Byju’s TDS default: Employee not handing over taxes to government, Budget announces measures

Byjus TDS default

Recently, employees of a start-up Byju’s claimed that even though their taxes had been deducted from salary, the same were not handed over to the Government.

This isn’t the first time employees have been facing the brunt of a mistake committed by their employer. At the tax filing stage, employees are being forced to pay the taxes again due to a default by the corporate, causing a double whammy and loss of income.

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To fix these issues, the Finance Minister proposed to decriminalize delay for payment of tax deducted at source (TDS) by employees, up to the due date of filing its statement. So if an employer needs to file the statement of TDS each quarter, then the payment has to be paid maximum by the end of the quarter.

“Currently, the collection of TDS from employees is done on a monthly basis and the same is also credited to the Government on a monthly basis, unless one seeks a special permission. Even though the payment of taxes is done to the Government monthly, the details of the specific employee and the amount against his permanent account number are reported quarterly,” explains Vaibhav Sankla, founder of Billion BaseCamp.

The TDS return mentions the exact information of the TDS deducted and the PAN of the employee.

Under the Union Budget 2024 proposals, the Government also plans to provide a standard operating procedure for TDS defaults.

The compounding of taxes when companies default on TDS payments too would be simplified and rationalised.

See here: Government to allow tax collected at source to be set off against TDS on salary: Budget 2024