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Issuing TDS Certificate related query

Sandesh (BDM) (26 Points)

08 February 2011

Hi, I wish to know......

If a company is deducting taxes from employees salary, say on 8 Feb 2011 date, for the financial year 2010-2011.

By which latest date, can that company hold the deducted amount with it?

By which date, it must provide the TDS certificate to its employee after deducting it from their salary?

What action one may take if a company does not provide TDS certificate when asked for?

Is it okay for a company to say they will be providing TDS certificate in the of month of June 2011, which they have already deducted in Feb 2011 from the month of Jan 2011 salary?

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8 Replies

MD (AAA) (117 Points)
Replied 08 February 2011

TDS shall be paid to the credit of the Central Govnt on or before 7 days from the end of the month in which the deduction is made. In this case it will be by 7^th March 2011. (Refer amended IT Rule 30(2)).

TDS certificate shall be furnished to the employees by 31^st May 2011. (Refer amended IT Rule 31(3)).

As per section 272A(2)(g) if the employer fails to furnish TDS certificate to the employee than he shall pay by way of penalty a sum of Rs. 100/- for every day during which the failure continues. Penalty payable will not exceed the amount of TDS.

Legally, the employer shall furnish TDS certificate by 31^st May 2011.

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Sandesh (BDM) (26 Points)
Replied 09 February 2011

Is there anything an employee can do if its employer does not pay the deducted amount to the govenment by 7th March 2011?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 09 February 2011

if the employer does not deposit the TDS before the filing of his annual return then the entire expenditure will get disallowed.

MD (AAA) (117 Points)
Replied 09 February 2011

If an employer fails to pay to the credit of the Central Govnt the TDS than he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine. (Refer section 276B).

Bimal Thacker (Proprietor) (762 Points)
Replied 09 February 2011

Originally posted by : U S Sharma
	if the employer does not deposit the TDS before the filing of his annual return then the entire expenditure will get disallowed.

Disallowance is not in case of TDS on salary. 40(a) does not apply for non payment of TDS on salary

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Sandesh (BDM) (26 Points)
Replied 10 February 2011

May I know, what this disallowance means?

Further, is there anyway by which an employee may know...if the TDS has been deposited by employer to the government.?

So reading the above replies, it seems that an employer must need to deposit the TDS latest by 7th March 2011 in my case. And if its not deposited its a punishable offence i.e. imprisonment within range of 3months to 7 years.

where do one need to file a complaint is this regard?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 February 2011

He can pay the same with interest on later date but not later than his return filing due date/ return filed,

if he does not do so upto return filing, u can make the same in notice to the ITO of the company.

for tax deducted in feb due date is march and return submission date is in may, so it would reflect in your 26AS in may 2011 onwards, after the submission of his returns for the period.

XYZ..... (-) (516 Points)
Replied 25 July 2011

What if TDS Certificate is not issued till 31st May. If company is paying salary and deducting tds in time but has not yet given tds certificate , can company issue tds certificate after 31st may or anytime after 31st may with any date mentioned in it as before 31st may????????