Tax on Director Salary

TDS 34 views 1 replies

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 (1)

 

  • 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

 


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