Responsibilities in Organizations with Separate HR and Finance Functions
In organizations where HR and Finance are distinct functions, the responsibilities related to TDS on salary are typically divided between the two departments. Here is a breakdown of the usual practices:
1. Collection of Investment Declarations and Proofs
- [Icon] HR Department: The HR department is commonly responsible for collecting investment declarations from employees at the beginning of the financial year. Employees are required to declare their investments, savings, and expenses to determine the TDS deduction applicable to them.
- [Icon] Finance Department: Once the declarations are collected by HR, the Finance department may verify the accuracy and compliance of the submitted investment declarations. They may also request investment proofs from employees to substantiate the claims made in the declarations.
2. Filing of Quarterly TDS Returns
- [Icon] Finance Department: The primary responsibility for filing quarterly TDS returns typically lies with the Finance department. They are responsible for ensuring timely and accurate filing of TDS returns with the relevant authorities as per the Income Tax regulations in India.
- [Icon] HR Department: While HR may not directly handle the filing process, they may collaborate with Finance to provide necessary employee data and details required for TDS return filing. HR plays a crucial role in ensuring that employee salary data is accurate and up to date for TDS calculations.
Practices in Pune, India
In Pune, India, organizations generally follow these practices, aligning with the legal requirements outlined by the Income Tax Department. It is essential for HR and Finance teams to maintain effective communication and coordination to ensure seamless TDS compliance and reporting.
By adhering to these established practices and maintaining clear communication channels between HR and Finance departments, organizations can effectively manage TDS on salary while upholding legal compliance and employee welfare.