Tds deducted without any information

Stella James (Querist) 09 May 2013 This query is : Resolved
Dear Experts,

The finance department has deducted TDS for our employees without giving a prior information. The newly joined employees are not aware of the processes. No declaration has obtained from the newly joined employees.

Therefore I would like to know if there is any provision in Taxation law that the employer should collect the declaration from the employee or check with the employee before initiating the TDS deduction from their salary.

Thanks,
Stella

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Devajyoti Barman (Expert) 09 May 2013
If the employees are filing IT return then would surely get refund of TDS.

Stella James (Querist) 09 May 2013
Thanks for your reply... The employee should wait till the IT returns are filed. In order to avoid this issue in future, we need to let the finance department know that employees should be well informed about the IT processes before deducting the TDS from their salary.

Therefore we need to know if there is any provision in law which will help us.

Devajyoti Barman (Expert) 09 May 2013
You can ask for it but it is not big issue and you would surely get its refund.

Vineet (Expert) 11 May 2013
There is no provision in law as asked by you. Law requires employer to deduct TDS and deposit with government and issue TDS certificate to employee at the end of the year.

However, as standard HR practice all big employers seek declaration regarding tax saving investments, home loan interest, medical insurance premia etc to deduct correct TDS. You can suggest you finance department to collect such declaration from employees in the month of April itself and later in February with evidences.

Satya Mani Tiwari (Expert) 13 May 2013
Deduction of tax from employees is the responsibility Employer under IT Act. Finance Department of any company has the power to deduct TDS before giving salary to the employee, such deduction of TDS is reflected in pay slip of the employee. In the month of April Saving Declaration is asked by the employer and accordingly TDS is deducted.

Form 16 will be issued to the employee by the Employer which will make clear total amount received by the employye as salary & TDS deduted by the employer in the current Financial yearbe fore the due date of filing tax returns the details in Form 16 will clear all your doubts.

Finace Department of your company is not on fault because in case of LESS deduction of TAX they are liable. In case of Overly dedution the refund will be sent by the IT Department in the Bank Account of the employee directly or through Cheque.