|QUERY:||By mistake deduction of tax at source has been made at wrong rate / lower rate / due to omission in the calculation of surcharge / education cess. While filing return of income, the employee pays the differential amount as self assessment tax. Subsequently on TDS assessment, demand is raised on the employer for the same differential amount. Employer proposes to recover the said amount from the employee. Is the employer justified in doing so or is there any remedy available to the employer?|
|ANSWER:||Click here to read the full answer of the expert|
|EXPERT:||CA. H. N. Motiwalla|
|SECTION(S):||191, 192, 201|
|CATCH WORDS:||salaries, short deduction, tax deducted at source|
– Basic duty to pay the tax is of the employee, however, as a vicarious liability, the employer has to deduct the tax. So, if the employee has paid the difference; no tax could be recovered from the employer.