Final tax liability to be deducted from salary of march

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Dear Experts,

It has come to notice in an organisation that while computing final income tax liabilty of employees, if it is found that TDS deposited on account of an employee till February is figuring out more than gross tax payable, then such difference amount is refunded to him, and the refund amount is adjusted / net-off against March TDS Liability.

The accountant is sticking on the point that the same is being carried out as per provisions of the I.T Act.

Is there any such provisions in the Act? If yes, how to show the adjusted refund in Form 24Q? Please explain in detail.

Thanks in advance.

 

 

Replies (1)

Same can be adjusted in Form 24Q in months of Jan & Feb. Since total tax deposited by employer is Jan + Feb + March, he only needs to adjust his TDS against each employees, i.e. higher TDS in Jan & Feb for those employees in which Mar TDS is payable and comparatively lesser TDS in Jan & Feb for those employees in which Mar refund is coming.

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