Tds

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Poonam Lohiya (Querist)

02 July 2014 If i deduct TDS on salary monthly without considering the invesment and in march month i come to know that i deducted higher TDS if employee inform me about investment.then what to do. Should i ask to employee to give details of investment at beginging of the year or i deduct TDS without considering the invesment.

Guest

Guest (Expert)

02 July 2014 better way is to ask quarterly details of investment from the employee...

but usually we deduct tds on planned basis assuming that the employee invests amount.. and in march if he didnt invest we deduct full difference tds in march......

Rupesh Jain

Rupesh Jain (Expert)

02 July 2014 you have to take investment detail on starting of the years.

and deduct TDS accordingly.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

02 July 2014 An Investment declaration is taken from employee at the beginning of the year based in which monthly calculation is made. Any shortfall amount due to less investment is deducted fron salary of March month.

If you have deducted excess TDS then employee have ro claim refund by filing IT Return. There is nothing you can do.

mehulmukati

mehulmukati (Expert)

04 July 2014 Poonam

If you as employer have deducted excess TDS because employee did not submit investment proofs; the employee has to claim the excess as refund. As employer you cannot refund TDS already deducted. As an employer, at best, for March, you can show nil TDS deduction.

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