wrong information to employer - form 16

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This query is : Resolved

A J Sankar (Querist)

10 June 2010 dear sirs,

one of my client given wrong information to his employer regarding interest on house loan. ie he has given the interest paid is 50000 but actual interest paid is only 20000. But form 16 alread issued on the basis of earlier information.
What is the consecquence of the same?
can employee pay tax for the differential amount ie on 30000(50000-20000)? or can he obtain revised form 16 from his employer.

Please reply urgently.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

10 June 2010 In the employee`s Income tax return you correct the amount pay the different tax and file the return

A J Sankar

A J Sankar (Querist)

10 June 2010 Thank Q sir,

is there any interest payment required on the differential tax amount. i mean whether interest is to be paid on tax on 30000 (50000-20000)

taxindiaconnect

taxindiaconnect (Expert)

10 June 2010 Company may not agree to revise form 16 from the employer as the last date for deposit of TDS has alrady been over. If company agrees to a revised certficate, is has to deposit tax TDS with interest, issue revised certifcate of a date after the deposit of tax and revise its TDS return also if already filed for Q4

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

10 June 2010 You can pay before filling Income tax return ( But you can cross check the advance payment dues and due date) for interest calculation

A J Sankar

A J Sankar (Querist)

10 June 2010 but employee not yet filed his return. Does he require pay interest. (as due date has not crossed)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

10 June 2010 The AY -2010-11 Return filing due date still time is there. you can pay tax up to the date of filing. but if the employee liable for Advance tax payment- you need to calculate any shortage in advance tax payment and that need to be paid

Rahul Gupta

Rahul Gupta (Expert)

10 June 2010 Agree with Mr. Ramesh. In case, there arises any advance tax liability in terms of provisions of Advance Tax, you are liable to pay the interest amount, since Date for advance tax has been crossed which the last day of the financial year i.e in your case 31st March, 2010.

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