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Employer not considering loss from house property for tds

Gopal (Senior Consultant) (34 Points)

04 February 2014

Hi,

My employer is refusing to consider loss from house property while calculating TDS liability as per my salary. They are very adamant saying its the company policy.

Is there any way by which I can force them to consider the losses? Preferably any IT case law, judgement would be of great help.

Thanks.

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7 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 05 February 2014

You company must be following a policy of seeking a declaration from the employee about loss from house property before adjusting TDS deduction. Furnish to them the declaration to your employer and they shall adjust the TDS deduction.

Gopal (Senior Consultant) (34 Points)
Replied 05 February 2014

Hi mihir, Thanks for the quick reply but i have tried giving them the forms as well as declarations but they simply say we can monitor this for so many company employees. Any legal obligation or a case law would be of great help to convince them.

AVTAR SINGH (Expert) (1873 Points)
Replied 05 February 2014

Circular No.08/2013 dated 10th October, 2013 issued by CBDT clearly states in Para 3.5 and 3.6 that the 'Loss from House Property" has to be considered while computing tax/TDS liability of the employee subject to certain conditions.

Gopal (Senior Consultant) (34 Points)
Replied 05 February 2014

Thanks but I have also tried giving them reference for this circular and the wordings with no positive results.

mahendra jangid (Dy. General Manager (Finance)) (444 Points)
Replied 05 February 2014

Dear Avtar... The circular referred by you is exhaustive and clear.. good...

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 05 February 2014

A comapany had given a loan of Rs.20 lac and the interest accrued on that amt. is rs..6 lac and the total amt. is rs.26 lac. and company had recorded the income of rs.600000 on accrual basis. Now, the party to whom loan is given is not giving the full amt. only principle part of amt. ie. 20 lac is giving and the rs. 6 lac is not giving.

can the company deduct the rs. 6 lac from its income as it recorded in its income.?

Rs. 6 lac cannot be recorded as a bad debt becoz it is textile company and the income recorded under other source income.

plz suggest me how can i remove this rs. 6 lac.

Mihir (Wealth Manager) (5293 Points)
Replied 05 February 2014

@ Gopal , I think you will have to speak with someone senior in your organisation. The employer cannot deduct TDS in excess when the employee is giving the declaration about the loss from house property.