I am the deductor in a office of the govt. of Assam. One employee has retired on [deleted] and another was transferred. TDS was made for both of them in the salary bills for January, 2019. There may be shortfall in tax deductions in their case. TDS returns for quarters 1,2 & 3 were already submitted. What am I to do in filing TDS return for 4th quarter in the context of shortfall in tax deductions for the retired and transferred employees? Thanking you in advance. Dhrubajyoti Bora
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Dear Dhrubajyoti,
If the full and final settlement is not get done, you can deduct the shortfall from full and final settlement and show this amount in fourth quarters TDS return.
Otherwise you will have to ask employee to pay you that amount or employer needs to bear that expense.
If any payment is outstanding then deduct the shortfall amount from that, also if the employee pays proper tax on same you will just have to pay interest over such shortfall amount till the date the assessee file the return of income and pay such shortfall tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
What should I do in case the final settlement of pensioner's dues or any outstanding payment is not likely to take place before filing 4th quarter TDS return? I have not got the answer regarding the transferred employee.
In all the cases you have 3 options:
1 contact the employee ask them to refund the TDS amount.
2 pay the TDS amount out of pocket.
3 let them pay income tax on such income and you assume that they would pay income tax by July and you just pay interest on such TDS.
Thank you
Dear Sir,
Hope you are doing well !!
Either you can deduct the shortfall amount from full and final settlement or employer needs to pay that shortfall amount.
Thanks & Regards,
Payal Chhajed
Hi
Short fall can be deducted form full and final settlement amount ,
And if no amount is outstanding then you have to pay interest on late deduction @1% on TDS amount from the date TDS was deductible to the date on which the employee submitted his tax return.
Hope it helps.
TDS on salary under sec 192 permits you to adjust the shortfall in tax deduction during the year. As the taxes are paid for first 3 quarters, you can deduct the taxes from the payments due in the fourth quarter. In case you have deducted taxes in Jan and not paid to government, it must be done immediately. However, if you have failed to deduct taxes then make provision for the final payments and deduct the taxes in 4 quarter. Where TDS is provided in books payments should be made by 7 of subsequent month.
The TDs on salary for March provision is to be paid by 30 April. So you can try to freeze the number by then If that is not possible, you can make an extra tax deduction and ask employees to claim credit/ refund. Other way is to make the payments of taxes when salary, pension is actually paid. Taxes on salary can be adjusted in the last installment.
Hi,
- If the deductee has paid tax himself, the deductor shall not be treated as assessee deemed to be in default provided fulfillment of the following conditions.
1) he furnished the ITR
2) has taken into account such sum for computing income in such ITR and
3) has paid the tax due on the income declared by him in ITR.
AND the person furnishes a certificate to this effect from an accountant in Form 26A. The benefit is available to resident only.
- If the settlement does not take place before filing of return, debit the amount in his account for his share of TDS.
Thanks
