Non deduction of tds

569 views 7 replies

abdul basit

Student CA - Final

41 Points Joined July 2010

One of the Assessee is a govt employee and liable to Tax and therefore the Employer ( Corporation ) deduct his TDS every month and final TDS liability in last quarter.............but the Assessee is of the view that he will pay the Tax through Advance Tax.....Deducting TDS will disturb his pocket budget.............so what are the options available to the Assessee under Income Tax ACT

Replies (7)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

Section 192 provides that the employer shall deduct tax at source on salary being paid to the employees. So contention of the assessee is not valid. Assessee can pay advance tax in respect of income from any other sources.

Guest

Really good question..never thought of it this way...heres what i think

Assesse is liable to advance tax when his net tax payable exceeds rs 10000. Usually employees dont have to becuase their only income is salary and TDS is enough to absorb the net tax for the entire year.

If no TDS is deducted, the company is liable to pay interest on non deduction. So no company will agree to do that. And as established earlier, if TDS is deducted, its likely that tax is going to be < Rs 10000.

u should definitely wait for an expert to answer.

Thanks

Ubaid

Jaspal Singh

Practising CA

449 Points Joined September 2013

Agree with opinions of both the experts.

Guest

Company have to deduct his balance tax in his last month otherwise he has to pay interest. There is no option available to the assessee.this is not a discretionary power

Guest

:D sir i am no expert...i am not even a graduate...just an article

ashish

article

151 Points Joined November 2011

As per my opinion.... Employee gives declaration to employer all his expense (chapter via deduction)and tax.... And thereafter employer check that whether there is any further tax liability and if yes then he accordingly deduct TDS...... In your case if asseesse gives declaration about advance tax and after considering it, there is no tax liability then employer is not required to deduct TDS.. I repeat again this is my opinion.

vipin patole

Self Employed

72 Points Joined October 2011

Liability for payment of advance tax.

207. (1) Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as "current income".

(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and

(b) is of the age of sixty years or more at any time during the previous year.