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Responsibility of DDO in case of short TDS

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Srimad Snehashis

23 Points Posted on 28 October 2021

For the FY 2020-21, DDO has short deducted income tax of rs 100000/- and Form 16 has also be updated. what is the provision for DDOs to recover the short TDS?

Replies (3)

Quick Summary

This discussion addresses the responsibility of a Drawing and Disbursing Officer (DDO) who has short-deducted £100,000 in Tax Deducted at Source (TDS) for the financial year 2020-21, with Form 16 already issued. It explores the provisions available to the DDO for recovering the under-deducted TDS amount. The core issue revolves around the DDO's obligation to deduct TDS at the applicable average rate before salary disbursement, while also considering potential relief under Section 192(2A) for employees claiming arrears.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 29 October 2021

It is the responsibility of DDO to deduct the TDS at average rate of income tax as applicable, before disbursing the salary. However, U/s 192 (2A) the DDO can allow relief u/s 89(i) to employee, if claimed against the arrears.

CA Aakarsh Jain

4330 Points Posted on 31 October 2021

I agree with the above comment

Srimad Snehashis

23 Points Posted on 01 November 2021

DDO has erroneously calculated TDS applicability ( short deduction of rs. 1,00,000/-, after considering all exemption , deductions & relief considering) and also finalized the Form -16 ( also issued to individual). In this case what is provision for DDO to recover the short TDS?