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Tds deduction u/s 192b

Gayatri N (student) (138 Points)

02 March 2016

TDS deducted at lower rate as per investment declaration of employee provided in April 2015 but later on proofs of investment received are of lesser amount but the employee has resigned from service now what is the remedy? Please guide. In the given case employee resigned in the month of november 2015 and proofs submitted in january 2016 will the company has to pay lower deduction along with interest and should the tds return for 3rd Qtr be revised or what is the procedure.

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6 Replies

Gayatri N (student) (138 Points)
Replied 02 March 2016

Can the proofs upto march 2016 be considered or only upto november should be considered? Even after considering the proofs upto march 2016 there is a default. Waiting for guidance

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 02 March 2016

While filing return for the A.Y 2016-17 relating to the financial year 2015-16 file as per actuals investment details till March 2016.Then pay the difference amount,if any .

1 Like

Vikas Gupta (Tax Executive) (530 Points)
Replied 02 March 2016

Investment proofs upto Mar'16 will be considered. If after submission of all relevant proofs there is still any tax liability, the employer asks to deposit the balance tax amount from the employee or the same will be recovered from the employee against final settlement amount.

If there is still default, the employer will have to deposit the balance tax along with interest, if any to Income Tax department and return will be revised, if filed previously.

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Gayatri N (student) (138 Points)
Replied 02 March 2016

But the same should it be paid with interest in march 2016 while filing TDS return for Q4 or only balance amount payable

Tushar Agarwal (student) (94 Points)
Replied 02 March 2016

I think employer is not held liable for lower deduction of tds from salary since they had deducted on the basis of declaration by employee. Employer has no responsibility to check the genuineness of the transaction. I Think employee will be held liable for the same.

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Tushar Agarwal (student) (94 Points)
Replied 02 March 2016

I think In future if lower deduction Proff submitted then TDS amount to be revised from the date of recipt of such document prospectively. Consider other views also

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