TDS on Salary 24Q

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This discussion addresses how a company can rectify a shortfall in TDS deducted on an employee's salary, particularly when the employee has already left the company. The advice suggests filing the TDS return with the accurate amount deducted and ensuring the employee makes good the difference when filing their income tax return. It also clarifies that no penalty will be levied on the company if the employee pays the shortfall, provided the company can provide proof of this payment.

Sanjay Sharma

Sanjay Sharma (Querist)

06 May 2022 Company had deducted less TDS on Salary of an employee, who left the company in Nov, 2021. Company had filed Salary TDS return for 3rd quarter with accurate details like Salary & TDS. Now company filing its 4th Quarter TDS Return for Salary. how can we rectify it.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 May 2022 File TDS return for actual TDS deduction. Any shortfall in TDS will be made good by the employee while filing his return.

Sanjay Sharma

Sanjay Sharma (Querist)

06 May 2022 Thanks Seetharaman Ji for your valuable advise, but I have a doubt - Is there any penalty on company for less deduction of TDS?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 May 2022 No penalty in case the employee make good the less deduction and file ITR.
In case of any notice you obtain a certificate from CA that short deduction is paid by employee and file it online no penalty can be levied.
Ask the employee to make good the short deduction while filling ITR. Obtain a copy of ITR from him.

CA Puja Sharma

CA Puja Sharma (Expert)

06 May 2022 You will receive a notice from the Income-tax department for a short TDS deduction.

But you have to reply to that notice by writing to the jurisdictional officer that the short TDS have been already paid by the employee while filing the IT return.

Further, you can also obtain Form 26A for your records.

Sanjay Sharma

Sanjay Sharma (Querist)

06 May 2022 Thanks a lot Seetharaman Ji and Puja Ji for your valuable suggestions.

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