Dear All,
Company makes deduction from monthly salary payments of an employee based on estimate and realize at the end of year that more Income Tax has been deducted then actually required. This could be employee earning less salary in subsequent months or also he is able to make additional tax investment to claim deductions.
Is there any-way this employee can be refunded the excess tax deducted?
Few years back when returns were manual it was certainly allowed and could be carried out in a clear and concise manner. Just show negative tax figure for those employee whose excess tax has been deducted while filing monthly returns. Company liability amount can also be derived exactly. In short company was making payment out of the total TDS payable to the treasury for that month.
But now under the e-return software E-TDS-RPU 1.6 the annexure I & II does not allow any negative figures and thus in turn denies the option of any genuine correction within the financial year to any individual.
Request fellow members to please guide how best this could be handled. Thank You.
CAclubindia
