Tds refund/adjustment

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Omkar Shirsat

CA Final Student

51 Points Posted on 08 July 2014

Hii Experts,

For F.Y. 2013-14, the company had deducted TDS on Salary of all employees for Q1,Q2 and Q3. In Q4, the company received investment proofs from employees and tax liability was freshly determined, leading to the conclusion that TDS should not have been deducted in case of certain employees since the very beginning. Hence, the company refunded TDS portion to its employees.

Now, since returns have been filed for the first 3 quarter, the 26AS of each employee shall reflect TDS credit, paid to government by his employer. How does the company now revise the returns for Q1,Q2, and Q3?

Also, can the company claim refund of TDS deducted and paid to government?

Kindly guide is the above issue!!

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 08 July 2014

according to me tds should not have been refunded.. if it was found that no tds was reqd to be deducted then tds should not have been deducted for Q4 and tds return filed accordingly. and employees should have been asked to claim refund of tds earlier deducted... i will suggest that tds refunded to employees should be adjusted from their future salary.

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 08 July 2014

refund of tds is possible but for only those challans that remain unconsumed. unconsumed means that no deductee details have been added to these challans in any tds return.