Tds on salary

CA Raghav Swaminathan (B.com, CA ) (48 Points)

07 April 2012  

My fellow employee gets a salary of 25000 per month.. His salary is credited directly in his bank a/c. he didnt want us to deduct tds on salary for the financial year 2011-2012 as he fears that he has a bank loan based on his salary and it would cause hard ship to him if tds was deducted.

But he accepts that he will give us a cheque for the actual Tds which ought to be deducted on his salary..

My question is

1) whether the contention of employee is accepted??

2) If so, what entry shouuld be made in the books for tds deducted??