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TDS on Salaries

P. Raja (Manager Finance & Accounts) (198 Points)

27 March 2010

Dear All,

Is there any liability on issuer on Form 16, if some portion of TDS on Salaries shown as recoverable?

Regards

P. Raja

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12 Replies

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 27 March 2010

Yes, Form 16 is to be issued

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P. Raja (Manager Finance & Accounts) (198 Points)
Replied 27 March 2010

Sir,

The issue is short deduction of TDS , shall we issue TDS certificate in Form16 ( for Salaries ) showing some portion of Tax is still payable ? is there any liability on the employer?

Regards

P. Raja

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 27 March 2010

Employer's liability is to deduct the tax amount & pay to the credit of central govt.

regards,

ratan

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 27 March 2010

in case of short deduction of tax, employer's liability equals to balance amount of short tax alongwith any interest, if any.

regards,

ratan

P. Raja (Manager Finance & Accounts) (198 Points)
Replied 27 March 2010

Whatever we have recovered from the employee is paid to the credit of Central Govt, and Certificate being issued already, if the employee himself remitting the balance tax along with interest to Govt , is there any problem?

Regards

P. Raja

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Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 27 March 2010

No there is no problem.

regards,

ratan

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 27 March 2010

Still liability to deduct TDS is on the employer, u cn deduct the balance tax right now & issued fresh form 16

regards,

ratan

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 27 March 2010

and one more thing y an employee bears the tax burden alongwith interest.

regards,

ratan

P. Raja (Manager Finance & Accounts) (198 Points)
Replied 27 March 2010

This pertains to last financial year , there was a doubt raised by the ex employee while remitting the balance Tax and submitting his ITR , as we have already filed annual TDS returns etc for last FY in June 2010 , if we make any change in TDS certificate we need to revise the returns etc , so if the matter can be closed by making the payment by the employee ,all these can be avoided

Please advise

Regards

P. Raja