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Can i ask my employer to deduct aggregate tax in march?

Jay Patel (b) (65 Points)

26 October 2013

Can I ask my employer to deduct tax only in feb and march salaries instead of deducting every month?

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9 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 26 October 2013

Dear Sir,

you can ask.. but your employer must not heard it... as its employer's liability to deduct TDS every month... and he has to bear all consequences in default... so, you shouldn't ask your employer, as he will not do such practice... otherwise he has to bear all penalty, interest etc...

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Mihir (Wealth Manager) (5293 Points)
Replied 27 October 2013

That maybe good for you but not for your employer. Your employer is liable to at least deduct TDS on some rough estimate, and final figure can be deducted in the year end.

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CA Parul Saxena (CA) (8488 Points)
Replied 28 October 2013

But Mr.lovely Arora many a times i have seen that employers usually deduct TDS in the month of march only and no interest or penalty is paid by them........

Nikhil Kaushik (Fellow CA) (85761 Points)
Replied 28 October 2013

it shall be violation of the statutory duty of the employer under TDS provisions. The employer is required to deduct TDS on each payout at the average tax rate.

Jay Patel (b) (65 Points)
Replied 28 October 2013

From what I understand is that how does it matter whether employer deducts in which month... as far as employers deduct total tax which is liable to be TDS.

For eg. TDS of 24000 in a financial year is to be deducted. Tax authorities will check whether 24k has been deducted in the year. As far as it is true.. how does it matter whether 24k has been deducted in a month or 2k every month?!

I am sorry if i am wrong... but i am just a Tax payer!

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Nikhil Kaushik (Fellow CA) (85761 Points)
Replied 28 October 2013

Tds provisions were made to ensure regular flow of taxes to the govt. Accordingly laws were framed to provide for regular deduction. In case employer doesnt follow the required provisions he shall have to pay penalty

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 28 October 2013

Dear Jay sir,

The Employer is required to deduct TDS every month, otherwise he might receive notice from I.T. Dept. and also he needs to issue TDS certificate to the assessee,

anyhow, let's take an example, you need to leave a job in February month (reason might be quarrel/argument with employer or any thing else).... and suppose in month of March, you went to employer and ask him to deduct TDS and what will you do if he refuses, in that case, you need to pay tax on the whole amount (and if that amount turns out to be more than Rs. 10000) then advance tax liability and then interest under relevant sections etc... arise on your part... you need to pay such hefty amount..

There might be number of other reasons why employer needs to deduct TDS every month, not in last month.. another reason could be penalty/interest on employer and other legal consequences etc.. as its employer who is violating the law, at first instance...

ALI AHMED KHAN (SERVICE) (21 Points)
Replied 28 October 2013

It is the employer responsibility to deduct TDS from salary after considering all allowable rebates and deductions. Monthly deductions of TDS is just for ease for employee also to have sufficient amount available in March to cover any difference. Bottom line is employer is responsible for 100% TDS and deposit before issue of form 16 / submission of return.

Nikhil Kaushik (Fellow CA) (85761 Points)
Replied 28 October 2013

Dear Mr Khan,

Unfortunately it is not so. The responsibility of the deductor is not limited to 100% deduction. He is also required to deduct it on the regular basis.

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