg. if the tax liability of employee is 50K then tax deducted in aug should be at least equal to 30% of tax liability, for nov it should be equal to 60% of tax liability less tax deducted earlier & finally in feb 100% of tax should be deducted less tax deducted earlier.
In this advance tax provision does not match then employee needs to pay the interest amount.
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