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In payroll is it Mandatory to deduct the TDS every month or we can give options to employees to pay their taxes by their own consulting people? One of the G M newly joined to opting this... Can you help me please? If it is so, any proof of document of tax paid to be retained in H R Department?
Thanking You,
M V Muthu Krishnan
99622 98084

Dear Muthu Krishnan, Do check with the attachment...

Attached Files
File Type: pdf TDS.pdf (112.1 KB, 2036 views)

In the name of TDS taxeble amount is beeing taken in advance (installment wise). why no interest is beeing paid by Govt for this advance payment? If a person pays late won't they penalize with interest?

Dear All,
The question raised is = is there option for the employee to pay pay by themselves and avoid TDS.
Answer = NO. TDS means TAX DEDUCTED AT SOURCE. hence the person responsible for salary has to recover the tax as per laid down procedure and deposit to GOVT with 7 days of next month.If recovery amount is not deposited, interest will be livied.
It is the channal for raising rev for the GOVT and hence no question of int on advance tax payment.
If, people felt it is unnecessary , they should united raise their objections and force Finance ministry to withdraw the ACT.OR act through ballot

Yes. Employer has to deduct tax at source (TDS). However, if an employee submits his investment proofs, Employer can deduct lesser TDS or no TDS deduction according to package and investment. Such TDS calculations after investments usually outsourced to tax consultants/CAs in company. This all salary package,TDS and employees investments according to his proofs are to mentioned in form 16. IT department will pay interest on excess TDS, if tax return is filed within stipulated due date. June 30th of every year is the last day for filing for salaried class. If anyone is filing after due date, no interest will be paid. Similarly for NIL returns, there is no penalty
Yes, it is mandatory to deduct TDS on every month, Here u cannot give option to individual, it is employer responsibility to recovred the tax & deposit within 7 days .
Further, Regarding proofs of tax deducted, yes, it is either HR or Finance dept. duty to retain with them

Sundar / Krishnan,
Usually the companies ask for the Tax Exemption documents from all employees by the respective financial year, if the Tax has been deducted every month, then why the documents has to be submitted by the end of the year. how they can co-relate the same.

Noramy way is based upon april month salary, tax will be worked out for whole year and noraml exemption ie ceiling is 1.00 lakhs will be passed on with declaration from employee or based on previous year investments(LIC,medical policy etc). Tax worked will be deducted in equal monthly instalments.Every quarter a review will be done.And at the end of December, all employees will be advised of their tax liability and given cut off time to submit proof or further information on their investments.Failing which company will go forward with their working and tax will be deducted.It is responsibility of Accounts department and HR is only negotiator between accounts and employees.If an employee felt moreTDS recovered, it his responsibility to file a return get refund from IT department.Company can issue only tax recovery cum deposit proof (FROM 16).
Hope thigs are clear.

Good question to think of... Let me find out the answer by talking to the consultants and post the same...
Dear sdas,
In first view, your question seems to be logical. But can you determine your savings before hand? Many a times we will save in perceiving to achieve something and it will be utilised for other expenditures. Most of us experienced this. Moreover, the Tax is fixed before two months of the fiscal and Taxable Year. Here also, the employees knows what is the ceiling and what is the individual income. And hence, it is the prime duty of the employer to deduct the tax at source which is visible materially as per the limit fixed. Since it is calculated yearly, the individual is expected to provide his saving and expenditure documents at the end of the year.
Hope your question is answered.

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