Non- deduction of tds due to excess advance tax paid

yes the employer shud be informed, as it would result excess deduction of tax.

Firstly in the case of Salaried Employees, there is no need to pay Advance Tax Installments as the Employer deducts TDS. If any Tax Laibility arises, then the same can be paid as Self Assessment Tax at the time of filing the Income Tax Return. Now as you have paid Excess Tax, this fact needs to be intimated to the Employer to avoid excess deduction of TDS.

Happy New Year !! :)

Regards,

Devendra Kulkarni

Originally posted by : Devendra
	Firstly in the case of Salaried Employees, there is no need to pay Advance Tax Installments as the Employer deducts TDS. If any Tax Laibility arises, then the same can be paid as Self Assessment Tax at the time of filing the Income Tax Return. Now as you have paid Excess Tax, this fact needs to be intimated to the Employer to avoid excess deduction of TDS.   Happy New Year !! :)   Regards, Devendra Kulkarni

Completely agree with this comment

 

agree with devendra

Would it tantamount to any default on the part of the employer u/s 206? ( We want to be sure before we intimate the employer)

No it would not amount to default by the employer.  the employer is liable to deduct tax only if he is required to do so.  In you cse as teh employee has already paid advance tax, so it would not amount to default on part of the employer.

also the dept while scrutinizing the I-T return of the employee will verify if the emloyer had deducted adequate tax or no.  As the employee would have already paid the advance tax so it would not take any action against the employer.

It would not amount to default on part of the employer.

While deducting TDS employer takes into account, other income declared by the employee and also the chapter VI A deductions claimed bythe employee. E.g LIC, NSC etc etc.

Submitting a copy of the challan, and form 26AS should hopefully satisfy the employer.