Tds on salary

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This query is : Resolved

Mayank Garg (Querist)

12 February 2012 sir,tds departmnt have issued notice showing short ded. in q4 and demanding the balance...???
i want to know how they get annual salary details??

we hav deductrd correct tds in 4diffrnt q,s???

how to get demand reduced???

urgent

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

12 February 2012 In TDS return q4, we need to provide in salary sheet, total salary, deductions and tax liability and deducted details. so department will trace this details and sending demand

Mayank Garg

Mayank Garg (Querist)

12 February 2012 if upto3q return has been filed by other c.a. @nd nw we are filing so how to deal with it..???

ultimately what we should do to reduce demand & file a revised r etu???
i hav downloaded consolidated fvu and defaul list??

CA Manish Agrawal

CA Manish Agrawal (Expert)

13 February 2012 My Friend !! I Think you have not analyzed properly the Tax Liability of Employee(s) concerned / point of Taxation (period) for which Default Made.. all this has been given in your Inbox (TIN-NSDL.com Default menuitem). Although You have Not Filed Previous TDS Returns. but now you Have Consolidated FVUs which can be imported in the TDS software. IF Still you are Unable to analyze the Default you may Quote The Default to me Without Disclosing Client Name.
Then I can help you...

CA MAnish J. Agrawal
STS, B.COM. FCA DISA DIRM SAP (FICO)...

Mayank Garg

Mayank Garg (Querist)

13 February 2012 can i. change anual salary detail.??
all the entries are correct....

previously all work was done by previous c.a...we hav to deal with the notice also....
so we hav to rectify them....???!

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2025 Yes, you **can revise the Q4 TDS return** (Form 24Q) to correct or update annual salary details if there was an error or mismatch that led to a short deduction demand.

Here’s how to deal with it step-by-step:

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### 🔍 **Why Did the Notice Come?**

In **Form 24Q - Q4**, you are required to report:

* Total annual salary
* Deductions under Chapter VI-A
* Taxable income
* TDS liability and amount actually deducted

The **Income Tax Department uses this data** to **reconcile**:

1. The **employee’s total salary** as per Q4 return
2. The **quarter-wise tax deductions** (from Q1 to Q4)

If there’s **mismatch** or TDS in Q4 is less than total tax liability as per reported annual salary, it shows **short deduction**.

---

### 🔧 **How to Fix It (Step-by-Step):**

#### ✅ Step 1: Analyze the Default Notice

* Go to [TRACES Portal](https://contents.tdscpc.gov.in/)
* Download the **Default Justification Report**
* Identify the PAN and rows where short deduction is shown
* Verify if salary details reported in Q4 match what was actually paid

#### ✅ Step 2: Download **Consolidated TDS File**

* Use your TAN login at TRACES to request and download the **Consolidated File** for 24Q.
* Import this `.tds` file into your TDS software (like RPU, Saral TDS, CompuTDS, etc.).

#### ✅ Step 3: Correct the Q4 Return

* Ensure total annual salary, exemptions (HRA, 80C, etc.) and tax deducted are correctly reported.
* If the earlier CA made an error, you can **revise Q4 return** (Form 24Q, annexure II) to match actual salary paid and TDS deducted.

#### ✅ Step 4: Generate Revised FVU

* After correcting, generate the **revised FVU** using NSDL's **RPU utility** or your TDS software.
* Upload revised return through **TIN-FC** or online through [Protean portal](https://www.tin-nsdl.com/).

#### ✅ Step 5: Reconcile and Monitor

* After filing, recheck status in TRACES to ensure the demand is **nullified**.
* Download **Justification Report** again after processing.

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### ✍️ Can You Change Annual Salary Details?

Yes — **in a revised return**. Just ensure:

* It reflects correct **total salary paid**, deductions allowed, and TDS done.
* You’re not **artificially lowering salary** to reduce TDS — this can invite scrutiny.

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### 💬 Practical Tip:

Keep a working sheet of:

* Employee-wise salary paid per month
* TDS deducted each month
* Cumulative tax due vs. paid

This helps in **tracing issues** fast during TDS return filing.

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If you’d like, you can share **anonymized default entries** from your Justification Report (e.g., salary, TDS shown vs expected), and I can help you further identify the issue.

Would you like a sample Excel template for TDS reconciliation on salary?

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