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24q tds return - declaration of other income by employee

TDS 1868 views 7 replies

Dear friends,

Our employees have declared other income and TDS on the other income. Using this information, TDS for the last month salary was recalculated and accordingly salary for March was paid and TDS deposited.

However, when I am filling in form 24Q for filing TDS returns, there is a column to enter other income declared by employee but no column to enter the TDS already deducted on that other income. This results in 24Q showing "short deduction" by employer and thus a liability which will at some point of time come as a letter from the department.

This case is also discussed in this article.

https://blog.tibs.in/2010/04/11/considering-tds-on-other-income-while-calculating-tax-on-salary-%e2%80%93-part-ii/

 

What is the solution to this? Is there a work around?

If I do not show that employee declared income, then there is excess TDS deducted and paid. Is that a better option?

 

Replies (7)

Ya, dont show that other income and take a new declaration from the employee...

do not show other income

 

For filing e tds, what is the PRESCRIBED (as per IT) MINIMUM % of employees (Salaried class) that must have eligible PAN?

Hi,

I also faced the same problem regarding some new employees.

You can go ahead with showing other income and of course, there must be a column wherein income tax already deducted by previous employer is shown. Even after that it shows short deduction, you still can file return and when default arises, you can show the Form 16 received from the previous employer.

And if you want to escape this, then just show the total income given by you only.

Regards

@ sandeep: It is 95%

Hi Mr.MKA,

From your statement it looks like your employees have declared an other income which also consists of previous employer salary...

However while filing you have to show only the income relating to your employment period,there is no need to show the previous employer salary in your Q4 return annexure II.

You can check this in TIN-NSDL website also...
https://www.tin-nsdl.com/etds-etcs/faq-etdsclarifications.php

 

 

If employee declares other income with TDS deduction so we should consider this for calculating final tax liability but cannot show deduction of TDS on other income in our form 16.

As a result of this our form 16 will show short deduction of tax but we have to issue form 16 with nil tax liability or refund so for this we should reduce his other income to the extent (TDS on other income divided by his max. tax slab with effect of 3% cess) by which either tax liability should be nil or refund in form 16.


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