The Income-Tax Act casts responsibility on the employer for tax deduction at source (TDS) on Salary at the time of payment of salary to employees whose salary income is above the maximum amount not chargeable to tax. The employer is required to deduct TDS on salary at the average rate of income-tax and deposit the same with the government within the prescribed time. The employer is also required to file withholding tax returns and issue TDS certificate to the employee.
Various penalties are levied on the employer in case of default, making the entire procedure equally painful for your employer.
So, you must have started realising that the grass on the other side is not as green as you thought. Though, from the above it is understood that TDS is solely the obligation of the employer but, if as an employee you are aware that there is a TDS default, then you may be held responsible too. If your total income exceeds the maximum amount not chargeable to tax and no TDS is being deducted by the employer, then you are under an obligation to pay tax through the advance tax route.TDS on Salary –Key Points every employee should know
You should estimate your total income for the year that could comprise of salary, house property, interest income etc. Relevant deductions applicable to each source of income, on account of eligible investments, interest on housing loans, etc, can be considered to calculate the taxable income. On this amount, you should calculate the tax payable as per the applicable tax rates.
Having arrived at the gross tax liability, reduce the amount of TDS suffered/ likely to be suffered on the above income. If the balance tax payable exceeds Rs 10,000, you will be required to comply with the advance tax provisions. The entire amount becomes payable as advance tax in four installments on or before June 15th, September 15th, December 15th and March 15th, during the financial year.In case you miss the advance tax installments, taxes can also be deposited by way of self-assessment tax post April 1 (after the end of financial year). In case the employer has defaulted in TDS, it would be your responsibility to deposit taxes by way of advance tax/ self-assessment tax as ultimately, taxes are to be deposited on your income.
Failure to deposit taxes could lead to concealment of income on your part, resulting in penalty to be paid by you equivalent to 100-300% of the tax amount not deposited.Further, there are interest implications as well , but there are judicial precedents which indicate that if taxes were required to be deposited by way of TDS and have not been done, the recipient of income is not required to pay interest.
Going forward, before you plan your month-end celebrations, just glance through your pay stub. Instead of creating a hue and cry over the tax figure, be thankful to your employer for taking care of your taxes and saving you from a lot of hassles.
(Republished With Amendments)
Sir
I am an officer working in Indian Railway. Railway has deducted TDS from my salary but this amount is not being shown in FORM 26AS online at income tax department website, even there is no tax credit being shown against my PAN at TRACES site of income tax department. Now what should I do to avoid tax demand notice from income tax department???..Am I liable to pay my taxes again??
i am apensioner .i need 2 clarifications: 1/ can i deposit the short fall in tax payable for finan yr 2013-2014 up to 31/07/2014.2/ are pensioners exewmpted from tds on intt on quarterly basis & get tds effected on maturity of deposits3/ can the excess tax deposited last year taken as advance tax for current year
I retired from MAHARASHTRA STATE ELECTRICITY DIST. COMPANY LIMITED; a GOVT. OF MAHARASHTRA Undertaking in January 2012.I am getting a pension of Rs. 1981 per month through BANK of INDIA, Nasik Road branch. For A.Y. 2014-15 (financial year 2013-14), my income under SALARY head is only pension amount. No TDS is deducted during the said period & hence no Form 16 is issued.
While filing I.T. Return for A.Y. 2014-15 in form ITR-2, what should I write in the Name of Employer column in Schedule S -the name of the office, I retired from or the name of bank, I receive the pension from?Also,what should I write in column of Employer category?
1. Whether this shortcut to arrive at interest credited by Bank would serve the purpose of filing return.
Interest Received = TDS as per AS26 * 100
2. In absesce of Form 16A where from to get the “Unique TDS certificate number” for filing ITR.
Please guide me.
Hi,
I changed the Job in December,2013. I got the full & final settlement from my previous employer with tax calculation sheet. In that sheet, employer shows the excemption under leave encahsment & deducted the tax.
Based on that sheet i calculated the tax for remaining period & deposited the tax.
Now, in Form 16 of my previous employer there is less than half of the amount under leave encashment which he shows in tax calculation sheet. When i recalculated the Tax it is coming as more than 22,000 less paid.
Now, it is already july. What i should i do now.
Pls advice me asap.
Best Regards
MS
I am an salaried Tax payer. I changed job during the last financial year as a result due to confusions TDS deducted is less than what is supposed to have been paid in spite of information given to employer. The outstanding tax is more than 5000/-. Is there any deadline to pay this tax?
My Employer has deducted TDS (FY 2013-2014) from my salary which is also reflected in my monthly salary slips, however the company has not deposited the TDS amount approx Rs. 600000/- with the Income Tax Department and is not in a position of giving me Form 16 H. What is my recourse underlaw.How do I move the IT Department to make note of this default and what should be the procedure I need to follow with my Income Tax returns.
Please suggest,now the filing of income tax return due date is 31 st july, 2014 is nearer.
I am senior citizen. Was a salaried person. After retirement I have continued as a consultant. So my last two Income tax return are “income from profession”
My banks have deducted income tax (TDS) on Cumulative Fixed deposits on accrual basis. Can I claim TDS refund on Fixed deposit interest that have not matured and hence are not received?
Earlier returns do not have statement under head “Interest accrued /received”
Hi sir,
My employer had not paid my 10 month’s salary and removed me from my job, but they deducted the TDS and deposited to the IT department. They have not settled my pending dues and also they are not giving me form-16. Suggest me what action should I take against my employer
I have short deducted Rs2.30 from salary. Do I have to pay the short deductd amount. Is there is any rule that amount less than Rs10 is ignored.
During the financial year 2013-14, I worked in two establishment of central autonomous body i.e., April to October in UP and November to March in Karnataka. Now the DDO in karnataka has issued Form 16 considering salary received and tax paid in Karnataka only. So, what about my previous DDO, whether he will issue a separate form 16. In that case how about tax calculations and filling ITR.
Hi – I am proprietor of a service firm. I have service tax number but no TAN number. Is it mandatory for a small proprietor firm also to have a TAN number? I employ 2-3 employees. Each of them have a gross annual salary of less than 3.6L. Do I have to deduct TDS on their salaries? I was told by someone that only if my firm has receipts more than 1Cr only then I am required to deduct TDS. Can you please clarify this?
Sir,
I am in service in a Private Educational institution and salary is my only source of income. I has received salary arrears of 6th pay to the tune of Rs. 253000, in December 2012 with condition that I should serve for 2 years, else I have to give back to my employer the amount of arrears . Tax was deducted on this amount @ 20%. Now I am thinking of resigning after 1.5 years since date of receipt of the said arrears. Can this refund of arrears of Rs 253000 be reflected in my form 16 and the net salary be shown in my Form 16? Will this help me to benefit from getting back the tax paid on salary arrears, in this way?
Thanking you,
Raj
Sir,
My Last employer has to give me 2 months salary but still i have not received it after continuous follow ups also but they has paid TDS for one month but i have not received salary kindly let me know what should i do know
what is separate format for TDS caluculation on salaries
Wef 14.2009, if the balance tax payable after TDS is Rs.10,000 or more then only under section 208 liability to pay advance tax is attracted and not Rs.5,000 asmentioned in the above article-balasubramanian
Hello Sir,
If an employee has worked in more than one employer during the relevant assessment year and refuse to submit the previous employer details to his current employer for considering the exemptions and deduction which the previous employer has give under such circumstances what are the obligation of the present employer, whether he can compute the employees total income after considering the basic exemption of Rs 200000 and deduction U/S 80 as per his actual production of doucuments and deduct the tax accordingly, as per the provision of IT Act it is the duty of the current employer to ask for the FORM 16 of the previous employer and club the income of the previous employer with the current employer and compute the tax, in the absence of information what is the remedy for the current employer please let me know.
respected sir.i want to know that i had two employer for the assessment year 2013-2014,previous employer deducted the tax as tds.as mentioned in form 16. but the salary from current employer is under exemption limit and not taxable.i need to know whether i can file income tax return on previous employer;s form 16 only or i need to mention combined goss salary from both employers.if i do mention both i need to pay extra tax.
do i need to disclose my rental income to my employer ?
As I have house in nagpur and I am working in gurgoan .
can I claim HRA and Hosuning loan deduction from my salary.
My Employer has been deducting TDS from my salary which is also reflected in my monthly salary slips, however the company has not deposited the TDS amount with the Income Tax Department and is not in a position of giving me Form 16 H. What is my recourse underlaw.How do I move the IT Department to make note of this default and what should be the procedure I need to follow with my Income Tax returns.
Dear Sir,
My salary is not taxable. In today’s newspaper, there is a comment by Mr. D.K.Das Sharma, Chief Income Tax Commissar,Dehradun, that if you are not in the taxable slab,you can exempted from the TDS by submitting a affidavit on a blank paper.
My question is, to whom this affidavit be submitted and what is the proforma for this.
Please advice.
thanks
I am a govt.employee. My employer does not give salary certificate or deducting tds. the salary goes directly to the bank. Unless I get the heads of account on which tax is payable or exempted I am in the dark to pay tax. My employer has moe than 1500 employees on rolls. Kindly advise action for paying tax as well as if any action is possible against employer for not giving salary certificate/slip every month and not deducting tds. The excuse given is shortage of staff to handle the work. Employer is a Govt. of Maharastra establishment. Thanks
company pay the tds of employee than what is the adjusment entery in tally
for examaple mr. shubod the manager of the company but he commited i cant pay the tda of my salay. plz tell adjustment this type of entry
I am an employer of a school what should i do after deducting tds from montholy salary of emplyees i mean what type of form submit in income tax department and what is procedure can i do this whitout help of C.A. please guide me
hi
my employee has paid advance tax. can we take credit of the same in IT Computation of his salary and Form 16 as well. pls suggest
Kya ek female government employee income tax ma rented house ki rebate lay sakti hai, Agar rent agreement us ke husband ke naam bana hua ho or us ka husband us ki rebate na lay raha ho.
More over : Kya ek female government employee apne husband ki insurance policy pay karne ke bad income tax mai rebate lay sakti hai or insurance installment cash ma pay ki gayi ho or us ka husband us ki rebate na lay.
Friend, I am a Government employee. During Sep 2009 I received a lump sum amount as arrears due to 6th pay commission. This amount was for Jan 2006 to Aug 2008.The amount was split into the arrears for the respective year and claimed rebate against section 89(1) for an amount of Rs.11592/= This amount claimed was reflected in the Form 16 provided by the employer for AY 2010-2011. However on re calculation it is seen that the actual rebate amount claimed should have been Rs. 10562.There is a short fall of Rs.1030 which is due to Income tax. My income is only from salary and it is reflected in the form 16. Now how much with penalty and interest i have to pay
Here my question what if employer deduct the tax on income from salary and bank TDS deduct on salary saving account but my total interest is Rs. 10121.00 and at the end of year the form-16 show the TDS need to be deposit by employee. how much tax on interest ?
Sir,
I work for a small company. My Income is taxable. In the month of march i have been asked for my investment details and I give them particulars like PPF, medical and House rent. The amount I mentioned that I will be depositing in my PPF account , I could not deposit all the amount before 31 march 2012. My employer didnt asked for any proof at that time. Please let me know if I can deposit the amount now I mean in the month of april or should i inform my employer of this, so that they can deduct TDS.
Please help.
@CMA. R.LGARG – FICWA
In case the employee has furnished FALSE DECLARATION then I Tax Deptt will trouble employee for recovery of short deductions, penalties and interest thereupon. And further it could be case of section 271 for doing a wrong (false declaration) intentionally. Please note that it makes a big difference between ‘wrong calculation of tax’ and making a wrong calculation intentionally by self or by furnishing false declaration.
May contact me at vkbajaj@india.com
@ Mr Ravi,
Please write facts giving all figures of tax and dates at vkbajaj@india.com so that correct reply be given to you.
@ Rohit,
Please calculate your net taxable income and then tax liability. Pay this tax liability yourself by adjusting any amount deducted by employer as TDS.
Help is available at vkbajaj@india.com
@ Mr Subhash Bhatt
Your employer is right and allow them to deduct Tax from April.
@Mr Mukesh Patel,
No you cannot take any action against employer. It is the Income Tax Deptt who will question as why the tax was not collected correctly. Further it depends upon the tax amount. If the tax amount is less than 5000 then feel easy.
You can know more by email at vkbajaj@india.com
If there is any specific provisoin in income tax saying that if a pensioner has depsoited self assessment tax & deposit the copy of challan to bank, Bank is still under liabilty to deduct TDS.
if there is any specific clause or provision, pls mail the said clause or prov. thx..
I did not submitted/declared the Form12b of previous company to the current company, so the current company has not deducted any tax. After combining the previous company salary and current company salary, income exceeds the maximum amount not chargeable to tax. How can i pay the remaining tax?
Please provide me the details ASAP.
What is the rate of interest if quarterly payment made late.how is it calculated can u please send it on my mail id
Employer was not deducting TDS from Salary. Employee paid advance tax in challans at a bank in Sept.,December and March . proof of advance tax payment and proof of savings eligible for 80C deduction were given to employer for getting Form 16. The employers charted accountant then says the employers has to deduct TDS and goes ahead and deposits TDS in June along with penal interest which was then deducted from salary of employee along with the TDS. Is the employer right in making the employee pay th penal interest when he has paid advance tax and has a net refund due.
I AM A PENSIONER. MY TOTAL PENSION INCOME IS BELOW THE TAXABLE LEVEL. (2) FOR MY INTEREST INCOME FROM DEPOSITS THE BANKER DEDUCTS TDS AT THE YEAR END, AS THE DEPOSITS ARE CUMULATIVE TIME DEPOSITS. PREVIOUSLY I WAS IN THE HABIT OF PAYING ADVANCE TAX. WHEN I INFORM THE BANKER THAT I HAVE PAID ADVANCE TAX FOR MY PENSION AND INTEREST INCOME PUT TOGETHER, WITH PROOF OF HAVING PAID, AND REQUEST HIM NOT TO RECOVER TDS,THE BANKER PLEADS INABILITY TO OBLIGE BECAUSE THE TAX LAW FORBIDS HIM FROM DOING SO. THIS IS AN ANAMOLOUS POSITION. THIS IS TO BE REVIEWED BY THE INCOME TAX AUTHORITIES. IN CASE THE TAX PAYER PAYS ADVANCE TAX, THE BANKER SHOULD BE PERMITTED NOT TO RECOVER TDS. WILL THIS BE LOOKED INTO?
Dear Sir,
My salary is taxable & I want to deduct the TDS from Dec onwards but my company is deducting TDS from April i.e. taxable amt divide by 12 months. & they are telling that it is a new rule which we have to follow.
Please advice.
When you get stuck up all provisions of Law comes in action and assesse are punishable for payment of penalty and interest, Now if any employer does not deduct TDS from salary then the expenses claimed for salary of such person will be disallowed and added to income of that assessment year and when TDS is paid in the later year then the said expenses will be allowed in that later year of payment of TDS, that’s what Law says,
It was bad at law for not deduction of TDS from Salary, any employer in India has to be cautious by asking their employ for details of employees tax saving investments,and explain each employee for the taxation part during the year from April onwards,The accounts and tax department or Chartered Accountant of the company has to take care of such matters,and comply with all the rules and regulations of Law requirements,
I hope you understand the pains of payments
thanks
ashok patel
if employer fail to deduct the tds on slary and at the end of year employer cut complete tds can employee take any action
During the year 2007-08 a employee of my concern has given undertaking that she will furnish form No. 10(a) and thus deducted tax accordingly. Thereafter she fail to furnish the said form from here arrears and tax amounting to Rs. 15600/- were deducted less from her salary which later on she deposited with penalty through bank challan after 31st March of that year. Now Income tax department issued show cause notice regarding less payment. They are not convinced with the fact that the tax was deposited by the employee herself as it was not shown in TAN of the concern as she deposited individually. can it be possible to take that amount under TAN? OR what should I do to reply the department?
I did not submitted/declared the Form12b of previous company to the current company, so the current company has not deducted any tax. After combining the previous company salary and current company salary, income exceeds the maximum amount not chargeable to tax. How can i pay the remaining tax?
Please provide me the details ASAP.
If an employee claims HRA rebate by producing wrong receipt or declration whose is responsible for wrong claim.
If an employee claims interest on housing loan and also claims HRA rebate as he works at different city Is it necessary for the employer to get a declaration from employee for the property wherein he claims interest is vacant.
employee submit the proof to investment to employer . employee take a declration from employee that what he has sbumitted are correct & of INCOME TAX DEPARTMENT found that the investment shown by employee is worng. In that case any penelty employer need to pay? or as the employer already have the declaration of employee he is safe?
Employer deduct tax on the declaration of the Employee in respect of investments under Sec 80 CC or others and also Produces a Rent Receipt to get benefit of HRA etc.what are the responsbility if the declaration proves to be wrong or false. is there any standard form which should be filled by such employees whose salary crosses the limit of maximum amount not chargeable to tax. there should be some responsibility on the shoulders of the Emplolyees. please enlighten on this issue
@ Vijay: If employer fails to deduct the TDS than he will liable for penalty provisions.
& IT Dept. will not issue a demand notice to the employer instead will be charged penalty.
@ Amit: If employer deducted and not deposited than you have not to be worry till you have TDS certificate from the employer.
@ Amit: In my openion that why govt. has come with this provision because now a days so many peoples are not disclosing there other income to there employers, resulting in lower deduction of TDS on the employer end.
So the govt. wants that employee if wants to conceal any income till the end of the year than he is not allowed to do that as it has been mentioned there would be a penalty of 100-300% of the tax amount.
For furthur queries mail me at riteshjainj@gmail.com
i dont no what govt has taken action for corruption ?…..Wht step have tekn to get money from swiss bank…..that black money india me layege to itna tax normal person se bhikh mangni nahi padti.
Why salaried person have to pay advance tax. now govt also require advance tax in advance…Govt kuch to aapni mahenat se kam kere..improve public sector….ki humare paisese hi govt chalegi…to get education at high fees burdun…then job searching with good scal is burdun…..all commodity price has already increased that burdun…tax burdun…then scrutiny time AO demands money that burdun….we goes to appeal at senior level demands money that burdun that burdun…..he ram.
and what if employer deducted and not deposited then ?
Here my question what if employer fail to deduct the TDS on salary and at the end of year the form-16 show the TDS need to be deposit by employee.
Will Income Tax Deptt. issue any demand on this against employer.