Tax on Director Salary

TDS on Salary to Director.

Salary decided at the start of the year and TDS was deducted properly every month (exact total tax liability of salary amount divided by 12).

But after 11 months due to less than expected income in company it was decided to reduce total salary of Director, now TDS already deducted out of 11 months salary is more than actual tax liability of salary income, due to reduction in total salary amount.

Will there be any compliance problem for this excess deduction of TDS from salary.

Please guide.

Replies (3)
Quick Summary
Excess TDS on director salary due to later reduction in pay is not a compliance issue. Adjust in the final month if possible, else claim refund in ITR. Ensure correct figures in Form 16 and TDS returns.

 

  • No compliance issue due to excess TDS deduction

  • ✔ Try to adjust in last month (if possible)

  • ✔ Otherwise, director can claim refund in ITR

  • ✔ Ensure correct reporting in Form 16 & TDS return

 

Thank you sir for your reply.

No issue will arise for excess deduction

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details