TDS ON SALARY

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2010 If the Employer fails to make TDS from SAlary, whether the Employee liable to pay Interest (upon Assessment by the A.O.) u/s.234A, 234B & 234C. Is it correct?
My contention is that Employer shall be held responsible for TDS. If the Employee voluntarily pays the Tax under Self=Asst.Tax whilst filing the ITR, no Interest shall be leviable, if at all, if there is any dealy in filing, only 234C is to be levied.
PLEASE CLARIFY CATEGORICALLY SPECIFICALLY

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

07 November 2010 Primary responsibility to pay taxes is of the assessee. Employee is always having the knowledge that payments which are being received by him are not subjected to TDS. In such situations he should either request the employer to deduct tax or he should directly pay the advance tax.
Employers are beaten in a harsh way. In case they are not deducting TDS on any salary payments, where ever applicable, entire expenditure claimed by them can be disallowed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

07 November 2010 There is no provision in the act to substantiate your contention. However, if the employer has only failed to remit the TDS to government, the employee can rely on the Bombay high court decision in Yashpal Sahni Vs. ACIT (2007) 293 ITR 539 wherein the court said that TDS recovery must be resorted to from the employer and revenue cannot recover from employee.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)
Follow

07 November 2010 Hi,

Deduction of tds from salary is a responsibility of the employer. In case employer has failed to discharge his responsibility ,employee has to pay taxes with interest for late payment of taxes. As per my knowledge, employee cann't say that it is fault of employer. If employee knew that tds has not been deducted from his salary, he could have been paid himself.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2010 yes, Employee is bound to pay Tax but 234A and 234B cannot be levied, ok.