TDS on the salary ?

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Alex Sunny

26 Points Posted on 16 June 2021

Hello,

I am new to this forum.I hv a querry.My client is employed with indian MNC.Join company in July2006 Company was deducting TDS to the tune of 40000 every month..In feb company informed him that there is some additional tax liability cos of Rent free company accomodation to the tune of Rs40000 which was not deducted before so for march he got salary ch only to the tune of Rs.4000 which normally every month is 60000 and my client was not prepared for this cash crunch...whether tds section of any company can transfer the burden of their mistake to employee like this?

thanks

alexsunny

Replies (2)

Quick Summary

A user is asking if their client's employer can unfairly burden them with a large TDS deduction in a single month due to a previous oversight regarding rent-free accommodation. While employers can adjust TDS in subsequent months based on actual liability, a sudden, massive deduction causing a cash crunch raises questions about the fairness and legality of such actions.

CMA Poornima Madhava

CMA

9106 Points Posted on 16 June 2021

Employers can legally (not sure morally) adjust shortage/excess of TDS u/s 192 in the subsequent month depending upon the actual income/liability for the year. However, such a huge deduction in a month is certainly an enormous strain.

Alex Sunny

26 Points Posted on 16 September 2021

Originally posted by : Alex Sunny
	Hello, I am new to this forum.I hv a querry.My client is employed with indian MNC.Join company in July2006 Company was deducting TDS to the tune of 40000 every month..In feb company informed him that there is some additional tax liability cos of Rent free company accomodation to the tune of Rs40000 which was not deducted before so for march he got salary ch only to the tune of Rs.4000 which normally every month is 60000 and https://ometv.onl https://chatroulette.top https://omegle.wtf https://bazoocam.cam my client was not prepared for this cash crunch...whether tds section of any company can transfer the burden of their mistake to employee like this? thanks alexsunny