07-09-2011, 04:34 PM
In no case any employer is certain that his employee will definitely work for the whole year. The employee deriving salary may resign, become incapable of working, die or be terminated at any time.
We have to presume that he will continue to work for one year and you will estimate his annual income and deduct tax accordingly.
One question remains, of which I don't know the answer, what if we are certain that employee will only work for five months with us at Rs.35000 per month. Should we deduct tax or not? if anyone has read any circular or judgment on this issue?
We have to presume that he will continue to work for one year and you will estimate his annual income and deduct tax accordingly.
One question remains, of which I don't know the answer, what if we are certain that employee will only work for five months with us at Rs.35000 per month. Should we deduct tax or not? if anyone has read any circular or judgment on this issue?
