Kiran. S (CTO) (745 Points)
18 August 2015My Relative asked his prospective employer to give TDS amt to him and he will pay Adv tax immediatly and give copy of tax challan to employer.
1] first he does not trust any employers bcoz they fleece now a days [small ones]
2] The second advantage is Int on Adv tax is from next month I think and if TDS is paid by employer the int starts from start of assesment year.
Can my relative ask for paying Adv tax instead of Employer paying TDS quarterly. Will the IT confront the employer.
Rajagopalakrishnan R
(PARTNER)
(1422 Points)
Replied 18 August 2015
Yes it is the duty of every employer to deduct tax at sourTDS, ce for all employees having taxable income. Payment of advance tax is not an alternative. If the employer does not deduct tax, he will be penalised for non deduction by way of interest penalty etc. Also the salary paid without TDS will not be allowed to be deducted as his expenses.
By the way, for every employee it is better to opt for TDS as in case of shortfall in tax, interest will run only from 1st April of AY, whereas for Advance tax, interest will run for instalments separately as well as from 1st April of Ay.
mahendra
(STUDENT)
(64 Points)
Replied 18 August 2015
Kiran. S
(CTO)
(745 Points)
Replied 18 August 2015
But as far as the amt goes in govt account either by TDS or Adv Tax - what is the problem.
By Adv tax money reaches govt acc faster [every month] while TDS is paid quarterly .
Fradulent employers donot pay at all sometimes and employees is left in Lurch at the time of filing return.
mahendra
(STUDENT)
(64 Points)
Replied 18 August 2015
mahendra
(STUDENT)
(64 Points)
Replied 18 August 2015
Kiran. S
(CTO)
(745 Points)
Replied 19 August 2015
Some Employers dont give PAN no of some of the emloyees in the TDS return. They change employees frequently. What happened to King fisher Airlines. did Mallaya pay TDS of employees. There are plenty of Employers who do fraud. The employees are left to fend for themselves.
Sec 205 will apply if you have proof that employer have deducted TDS. If complain is given to TDS AO , Employers do settings and Employee is left with no option but to goto Court. How long legal battle will go on one does not know. If you have employers like Tata and Birla it is Ok.
Z
( )
(2965 Points)
Replied 19 August 2015
I concur with Rajagopalakrishnan R
1st u/s 192 it is the responsibility of the employer to deduct the tax, your relative's proposition that the Tax deduction amount be given to him is not healthy one . The relative will pay advance tax thereby nulling his tax liability but what about the employer? He would receive notice from tax authority for not deducting tax from salary when it is paid. And employer would be the one to go in court.
Even in case of King Fisher Airlines, they did issued form 16 to their employees but the tax was not remitted to the department. Consequently both the employer and employee received the notice. When the employees of king fisher airlines went they were assured by the respective AO's that this amount will not be recovered from them, all these notices are system generated . they were given protection u/s 205
I have seen such small cases where employer does not deduct tax of employer (be it grudge or otherwise) I advice to complaint it to TDS department , but obviously for job safety, employees prefer paying tax from their own pocket and NO TAX IS DEDUCTED FROM SALARY.
If TDS certificate is not issued then you can make that employer penalized but he wont be deducing your tax if he is not giving you the certificate. Hevay interest and penalty would be levied.
CAclubindia
