Salary tds

TDS 586 views 4 replies

A Company fail to deduct the tds on salary and paid the full amount to one of its employyes and after the end year paid the tds to the government out of the company fund and same is shown as recoverable from employess as tds recovery paid on his behalf. now the issue is  tds paid by company that is shown as recoverable from employee considered as advance salary for tds purpose and subject to  tds again .please resolve

Replies (4)

I don't think it will be considered as advance salary as per my understanding if a company does not deduct or deduct less TDS than actual it can be adjusted against the future month salary when the pay run for next month is run by the company. Tax is computed anually so there may be fluctation in the per month salary due to revision or arrears. let suppose an employee's salary get increased retrospectively from 1-April-2014 but we are in the month of Oct 2014 When you update the latest salary on the system company's payroll software will recompute the salary from 1-April-2014 and any deficiency in TDS deducted will be met out with the current month salary. For me company made a mistake by paying it on his behalf instead it can be deducted from the next month salary. You can post this query to expert section to get a professional advice.

hi abhinav

This case pertian to f.y 2013-14 and in f.y 213-14 nothing is deducted from his salary and a s per ur advice it can be adjusted aganist 14-15 salary  and shown as recoverable in balance sheet of 13-14

Advance salary means the employee has withdrawn salary today that was to be received by him on a later date. So how can company create advance salary to recover TDS from the employee? The company only has to pass a JV entry in salary account.

Can this be treated as "Amount Recoverable - Employee"


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