Dear All,
I seek your expert opinion on the following ticklish issue that I am facing currently:
Facts : An employee was paid excess salary (of Rs. 2,00,000 ) than what he is entitled during the FY 2011-12.
He come under 30% slab for TDS purposes
The error is noticed and recovery process is initiated.
Question : If I recover the entire 2 lacs in two instanlments in the next two months through his salary (being processed by a Payroll processing vendor) can this recovery amount be adjusted against his current income of the year and tax the balance income for TDS purposes u/s 192?
Your quick opinion (with a refernce to the relevant sections/ rules/ circulars/ case laws if any ) on this would help me to resolve the issue quickly.
Thanks & Regards,
CAclubindia
