Right of new tax deductor.
kehar singh
(Querist) 14 June 2018
This query is : Resolved
Sir,
One employee has been posted in my department and the TDS amount to be deducted from his salary as shown in his Last Pay Certificate issued and signed by his previous employer is NIL.
I doubt on the TDS amount shown in his LPC, so I asked him to furnish the other document if any so as to establish how your TDS amount arrived at 'NIL'.
The employee has denied to furnish any documentary evidence but rather told me to go with the amount shown in his LPC. He further said "under which provision of IT Act you have the right to deny the amount shown in my LPC and under which provision you are asking for the document.
So my question to the learned members are :-
1. Should I go with the TDS figure shown in LPC or re-assess his TDS amount and deduct the calculated amount. ?
2. If I should re-assess and start deduction accordingly then under which provision I as a Deductor have the right to do so legally.
Guest
(Expert) 14 June 2018
For the purpose of TDS, you have no right to ask any personal document from the employee. There should be no reason for you not to rely on the information provided on the officially issued LPC,
You have to go by the information available on the LPC.
Guest
(Expert) 14 June 2018
For the purpose of TDS, you have no right to ask any personal document from the employee. There should be no reason for you not to rely on the information provided on the officially issued LPC,
You have to go by the information available on the LPC.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
Guest
(Expert) 15 June 2018
Ms. Usha Kapoor,
You need not agree with me. Post your independent views, if you really know the service laws.
R.Ramachandran
(Expert) 15 June 2018
Dear Kehar Singh,
According to Sec. 192 of the Income Tax Act, it is the responsibility of the (drawing and disbursing officer) i.e. the person responsible for paying any income chargeable under the head "Salaries", to deduct income-tax at the time of payment, on the amount payable at the average rate of income tax, on the basis of estimated income of the assessee for that financial year.
You have received the LPC of the official concerned. From it you know as to what was his salary for each month. Now you have to pay salary for the rest of the months in the financial year. Now you are in a position to know as to what his estimated income for the whole financial year would be. Based on that you know what would be the tax payable. If the Tax Deducted at Source is shown as NIL in the LPC, take it as correct and then proceed to deduct TDS that is deductible (Meaning that it is you who is to deduct the entire TDS for the financial year, as nothing has been deducted so far by the earlier DDO). That's all.
You need not get into any argument with the official. In case, if the official feels that what you are deducting as TDS is excessive, he will come. At that time you can deal with the issue appropriately.
Guest
(Expert) 16 June 2018
Ms. Usha Kapoor,
What exactly you know about LPC, when issued, and the functions of a DDO in relation with the LPC in any organisation?
Guest
(Expert) 16 June 2018
Ms. Usha Kapoor,
What exactly you know about LPC, when issued, and the functions of a DDO in relation with the LPC in any organisation?
Guest
(Expert) 16 June 2018
Ms. Usha Kapoor,
What exactly you know about LPC, when issued, and the functions of a DDO in relation with the LPC in any organisation?
kehar singh
(Querist) 16 June 2018
Dear learned member, let me clear the issue that I am not going to enquire how the TDS amount arrived at Zero in the previous establishment.
My question here is the employee wants to maintain status quo with respect to TDS in the new establishment as well based on the LPC only even if the new taxable amount for the remaining period comes more than Zero.
Under this circumstances don't the D&DO has right to deduct the TDS for the remaining part of the year as per fresh calculation for the remaining part of FY ?
Can the DDO of new establishment be presurised to maintain Status quo with respect to TDS ?
I feel Ld. Ramachandran ji is correct. However, the opinion of other learned members is still solicited please.
Guest
(Expert) 16 June 2018
Better to Discuss this with CA Club of this same Forum
