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I am working with a private limited company since February 2006. Due to reasons alien to me the company has not deducted income tax from my salary so far. Through a chartered accountant i paid advance tax in the month of December after calculating the tax based on my salary income and investments. The logic behind the payment of advance tax was to avoid any interest accrued for the accumulated tax and to avoid heavy tax cut during Jan-Mar. But to my surprise and dismay, the company refuses to accept the advance tax citing that they cant accept tax paid outside of TDS.

In this context,
1) Is the company within their rights in not accepting my advance tax paid receipts?
2) Does a citizen need to pay advance tax (in accordance with the deadlines issued by the IT dept) in case of salary issuing company not deducting the tax at source?
3) Are there any specific guidelines for TDS by which the heavy tax cut during the last 2-3 months by the company is prevented?

2007-01-17 04:22:31 · 2 answers · asked by Ganesh 2 in Business & Finance Taxes India

2 answers

Employee is liable, but employer may be investigated to see if there are other oversights like this.

You better take this up with IRS yourself and don't wait for employer. Interest is accruing that won't go away. You do not have to pay taxes in advance, but if they are going to be late you need to file an extension.

Set yourself up as self employed contractor and be responsible for your own taxes or work for an entity that is more circumspect.

2007-01-17 05:03:08 · answer #1 · answered by justbeingher 7 · 0 0

employee always

2007-01-17 12:40:23 · answer #2 · answered by cork 7 · 0 0

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