TDS on salary

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Dinesh (Querist)
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04 November 2008 I am calculating salary for the month of October since april I have not deducted TDS any of my employee. One of my employees annual taxable salary would be 4,59,000.00 before taking benefit of investment of 1 lac and he assured me that he will invest the same before march. Please let me know when is our liability arise for deduction of TDS on salary & should I consider the investment while he has not invested anything till date.

Vikas Mehta

Vikas Mehta (Expert)
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04 November 2008 Normal corporate pratice suggests that you take a declaration from your employee for the investments and then deduct the TDS after considering the investment.
In the month of march if that employee will not provide the proof of investments then you can dedcut the TDS on the whole amt and issue a TDS certificate (Form 16).