Tds-salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 if the employees tds on salary for the year is estimated which less than 10,000
do i need to deduct the tds every month proportnately or we can deduct at end of the year all together
pl. explain.

Kumar Babu.G

Kumar Babu.G (Expert)
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26 April 2012 TDS on Salaries has to be deducted proportionately only based on declaration given by employee at the starting of the financial year.Uneven deduction is permitted only in case of bonafide reasons i.e., employee failed make the investments declared at the starting of the year.

Case Law dealing with the Above issue:
Madhya Gujarat Vij Co. Ltd. Versus Income-tax Officer,ITAT AHMEDABAD

Held that :- Matter restore to AO for finding out whether there was a bona fide in not deducting the tax regularly from the payment of salary in each month and if not, assessee would be liable to pay interest. If there was bona fide and shortfall in every month was nominal which was made good at the end of the year then, no mala fide need to be seen. Appeal is allowed for statistical purpose.