Accountancy Forum

I am working in local private firm as accountant. Our company registered in July 2009 and it has NTN also. It has only one employee whose income is taxable. He was hired in November 2009 at monthly salary of Rs.25000/-. Now at the end of financial year in June 2010 he will have income of Rs.200,000/-. My question is how much tax is needed to be deducted and deposited in Govt. treasury and when? Either Rs.200,000/- *0.5/100 = Rs.1000/- in June 2010, or Rs.25000/-*12 = 300,000*0.75/100 = Rs.2250/- in June 2010 or monthly equivalent payment. Since we have not deducted any amount as yet what will be the procedure of depositing tax.

Secondly we are paying 15000/- per month as rent for premises since November 2009, but havent deducted / deposited tax on it also. Can we deposit tax of all these months at once.

An early response is requested.

As per section 139 you are supposed to deduct tax every month on the estimated "Salary" of the employee for that tax year irrespective of how long he / she has been working for you. Fact that you still have not deducted the tax makes your company personally liable for that tax under section 161. However you can further recover that tax from the employee though penalty will be imposed under section 161 referred to as additional tax.

Same answer for your second question.

Read section 149 for salary and section 160 and 161 for deduction of tax, things will get clearer.

HI,

Q-1 Chunky aap k employee ki income taxable nahi hay is liye aap us ki income par income tax nahi laga sakty,,,, han agar us ki income 2,00,001/= hoti to us ki income taxable ho jati.

Q-2 App nay likha k app private firm may kaam karty han or phir app nay likha k aap ki company july may registerd hoi,,,,, pahly ye clear karyn k aap ka status hay kya, app business individual han AOP han registerd firm han ya company hayn…
Agar aap company han to aap rent may say income tax withheld karyn gay otherwise app is payment k liye withholding agent nahi hayn.