The employer has short deducted the tax amount from employee's salary for FY. The employee has already left the organization. The liability to deduct tax is on the employer, but has not deducted.
What are the consequences to the employer?
Whether the employer can issue Form 16 to the employee with tax payable?
3 Replies
yash varshney
(Pro)
(248 Points)
Replied 15 June 2018
The liability is of employer, he must revise the Tds return and pay the challan amount with interest and issue revised form 16 to the employee
Nisha
(Job)
(140 Points)
Replied 15 June 2018
But the employer has no way to recover from the employee. What should be done?
yash varshney
(Pro)
(248 Points)
Replied 15 June 2018
There are 2 options available
The employer should pay the amount out of his pocket and settle his liability(otherwise interest and penalty)
Or provide reason to believe that the Tds deducted is appropriate in that scenerio i. e (obtaining declaration certificate from the employee) about his tax liability at that point of time and the employer has sufficient evidence to prove his part
The employer should pay the amount out of his pocket and settle his liability(otherwise interest and penalty)
Or provide reason to believe that the Tds deducted is appropriate in that scenerio i. e (obtaining declaration certificate from the employee) about his tax liability at that point of time and the employer has sufficient evidence to prove his part
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