Hello Seniors,
One of our employee resigned on 6th July2011.
Our CA suggested to hold her TDS amount for the year 2011-12 as she will provide us the investment documents at the end of the financial year.
Now she is disagree wiith us and asking to pay her salary.
She is asking how I become eligible for the tax as I have worked for three months with you in the financial year 2011-12.
She is saying that how can you hold my salary as my current company will take care of the TDS for this year.
My query is can we hold her salary? Why?
Please help me solve the issue.
Thanks in advance.
From India, Pune
13One of our employee resigned on 6th July2011.
Our CA suggested to hold her TDS amount for the year 2011-12 as she will provide us the investment documents at the end of the financial year.
Now she is disagree wiith us and asking to pay her salary.
She is asking how I become eligible for the tax as I have worked for three months with you in the financial year 2011-12.
She is saying that how can you hold my salary as my current company will take care of the TDS for this year.
My query is can we hold her salary? Why?
Please help me solve the issue.
Thanks in advance.
From India, Pune
Hi Manohar,
In my view if the total amount of salary due (till the date she worked with your company) exceeds Rs.190000, your company will be under an obligation to deduct tds and pay to the Income Tax Dept. At the year end your company will have to issue a TDS Certificate to that employee so that she can claim the tds in her return. If you have done so and the employee is still asking for the payment of the tds amount, you can tell her that the amount has been paid to Income Tax Dept and she will be issued a certificate in that respect which she can claim in her return.
And if her salary for the period from 1st April'11 to 6th July'11 is less than Rs.190000, you can not hold her salary for the reason of deduction of TDS.
Hope if am able to understand and answer your query satisfactorily.
Regards,
CA.Ankit Tulsyan
From India, Jaipur
In my view if the total amount of salary due (till the date she worked with your company) exceeds Rs.190000, your company will be under an obligation to deduct tds and pay to the Income Tax Dept. At the year end your company will have to issue a TDS Certificate to that employee so that she can claim the tds in her return. If you have done so and the employee is still asking for the payment of the tds amount, you can tell her that the amount has been paid to Income Tax Dept and she will be issued a certificate in that respect which she can claim in her return.
And if her salary for the period from 1st April'11 to 6th July'11 is less than Rs.190000, you can not hold her salary for the reason of deduction of TDS.
Hope if am able to understand and answer your query satisfactorily.
Regards,
CA.Ankit Tulsyan
From India, Jaipur
Hello Ankit,
Thanks for your reply.
As you have mentiond at the financial year ending our company may have problem if we don't deduct the TDS now.
The salary doesn't exceed Rs.190000 for the said period eventhough our CA mentioned that the calculations are made on the basis of whole year so there must be deduction for the three months.
CA has advised her that she can file the returns but she is not ready to agree on the point that we can deduct her TDS.
We have paid her the amount excluding TDS and asked her to submit the investment details then only we can give you the remaining amount. But she don't want partial payment also and arguing on the same issue.
From India, Pune
Thanks for your reply.
As you have mentiond at the financial year ending our company may have problem if we don't deduct the TDS now.
The salary doesn't exceed Rs.190000 for the said period eventhough our CA mentioned that the calculations are made on the basis of whole year so there must be deduction for the three months.
CA has advised her that she can file the returns but she is not ready to agree on the point that we can deduct her TDS.
We have paid her the amount excluding TDS and asked her to submit the investment details then only we can give you the remaining amount. But she don't want partial payment also and arguing on the same issue.
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf