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Tds deducted on salaries

surekha sawant (Accountant) (55 Points)

28 March 2012

Dear all,

We have deducted tds on salary of 'x' employee on monthly basis from April'2011 to September' 2011 on monthly basis based on investement declaration given by him. and same has been paid to governmnet alongwith other employees Tds amt .(We are filing annual return form 24) .But a concern employee had left the job after Oct'11 and total salary we have paid for this period is Rs.1,30,000/- (Below Rs.1,80,000/-)

My query is :

1.As 'X' Employees salary is below taxable salary, whether we should adjust his tds amt with another employee & refund his tds amt to him.

Please help in this matter

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23 Replies

RAVI patidar (ARTICAL) (452 Points)
Replied 28 March 2012

For details please refer section 192 B . your employee has left the job during the mid of the year. It is the employer’s duty to deduct the tax at source. Once the tax has been deducted it should be deposited under the credit of central government. For payment of TDS refer section no 200(1). If you have deducted the tax in april may june july august months, now it is your responsibility to deposited under the credit of central government. You can not refund the amount of tds to the employee directly. He will file his return before 31 july 2012. And claim refund.

It can not refund amount of tds to emloyee directly.

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 28 March 2012

As the TDS is deducted & paid to the credit of Cent govt, hence no adjustment can be made. The concerned employee can claim his TDS Refund by filing a return in the A.Y.

1 Like

Suraj Agarwal (Self Practitioner in Income Tax & GST) (782 Points)
Replied 28 March 2012

Once TDS is deducted & credited to the government, then it can not be reversed & refunded to the deductee any ways.

Pooja Jindal (Student) (36 Points)
Replied 28 March 2012

Once Tds has been deducted it must be deposited to the central government. In above case where salary of Assessee is below max. exemption limit and employer has deducted his tax (Tds), if his income contiues to remain below max. exemption limit , he can claim refund by filing his return on or before prescribed due dates to I.T.department or if his income exceeds max. exemption limit, he can adjust Tds from his total Tax.

1 Like

surekha sawant (Accountant) (55 Points)
Replied 28 March 2012

Originally posted by : RAVI patidar

Sir,

But how to show in annual return i.e form24 & issue Form 16

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sai kumar (CA) (160 Points)
Replied 28 March 2012

TDS we deducted and paid to credit of central government, if any refund we have to get can be claimed at the time of filing the return.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8310 Points)
Replied 28 March 2012

Deductee can only claim refund.

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 29 March 2012

Agreed with all above.....

only dedutee can claim refund at the time of filing return...

no adjustment is allowed....to another employee....

1 Like

Satish (CA (Final), CS (Final)) (172 Points)
Replied 29 March 2012

Once you have deducted the TDS from the employees salary, its your duty to pay it to the govenment, it can not be refunded to the employee after his resignation, when the employee left the compay usually the previous company will give the Full and Final Settlement statement, relating to his salary, allowance, investment details submitted to the previous employer, tax deducted from the salary and other deductions like PF, ESI PT and other benifits, based on such details the current employer will compute the tax after taking the TDS of previous employer and compute the tax laibility, if you refund the TDS amount to the resigined employees merely because of he is not coming under tax bracket its not correct thing also the details given by the previous employer in F&F will not correct, what guarantee that the employee will promptly pay the tax to the government when you refund the TDS amount, while giving the Form 16 show it as a refund amount, after clubing the both Form 16's his tax liability will be NIL.

2 Like

Hmingthanga Kipgen (Independent Practice) (48 Points)
Replied 29 March 2012

If Someone is Exempted from income tax and still TDS are deducted from his salary. How will he claim refund as the ITR dosen't have any column for exemption under section 10?

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Rishabh Ahuja (.) (491 Points)
Replied 29 March 2012

no such provision for adjustment of tds is there once it has been deducted and paid to the goverment

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 29 March 2012

Only way is to claim Refund by the concenrned employee through filing Income tax return before due date in 2012. There is no such mechanism to obtain the refund from the Government by company directly and to pay off.

Once company deposits the amount, Company does not have any right to claim the amount.

Thanks

Mihir doshi

Parikh Ashish Narendrakumar (C.A,M.Com.,LL.B) (39 Points)
Replied 29 March 2012

Yes I agree with you if employer deduct the TDS and submited to the Government Authory than after on the basis of revise calculation employer will not refund the amount and say that you are not cover under the tax bracket but on the basis of the information employer issue the TDS certificate and TDS will be calim by the employee at the time of filling of return.

Hmingthanga Kipgen (Independent Practice) (48 Points)
Replied 29 March 2012

Originally posted by : Parikh Ashish Narendrakumar
	Yes I agree with you if employer deduct the TDS and submited to the Government Authory than after on the basis of revise calculation employer will not refund the amount and say that you are not cover under the tax bracket but on the basis of the information employer issue the TDS certificate and TDS will be calim by the employee at the time of filling of return.

Kindly elaborate how the Refund will be claim if there is no column in the ITR to show he/she is exempted from income tax.