Employer is liable for the interest over the TDS for the delay period..
At the same time employee will not be liable for any tax if any refund due.
Interest under sec 234b and c
Page no : 2
Dheeraj N Kamath
(Final Student)
(68 Points)
Replied 14 February 2018
| Originally posted by : Dhirajlal Rambhia | ||
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Originally posted by : m sreenivasa rao Sir, sec 234b and c deal with leavy of interest on default or shortfall in payment of advance tax. the assessee here is a salaried employee whose tds is taken care of by the employer. Rs.33,392/- is not arrears, but relief under sec 89 as per form 10e. please guide taking these two aspects also. YES.......... Rs.33,392/- is not arrears, but relief under sec 89 as per form 10e. But, it is the tax relief for arrears (salary due) received in this year, and its tax liability arose in the year of its taxability, which as per form 10E has been shifted in previous years !!! So, the tax liability of earlier year when paid in this year......... interest will be charged or not? Actually its very fine point........ difficult to understand........ and without digitallization even department missed till this year........... but now many such things are activated...... |
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Sir. I was actually refering to the salary paid by the employer in arrears. The salary paid in arrears was actually enjoyed by the employer all these years.. So charging interest on advance tax for earlier years on the employee is not justifiable right? because they haven't enjoyed any of the amount during that period. Isn't it to be charged from the employer because they enjoyed the money till now.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183881 Points)
Replied 14 February 2018
Apparantly it seems the fault of employer; but department here deals with employee....... who wishes to take advantage of salary arrears u/s. 89(1)...... So, department while considering the shifting the tax liability will take care of its due date. There was already refund issued for the same year, so one cannot see any TDS liability of employer in such case.
If department had seen any TDS default of employer, it would have definitely taken action against him.
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