Short TDS

Dear Rajalakshmi,

Any excess or short deduction in TDS on Salary can be adjusted with subsequent payment during the same FY.

Since in ur case FY has changed so the above can't be done.

Now options for you -

1) The amount of TDS should be recovered from employee & deposited with interest to the Govt.

2) As far as treatment in the books goes, it will not be issue since on one hand u wil be geeting it from employee and on other u will be depositing it to the Govt. Interest part will be booked as expenses..(but the same will be dissaloowed for Income tax purposes)

3) Yes u can revise ur TDS return if alreday filed and can regenerate Form 16 by including this TDS amount.

4) Even if this thing attracts the attention of the auditors still it will not be an issue since these things happens in practical life and its not something which is a crime and auditee has rectified it;s mistake...so what else...no problem with that...