FORM 16A QUERY

Originally posted by : rajesh
	DEAR SIR AN EMPLOYER ISSUE FORM 16 TO HIS EMPLOYEE WITH TAXPAYABLE IS THIS ANY MISTAKE OR EMPLOYER IS PAYABLE ANY TAX ON SHORT TDS DEDUCT. IF EMPLOYEE IS PAID REMAINING AMOUNT INDIVIDUALLY EMPLOYER IS SHOWN IN FORM 16 IN WHICH COLOUM PLEASE TELL. THANKS IN ADVANCE

there is no such provision to pay the tax on salary by employee, employee has paid taxes on other income, so employer has to deduct the tax as per disclosure in form 12B.

 

regarding the tax paid by employee , he can file return and claim back the tax.

agreed with u.s sharma

I agree with the views of Mr sharma. The liabiltiy to forecast the tax and deduct it u/s 192 is cast on the employer. If there is any short deduction of TDS on the taxable income arising out of the salary and the income reported by the employee, the employer would primarily responsible for non compliance of the TDS provisions. However, while finalising the return of income the employee finds that there is any short deduction he has to remitt the tax on the short fall, include the same in the return of income. It is also intersting that in few case like CIT v. Kannan Devan Hill Produce Co. Ltd. [1986] 161 ITR 477, it was held that the employer cannot be held liable u/s 201 though the deduction is disallowed in the hands of employee while completing the assessment of his returns. Which goes supporting the above view that the employee should take care of his tax while filing the return of income.