Is deferred tax deducted by company is payable in full&final
Maan
(Querist) 06 March 2019
This query is : Resolved
Dear Experts ,
From last 6 months company is deducting on an average of 20% as deferred tax from employee salary and paying 20% less salary.
I have resigned from company , My question are
1. ) Is deferred tax deducted from salary is payable to employee at time of full and final settlement ?
2. ) If yes , and company will not pay then can we challenged company in civil court ?
3. ) what is the maximum time period by law for full and final settlement ?
Regards
KISHAN DUTT KALASKAR
(Expert) 06 March 2019
Dear Sir,
The Company firstly, cannot deduct more than 10% of salary towards tax liability of the employee. Secondly the employer is liable to refund the balance amount which is not credited in the IT account. There is no limitation to settle the salary but it all depends on you to get settle the amount.
Please mark “LIKE” if satisfied by my answer.
Dr J C Vashista
(Expert) 07 March 2019
Deducted amount can not exceed 10% of pay + DA (less other allowances), which has to be submitted by employer to concerned authorities.
Since the issue involve taxation, it would be appropriate to consult Tax practitioners.
krishna mohan
(Expert) 22 March 2019
Tax need to be deducted on an average as per your income slab. Tax deducted need to be remitted within 7th of every of succeeding month. Hence your company will not be able to refund. But you can file IT return for the full year based on annual income and claim refund if tax payable is less and recovered is more.
