13 July 2012
In case TDS on salary is not being deducted for April’12 and May’12 but in the month of June’12 TDS is deducted on prorata basis then whether company is liable to pay interest on late deposit for not deducting tax for first 2 months. Further how it will show in the TDS return.
13 July 2012
Read section 192 carefully.. Section 192(3) says that the person responsible for making the payment of salary may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year. Hence Interest is not chargeable in this case.
13 July 2012
Adjustment for Excess or Shortfall of Deduction: 3.8 The provisions of sub-section (3) of Section 192 allow the deductor to make adjustments for any excess or shortfall in the deduction of tax already made during the financial year, in subsequent deductions for that employee within that financial year itself
Deductor have a right to adjust short or excess deduction of TDS
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