How to pay taxes when TDS is not deducted

It is the dutu of the employer to deduct TDS and deposit the same with IT department.

In your case as TDS has not been deducted the tax could have been paid by way of Advance tax each quarter but now Mar-11 has expired and you havent paid the advance tax so the option left is to pay as self assessment tax at the time of filing the IT return.

So fill IT return of your friend and compute the tax on the taxable Income and deposit the tax that you have computed by way of self assessment tax. The tax can be paid online or can be deposited with any bank accepting taxes do quote PAN number and the option self assessment tax while paying the tax. Hope this clarifies.

She could have already paid the tax thru., the bank.  Calculate the tax form No:16 is necessary if not she has to take the salary details.  Now also she can pay the taxes but she has to pay the penalty.  TDS she is now way concerned it is the duty of the co., to to the TDS.

Thank you for your reply.

I just browsed regarding self-assement tax and I got following information and confusion:

1. Interest on non payment of Advance Tax or shortfall in payment of Advance Tax u/s 234B or 234C is payable only when the tax due on your income exceeds Rs. 10000/- u/s208 of the Incometax Act.

2. In case of penalty, she has to pay 1% interest on tax payable. If she files return in May, then 2%(for March + April) interest should be paid?

If your friend is a regular employee of the company her salary income will come under the head "slaries". If her employment is as a consultant then her income would come under profits from business or profession. In this category, certain expenses incurred for the purpose of the profession can be deducted from the total  income and if the balance is more than the basic exemption for women, then only she will have to pay tax. She can pay tax under the head "Other Sources" also. But no deductions will be available except things like insurance premium, provident fund contribution etc. Does your friend has an employees provident fund and does the employer contribute to the fund? If so her income will come under the head "salaries" only.

But she still have to pay penalty?Or is it as simple as calculation your salary, subtarcating the invetment, checking the tax slots  n submit them?

She will have to pay simple interest at 1% per month on the amount not paid till payment of the same or till July provided that she files return before 31-07-11. If she has a PAN number she can submit return electronically also. She will have to first register for that. It is a simple procedure. After that she can download the appropriate form, which will be in XL format. The form is sensitive. If you make an obvious mistake it will show. You can fill up in the form income and tax according to your calculation. Afterwards, if you click the "calculate tax" button, it will instantly calculate tax and interest and enter it in the form. If you do not pay the interest now, interest is payable up to July, 2011 only. After assessment, the assessing officer will send a demand notice to the assessee for payment of the shortfall, wheather tax or interest