A company which is liable to deduct tax at source on salary paid to its employee on average rate basis to the extent of Rs.1,02,000 has deducted only Rs.25,000 so far. The employee is requesting the finance manager not to deduct rest of the tax from his salary and he promises to pay later after the end of financial year.
Queries:
1. Is this possible or is it in contravention to the section?
2. What if the employee pays it by way of Advance Tax before financial year. Will that relieve the person responsible for deducting tax?
3. What if the amount to be deducted i.e. Rs.75000 over the next 2 months is more than the salary paid to the concerned employee?
Please do respond as soon as possible
CAclubindia
