Tax Liability Remains Even if Salary Not Received: Tax Experts

Almost all the world economies have been looming with economic slowdown and crash. Also, there are companies that have postponed their salary payments and also held the payments of the vendors. With this never before situation, there are doubts and queries in the market and companies on the tax liabilities of the business units. Here we will go through the question of tax liability of Indian companies even after not paying the salaries and payment.

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In the ongoing pandemic, the recession has taken over all the industries and has created an acute slowdown in the economy. With this factor, many of the companies are not paying even salaries to the employees. However, there will be no relief in the tax liability of the employees towards the government even if the company has held the salary and payments to the vendors. This point has been cleared by an expert CA.

He has cleared the even if the payment and salaries are on hold, the tax liabilities are still there. As per the income tax act 192, as soon as the account book is to be credited with the salary of employees, then the tax liabilities arise. However, if the payment is foregone or is scheduled to be done after 2021 then the payment of TDS Get to know TDS online payment procedure and due dates for the current assessment year. Also, we have mentioned details of TDS forms, TDS return filing and taxes has to be given in the current financial year by the receiver. The TDS credit will be received by the employee while at the time of return filing.