Whather i need to pay interest on tds

TDS 232 views 1 replies

Hi.. This is Santosh.

Earlier my company has decided orally to give LTA to the employees from april 15 onwards, consequetly it considered the same as an exemption while computing TDS on salaries.TDS deducted and paid to govt within the time. TDS returns also filed.

But now it changes its opinion by saying that LTA could not be part of salary retrospecitvely from April 2015. So It removes the LTA component from CTC. As a consequence TDS could be more from the april month onwards. 

My doubt is whether my company is liable to pay interest on TDS on the difference amount for the months of April may and June.

Please suggest me friends. 

Replies (1)

As per sec 192, the employer, may, at the time of deducting tax at source, increase/decrease the amount to be deducted for the purpose of adjusting any previous deficiency or excess deduction. So thus, in case of excess/short deduction in the previous months, the same can be adjusted in the subsequent months.


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