TDS - on salaries

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praveen (Querist)
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01 July 2008 Hi,

we did not deduct any TDS for the financial year 2007-2008 on salaries.

can we deduct and pay TDS now?
if we pay now can we issue TDS certificates for employees for file the Returns
if we issue TDS certificate we have to mention today date as payment date, will there be anyproblem while filing the return for emplooyes?

please advise

regards,
praveen

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)
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01 July 2008 You did not deduct TDS from the salary during the year under review, So if the employer paythe TDS now it wll be treated as income in the hands of the employee under salary.

The question of deducting TDS from the current salary will amount to YDS for the current year. Even if you deduct both TDS now, TDS pertaining to last year will be salary income for the employee and and TDS to be recalculated on this income and then deduct TDS.

For employees if thier income falls under taxable income then they can pay self assessment tax with simple interest @1.5%P.M.

Bu as an employer who was liable to deduct TDS is in the wrong side of the income tax law and would be penalised for maximum of 300% of such TDS and may initiate procecution against the directors of the company.

You can pay the TDS on behalf of the employees and provide them with the TDS certificates of the period
f.Y 07-08. Showing the payment date on the TDS certificate has no choice as your company is in default for not deducting the TDS in time coupled with late payment etc. You have to face the music when an enqiry comes.

praveen

praveen (Querist)
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01 July 2008 Hi

thanq for your suggetion

even we did not pay salary also last year

regards
praveen

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Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)
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01 July 2008 yes! If your company's profit and loss account is debited with salaries of such employees, whose income is liable to be subjected to TDS.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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05 July 2008 EMPLOYER:
LIBLE FOR TDS WHEN SALARY PAID OR CREDITED
HAS TO DEDUCT AND PAY.........IF DELAYED PAYEMNT MADE ......LIABLE FOR INTEREST AND PENALTIES
CAN ISSUE TDS CERTIFICATE FOR A YEAR......EVEN IF TDS PAID LATE

EMPLOYEE

CAN CLAIM TDS AS PER TDS CERTIFCATE EVEN IF TDS PAID LATE BY EMPLOYER.........