26 March 2010
In the FY 2008-09, a pvt. company did not deduct TDS on the salary paid to Director (Whole Time). The amount paid was Rs 5 lakhs to one director and Rs. 8 Lakhs to the other one. Now when the directors are filing their individual return , will they have to pay Interest u/s 234A,234B and 234C? And if they pays their Taxes along with the interest amount, will there be any liability on the company?
26 March 2010
My view and knowledge says that Directors are required to pay Interest u/s 234A,234B and 234C since no TDS is deducted from the sslary so an individual is liable to calculate his tax laibility and is obliged to deposit Advance Tax under the Income Tax provisions.
Also, for the compnay, it is in default and will be penalised for non decucting of TDS. Payment by individuals on their personal return of the interest amount will not affect and have no relevance with the company's liability.
26 March 2010
Expenses (Salary paid to Directors) which was subject to TDS but not deducted on the same, that amount should disallowed in that A.Y. as per IT Act.
In case of directors, my view is same as bove experts.
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