TDS

This query is : Resolved

Ekta Sharma (Querist)
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02 September 2009 Is there any failure on part of the employer,if he has not deducted TDS on the salary amount payable to a director not paid to him as yet? If so what will be the consequences?

chetan soni

chetan soni (Expert)
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02 September 2009 Yes it is failure on the part of employer to deduct the applicable tds. U/s 192 it is duty of employer to deduct & pay the tds to the govt.

Failure to do so will attract following:

01. The same salary expenses will not be allowed as expenses in computation of taxable income & needs to pay higher income tax.
02. Interest needs to be paid on the delayed days
03. Penalty equal to amount of tax deductiable u/s 271C.