It is mandatory on your part to deduct TDS on the salary paid.
Can I skip deducting TDS from employee salary?
Hi, I started a new company that's into Marketing, Advertising, & Software solutions. My employee income is above 5lk comes under tax slab rate of 20% He told me that the previous company he worked at didn't deduct the TDS and only deducted PF & Professional tax. Can I do the same? Is it mandatory for the company to deduct the TDS before paying out to an employee? Can't it be taken care by the employee himself?
Asked 4 years ago in Income Tax
Is his income below 5 lakh after considering the deductions?
If yes dont deduct TDS, otherwise its a liability of company to deduct TDS if not you can be charged with around 1% interest per month on the TDS amount and your expense can also be disallowed upto 30%.
You must hire a CA to take care of all this.
Most employees would say that don't deduct TDS but it will be company who will be at fault and not employee.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Dear Sir,
Hope you are doing well !!
Yes, it is advisable to deduct the tds to avoid future litigations.
No, it is mandatory.
It is mandatory for the company to deduct TDS. If TDS is not deducted entire salary expense will be disallowed from companies P& L.
Hello,
Yes, it is mandatory for the company to deduct TDS. The company needs to make the calculation for the amount of TDS to be deducted based on employee's salary, slab, and eligible deductions.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi sir
yes sir as per section 192 b of income tax act1961 u r liable to deduct tax & if u don’t deduct tax then ur salary expense will be disallowed.
my suggestion is that on the safe side u should deduct TDS.
please rate 5 & provide valuable feedback.
- If the taxable income is upto Rs.5 lacs then there is no tax liability due to rebate but if the taxable income is more than Rs.5 lacs, it is compulsory to deduct TDS. It is mandatory for the company to deduct TDS and deposit it with the govt.duly. Responsibility is on the employer.
Yes, it is mandatory for a company to deduct TDS and there are serious repurcussions for TDS non deduction/non-submission.
Although, you can structure the salary in such manner that TDS will not be required for employees having income upto 7-8 lacs at least.
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